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What changed for D-Street while you were sleeping

Here’s breaking down the pre-market actions.

ETMarkets.com|
Last Updated: Mar 12, 2020, 08.09 AM IST
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Market Movers: What changed for D-Street while you were sleeping
Nifty futures on the Singapore Exchange traded 503.10 points or 4.82 per cent lower at 9,951.50, indicating a gap-down start for Dalal Street.
NEW DELHI: With WHO officially declaring COVID-19 a pandemic, nations shutting down borders and US stocks plunging nearly 6 per cent in overnight trade, Nifty50 testing sub-10,000 level is a real possibility now.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for gap-down start
Nifty futures on the Singapore Exchange traded 503.10 points or 4.82 per cent lower at 9,951.50, indicating a gap-down start for Dalal Street.

Tech view: Nifty may test 10,000 level
Nifty50 on Wednesday halted a falling spree and formed a bullish candle on the daily chart. During the day, the bulls managed to defend the recent low of 10,294. “Fresh short position can be initiated once Nifty breaks the swing low of 10,294. The overall structure shows the index is poised to test the key psychologically important 10,000 mark, which is near the previous Wave IV low as per the Elliott Wave Theory,” said Gaurav Ratnaparkhi of Sharekhan.

Asian markets off to shaky start
It was a sea of red for Asian markets at the open, with Tokyo's benchmark Nikkei 225 index down 2.24 per cent to 18,980.22 and the broader Topix index falling 2.42 per cent to 1,351.61. Australia's ASX was down 2.6 per cent an hour into trade, with New Zealand's benchmark NZX50 down nearly three per cent in early afternoon trade. South Korea's KOSPI was down 1.22 per cent in early trade.

Oil falls 3% as US bans travel from Europe
Oil prices fell, adding to steep losses in the previous session after the US banned travel from Europe following a declaration that the coronavirus outbreak is now a pandemic. The threat of a flood of cheap supply compounded market concerns. Brent crude was trading down $1.03, or 2.9 per cent, at $$34.76 having switched in and out of positive territory before the US announcement.

US stock plunges 5% in overnight trade
In overnight trade, the Dow Jones Industrial Average on Wednesday shed 1,464.94 points, or 5.86 per cent, to 23,553.22. The 30-stock index fell into a bear market, down more than 20 per cent from last month's record close. On Thursday, US S&P500 futures were down more than 3 per cent in early trade.

Gold prices jump in early trade
Gold rose on Thursday as concerns about the economic impact from the coronavirus increased after world health officials declared it a pandemic and many countries took measures to combat the spread by restricting public gatherings. Spot gold rose 0.6 per cent to $1,645.00 per ounce.

FIIs sell Rs 3,515.38 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,515.38 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,835.46 crore, data suggests.

MONEY MARKETS

Rupee: The rupee recovered 49 paise to settle at 73.68 against the US dollar on Wednesday amid positive domestic equities and weakening of the American dollar in the overseas market.

10-year bonds:
India 10-year bond yield rose 0.97 per cent to 6.13 after trading in 6.09-6.16 range.

Call rates: The overnight call money rate weighted average stood at 4.94 per cent, according to RBI data. It moved in a range of 3.70-5.25 per cent. (Values not updated, showing blank)

HAPPENING TODAY
  • India Jan Industrial Production
  • India Feb Inflation Rate
  • Japan Feb PPI
  • Aussie PM Address on Coronavirus
  • US March Initial Jobloss Claims
  • ECB Interest Rate Decision

MACROS

US bans travel from Europe
Taking drastic action, President Donald Trump announced he is cutting off travel from Europe to the US and moving to ease the economic cost of a viral pandemic that is roiling global financial markets and disrupting the daily lives of Americans. Trump made the announcement that he is suspending all travel from Europe to the US for 30 days beginning late Friday -- at midnight -- during a rare Oval Office address to the nation.

US bans travel from Europe
Taking drastic action, President Donald Trump announced he is cutting off travel from Europe to the US and moving to ease the economic cost of a viral pandemic that is roiling global financial markets and disrupting the daily lives of Americans. Trump made the announcement that he is suspending all travel from Europe to the US for 30 days beginning late Friday -- at midnight -- during a rare Oval Office address to the nation.

Trump address awaited
Global shares were set for a rocky ride on Thursday as investors tally the economic damage of coronavirus, a day after the US Dow Jones industrials entered bear market territory and world health officials declared the virus a pandemic. Markets desperate for government action to offset the impacts of the global outbreak will look to an address by U.S. President Donald Trump scheduled for 9 p.m. EDT (0100 GMT). On Wednesday, the S&P 500 .SPX lost 4.89% while the Dow Jones Industrial Average .DJI fell 5.86% to extend its fall from a record peak hit a month ago to more than 20%.

SBI cuts rates on savings accounts
State Bank of India has cut interest rates on savings accounts to 3% across the board, the country’s biggest lender said on Wednesday.While the rate for customers with balances exceeding Rs 1 lakh was already 3%, the rate reduction on these savings deposits would affect savers whose balances are less than Rs 1 lakh, where the rates were earlier 3.25%.“The bank has rationalised interest rate on savings bank accounts to a flat 3% per annum for all buckets

India CAD may fall 25 bps to 0.7% in FY21
Falling crude oil prices will help reduce current account deficit by 25 basis points to 0.7% of the GDP in FY2021, says the Wall Street brokerage Bank of America Securities. Crude has fallen by over 45 per cent since the coronavirus outbreak in China since January, which has now spread to over 110 countries. Following Russia's decision not to cut production as suggested by the oil cartel Opec, Saudi Arabia has decided to up production and cut prices earlier this week, which led to a steep 30 per cent plunge in crude prices on Monday.

GST rationalisation on the cards
The Goods and Services Tax (GST) Council is likely to consider a proposal to increase GST on mobile phones to 18% in its next meeting on March 14 to correct the inverted duty structure being faced by the industry, reports ET. Proposals to correct the inverted duty structure in fabrics, readymade garments and even fertilisers could also be taken up at the meeting.

SBI plans microfinance foray
State Bank of India has decided to enter the microfinance market that has shown immunity to economic downturn. The move by India’s largest lender is likely to roil the segment because it is planning to offer micro loans at rates lower than that is prevailing in the market nationwide through its wide network of branches. The state-owned lender is setting up a vertical, Financial Inclusion & Micro Market (FIMM), to handle its microfinance operations.
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