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Last Updated : May 19, 2020 08:00 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a positive opening for the index in India with a 200 points gain.

Date: June 17 | Extent of loss: 491 points (1.25 percent)| Reason: Looming fear of India-US trade war. (Image: Reuters)
Date: June 17 | Extent of loss: 491 points (1.25 percent)| Reason: Looming fear of India-US trade war. (Image: Reuters)

The Indian stock market is likely to witness a gap up opening following its global peers after encouraging early-stage data for a potential coronavirus vaccine lifted hopes for a near-term economic recovery.

SGX Nifty is up over 200 points with Nifty futures trading at 8986 on the Singaporean Exchange around 07:30 hours IST.

The Sensex on May 18, 2020 finished 1,028 points, or 3.31 percent, down at 30,069.93, and the Nifty settled at 8,823.25, slipping 314 points, or 3.43 percent.

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Investors lost by Rs 3 lakh crore in terms of market capitalisation on the BSE. The average market capitalisation of the BSE-listed companies dropped from Rs 122.66 lakh crore on May 15 to Rs 119 lakh crore on May 18.

Sectorally, selling pressure was visible in banks, finance, auto, realty, public sector, and capital goods stocks while some buying was seen in IT stocks.

According to pivot charts, the key support level for Nifty is placed at 8,700.57, followed by 8,577.88. If the index moves up, key resistance levels to watch out for are 9,052.12 and 9,280.98.

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:

US Markets

US stocks jumped on Monday, and the S&P 500 closed at a 10-week high, on encouraging early-stage data for a potential coronavirus vaccine and on the promise of more stimulus to lift an economy beaten down by the pandemic.

The Dow Jones Industrial Average rose 911.95 points, or 3.85%, to 24,597.37, the S&P 500 gained 90.21 points, or 3.15%, to 2,953.91 and the Nasdaq Composite added 220.27 points, or 2.44%, to 9,234.83.

Asian Markets

Asian shares were set to rise on Tuesday after data from an early-stage trial for a coronavirus vaccine lifted hopes for a near-term economic recovery, sending global equity markets and oil prices surging.

Hong Kong futures were up 1.8% and Australian shares were also set to open higher. Nikkei futures were trading above the Nikkei 225 index's previous close, pointing to an opening gain of about 2%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 200 points gain. The Nifty futures were trading at 8986 on the Singaporean Exchange around 07:30 hours IST.

Oil prices lifted for fourth day by signs of output cuts and demand pick-up

Oil prices rose on Tuesday, extending gains for a fourth straight session, amid signs that producers are cutting output as promised just as demand picks up, stoked by more countries easing out of curbs imposed to counter the coronavirus pandemic.

Brent crude climbed $0.85, or 2.4%, to $35.66 a barrel by 0033 GMT, after touching its highest since April 9. U.S. West Texas Intermediate crude was up $1.30, or 4.1%, at $33.12 a barrel, after hitting its highest since March 16.

BSE, NSE cut annual listing fee for SMEs by 25%

Leading stock exchanges BSE and NSE on Monday decided to reduce the listing fee for their SME platforms by 25 percent amid challenges faced by small and medium enterprises due to coronavirus pandemic. The fee rebate has been declared following Finance Minister Nirmala Sitharaman's several announcements to rescue the ailing micro, small, and medium enterprises (MSME) sector.

The revised listing fee structure will be applicable for the existing companies as well as for the firms waiting to be listed on the exchange, BSE said in a statement.

IMF chief warns full global economic recovery unlikely in 2021

The global economy will take much longer to recover fully from the shock caused by the new coronavirus than initially expected, the head of the International Monetary Fund said, and she stressed the danger of protectionism. Managing Director Kristalina Georgieva said the Fund was likely to revise downward its forecast for a 3 percent contraction in GDP in 2020, with only a partial recovery expected next year instead of the 5.8 percent rebound initially expected.

In an interview with Reuters, she said data from around the world was worse than expected. "Obviously that means it will take us much longer to have a full recovery from this crisis," she said in an interview. She gave no specific target date for the rebound.

RBI likely to extend loan moratorium scheme by three more months: SBI report

The Reserve Bank of India (RBI) may extend the loan moratorium facility by another three months, according to a report by State Bank of India (SBI) economists. "With the lockdown now extended up to May 31, we expect RBI to extend the moratorium by three months more. This will imply companies need not pay till August 31," said Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI in a report titled 'Will supply create its own Godot/Demand? Over to RBI now!'

Such a step will still imply almost minimal possibility of companies being able to service their interest liabilities in September, failing which the account might be classified NPA (non-performing assets) as per extant norms, the report said.

Fiscal deficit of Centre and states likely to be at 12% of GDP: DBS

The combined fiscal deficit of the Centre and states will top 12 percent of the GDP because of the recent economy boosting measures, and higher borrowings by States to meet COVID-19 exigencies, says a report. According to the report by DBS Bank, the combined fiscal gap will increase by 480 basis point (bps).

In the case of the Centre, the fiscal gap will increase by 200 bps as earlier this month it hiked market borrowings by a whopping Rs 4.2 lakh crore or 54 percent over the budget estimate to Rs 12 lakh crore, citing the pandemic. Another 80 bps increase will be on account of the fiscal boost.

Nasdaq to tighten listing rules, restricting Chinese IPOs: Sources

Nasdaq Inc (NDAQ.O) is set to unveil new restrictions on initial public offerings (IPOs), a move that will make it more difficult for some Chinese companies to debut on its stock exchange, people familiar with the matter said on Monday.

While Nasdaq will not cite Chinese companies specifically in the changes, the move is being driven largely by concerns about some of the Chinese IPO hopefuls’ lack of accounting transparency and close ties to powerful insiders, the sources said.

FII and DII data

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 2,512.82 crore and Rs 152.42 crore, respectively, in the Indian equity market on May 18, provisional data available on the NSE showed.

With inputs from Reuters & other agencies

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First Published on May 19, 2020 07:37 am
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