Indian equity benchmarks traded with negative bias throughout the day and settled Monday's session with losses of over half percent, on the back of sustained selling activities by market-participants. Markets made gap-down opening, as traders remained concern with S&P Global Ratings stating that the Indian economy is in deep trouble with growth expected to contract by 5 percent in this year. It added that difficulties in containing the virus, an anemic policy response, and underlying vulnerabilities, especially across the financial sector, are leading us to expect growth to fall this year before rebounding in 2021. The street remained disappointed with private report stating that extended period of the lockdown and increase in COVID-19 positive cases will have a strong impact on the economic growth, while supply chain disruption is expected to keep food prices at elevated levels. Key gauges continued their weak trade during afternoon deals, as India's foreign exchange reserves retreated from a life-time high to touch $505.566 billion in the week ended June 19, down by $2.078 billion from the previous week. Further, geopolitical tensions like India-China border issue and US-China trade tiff kept participants on edge. However, markets managed to pare most of their losses in late trade, taking support from Commerce and Industry Minister Piyush Goyal's statement that adoption of technology and the digital economy would play a vital role in transforming business enterprises in the future and achieving the target of $5 trillion economy. Some support also came with the India Meteorological Department's statement that the Southwest Monsoon has covered the entire country nearly two weeks ahead of its schedule. Finally, the BSE Sensex lost 209.75 points or 0.60% to 34,961.52, while the CNX Nifty was down by 70.60 points or 0.68% to 10,312.40.

The US markets settled higher on Monday, as upbeat economic data raised hopes, and also as Boeing shares surged. Markets scored an early boost after a report showed that pending home sales in May spiked 44.3% compared with April, according to the National Association of Realtors. That beat expectations of a 15% rise. Sales were still 5.1% lower compared against the same time last year. Besides, sentiments got boost after Boeing (BA) shares soared more than 14% after the company got permission to test flights using the 737 Max. The Federal Aviation Authority has been reviewing the safety fixes done on the aircraft. The Boeing 737 Max flights were grounded worldwide on safety concerns and deliveries were suspended after two fatal accidents that killed 346 people. It is expected that the airworthiness would be revoked on satisfactory test flights. Markets rose despite several states in the US reporting sharp spikes in new coronavirus cases over the weekend. A dozen states, including Florida, Texas, California and Arizona - now hot spots in the US - reversed reopening plans and implemented tighter restrictions to prevent a further spread of the viral epidemic. Meanwhile, New York Gov. Andrew Cuomo said he may slow New York City's broader Phase III reopening slated for next Monday, which would allow indoor dining at restaurants and more personal-care services and outdoor activities to resume. An inability to curtail the spread of COVID-19 would prove problematic for economic projections that factor in a sharp, V-shaped rebound, if business activity stalls or more closures are ordered to address the public health crisis.

Crude oil futures ended higher on Monday buoyed by some recovery in energy demand. Better than expected economic data from China pushed up oil prices. According to data released by China's national bureau of statistics, profits at China's industrial firms in May rose 6% year-on-year to 582.3 billion yuan ($82.28 billion), rising for the first time in six months. The rise suggests the country's economic recovery is gaining traction and brightening the outlook for manufacturing investment and jobs. However, Fears of a second wave of the virus pandemic have raised the possibility of another lockdown. The US is the worst-hit country with over 2.5 million infections, while its death toll exceeds 125,500. New outbreaks are reported in countries including China, New Zealand and Australia. Crude oil futures for August rose $1.21 or 3.1 percent to settle at $39.70 a barrel on the New York Mercantile Exchange. August Brent crude added 69 cents or 1.7 percent to settle at $41.71 a barrel on London's Intercontinental Exchange.

Indian rupee ended higher against dollar on Monday, owing to dollar sale by exporters and banks. Besides, the dollar losing muscle against other currencies overseas too helped the domestic currency. However, gain remain capped as S&P Global Ratings said Indian economy is in deep trouble with growth expected to contract by 5 percent in this year before rebounding in 2021 on account of difficulties in containing the virus, an anemic policy response, and underlying vulnerabilities, especially across the financial sector. On the global front; dollar struggled to make headway on Monday, and riskier currencies inched ahead, as investor sentiment swung between hopes for a global economic recovery and fears that a fresh wave of coronavirus cases could undermine the revival. Finally, the rupee ended at 75.58, 7 paise stronger from its previous close of 75.65 on Friday.

The FIIs as per Monday's data were net sellers in equity segment, while they were net buyers in debt segment. In equity segment, the gross buying was of Rs 4749.26 crore against gross selling of Rs 5707.12 crore, while in the debt segment, the gross purchase was of Rs 1550.02 crore with gross sales of Rs 1346.64 crore. Besides, in the hybrid segment, the gross buying was of Rs 43.24 crore against gross selling of Rs 47.32 crore.

The US markets ended higher on Monday as the sentiment boost from upbeat US housing data outweighed the threat of rising Covid-19 infections. All the Asian markets are trading in green on Tuesday after data showed China's manufacturing sector grew more than expected in June, a hopeful sign for a global economy still struggling to recover from the sweeping impact of the coronavirus crisis. Indian markets ended notably lower on Monday as mounting coronavirus cases both at home and abroad kept investors on edge. Today, the start of the session is likely to be optimistic tracking firm global cues. The announcement of Unlock 2 - phase of the reopening of the economy might aid the positive sentiment. Investors will be looking ahead to the Prime Minister Narendra Modi's address at 4 PM today in which he is expected to speak on the Unlock 2 - phase as well as the government's decision to ban 59 Chinese mobile apps amid border tensions with China. Traders will be taking encouragement with Union minister Mahendra Nath Pandey's statement that the government has approved the third phase of skill development scheme, Pradhan Mantri Kaushal Vikas Yojana (PMKVY), with an increased focus on digital technology and industry 4.0. Some support will also come as the Reserve Bank of India (RBI) will be conducting a buy and sell open market operations (OMO) in bonds worth Rs 10,000 crore. Though, traders may be some cautiousness as India recorded over 18,000 Covid-19 cases in the last 24 hours, taking its total count to 567,536. Around 16,900 people have succumbed to the disease. Traders may be concerned with India Ratings and Research's report that the gross state domestic product (GSDP) of all states is likely to contract up to 14.3 per cent in the current financial year due to the impact of Covid-19-induced lockdown on economic activities. There will be some buzz in the metal stocks as Union Steel Minister Dharmendra Pradhan said that the country has avoided steel imports worth over Rs 20,000 crore following DMISP policy since its launch in 2017. Auto stocks will be in focus with private report that India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years. There will be some reaction in telecom stocks after the Trai released mobile subscriber data for the month of February.

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

Nifty Top volumes

• Dr Reddy's Laboratories is expecting to launch 25 products in the US market in the current financial year. 
• SBI is working on setting up an e-commerce portal for marketing of products manufactured by MSMEs in the country. 
• Cipla and Boehringer Ingelheim India have entered into a partnership in India to co-market three new oral anti-diabetics drugs. 
• Coal India has identified 14 additional projects involving capital expenditure of more than Rs 3,400 crore under the first mile connectivity initiative to upgrade transport facility at mines.