Top 10 things that changed in the market during this snooze time
SGX Nifty trends show a positive opening for the index in India with a 77 points gain
Indian market is expected to walk sideways amid rising cases of coronavirus with acrimonious relations between the US and China and souring macroeconomics environment. After loan moratorium extension of three months by RBI, most banks and financial stocks may extend their losses of the previous session.
Trends on SGX Nifty indicate a positive opening for the index in India with a 77 points gain. Nifty futures was trading at 9,159 level on the Singaporean Stock Exchange at 07.45 hours.
The Sensex ended the session 260 points lower at 30,672 on May 22 while the Nifty50 slipped 67 points to 9,039.
According to pivot charts, the key support level for the Nifty is placed at 8,955.33, followed by 8,871.42. If the index moves up, key resistance levels to watch out for are 9,136.38 and 9,233.52.
It gains in the U.S stock futures and it also rose ahead on Tuesday following an optimistic session in Europe.
Since early March, Japan’s Nikkei showed the way with a rise of 1% to its highest. MSCI’s broadcast index of Asia-Pacific shares outside Japan added 0.1% in early trade, while South Korea rose 0.4%.
As coronavirus lockdown ease, oil climbs as suppliers stick to output cuts. Crude oil supply is cut as per the flexibility of lockdown, many cars are hitting the road.
Brent crude futures inched up 0.7%, or 23 cents to $35.76, adding to a 1.1% gain on Monday in thin holiday trading. US West Texas Intermediate (WTI) crude futures gained 2.3%, or 75 cents, to $34.00 as of 0057 GMT.
Margins are decided by shares in depository accounts till August 31st
SEBI said on Monday that shares in depository accounts can be used as margins till August 31st in the middle of the pandemic.
Under this, the trading member needs to accept collateral in the form of securities, only by way of ‘margin pledge’ with effect from June 1st.
Tokyo’s emergency lifted by Japan
Japanese PM Shinzo Abe said that Japan will lift the emergency from Tokyo and four remaining areas which further can be reimposed if conditions worsen. He also said that from the stimulus from two economic packages would exceed 200 trillion yen but it would take a lot of time to get back to normalcy.
CAIT: In the past 60 days, India’s retail trade lost Rs. 9 lakh crore worth business
The trader’s body said on Sunday that in the past 60 days due to the terror of pandemic India’s retail trade lost Rs. 9 lakh crore worth business, causing a revenue loss of about Rs. 1.5 lakh crore to both the central and state governments on account of GST.
Telecom players approach Trai seeking early decision on floor price issue
Given the financial pressure on the sector and the fact that ARPU (Average Revenue Per User) and tariffs of the Indian telecom sector are the lowest in the world, floor pricing is imperative to ensure that the sector is sustainable, and is in a position to bear the deferred spectrum and AGR (Adjusted Gross Revenue) dues while continuing to invest in world-class networks and services,” COAI said in its letter to Trai Chairman R S Sharma.
Gold imports fall by almost 100% for the fifth consecutive month in April
India’s gold imports contracted for the fifth consecutive month in a row, falling by about 100 percent to USD 2.83 million in April due to the lockdowns imposed globally on account of coronavirus outbreak. The import of the yellow metal stood at USD 3.97 billion in April 2019, according to the commerce ministry’s data. Gems and jewelry exports declined 98.74 percent to USD 36 million in April.
Major Automakers see personal vehicles demand rising
Automakers like Maruti Suzuki, Honda, Toyota, and Tata Motors expect a rise in personal vehicle demand amidst this pandemic due to the fear of infection spreading from using public transport.
“People will prefer personal vehicles over public transport and it comes out from different consumer surveys which we have conducted,” said MSI Executive Director, Marketing and Sales, Shashank Srivastava.
FPIs invest Rs 9,000 cr in May so far on attractive valuations
Foreign investors have infused over Rs 9,000 crore into the Indian equity markets in May so far amid attractive valuations of stocks and a mega block deal involving HUL. The inflow comes following a net withdrawal of Rs 6,883 crore in April and Rs 61,973 crore in March on fears of a coronavirus-induced global recession.
According to depositories data, FPIs invested a net sum of Rs 9,089 crore in the equity markets during May 1-22. However, they pulled out a net Rs 21,418 crore from the debt markets during the period under review.
RBI to auction G-Secs worth Rs 30,000 crore on May 29
The RBI said on Friday that the government has announced to sell dated securities worth Rs 30,000 crore on May 29. The auction is part of government’s market borrowing programme. Earlier this month, the government had decided to modify the indicative calendar for issuance of government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11-September 30, 2020) after reviewing its cash position and requirements.
The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21).
SEBI: Strict surveillance measures to tackle market volatility to continue until June
“As the stock markets (both domestic and global) are expected to be volatile in the near future, keeping in view the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity, it has been decided that the measures implemented since March 23, 2020, will continue to be in force till June 25, 2020,” the regulator said.
India’s forex reserves rise to $487.04 billion
The country’s foreign exchange reserves increased by $1.73 billion to $487.04 billion in the week to May 15, which is equivalent to 12 months of imports, according to the Reserve Bank of India. Between April 1 and May 15, the foreign exchange reserves have increased by $9.2 billion. In the week ended May 8, the reserves had surged by $4.23 billion to $485.31 billion. It had touched a life-time high of $487.23 billion in the week to March 6, after it rose by $5.69 billion.
The increase in reserves in the week ended May 15 was on account of a rise in foreign currency assets (FCA), a major component of the overall reserves. FCA rose by $1.12 billion to $448.67 billion in the reporting week, RBI data showed.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,353.9 crore, and domestic institutional investors (DIIs), too, sold shares worth Rs 344.16 crore in the Indian equity market on May 22, provisional data available on the NSE showed.