Indian equity indices ended Monday's session on lower note with losses of over one and half percent, as a second wave of infections throughout the world, including China and US, gave jitters to investors. Domestic stock markets started the week on a negative note, as traders were cautious as the government has not released the headline IIP growth for April, Consumer Price Inflation (CPI) for May saying that it is not appropriate to compare these readings with the previous months. The March IIP reading has been revised further lower to -18.3 percent versus -16.7 percent said earlier. Besides, it said the May CPI combined food price index is at 9.28 percent and risen up 0.1 percent versus the April reading. Sentiments remained down-beat with private report stated that with the protracted lockdown pushing the Indian economy into deep recession in the current fiscal, the escalating new COVID-19 cases after easing of restrictions poses further downside risks to the economic outlook. Key gauges added more losses in afternoon session to trade near day's low, amid India saw a deflation in wholesale prices in May as the wholesale price index (WPI) contracted 3.21 per cent. Due to limited information available for the month of April 2020, the provisional figures of May-2020 are compared with final figures of March, 2020.  However, Indian market recovered slightly in the last hour of trading session, taking support from the Finance Ministry's statement that public sector banks (PSBs) have disbursed Rs 14,690.84 crore till June 11, under the Rs 3 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the Micro, Small & Medium Enterprises (MSME) sector, hit hard by the coronavirus crisis. Finally, the BSE Sensex lost 552.09 points or 1.63% to 33,228.80, while the CNX Nifty was down by 159.20 points or 1.60% to 9,813.70.

The US markets ended higher on Monday after the Federal Reserve announced plans to begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers. The Fed said it will buy up to $750 million worth of corporate bonds to create a corporate bond portfolio that is based on a broad, diversified market index of US corporate bonds. The index will be made up of all the bonds in the secondary market that have been issued by US companies that satisfy the facility's minimum rating, maximum maturity, and other criteria. Further, sentiments were also upbeat as traders continued to express optimism about the economy as the New York Federal Reserve released a report showing regional manufacturing activity steadied in June after seeing sharp contractions in April and May. The New York Fed said its general business conditions index spiked to negative 0.2 in June from negative 48.5 in May. A negative reading indicates a contraction in regional manufacturing activity. The jump by the index far exceeded the estimates of participants, who had expected the index to surge up to negative 27.5. However, upside remained capped amid concerns about a second wave of coronavirus infections after Beijing recorded a spate of new Covid-19 cases in a major wholesale food market. Data compiled by the New York Times also showed a recent increase in coronavirus cases in more than 20 states, including California, Florida, and Nevada. Texas and North Carolina also reported a record number of coronavirus-related hospitalizations on Saturday, adding to worries that businesses reopening may drive a second wave.

Crude oil futures ended higher on Monday as hopes about production cuts outweighed concerns about the outlook for energy demand. The OPEC members and allies were complying well with their output reduction deal. The UAE energy minister reportedly said that he is confident that those oil producers with poor compliance would meet their commitments. However, reports about a surge in new cases of coronavirus infections in the US, China and Japan limited oil's uptick. Several states in the US reported a surge in new coronavirus infections following the reopening of businesses. Over 25,000 new US cases were reported on Saturday alone as more states reported record new infections and hospitalizations. Crude oil futures for July gained 86 cents or 2.4 percent to settle at $37.12 a barrel on the New York Mercantile Exchange. August Brent crude rose 99 cents or 2.6 percent to settle at $39.72 a barrel on London's Intercontinental Exchange.

Indian rupee ended on weak note against US dollar on Monday, as weak domestic equities and sustained foreign fund outflows weighed on investors' sentiment. Traders remained wary as the government has not released the headline IIP growth for April, Consumer Price Inflation (CPI) for May saying that it is not appropriate to compare these readings with the previous months. The March IIP reading has been revised further lower to -18.3 percent versus -16.7 percent said earlier. Besides, it said the May CPI combined food price index is at 9.28 percent and risen up 0.1 percent versus the April reading. Some pessimism also came with private report stated that with the protracted lockdown pushing the Indian economy into deep recession in the current fiscal, the escalating new COVID-19 cases after easing of restrictions poses further downside risks to the economic outlook. On the global front, dollar rose and commodity currencies fell as a 'risk-off' sentiment dominated markets, driven in part by fears of a second wave of COVID-19 infections after new cases were recorded in Beijing and U.S. numbers spiked over the weekend. Finally, the rupee ended at 76.03, 19 paise weaker from its previous close of 75.84 on Friday.

The FIIs as per Monday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 5401.18 crore against gross selling of Rs 4906.28 crore, while in the debt segment, the gross purchase was of Rs 854.63 crore with gross sales of Rs 795.62 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.02 crore against gross selling of Rs 1.53 crore.

The US markets ended higher on Monday as traders continued to express optimism about the economy as the New York Federal Reserve released a report showing regional manufacturing activity steadied in June after seeing sharp contractions in April and May. Asian markets are trading in green on Tuesday after the Federal Reserve's fresh move to support financial markets through the coronavirus pandemic cheered investors. Indian markets ended sharply lower on Monday, mirroring losses in other global markets amid reports that coronavirus infections in China, Japan and the United States raised concerns of a resurgence of the virus and added to uncertainty about growth outlook. Today, the markets are likely to make positive start following firm global cues. Prime Minister Narendra Modi will hold a video conference with the leaders of 21 states and union territories today and tomorrow to discuss the increasing number of coronavirus cases in the country. Though, rising coronavirus canes may impact sentiments. The total number of coronavirus cases in the country has reached 343,026 and nearly 10,000 have died from the highly contagious disease. Traders may be concerned with the data released by the Commerce and Industry Ministry showing that contracting for the third straight month, India's exports declined 36.47 percent in May to $19.05 billion, mainly on account of drop in shipments by key sectors such as petroleum, textiles, engineering, gems and jewellery. Imports too plunged 51 percent to $22.2 billion in May, leaving a trade deficit of $3.15 billion, compared to $15.36 billion in the same month previous year. Meanwhile, India may impose anti-dumping duty on imports of polystyrene, used in refrigerators and air conditioners, from Iran, Malaysia, Singapore, Chinese Taipei, UAE and the US with a view to guard domestic players from cheap imports from these countries. Also, Retirement fund body Employees Provident Fund Organisation (EPFO) said it has launched a multi-location claim settlement facility to expedite member claims, moving away from the existing system of geographical jurisdiction for claim processing. There will be some reaction in agriculture stocks as buoyed by increase in futures prices and the minimum support price (MSP), cotton farmers have increased acreage under the cash crop by shifting from maize and soybean in the early kharif sowing season.

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

Nifty Top volumes

• TPG is planning to invest Rs 4,546.80 crore in Jio Platforms, a wholly-owned subsidiary of Reliance Industries, at an equity value of Rs 4.91 lakh crore. 
• Tata Motors has signed an agreement to purchase the balance 50% shareholding from the joint venture partner -- Jayem Automotives in JT Special Vehicles.
• Wipro has launched its Digital Inspection Solution for improved workplace safety and experience. 
• Tata Steel has launched specialised Coated Brands for Emerging Corporate Accounts.