The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 49 points gain.
The BSE Sensex rose 97.70 points to 51,115.22 on May 27 while the Nifty50 climbed 36.40 points to 15,337.90.
According to pivot charts, the key support levels for the Nifty are placed at 15,278.7, followed by 15,219.6. If the index moves up, the key resistance levels to watch out for are 15,390.7 and 15,443.6.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.
The Dow Jones Industrial Average rose 141.59 points, or 0.41%, to 34,464.64, the S&P 500 gained 4.89 points, or 0.12%, to 4,200.88 and the Nasdaq Composite dropped 1.72 points, or 0.01%, to 13,736.28.
Asian markets rose in Friday morning trade with the broader Hang Seng index in Hong Kong gaining 0.59%. In Japan, the Nikkei 225 jumped 1.94% while the Topix index advanced 1.78%. South Korea’s Kospi edged 0.56% higher.
Trends on SGX Nifty indicate a positive opening for the index in India with a 49 points gain. The Nifty futures were trading at 15,463 on the Singaporean Exchange around 07:30 hours IST.
The government is planning a stimulus package and direct, immediate relief for sectors such as hospitality and Medium, Small and Micro Enterprises (MSME), which are India’s biggest employers and have been battered by COVID-19, sources familiar with official deliberations said.
Discussions about the package are still at an early stage but this time, the government is unlikely to go for long-term policy announcements a source said. Initial discussions suggest the stimulus package may have three elements.
The residential real estate sector demand will be impacted by the second wave of COVID-19 in the first half of this fiscal but a healthy recovery is expected in the second half, much like the previous fiscal. It is expected to touch pre-pandemic levels only after 2022-23, domestic ratings agency CRISIL said on May 27.
"Absolute demand will catch up with pre-pandemic levels only after fiscal 2023," it said.
The Reserve Bank on Thursday said it will ensure comfortable level of liquidity in the system during the current financial year and assured that monetary transmission will continue "unimpeded". To counter the impact of COVID-19 first wave, the RBI had undertaken several conventional and unconventional measures to ensure ample liquidity in the financial system during the financial year ended March 31, 2021.
"The Reserve Bank will ensure that system level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability," according to the annual report 2020-21. This is exemplified by the introduction of the secondary market G-sec acquisition programme (G-SAP) in 2021-22 under which the RBI has committed upfront to a specific amount for open market purchases of G-secs with a view to enabling a stable and orderly evolution of the yield curve under congenial financial conditions, it said.
U.S. weekly jobless claims hit fresh 14-month low as economic recovery gains steam
The number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided, with companies desperate for workers to meet surging demand unleashed by a rapidly reopening economy.
Initial claims for state unemployment benefits fell 38,000 to a seasonally adjusted 406,000 for the week ended May 22, the Labor Department said. That was the lowest since mid-March 2020 and kept claims below 500,000 for three straight weeks.
Results on May 28
Mahindra & Mahindra, Glenmark Pharmaceuticals, Indian Bank, Ipca Laboratories, 3M India, Aditya Birla Fashion and Retail, Action Construction Equipment, Ador Multiproducts, Ador Welding, Arvind SmartSpaces, Aurionpro Solutions, Bengal & Assam Company, Camlin Fine Sciences, Confidence Petroleum India, Dilip Buildcon, Deepak Fertilisers & Petrochemicals Corporation, Prataap Snacks, Force Motors, Genus Power Infrastructures, GMM Pfaudler, Gulf Oil Lubricants India, Heidelbergcement India, ITD Cementation India, Jagran Prakashan, Jindal Poly Films, Max Healthcare Institute, Munoth Financial Services, Navkar Corporation, Nazara Technologies, NCC, NESCO, OnMobile Global, Shree Rama Newsprint, REC, Reliance Infrastructure, SMS Pharmaceuticals, Sudarshan Chemical Industries, Sumitomo Chemical India, Ujjivan Financial Services, V-Mart Retail, and Zuari Agro Chemicals.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 660.90 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 112.38 crore in the Indian equity market on May 27, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Two stocks - Amara Raja Batteries and Canara Bank - are under the F&O ban for May 27. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies