Local stocks are likely to open lower after rising for fourth straight session on Monday. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 20 points at the opening bell.
The Union Cabinet on June 1 approved minimum support price for 14 kharif crops. The revised prices will provide farmers nearly 50-83% more than the cost. The MSP for paddy has been raised by Rs 53 to Rs 1,868 per quintal for the 2020-21 crop year, Tomar said, adding for Jowar MSP is at Rs 2,620 per quintal and Bajra at Rs 2,150 per quintal. Among other produce, the MSP for Cotton has been increased by 50 percent or Rs 260 to Rs 5,515 per quintal.
The Union Cabinet at its meeting on June 1 has approved changes to the definition of micro, small and medium Enterprises (MSMEs). Raising the turnover limit for medium enterprises to Rs 250 crore, the government aims to broaden the scope of MSMEs.
The new definition of MSMEs would benefit units. Enterprises with Rs 1 crore investment and Rs 5 crore turnover would now qualify as micro enterprises. Businesses with an investment of less than Rs 10 crore and turnover less than Rs 50 crore will now be classified as small enterprises.
Moody's Investors Service on Monday downgraded India's rating to BAA3 and maintained the negative outlook. Moody's has downgraded India's local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2. The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period. Moody's expects prolonged period of slow growth to continue well beyond the pandemic. India's progress has been hamstrung by tardy implementation of reforms, it said.
Overseas, Asian stocks were trading mixed on Tuesday as U.S. President Donald Trump vowed to use force to end violent protests in American cities, souring a previously upbeat market mood.
US stocks finished session higher on Monday, 1 June 2020, as optimism around economic reopening and better than expected US manufacturing data for May. The S&P 500 closed at its highest level since early March while the Nasdaq ended the session at levels not seen since late February.
However, market gains were somewhat capped due to fears of a resurgence of the coronavirus in the United States following a weekend of riots and protests in the US, including outside the White House, in the wake of the death of African American George Floyd in police custody last week.
Market participants also eyed tensions between the U.S. and China, after Chinese government officials reportedly ordered companies to halt imports of US farm products. The purchases were a key component in the two countries' phase-one trade deal. The move came after President Donald Trump on Friday said his administration would take action to respond to China's crackdown on Hong Kong, including removing Hong Kong's preferential trade status with the U.S. and requesting a working group study Chinese companies listed on U.S. stock exchanges for potential unfair financial practices.
The move comes after Trump on Friday announced a number of measures against Beijing, including paving the way for the U.S. to end Hong Kong's special status, to address what he described as a number of violations from China. Those include Beijing's handling of COVID-19, which was first identified in Wuhan in December.
The Institute for Supply Management said its manufacturing index climbed to 43.1 last month from an 11-year low of 41.5 in April. Readings under 50 indicate more companies are shrinking instead of expanding.
Back home, domestic shares ended with robust gains on Monday, rising for fourth straight session. Easing of lockdown, better-than-expected GDP numbers and positive global cues boosted market sentiment. The barometer S&P BSE Sensex jumped 879.42 points or 2.71% at 33,303.52. The Nifty 50 index gained 245.85 points or 2.57% at 9,826.15.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,575.46 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 459.25 crore in the Indian equity market on 1 June, provisional data showed.
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