The Indian stock market is expected to open in the red following weak Asian cues as virus cases continue to surge. SGX Nifty indicates a gap down opening with a 128 points loss.

The market snapped its four-day winning streak on June 24 ahead of June futures and options contracts expiry, with the benchmark indices falling 1.58 percent, dented by weak European cues and selling pressure across sectors barring FMCG. The Sensex corrected 561.45 points to close at 34,868.98. The Nifty lost around 250 points from the day’s high and closed with a loss of 165.70 points at 10,305.30.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

Wall Street’s three major indexes on Wednesday suffered their biggest daily percentage drop in almost two weeks as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage.

The Dow Jones Industrial Average fell 710.16 points, or 2.72%, to 25,445.94, the S&P 500 lost 80.96 points, or 2.59%, to 3,050.33 and the Nasdaq Composite dropped 222.20 points, or 2.19%, to 9,909.17.

Asian Markets

Asian markets were set to follow a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund’s downgrade to global economic projections shook confidence in a recovery.

Australian S&P/ASX 200 futures lost 1.55% in early trading. Japan’s Nikkei 225 futures fell 1.1%. Markets in Hong Kong and mainland China are closed for public holidays on Thursday.

SGX Nifty

Trends on SGX Nifty indicate a gap down opening for the index in India with a 128 points loss. The Nifty futures were trading at 10,185 on the Singaporean Exchange around 07:30 hours IST.

Oil dives over 5% as US crude stocks hit record, COVID cases mount

Oil prices tumbled over 5%, or more than $2 a barrel on Wednesday, after U.S. crude storage hit another record and coronavirus cases rebounded in countries like Germany and surged in heavily populated areas of the United States.

Brent crude settled at $40.31 a barrel, down $2.32, or 5.4%. On Tuesday, Brent hit its highest price since early March, just before the pandemic and Saudi-Russia price war roiled markets. U.S. West Texas Intermediate (WTI) crude settled at $38.01 a barrel, losing $2.36, or 5.8%.

Indian economy will contract by 4.5% this fiscal: IMF

The Indian economy faces an uphill task in its battle to recover from the COVID-19 setback and it has been once again reiterated by the IMF’s latest projection – a sharp contraction of 4.5 percent in this fiscal. IMF, however, said the country is expected to bounce back in 2021 with a robust 6 percent growth rate. It projected the global growth at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast.

“We are projecting a sharp contraction in 2020 of -4.5 percent. Given the unprecedented nature of this crisis, as is the case for almost all countries, this projected contraction is a historic low,” Indian-American Gita Gopinath, IMF’s Chief Economist, said as she released the World Economic Outlook Update.

Donald Trump’s national security adviser takes aim at China

President Donald Trump’s national security adviser has warned China that the United States is waking up to the threat that it believes the Chinese Communist Party poses “to our great way of life” and will act to check the spread of Beijing’s ideology.

“The days of American passivity and naivety regarding the People’s Republic of China are over,” O’Brien told a group business leaders in Phoenix. “America, under President Trump’s leadership, has finally awoken to the threat of the Chinese Communist Party’s actions and the threat they pose to our great way of life.”

Dollar gains as coronavirus fears return to fore

The dollar strengthened on Wednesday as a rise in coronavirus cases in the United States reduced confidence in a quick economic recovery, and as the U.S. weighed tariffs on European products. The dollar index strengthened 0.52% to 97.141. It remains down more than 5% from a three-year high of 102.99 in March.

SEBI comes out with guidelines on order-to-trade ratio for algo trades

Markets regulator SEBI on Wednesday put in place new framework on order-to-trade ratio (OTR) of algo orders placed by stock brokers. Algorithmic trading or ‘algo’ in market parlance refers to orders generated at a super-fast speed by the use of advanced mathematical models that involve automated execution of trade, and it is mostly used by large institutional investors.

In a circular, the Securities and Exchange Board of India (SEBI) said it has decided to modify existing OTR framework after receiving requests from the stock exchanges. Under the framework, stock exchanges may be permitted to introduce additional slabs up to an OTR of 2,000 (from existing OTR of 500), and for OTR more than 2,000, such slabs can be introduced with deterrent incremental penalty, which stock exchanges may decide jointly.

RBI instructs lenders to adhere to fair business practices

The Reserve Bank of India has asked banks and non-banking finance companies (NBFCs) to strictly follow its business practices code and outsourcing norms while lending, warning that any violation will amount to a serious transgression.

Agent platforms working for a lender also need to tell customers on whose behalf they are working. Further, a sanction letter should be issued to the customer on the lender’s letterhead. A copy of the loan enclosures has to be provided to the borrower at the time of sanction or disbursal of a loan, the RBI has said.

“Although there are various control measures prescribed in the outsourcing guidelines and fair practices code, there had been a void space of non- transparency and instances of violations of the extant regulations,” said Sunil Lotke – Chief Officer – Legal, Compliance & Secretarial, U GRO Capital.

SEBI gives another month to firms to file Q4, annual results

Easing compliance requirements due to continuing adverse impact of the coronavirus pandemic, market regulator SEBI on Wednesday gave another month’s extension till July 31 to listed companies for submitting their fourth-quarter as well as annual results. Earlier, the deadline to submit the financial results was June 30.

The development comes after SEBI received representations from listed entities, chartered accountant firms, and industry bodies, seeking further extension of time for filing of financial results for the quarter /half year/financial year ended March 31, 2020.

The entities cited many reasons to seek the extension like the continuing lockdown, subsidiaries and associates situated in containment zones facing challenges in the audit process and other operational issues due to the pandemic.

Results on June 25

Apollo Hospitals Enterprises, Ashok Leyland, Bank of India, Container Corporation of India, Endurance Technologies, Engineers India, Future Supply Chain Solutions, Galaxy Surfactants, Gravita India, Hindustan Aeronautics, Indiabulls Ventures, ICRA, IDFC, Indian Terrain Fashions, Insecticides India, Indian Overseas Bank, JB Chemicals, Lincoln Pharmaceuticals, Prince Pipes and Fittings, Sintex Industries, Somany Ceramics, Star Cement, TTK Prestige, V2 Retail, Varroc Engineering, Zuari Global, etc.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,766.9 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,524.9 crore in the Indian equity market on June 24, provisional data available on the NSE showed.

3 stocks under F&O ban on NSE

Three stocks including Just Dial, Glenmark Pharma and Vodafone Idea are under the F&O ban for June 25. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

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