10,607.3555.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

What changed for D-Street while you were sleeping

Nifty fell on Wednesday after encountering strong resistance above the 9,100 level.

ETMarkets.com|
Last Updated: Apr 09, 2020, 08.11 AM IST
0Comments
Stock-market-1---BCCL
Asian shares rose on hopes the coronavirus pandemic is nearing a peak and that governments would roll out more stimulus measures.
NEW DELHI: Domestic stocks may kick off Thursday's session on a positive note, tracking an overnight rise in US market and a resumption in foreign inflows.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 26.50 points or 0.30 per cent lower at 8,884.50, indicating a positive start for Dalal Street.

Tech view: Nifty forms Shooting Star
Nifty fell on Wednesday after encountering strong resistance above the 9,100 level. This was the third instance in the recent past, when a short-term bounce on the index fizzled out around the 9,000 mark.Analysts said the index needs to reclaim the 8,800 level for any comeback. Downside supports are placed around 8,350 level, they said.

Asian stocks rise in early trade
Asian shares rose on hopes the coronavirus pandemic is nearing a peak and that governments would roll out more stimulus measures. Hong Kong's Hang Seng and South Korea's Kospi advanced 0.97 per cent each while China's Shanghai Composite added 0.48 per cent. Japanese Nikkei edged 0.33 per cent lower.

Oil prices gain ahead of key meet
Oil prices extended gains Thursday after Russia signalled it was ready to cut output before a key producers' meeting aimed at boosting energy markets as the coronavirus pandemic strangles demand. US benchmark West Texas Intermediate rose 4.6 per cent to $26.26 a barrel, while Brent crude, the international benchmark, jumped 2.7 per cent to $33.73.

US stocks gain 3% in overnight trade
The Dow Jones Industrial Average index rose 779.71 points, or 3.44 per cent, to 23,433.57, the S&P500 index gained 90.57 points, or 3.41 per cent, to 2,749.98 and the Nasdaq Composite index added 203.64 points, or 2.58 per cent, to 8,090.90.

Nifty March 2021 target 6,000!
UBS sees Nifty at 6,000 by March-end assuming coronavirus-related disruptions continue till September. The target is about 31% below the index’s Wednesday closing of 8,748. “The 6,000 level assumes 14% decline in earnings in fiscal year 2021 and YoY decline in FY21 GDP, and a PE multiple of 12 times," UBS head of India research Gautam Chhaochharia said on Wednesday.

FIIs buy Rs 1,943 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,943 crore on Wednesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,758 crore, data suggests.

MONEY MARKETS

Rupee: The rupee plunged by 70 paise to its life-time low of 76.34 against the US dollar on Wednesday as a rise in coronavirus cases in the country fanned fears of the government extending the lockdown to contain the pandemic

10-year bonds: India 10-year bond yield rose 0.42 per cent to 6.44 after trading in 6.42-6.45 range.

Call rates: The overnight call money rate weighted average stood at 4.20 per cent, according to RBI data. It moved in a range of 2-5 per cent.

HAPPENING TODAY

  • Opec + Meeting
  • UK Feb balance of trade
  • UK 3-month Average GDP
  • UK Feb Industrial Production
  • US March Jobless Claims

MACROS

PM hints at possible lockdown extension
Prime Minister Narendra Modi indicated to legislature party leaders that the lockdown may have to stay in place beyond April 14 given the state of the battle against the Covid-19 pandemic in the country. Modi told the floor leaders of political parties in Parliament that several state governments, district administrations and experts have asked for an extension of the lockdown, likening the situation to a “national” and “social emergency.” The three-week lockdown is scheduled to end on April 14.

Govt to release Rs 18,000 cr tax refunds
The government will immediately release about Rs 18,000 crore in pending tax refunds to individuals and businesses to provide relief to those struggling to cope with the economic effects of the Covid-19 outbreak. These will include income tax refunds of up to Rs 5 lakh besides goods and services tax (GST) and customs refunds. The move is set to benefit 1.4 million individuals and 100,000 businesses, mostly small businesses. It follows policy measures announced by the finance ministry and the central bank to help companies tackle the impact of the coronavirus outbreak.

Second stimulus for SMEs on anvil
A second stimulus package India is poised to announce will be worth around Rs 1 lakh crore ($13 billion) and focus on help for small and medium businesses weathering the coronavirus outbreak, reports Reuters. Last month, India outlined a Rs-1.7-lakh-crore ($22.6-billion) economic stimulus plan providing direct cash transfers and food security measures to give relief to millions of poor hit by an ongoing 21-day nationwide lockdown. A separate package could be announced for bigger companies after assessing the extent of the hit they have faced due to the lockdown imposed to fight the outbreak.

World trade to decline 13-32% in 2020
The decline in world trade due to Covid-19 will likely exceed the trade slump brought by the global financial crisis of 2008-09, the World Trade Organization (WTO) said on Wednesday, with merchandise trade expected to decline 13-32% in 2020 due to the Covid-19 pandemic. “These numbers are ugly – there is no getting around that,” said WTO Director-General Roberto Azevêdo. For 2021, the organisation has forecast a rebound in global goods trade between 21- 24%, depending largely on the duration of the coronavirus outbreak and the effectiveness of policy responses.

India diverts refiners' oil to SPR
India will divert 19 million barrels of Gulf oil from state-run firms to strategic petroleum reserves (SPRs) skipping direct purchases from producers to help refiners get rid of extra oil as their storage is full, reports Reuters. India’s decision to divert cargoes meant for state refiners will not soak up excess oil from the market following the demand collapse caused by the coronavirus pandemic, but it will help local companies to avoid demurrage charges at a time of expensive freight. Indian fuel demand has collapsed following a nationwide lockdown to stem the spread of coronavirus, leading some refiners to declare force majeure on crude purchases which exonerates parties from contractual obligations.

US GDP will contract 30% in Q2
The forced closure of businesses across the United States and surge in unemployment due to the coronavirus pandemic will force U.S. growth to contract by 30% in the second quarter and 5% overall in 2020, Pacific Investment Management Co (PIMCO) wrote on Wednesday. Evidence from recent jobs reports suggests the unemployment rate may rise as high as 20%.

Virus may push 400 mn Indians into poverty
About 400 million people working in the informal economy in India are at risk of falling deeper into poverty due to the coronavirus crisis which is having "catastrophic consequences", and is expected to wipe out 195 million full-time jobs or 6.7 per cent of working hours globally in the second quarter of this year, the UN's labour body has warned. The International Labour Organization (ILO) in its report titled 'ILO Monitor 2nd edition: COVID-19 and the world of work', describes coronavirus pandemic as "the worst global crisis since World War II".

Goldman pegs India's growth at 1.6 per cent in FY21
US investment Bank Goldman Sachs has followed its peers in revising its India growth forecast for the second time in less than a month. It has forecast India's growth to slow down to 1.6 per cent in FY'21, the worst pace in the post war history. But it expects a strong sequential recovery in the second half. Gold man Sachs revised India's growth forecast for FY'21 from its earlier forecast of 3.3 per cent.
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service