Pre-opening: Market upbeat on monsoon but Brexit risk looms

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The market is likely to open flat on Tuesday as SGX Nifty indicates but concerns of Brexit looms large. However, experts feel that Indian market is upbeat on monsoon with rains covering half of India. Equity benchmarks gained nearly a percent on Monday, tracking rally in global peers while raising FDI limits in various sectors also boosted sentiment. The 30-share BSE Sensex rose 241.01 points or 0.91 percent to 26866.92 and the 50-share NSE Nifty gained 68.30 points or 0.84 percent at 8238.50 while the broader markets underperformed. The BSE Midcap and Smallcap indices advanced 0.4 percent each. The Indian food regulator Food Safety and Standards Authority of India (FSSAI) has cracked the whip releasing a new list of 11,000 permissible food additives, which does not have potassium bromate on it. There was a huge national wide uproar after a report released by CSE showed 84 percent of the bread samples in India contain this chemical which is often linked to cancer. This new list which is based on a scientific panel report submitted to the health ministry in January this year comes into effect immediately. Country’s second largest CNG retailer Mahanagar Gas initial public offer will open today and close on June 23. At the upper end of the price-band, the firm will garner Rs 1,039.64 crore. Globally, Asia markets took a breather in morning trade, with major indexes in Japan and South Korea dropping at the open, following Monday’s global rally on easing Brexit concerns and gains in oil prices. The benchmark Nikkei 225 dropped as much as 1.13 percent in early trade, before paring some losses to trade down 0.46 percent. Japanese stocks were under pressure from renewed strength in the yen . US market ended higher with the Dow closing up triple digits. S&P 500 briefly touched the key 2100-mark. All eyes are on June 23, when Britons will vote to decide if the UK should leave or stay within the European Union. Polls show vote will be close on whether UK stays in the EU. In the currency space the pound has retreated after its strongest surge since 2008, as polls published early today highlighted that the “leave” campaign retains strong support. Meanwhile the yen continues to strengthen. Crude prices declined after surging over 3 percent yesterday. Brent is still holding above USD 50 per barrel. Gold prices fell as markets watch Brexit campaign.