Market may open slightly higher

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 9 points at the opening bell.

Ratings agency Moody's on 22 June 2020 said that it sees India's GDP contracting to 3.1% in 2020 and growing 6.9% in 2021. It also said that the second quarter of the current fiscal will go down as the worst quarter for global economy since World War 2, although it will start improving from the beginning of the second half of 2020.

Overseas, Asian stocks are trading higher on Tuesday after a positive close on Wall Street.

Japan's factory activity remained stuck at an 11-year low in June, in a sign the coronavirus pandemic is taking a toll on manufacturers even as services-sector sentiment picks up. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) edged down to a seasonally adjusted 37.8 from a final 38.4 in May. The index recorded its lowest since March 2009 for a second straight month, staying below the 50 threshold that separates contraction from expansion for a 14th month.

In US, Wall Street's three major indexes closed higher on Monday with the biggest gains in technology stocks as investors focused on the potential for more government stimulus measures even as they worried about an increase in coronavirus cases in the United States and other countries.

Dow ended above 26,000 while rally in tech-related stocks propelled Nasdaq to fresh record close.

Meanwhile, New York City started allowing companies to reopen their offices Monday after a three-month lockdown because of the pandemic. White House trade adviser Peter Navarro said the Trump administration is preparing for a second wave, but isn't anticipating one.

Steve Schwarzman, CEO of Blackstone said that the economy may benefit from a V-type recovery but getting back to levels of 2019 will take 'quite a while.'

Back home, the market ended a volatile session with decent gains on Monday, shrugging negative global cues. The firmness in domestic shares was led by strength in financial stocks. The barometer S&P BSE Sensex climbed 179.59 points or 0.52% at 34,911.32. The Nifty 50 index rose 66.80 points or 0.65% at 10,311.20.

Foreign portfolio investors (FPIs) bought shares worth Rs 424.21 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,287.69 crore in the Indian equity market on 22 June, provisional data showed.

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