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Business News/ Markets / Live Blog/  Market Close Highlights : Nifty ends at 23,465 after fresh high, Sensex up 180pts; auto, consumer goods stocks gain most
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Market Close Highlights : Nifty ends at 23,465 after fresh high, Sensex up 180pts; auto, consumer goods stocks gain most

Market Close Highlights : FIIs net sold 3,033 crore, while DIIs net sold 554 crore worth of equities on 13 June, per provisional data from NSE. FIIs bought 19,191 crore and sold 22,224 crore, and DIIs bought 12,374 crore and sold 12,928 crore worth of equities on Thursday.

Market Close Highlights : The NSE F&O ban list for June 14 includes Hindustan Copper, India Cement, GMR Infra, SAIL and Sun TV. (Photo: AP)Premium
Market Close Highlights : The NSE F&O ban list for June 14 includes Hindustan Copper, India Cement, GMR Infra, SAIL and Sun TV. (Photo: AP)

Market Close Highlights : European stocks headed for their worst week since January on growing concerns about political turmoil in France.

The Stoxx 600 held at Thursday’s low as France’s CAC 40 index dropped 1%. The euro fell to its lowest against the dollar since April.

S&P 500 futures, meanwhile, held steady after notching up four record highs for the week. A gauge of the dollar rose against major global currencies, while Treasury yields were little changed after falling in the previous session.

European markets are increasingly anxious after French President Emmanuel Macron announced a snap legislative election following his party’s drubbing in the European Parliament elections. Investors fear a win for Marine Le Pen’s far-right National Rally party, which leads polls by a wide margin, will usher in looser fiscal policies.

The uncertainty has sent the premium France pays on its debt relative to Germany soaring this week, on pace for the biggest move stretching back to the European debt crisis in 2011.

“It’s hard to ignore the parallels between our current situation and the time of the sovereign debt crisis, as there’s that familiar focus on election results, sovereign bond spreads and debt sustainability," said Jim Reid, an analyst at Deutsche Bank AG. That’s “coupled with no obvious sign about where things are headed next."

In Asia, MSCI’s Asia Pacific index slipped as losses in Australian and Chinese stocks offset gains in Japan’s benchmark.

The Bank of Japan triggered a slump in the yen after making investors wait until its July meeting for details on its paring of bond buying, a move that was also seen as a delay in the normalization in policy. Still, Governor Kazuo Ueda said he sees the possibility of a rate hike in July, depending on data.

A “weak yen might weight down the flows from overseas investors in the summer," said Hiromi Ishihara, head of equity investment at Amundi Japan. “That said, we still believe that BOJ is set to move a further hike this year."

14 Jun 2024, 08:36:37 AM IST

Sensex Today Live : Global cues weigh on sentiment; Indian markets expected to start slow

Sensex Today Live : Indian benchmark indices were expected to open on a muted note with a positive bias as global markets weighed the timeline for interest rate cuts by the Federal Reserve this year.

In India, Gift Nifty futures were trading at 23,419, marginally ahead of Nifty 50's Thursday close of 23,399, indicating a muted but positive start for markets in India.

Asian stocks fell on Friday as investors pondered the outlook for U.S. rates after the Federal Reserve tempered its rate-cut views even as inflation came in softer than expected, while the yen was shaky before the Bank of Japan's policy meeting.

The dollar was hovering near a one-month high on the back of the hawkish tone from the Fed this week, while political uncertainty in Europe kept the euro under pressure.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.48% lower. Chinese stocks also fell, with the blue chip shares down 0.3%, while Hong Kong's Hang Seng was 0.79% lower.

Japan's Nikkei declined 0.25%, while the yen was slightly weaker at 157.185 per dollar in early trading ahead of the BOJ meeting where the central bank is likely to keep interest rates ultra-low.

But the focus will be on whether the BOJ will take steps to trim its bond purchases or drop clues on its future tapering plans and start reducing its huge balance sheet.

A Reuters poll showed nearly two-thirds of economists expect the BOJ to start tapering its monthly bond buying, now set at around 6 trillion yen ($38 billion), on Friday.

"It is possible that the BOJ will tweak its JGB buying operation with only a small reduction, but we are not sure that the BOJ will start cutting without a grace period," said ING economists in a note.

The yen's decline to a 34-year low of 160.245 per dollar at the end of April triggered several rounds of intervention by Japanese authorities totalling 9.79 trillion yen ($62.25 billion).

The yen, which is extremely sensitive to U.S. Treasury yields, is down over 10% against the dollar this year.

Greg Hirt, global CIO for multi asset at AllianzGI, expects the BOJ to remain patient and possibly raise rates only in July or later this year as more data become available over the summer.

"The wild card is the renewed weakness of the yen over the past two months. Another bout of currency-induced cost-push inflation could be detrimental to achieving the goal of real income growth."

On the macro level, markets remain focused on when the U.S. central bank will cut rates and by how much after event-filled week.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased to a 10-month high last week, while producer prices unexpectedly fell in May.

That followed Wednesday's cooler-than-expected consumer inflation report and the Fed's revised dot plot, which lowered rate-cut expectations this year from three to one.

James McCann, deputy chief economist at abrdn, said the Fed seems to be in a patient mood as it waits for signs of sustained progress on inflation and expects the U.S. central bank to start its monetary easing campaign in December.

Traders though are taking their cues from the inflation reports and are now pricing in 50 basis points of cuts this year, with a rate cut in September priced in at 68%, CME FedWatch tool showed.

"Rate expectations are likely to remain volatile over coming months against the backdrop of a data dependent Fed," McCann said.

The shifting expectations has seen the dollar bounce around this week, with the U.S. currency index which measures its value against six peers, last at 105.25, not far from the one-month high of 105.46 it touched on Tuesday. The index is up 0.3% for the week.

In commodities, oil prices eased on Friday but were on track for their first weekly gain in four weeks as markets assessed the impact of U.S. rates staying higher for longer against solid outlooks for crude and fuel demand this year.

Brent crude futures fell 0.62% to $82.26 a barrel while West Texas Intermediate (WTI) U.S. crude futures eased 0.69% to trade at $78.08.

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