Indian markets extended gains after the Reserve Bank of India (RBI) announced a special liquidity facility of Rs 50,000 crore for mutual funds to calm investors jittery after the Franklin Templeton fiasco.
The Sensex closed the day 416 points, or 1.33 percent, higher at 31,743.08 and the Nifty settled 128 points, or 1.40 percent, up at 9,282.30.
According to pivot charts, the key support level for Nifty is placed at 9,229.4, followed by 9,176.5. If the index continues moving up, key resistance levels to watch out for are 9,356.15 and 9,430.
The Nifty Bank closed 2.52 percent higher at 20,081.15. The important pivot level, which will act as crucial support for the index, is placed at 19,877.66, followed by 19,674.13. On the upside, key resistance levels are placed at 20,254.77 and 20,428.33.
Stay tuned to Moneycontrol to find out what happens in 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:
Stocks rose across the globe on Monday as investors cheered news that more countries and US states were looking to ease lockdowns and the Bank of Japan expanded its stimulus program, while the price of oil continued to crumble as storage runs out.
The Dow Jones Industrial Average rose 358.51 points, or 1.51%, to 24,133.78, the S&P 500 gained 41.74 points, or 1.47%, to 2,878.48 and the Nasdaq Composite added 95.64 points, or 1.11%, to 8,730.16.
Asian markets were little changed as oil prices continued to slip following an overnight plunge. Nikkei 225 was down 0.36% while the Topix index shed 0.45%. South Korea’s Kospi was flat.
Trends on SGX Nifty indicate a positive opening for the index in India with a 53 points gain. The Nifty futures were trading at 9,320 on the Singaporean Exchange around 07:30 hours IST.
Oil prices slide again
Oil fell on Tuesday, adding to huge declines in the previous session, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
US West Texas Intermediate (WTI) crude futures dropped by as much as 7.1% and were off 6%, or 77 cents, at $12.01 a barrel as of 0110 GMT. Brent crude futures fell as much as 3.5% in early trade and were last down 1.4%, or 27 cents, at $19.72 a barrel.
SEBI reduces broker turnover fees, filing charges for draft papers
Continuing its efforts to help market participants tide over challenges due to COVID-19 pandemic, market regulator Sebi on Monday decided to reduce broker turnover fees and filing charges on offer documents for public offering, rights issue and buyback of shares. The broker turnover fee will be reduced to 50 percent of the existing fee structure for the period June 2020 to March 2021, the Securities and Exchange Board of India (Sebi) said in a circular.
The benefit of such reduction in fees will automatically be passed on to the investors as well, it added. Besides, filling fees on offer documents for public issue, rights issue and buy back of shares will be reduced to 50 percent of the existing fee structure.
RBI receives Rs 64,746 crore bids in OMO purchase auction
The Reserve Bank of India (RBI) on Monday received Rs 64,746 crore worth of bids or more than six times the amount it proposed to buy government bonds through the special open market operation (OMO). In the OMO sale auction, the RBI received Rs 50,260 crore of bids for four securities.
The RBI last week had announced simultaneous purchase as well as sale of government securities under open market operations (OMO) for Rs 10,000 crore each. The RBI bought four securities - 7.59 percent-2026, 7.17 percent- 2028, 7.26 percent-2029 and 7.61 percent-2030 in the OMO purchase auction. The RBI received 141 bids for 7.26 percent-2029 security but accepted only 12 bids in OMO purchase auction.
CRISIL downgrades India growth forecast by half to 1.8%
Domestic rating agency Crisil said on Monday nearly halved its GDP forecast for India to 1.8 percent for 2020-21 while projecting total losses of Rs 10 lakh crore or Rs 7,000 per person due to "disastrous" lockdowns to control COVID-19 pandemic. The agency, which blamed the government response to the crisis to being measured and asked it to drastically up the support, had a GDP growth estimate of 6 percent for FY2021, which was last revised to 3.5 percent in late March.
Another rating agency India Ratings and Research (Ind-Ra) has also revised the FY2021 economic growth forecast for the country further down to 1.9 percent, the lowest in the last 29 years.
CBDT again defers GST, GAAR reporting in I-T audit report until March 2021
The Income Tax Department on Monday deferred for the third time the requirement for companies to include in their I-T audit report the details of the Goods and Services Tax (GST) and GAAR. The reporting requirement of these details in income tax audit form has been kept in abeyance till March 31, 2021 -- meaning that all income tax audit reports need not include details on the GST and the General Anti-Avoidance Rules (GAAR) till March 2021.
Business entities having a turnover of more than Rs 1 crore (or Rs 2 crore if they have opted for presumptive taxation) and professionals with gross receipts of more than Rs 50 lakh have to comply with the tax audit requirements. The due date for its filing is September 30 and if the taxpayer is covered by transfer pricing provisions, the due date is November 30.
Rupee rises by 21 paise to 76.25 in line with firm stocks
The rupee rose by 21 paise to close at 76.25 against the US dollar on Monday, tracking positive domestic equities and weakening of the American currency in the overseas market. Forex traders said the uptick in the currency counter was largely due to expectations of more stimulus measures from central banks to support their respective economies reeling under the COVID-19 pandemic.
At the interbank foreign exchange, the rupee opened higher at 76.14 and touched an intra-day high of 76.05 in morning trade.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 916.42 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,141.97 crore on April 27, provisional data available on the NSE showed.With inputs from Reuters & other agencies