Global markets end higher amid political turmoil, volatile oil prices; Dow, Nikkei jump 2%

For the week, the S&P rose 1.62 percent while the Dow added 2.76 percent and the Nasdaq gained 1.21 percent while the FTSE 100 index closed 0.30 percent lower with the index ending the week half a percent lower.

 

The Nifty50 opened the week at 10,765.95 on Monday and closed at 10,767 on Friday. But it hit a low of 10,633.15 on 5 June and a high of 10,818 on Thursday.For Friday, Nifty index opened negative but managed to hold on to its immediate support of 10,700 – 10,720 zones and recovered towards its crucial hurdle of 10,770-10,780 zones. For the week the Sensex was up 0.61 percent while the Nifty gained 0.67 percent.

Sentiments in the Indian bond markets continued to remain weak as 10-year bond yield climbed above 8 per cent amid concern about quickening inflation and the government’s budget deficit.

Midcap & Small Capitalisation stocks that were already under pressure in the last few weeks saw more weakness after market regulator placed some companies under additional surveillance -- or ASM to check abnormal rise in stock prices that does not commensurate with the financial health of companies.

The Reserve Bank of India hiked interest rate by 25 bps for the first time since 2014. Monetary policy committee (MPC) maintaining policy stance at “neutral” now expects retail inflation at 4.8-4.9 percent in the first half of the year and at 4.7 percent in the second half of the year. The MPC sees GDP growth at 7.4 percent in FY19.
On the macro front, the government will announce industrial production data for April 2018 on Tuesday, 12 June 2018. India's industrial output grew 4.4 percent year-on-year in March 2018, following a downwardly revised 7 percent advance in the previous month.
US stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions but trading volume was relatively light ahead of a busy week of central bank meetings. The S&P 500 stayed in positive territory in the afternoon after reversing losses in the early afternoon with its biggest boosts coming from the health care and consumer staples sectors.
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