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For the near term, the 8,800 level will be a crucial support to watch out for while the immediate resistance lies in the 9,260-9,320 range.

ETMarkets.com|
Last Updated: Apr 17, 2020, 08.53 AM IST
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The government has set a target of producing a record 298.3 million tonnes of food grain in the crop year that begins in July.
NEW DELHI: US President Donald Trump’s Thursday’s guidelines for lifting of shutdown in the US and hopes of a second round of economic stimulus from the Modi government may boost sentiment on Dalal Street in Friday’s trade.

Here’s breaking down the pre-market actions.


TRADE SETUP
Singapore trading sets stage for gap-up start
Nifty futures on the Singapore Exchange traded 211.25 points or 2.33 per cent higher at 9,271.25, indicating a gap-up start for Dalal Street.

Tech view: Nifty resistance at 9,260

The index seems to be undergoing a consolidation process. For the near term, the 8,800 level will be a crucial support to watch out for while the immediate resistance lies in the 9,260-9,320 range. Only a move beyond the 8,800-9,320 zone can trigger some directional move,” said Ruchit Jain, Equity Technical Analyst at Angel Broking.

Asian stocks at one-month highs
Asian stocks recovered to one-month high this morning. South Korea's Kospi jumped 3.3 per cent, followed by Taiwan's TWSE (up 3.08 per cent), Japan's Nikkei (up 2.7 per cent), Hong Kong's Hang Seng (up 2.26 per cent) and CHina's Shanghai Composite (up 1.28 per cent)

Oil prices jump on Trump's comments
Oil prices pushed higher Friday as President Donald Trump's plan for a reopening of the virus-battered United States offset worries about a devastating supply shock triggered by the pandemic. Brent crude, the international benchmark, was up nearly three percent in Asian trade at $28.65 a barrel while US benchmark WTI rose 0.6 per cent to $19.99 a barrel -- but still around its lowest level since 2002.

US stocks ended higher
The Dow Jones Industrial Average climbed 33.33 points, or 0.14 per cent, to 23,537.68. The S&P 500 was up 16.19 points, or 0.58 per cent, to 2,799.55. The Nasdaq Composite Index increased 139.19 points, or 1.66 per cent, to 8,532.36.

FIIs sell Rs 2,920 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2,920 crore on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,321.44 crore, data suggests.

MONEY MARKETS

Rupee: The rupee tanked 43 paise to settle at an all-time low of 76.87 against the US dollar on Thursday, amid rising concerns over a coronavirus-led economic slowdown.

10-year bonds: India 10-year bond yield rose 0.23 per cent to 6.44 after trading in 6.42-6.44 range.

Call rates: The overnight call money rate weighted average stood at 4.27 per cent, according to RBI data. It moved in a range of 2.40-5.25 per cent.

HAPPENING TODAY
>> RBI Forex Reserves

>> China Q1 GDP Growth Rate

>> China March Industrial Output

>> Euro Area March Inflation Output

>> US Baker Hughes Oil Rig Count

>> IMF/World Bank Spring Meetings

MACROS

China GDP shrinks 6.8% in Q1
China's economy contracted for the first time in nearly three decades last quarter as drastic measures to contain the coronavirus pandemic brought activity to a standstill, official data showed Friday. Gross domestic product shrank 6.8 percent in the January-March quarter from the same period a year earlier, according to figures released by the National Bureau of Statistics.

Trump unveils process to end shutdown
President Donald Trump laid out new guidelines on Thursday for U.S. states to emerge from a coronavirus shutdown in a staggered, three-stage approach meant to revive the U.S. economy even as the country continues to fight the pandemic. The recommendations call on states to show a “downward trajectory” of COVID-19 cases or positive tests for the disease over 14 days before proceeding with the plan, which gradually loosens restrictions on businesses that have been shuttered to blunt the spread of the virus.

Gilead's Covid 19 drug shows encouraging results
US-based Gilead Sciences Inc’s shares surged 16% in after hours trading on Thursday following a media report detailing encouraging partial data from trials of the US company’s experimental drug remdesivir in severe COVID-19 patients. A University of Chicago hospital participating in a study of the antiviral medication said it is seeing rapid recoveries in fever and respiratory symptoms, with nearly all patients discharged from the hospital in less than a week.

India Inc begins to fire up its engines

At least eight publicly listed companies have taken steps to restart operations with a limited workforce after obtaining permission from the authorities, show data compiled by the ETIG from stock exchange filings. Top executives of some of these companies told ET that while India Inc is working hard to restart factories under the Covid-19 lockdown, restoration of the supply chain across the country will be critical for the economy to get moving again. The list of companies includes Pidilite Industries, Eveready Industries, Navin Fluorine, Hikal, Prataap Snacks, Man Industries.

Govt considers tax refunds to large firms
The government is likely to provide income tax and GST refunds to large companies, to ensure additional liquidity during the Covid-19 crisis induced lockdown. Government officials said the amount is expected to be much higher than the Rs 18,000 crore in refunds being issued to small taxpayers currently. “Large cases (of refunds) will be dealt with after a week or 10 days, by which we will have issued refunds to small taxpayers,” one official told ET. Although about 93% of all refund cases were of small taxpayers, the outgo is small, but in case of large companies it will be higher.

Govt to compile data on layoffs, pay cuts

The Employees Provident Fund Organisation (EPFO) and Employees State Insurance Corporation (ESIC) have been asked to collate data on job losses, salary cuts and delayed payment. Once data is collated a report will be presented to the Prime Minister’s Office (PMO). This labour ministry initiative comes as stressed economic situation has raised fears of widespread layoffs/salary reductions in India’s organised sector and in the backdrop of Prime Minister Narendra Modi’s repeated appeals to employers to be considerate to employees. The PM made this a part of his 7-point advisory during his most recent address to the nation on April 14. Earlier the ministry issued an advisory to employers to not cut salaries or fire employees.

4 states allow online sales of all goods from April 20
Maharashtra, Rajasthan, Tamil Nadu and Odisha have issued notifications allowing ecommerce sales of all goods, including non-essential categories, from April 20 in the second phase of the lockdown. Karnataka, Telangana and Haryana are evaluating things amid pent-up demand for products used to aid work and education from home, said two senior industry executives in touch with these governments.

States keen restart economic activities
Most states have told the Centre that they want speedy resumption of economic activities in the permitted districts after the home ministry issued guidelines on restarting industrial activities such as manufacturing and construction in safer areas from April 20. “In a video conference on Wednesday, chief secretaries of most states responded very positively to the new guidelines. The Centre will assist all the states in safely resuming economic activity,” a senior government official told ET. The Centre has adopted a flexible approach in allowing states to take the call on how to restart the economic engine by following the guidelines.

Govt sets record crop output target
The government has set a target of producing a record 298.3 million tonnes of food grain in the crop year that begins in July. It is aiming for an output of 149.92 million tonnes in the kharif, or summer-sown crop, and 148.4 million tonnes for the rabi, or the winter-sown crop. The target is over 2% more than the last year’s estimated production of 292 million tonnes. With the weather office predicting normal rainfall, the government aims to produce 25.6 million tonnes of pulses and 36.64 million tonnes of oilseeds in this crop year.


Indian gold demand at three-decade low
India’s gold consumption in 2020 could fall as much as 50% from a year ago to the lowest level in nearly three decades as a nationwide lockdown has closed jewellery stores during key festivals and the wedding season. The drop in consumption by the world’s second-biggest gold buyer could limit a rally in global prices, which hit a more than seven-year high earlier this month. The fall in demand could also narrow India’s trade deficit and support the faltering rupee.

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