Barometers may slide at opening bell

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 30.50 points at the opening bell.

Economy:

India`s GDP growth in Q4 FY22 was at 4.1% year-on-year, compared to a revised growth of 5.4% for Q3 FY22. Gross Value Added (GVA), which excludes the impact of subsidies and indirect taxes, grew 3.9% year-on-year in the fourth quarter.

For the full fiscal year, GDP grew 8.7% year-on-year, compared to a contraction of 6.6% in FY21. GVA for FY22 grew 8.1% year-on-year, compared to a contraction of 4.8% in FY21.

Global Markets:

The US Dow Jones index futures were up 215 points, indicating a positive opening in the US stocks today.

Asian shares were mixed on Wednesday as investors reacted to the release of a private survey on Chinese factory activity for May.

China`s Caixin/Markit manufacturing Purchasing Managers` Index for May came in at 48.1 on Wednesday, an improvement over April`s reading of 46 but still remaining below the 50-level mark that separates expansion from contraction.

Meanwhile, Bank of Japan Deputy Gov. Masazumi Wakatabe said Wednesday that both monetary easing and fiscal expansion would be needed to tackle higher commodity prices and Japan`s low inflation at the same time.

The deputy governor also said medium- to long-term inflation is still expected to rise only moderately in Japan, where he believes there are "scarring effects of prolonged deflation."

U.S. stocks closed lower Tuesday, as Treasury yields pushed higher following last week`s equity market bounce after a historic string of weekly losses. The S&P 500 shed 0.63% to 4,132.15. The Dow Jones Industrial Average dropped 222.84 points, or 0.67%, to 32,990.12. The tech-heavy Nasdaq Composite dipped 0.41% to 12,081.39.

In the commodities market, Brent crude for August 2022 settlement was up $0.68 or 0.59% at $116.28 a barrel. The gains came after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its COVID-19 lockdown in Shanghai.

Domestic Equity Market:

The benchmark indices ended with modest losses on Tuesday, snapping its three-day rising streak. The barometer index, the S&P BSE Sensex, was down 359.33 points or 0.64% to 55,566.41. The Nifty 50 index fell 76.85 points or 0.46% to 16,584.55. The 50-unit index climbed 3.97% in the previous three sessions.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,003.56 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,845.15 crore in the Indian equity market on 31 May 2022, provisional data showed.

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