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What changed for D-Street while you were sleeping

Analysts said the index needs to breach the 8,900-9,000 range in the near term, before instilling confidence among market participants.

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Last Updated: Mar 30, 2020, 08.26 AM IST
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Nifty futures on the Singapore Exchange traded 56.75 points or 0.67 per cent lower at 8,423, indicating a negative start for Dalal Street.
NEW DELHI: The four-day rally in Indian stocks may come to a halt on Monday, as concerns over the coronavirus intensify following reports that the pandemic has infected over 1,000 people in the country.

Here’s breaking down the pre-market actions.

TRADE SETUP
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 56.75 points or 0.67 per cent lower at 8,423, indicating a negative start for Dalal Street.

Tech view: Nifty resistance at 8,900
Nifty50 wiped off entire intraday gains to end flat on Friday. The index formed a small bearish candle on the daily chart. Analysts said the index needs to breach the 8,900-9,000 range in the near term, before instilling confidence among market participants.

Asian shares fall on virus spread
Asian shares slid as fears mounted that the global shutdown for the coronavirus could last for months. E-Mini futures for the S&P500 skidded 1.2 per cent right from the bell, and Japan's Nikkei 3.2 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent while South Korea shed 2.7 per cent.

Oil prices drop 4% in early trade
Oil prices slumped in Asian trade Monday, tracking falls on stock markets after a sharp escalation in the coronavirus crisis over the weekend. US benchmark West Texas Intermediate fell 3.9 per cent to trade at $20 a barrel, while international benchmark Brent crude was off 4.9 per cent at $23 a barrel.

US stocks ended lower on Friday
Wall Street stocks tumbled on Friday, ending a massive three-day surge after doubts about the fate of the US economy resurfaced and the number of coronavirus cases in the country climbed. The Dow Jones Industrial Average slumped 4.06 per cent to end at 21,636.78 points while the S&P500 lost 3.37 per cent to 2,541.47. The Nasdaq Composite dropped 3.79 per cent to 7,502.38.

DIIs buy Rs 1,704 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 356 crore on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,704 crore, data suggests.

MONEY MARKETS
Rupee: The rupee pared its initial gains to settle 27 paise higher at 74.89 (provisional) against the US dollar on Friday after the RBI announced various measures to stimulate growth amid coronavirus-induced lockdown in the country.

10-year bonds: India 10-year bond yield fell 1.32 per cent to 6.14 after trading in 5.98-6.17 range.

Call rates: The overnight call money rate weighted average stood at 5.35 per cent, according to RBI data. It moved in a range of 3-5.75 per cent.

HAPPENING TODAY

  • UK Nationwide Housing Prices March
  • UK Feb Mortgage Approvals
  • UK BoE Feb Consumer Credit
  • Euro Area March Business Confidence
  • US Dallas Fed Manufacturing Index for March
  • US Feb Pending Home Sales

MACROS
All bank branches to be operational from today
All bank branches across the country will be operational from Monday following a advisory from the government as pressure on bank branches is likely to mount due to salary and pension payment. The department of financial services (DFS) told banks to keep all banking channels open and ensure branches and business correspondents function throughout the lockdown period, so that people do not face any hassle in their financial transactions.

FinMin, RBI to decide first-half borrowing plan
The Finance Ministry and RBI will hold a meeting on Tuesday to decide on government's borrowing plan for the first half of 2020-21 amid the lockdown to contain the spread of coronavirus. PTI reports, the government would resort to front-load its borrowing plan to deal with the challenges posed by COVID-19 on the economy. The meeting between the Finance Ministry and Reserve Bank of India (RBI) will be held through video conferencing for the first time as there is lockdown across the country. Post meeting, the borrowing calendar for issuance of dated government securities and short term papers will be announced in the evening.

US could face 200,000 coronavirus deaths
US deaths from coronavirus could reach 200,000 with millions of cases, the government’s top infectious diseases expert warned on Sunday as New York, New Orleans and other major cities pleaded for more medical supplies. Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, estimated in an interview with CNN that the pandemic could cause between 100,000 and 200,000 deaths in the United States.

Trump extends pandemic guidelines to April end
US President Donald Trump said on Sunday the peak death rate in the US from the novel coronavirus is likely to hit in two weeks as he extended the coronavirus guidelines, including social distancing, until April 30.

Centre orders quarantine camps for migrants
The Centre on Sunday directed all states to quarantine migrant workers reaching their borders in temporary shelters for a mandatory two-week period after proper medical screening. The government estimates that close to 300,000 migrant workers have breached the lockdown and hit the roads. Further, to stem the tide of migrant labourers leaving their places of work in major cities, the order has made it mandatory for those running commercial establishments, factories and shops to pay wages to workers “on the due date, without any deduction, for the period their establishments are under closure due to the lockdown”.

March CPI inflation figures may have caveats
The government is likely to release the retail inflation numbers for March with caveats while industrial production data is unlikely as factories stop production and data collection gets hit due to the Covid-19 pandemic and the countrywide lockdown to contain it. The Ministry of Statistics and Programme Implementation is assessing the quality and amount of data that can be collected to estimate the consumer price index (CPI) inflation for this month. The data for March is scheduled to be released on April 13. The Index of Industrial Production (IIP) for March could face problems because production has stopped due to the lockdown, the official said.

Mega PSBs to be up & running by April 1
The schemes for the merger of ten state-run banks into four lenders are coming into force from April 1, according to the Reserve Bank of India. The banking regulator in separate releases announced that the branches of merging banks will operate as of the banks in which these have been amalgamated. The government on March 4 had notified the amalgamation schemes for 10 state owned banks into four as part of its consolidation plan to create bigger size stronger banks in the public sector. As per the scheme, Oriental Bank of Commerce and United Bank of India will be merged into Punjab National Bank; Syndicate Bank into Canara Bank; Allahabad Bank into Indian Bank; and Andhra and Corporation banks into Union Bank of India.

Govt may ease resolution rules for insolvent firms
In a move aimed at smooth resolution of insolvent firms, the finance ministry is considering waving off the 21-day national lockdown from the bankruptcy resolution process keeping in mind the hardships faced due to the nationwide lockdown. People in the know also said that the waiver period could be extended in line with the national lockdown. Under, India’s insolvency and bankruptcy code bankrupt firms get 270 days to complete the resolution process.

TRAI grants 6 weeks to telcos to file Apr reports
Telecom regulator TRAI has given six weeks additional time to telcos to file monthly and quarterly reports that are otherwise due in April, reports PTI. The decision comes within days of industry body COAI writing to Trai for granting additional time to companies to file such reports, citing massive efforts being undertaken by telecom companies to overcome "numerous operational challenges" in order to keep vital networks up and running amid the 21-day nationwide lockdown to counter the spread of coronavirus.


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