While concerns remain over the record rise in daily Covid cases, domestic stocks may see a positive start in Friday’s trade, tracking gains in other Asian markets, thanks to upbeat jobless data in the US overnight. FPIs have turned net buyers of equities for the first time this month. The technical setup on the daily chart, though, requires indices to take out immediate hurdles for a sustained show.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 71.50 points, or 0.48 per cent, higher at 14,868.50, signaling that Dalal Street was headed for a positive start on Friday.
Tech View: Nifty struggles with 50-DMA
Nifty50 on Thursday topped the 14,700 level and broke above the Inside Bar Candle that it had formed on the daily charts in the previous session. The index formed a higher low for the fourth straight session, but failed to close above its 50-day moving average. A move above the 14,740-750 range is a must for Nifty to retain its positive bias, said analysts.
Asian markets rise in early trade
Among financial markets in Asia, China’s Shanghai Composite index edged up 0.15 per cent to 3,4465.06. South Korea’s Kospi rose 0.40 per cent higher to 3,191.30 while Hong Kong’s Hang Seng rose 0.73 per cent to 28,797.50. Taiwan’s TWSE index added 0.75 per cent to 17,121.33. Australia’s ASX 200 was trading 0.43 per cent higher at 7,090.60.
rises on demand recovery hopes
Oil prices edged up in early Asian trade after a 1 per cent dip in the previous session, as global economic recovery and easing travel curbs in the United States and Europe buoyed the fuel demand outlook while the surging pandemic in India capped prices. Brent crude futures for July were at $68.17 a barrel, up 8 cents, while US WTI crude for June rose 9 cents to $64.80.
US stocks rise on jobless claims data
US stocks finished higher on Thursday, after the Labor Department reported fewer new claims for unemployment benefits last week. The Dow Jones Industrial Average index pushed to a new high of 34,548.53 by the close, a gain of 0.9 per cent. The broad-based S&P500 index rose 0.8 per cent to end the day at 4,201.62, while the tech-rich Nasdaq Composite index gained 0.4 per cent to 13,632.84.
Q4 earnings today
HDFC, Ultratech Cement, Dabur India, Nestle India, InterGlobe Aviation, Kansai Nerolac Paints, Cholamandalam Investment, Navin Fluorine, Grindwell Norton, UCO Bank, Shriram Pistons, Gati, EIH and Godrej Agrovet are among companies that will announce their March quarter results today
FPIs buy Rs 1,223 crore worth stocks
Net-net, foreign portfolio investors (FPIs) tuned net buyers of domestic stocks to the tune of Rs 1,222.58 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 632.51 crore, data suggests.
Rupee: The Indian rupee strengthened by 13 paise to settle at 73.78 against the US dollar on Thursday, tracking positive domestic equities and weaker American currency against key rivals overseas.
10-year bonds: India 10-year bond yield fell 0.07 per cent to 5.97 after trading in 6.00-5.97 range.
Call rates: The overnight call money rate weighted average stood at 3.24 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
- India Deposit Growth YoY April 23 (05:00 pm)
- India Foreign Exchange Reserves 30 April (05:00 pm)
- India Bank Loan Growth YoY April 23 (05:00 pm)
- RBA Statement on Monetary Policy (07:00 am)
- China Caixin Composite PMI April (07:15 am)
- China Balance of Trade April (08:30 am)
- China Foreign Exchange Reserves April (01:30 pm)
- UK Construction PMI April (02:00 pm)
- Euro Area ECB President Lagarde Speech (03:30 pm)
- US Unemployment Rate April (06:00 pm)
India consumer sentiment takes worst hit… The raging second wave of Covid-19 has resulted in a 3.8% dip in the index of consumer sentiment in April, the sharpest fall since May 2020, said CMIE, reflecting a “substantial worsening of household income”. Week-on-week the decline in the consumer sentiment index has been steeper with the index falling by 5.4% in the week ended May 2, bringing the weekly index to its lowest since November 2020. The index of consumer sentiment fell by 4.3% in the week ended April 18 and by 4.5% in the week ended April 25.
Banks set to open on-tap liquidity window… Banks are set to launch multiple schemes under the RBI’s Rs 50,000 crore on-tap liquidity window announced on Wednesday. The schemes are aimed at rapidly boosting private investment in healthcare and financing individuals who have contracted Covid. Banks will go to the drawing board and will design the schemes with extremely competitive rates and draw up the eligibility criteria.
India gaining support for Covid drug IP waiver… After gaining US backing, India is hopeful of more countries supporting its joint proposal with South Africa at the WTO to waive intellectual property rights or patent protection on Covid-19 vaccines. Such a move could potentially lead to an increase in vaccine output and availability as India battles a record pandemic surge. The EU, which had earlier opposed the proposal, said it’s ready to discuss the matter; French President Emmanuel Macron said he was “absolutely in favour”. Canada indicated backing while New Zealand said it strongly supported a TRIPS waiver.
S&P warns of big Covid hit on India… The second wave of pandemic in India, which is worsening day by day, could cost the country dearly if it does not peak in May, said economists and analysts at ratings agency S&P. According to them, in a severe scenario, i.e., if the second wave peaks in late June instead of what some believe to be May, Indian economy will lose $210 million or approximately Rs 1,575 crore worth of output daily.
BoE to slow down bond buying… The Bank of England on Thursday said it would slow the pace of its bond-buying as it sharply increased its forecast for Britain’s economic growth this year after its coronavirus slump, but it stressed it was not tightening monetary policy. BoE kept its benchmark interest rate at an all-time low of 0.1 per cent and the total size of its bond-buying programme unchanged at 895 billion pounds, as expected by economists polled by Reuters.
US jobless claims fall to a pandemic low… The number of Americans seeking unemployment aid fell last week to 4,98,000, the lowest point since the viral pandemic struck 14 months ago and a sign of the job market’s growing strength as businesses reopen and consumers step up spending. Applications declined 92,000 from a revised 5,90,000 a week earlier.
Sebi panel against listing of religious NGOs… A Sebi panel has suggested that corporate foundations, political and religious organisations should not be allowed to list on the social stock exchange. The panel said both for-profit and not-for-profit organisations should be allowed to tap the social stock exchange, provided they can demonstrate that social intent and impact are their primary goals and such intent is demonstrated through their focus on eligible social objectives for the underserved or less privileged populations or regions.
Zomato may invest in Grofers… Food delivery app Zomato is in talks to invest around $100 million in e-grocer Grofers after discussions of a possible merger between the two fell through last year at the onset of the Covid-19 pandemic, ET reported quoting two people in the know. Zomato’s investment is likely part of a larger financing round and may value the Gurugram-based online grocery firm at around $1 billion, sources said.