Indian equity bourses commenced the fresh week on a depressing note, as the benchmark indices extended previous week's sell-off and sank by over half a percent, as investors maintained conservative approach and remained cautious ahead of Federal Reserve Chair Janet Yellen's speech later in the day for clues on the outlook for US monetary policy. The broader markets too failed to show any kind of fervor and plunged by close to a percent, underperforming their larger peers by quite a margin. Sentiments were undermined after CRISIL enlightened that the steps taken by Reserve Bank of India (RBI) to resolve NPAs are likely to raise provisioning by a whopping 25% this year as lenders will take up to 60% hair cut while resolving these accounts. Further, the central bank told banks to set aside at least 50% of loan amount for cases referred to insolvency process. The move could take its toll on banks' earnings. Adding the cautiousness among market participants, Finance Minister Arun Jaitley said that the Centre made a last-ditch effort to get Jammu & Kashmir on board to launch goods and services tax (GST) from July 1 suggesting that the state government had elbow room to convey its concurrence to join the new regime. He cautioned that a failure to launch GST will impact consumers and businesses in the state. Meanwhile, Prime Minister Narendra Modi and President Donald Trump have agreed to strengthen the Indo-US economic partnership in a way that results in a win-win for the two major economies, while amicably working on resolving differences. Going forward in near term, Market is expected to stay choppy ahead of F&O expiry due this week and GST rollout lined up for June 30 midnight. Finally, the BSE Sensex declined 179.96 points or 0.58% to 30,958.25, while the CNX Nifty was down by 63.55 points or 0.66% to 9,511.40. 

The US markets closed lower on Tuesday, as large-cap technology stocks fell more than 1 percent, while a Senate vote delay raised heighten policy uncertainty. The International Monetary Fund cut its growth forecasts for the US economy to 2.1 percent for both 2017 and 2018, dropping its assumption that President Donald Trump's tax cut and fiscal spending plans would boost growth. The IMF, after a review of US economic policy, said the Trump administration was unlikely to achieve its goal of annual GDP growth of 3 percent over a sustained period, partly because the labor market is at a level consistent with full employment. The US economy grew 1.6 percent last year. The assumed stimulus from expected tax cuts and new federal spending spurred the IMF earlier this year to bump up its US growth forecasts to 2.3 percent in 2017 and 2.5 percent in 2018. The assumptions for those forecasts appeared to have evaporated in the face of a lack of details over the Trump tax plan and the $3.6 trillion in government spending cuts proposed in the administration's budget plan in late May. The Dow Jones Industrial Average lost 98.89 points or 0.46 percent to 21,310.66, Nasdaq dropped 100.53 points or 1.61 percent to 6,146.62, while S&P 500 edged lower by 19.69 points or 0.81 percent to 2,419.38.

Crude oil futures extend the gaining streak and ended higher for the fourth straight session on Tuesday. Though, traders remained concerned about OPEC's ability to co-ordinate effectively its supply quota plan. Nigeria and Libya, which are exempt from the OPEC-led cuts, have also raised production. Brent was supported by a forecast for weather related weekly decline in US crude supplies despite ongoing expectation of rise in US crude output. Meanwhile, the American Petroleum Institute was due to release stockpile data for the latest week later in the session. Benchmark crude oil futures for July delivery ended up by $0.86 or 2 percent to $44.24 on the New York Mercantile Exchange. In London, Brent crude for July delivery ended up by 1.8 percent to $46.65 on the ICE.

Reversing day's early gains, Indian rupee concluded marginally weaker against US dollar on Tuesday, on account of buying of American currency by banks and importers. Sentiments remained down-beat with CRISIL enlightening that the steps taken by Reserve Bank to resolve NPAs are likely to raise provisioning by a whopping 25% this year as lenders will take up to 60% hair cut while resolving these accounts. Besides, a fragile domestic equity market too affected the rupee. On the global front, dollar rose on Tuesday to its highest level against yen in nearly five weeks ahead of comments from Federal Reserve Chair Janet Yellen that are expected to underline her positive view of the US economic outlook. Finally, the rupee ended at 64.53, 1 paise weaker from its previous close of 64.52 on Friday.

The FIIs as per Tuesday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 5058.09 crore against gross selling of Rs 4569.92 crore, while in the debt segment, the gross purchase was of Rs 1451.86 crore with gross sales of Rs 1215.25 crore.

The US markets ended in red terrain in last session, as the International Monetary Fund lowered its outlook for U.S. economic growth. The Asia markets have made a negative start tracking the weak cues overnight from Wall Street and comments from European Central Bank Mario Draghi that the central bank could pare back stimulus this year. The Indian markets lost over half a percent in the last session, showing a dismal performance ahead of Federal Reserve Chair Janet Yellen's speech. Today, the start of the penultimate session of the F&O series expiry is likely to be in red on weak global cues. On the domestic front, traders will remain cautious with Finance Minister Arun Jaitley's statement that people may have to face some difficulty initially as the GST is rolled out but in the long run the new indirect tax regime would help cut tax evasion and check price rise. He also said the GST Council will look at bringing real estate within the GST net by next year and revisit taxing of petroleum products under the new regime in 1-2 years. There will be some buzz in the banking stocks, as maintaining its negative outlook on Indian banks, Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of eight Indian banks -- State Bank of India, Bank of Baroda, Bank of Baroda (New Zealand), Punjab National Bank, Canara Bank, Bank of India, ICICI Bank and Axis Bank. Stocks related to oil space will get some respite on report that the GST Council may decide to include natural gas in the Goods and Services Tax (GST) regime as a measure to provide some relief to the oil and gas sector.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• ONGC has received environmental clearance for drilling five wells to explore shale gas and oil in the KG basin of Andhra Pradesh at an estimated cost of Rs 217 crore.
• HDFC will seek shareholders' approval at the AGM next month to raise up to Rs 85,000 crore through various debt instruments.
• Yes Bank has become the first bank in India and among a select few globally, to be certified by BSI, United Kingdom, for Enterprise Risk Management Framework.
• M&M has incorporated a new subsidiary company ‘Mahindra Telecom Energy Management Services' with effect from June 25, 2017.