10 things you need to know before the opening bell on July 5

SUMMARY

The Indian equity market is likely to open higher on Monday as the trend on SGX Nifty indicates a positive start for the broader index in India. Here are the key things to know before the opening bell:

By CNBC-TV18Jul 5, 2021 8:02:26 AM IST (Published)

1. Wall Street | US Stocks ended higher on Friday led by gains in the Technology, Consumer Services and Healthcare sectors. At the close in NYSE, the Dow Jones Industrial Average rose 0.44 percent, or 152.82 points, to close at 34,786.35, while the S&P 500 index gained 0.75 percent, or 32.40 points, to end at 4,352.34. The NASDAQ Composite index closed 0.81 percent, or 116.95 points higher at 14,639.33.

2. Asian markets | Asian stocks traded mixed in Monday morning trade ahead of key economic data releases in Australia and China. In Japan, the Nikkei 225 fell 0.5 percent while the Topix index declined 0.43 percent. South Korea’s Kospi gained 0.33 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.26 percent higher.

3. Indian market on Friday | The Indian equity benchmark indices ended higher on Friday led by gains in pharma and realty stocks. The Sensex gained 166.07 points, or 0.32 percent, to end at 52,484.67 while the Nifty ended 42.20 points, or 0.27 percent higher at 15,722.20. Broader markets, smallcap and midcap indices, outperformed the benchmarks. Among sectors, private banks, pharma, realty and financial services gained while Nifty Metal ended under pressure.

4. Crude oil | Oil prices fell in the morning of Asia trading hours ahead of another meeting between OPEC and its allies. Brent crude futures were 0.12 percent lower at $76.08 per barrel following a rise last week from below $74.40 per barrel. US crude futures slipped 0.1 percent to $75.09 per barrel.

5. Rupee | The rupee declined by 19 paise to close at a 14-week low of 74.74 against the US currency on Friday as a firm dollar and expectations of a further spike in crude oil prices weighed on investor sentiment. At the interbank foreign exchange market, the rupee opened on a negative note at 74.71 per dollar against its previous close of 74.55. It hovered in the range of 74.65 to 74.87 per dollar during the day before ending at 74.74.

6. Exports grow 47% to $32.46 bn in June; trade deficit at $9.4 bn | The country’s exports rose by 47.34 percent to $32.46 billion in June on account of healthy growth in sectors such as engineering, gems and jewellery and petroleum products, even as trade deficit aggregated at $9.4 billion during the month, according to the data released by the commerce ministry on Friday. Imports in June 2021 grew by 96.33 percent to $41.86 billion, from $21.32 billion in June last year.

7. FPIs invest Rs 13,269 cr in Indian markets | In reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing Rs 13,269 crore in Indian markets. According to depositories data, FPIs invested Rs 17,215 crore in equities between June 1 and June 30. On the contrary, they withdrew Rs 3,946 crore. Net investment during the period under review stood at Rs 13,269 crore.

8. Govt readies amendments to GIBNA for insurance PSU privatisation | To facilitate privatisation of a public sector general insurance firm, the government is working on amendments to the General Insurance Business (Nationalisation) Act (GIBNA), and a Bill for that is likely to come up in the upcoming monsoon session. The monsoon session is expected to begin from July 19.

9. LIC IPO: Govt likely to invite bids from merchant bankers this month | The government is likely to invite bids from merchant bankers this month for managing LIC disinvestment as it moves ahead with plans to launch the IPO by January, an official said. The official further said the Budget amendments to the LIC Act have been notified and the actuarial firm would work out the embedded value of the life insurer in the next couple of weeks.

10. Businesses need not deduct TDS on share/commodity purchases via exchanges | Businesses buying shares or commodities traded through recognised stock or commodity exchanges for any value even above Rs 50 lakh will not be required to deduct TDS on the transaction, the income tax department has said.