Tuesday, 16 June 2020
Our View in a Snapshot
| NIFTY | USD/INR | |
| Expected Open | 9980 | 75.90 |
| Expected Range | 9800 – 10200 | 75.70 – 76.20 |
- Asian stocks set to track U.S. gains as Fed steps up support
- Dollar falls after Fed’s corporate bond announcement spurs risk-on move
- Oil prices ease as coronavirus infections rise
Equity
Asian stocks were set to follow a late Wall Street surge on Tuesday, after the Federal Reserve’s fresh move to support financial markets through the coronavirus pandemic cheered investors. The Fed on Monday announced tweaks to its bond buying program, widening the range of eligible assets to include all U.S. corporate bonds that satisfied certain criteria.
Australian S&P/ASX 200 futures were up 2.46%, while Japan’s Nikkei 225 futures rose 0.36% to be up 2.5% from the close of the underlying index on Monday. Hong Kong’s Hang Seng index futures rose 1.65%. MSCI’s gauge of stocks across the globe gained 0.03%.
SCI’s broadest index of Asia-Pacific shares outside Japan was down 0.25% with Australian shares off 0.4% and South Korea slipping 0.6%. Japan’s Nikkei fell 0.75%.
Australian S&P/ASX 200 futures were down 3.04%, while Japan’s Nikkei 225 index closed down 2.82% at 22,472.91 on Thursday. Hong Kong’s Hang Seng index futures were down 2.06%. On Wall Street, the Dow Jones Industrial Average dropped 6.9%, the S&P 500 lost 5.89%, while the Nasdaq Composite shed 5.27%.
Our View on Stock Market
The Indian stock market is expected to open 150 to 175 points up tracking the global stock markets.
The Nifty futures are likely to open around 9,980.
The likely range for the day is 9,800 – 10,200
Currencies
The U.S. dollar fell on Monday afternoon after the Federal Reserve announced it would buy individual corporate bonds in the secondary market, sparking a risk-on move that sent U.S. stocks higher and safe-haven assets like the U.S. dollar lower.
The U.S. dollar index fell 0.47% in North American afternoon trade to 96.73. Against the euro the dollar was 0.52% weaker to $1.131 and against the pound it was 0.36% weaker to $1.259. Against the Japanese yen, another traditional safe-haven, the dollar was flat at 107.33 yen to the dollar.
Our View on USD / INR
The Indian rupee is expected to open flat against the U.S. currency and likely to weaken against dollar amid fears of a second wave of the coronavirus in the world’s largest economy.
The rupee will likely be quoted around 75.90 to a dollar in early trades.
The Rupee is likely to trade in the Range of 75.70 to 76.20
OIL
Oil prices dipped on Tuesday on jitters that a rise in coronavirus infections around the world could hurt fuel demand, but hopes that production cuts could be extended kept declines in check.
Brent crude was down 14 cents, or 0.4%, at $39.58 a barrel, having gained 2.6% on Monday. U.S. oil fell 24 cents, or 0.7%, to $36.88 a barrel, after closing 2.4% higher in the previous session.
Source : Reuters
