Indian markets are likely to open on flat to negative note following SGX Nifty which is down 37 points at 9,046 levels. Among global markets, Asia is trading firm after the US market ended higher on hopes of more stimulus measures from the Federal Reserve.
On May 20, Indian indices gained for the second consecutive day with Nifty ending above 9,050 level supported by the pharma, auto and banking names.
The Sensex was up 622.44 points or 2.06% at 30818.61, and the Nifty was up 187.45 points or 2.11% at 9066.55.
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:
The three major averages on Wall Street notched their fourth gain in five sessions on Wednesday as investors again bet on a swift economic recovery from coronavirus-driven lockdowns and the potential for more stimulus measures from the Federal Reserve.
The S&P 500 stands at a two-month high and was briefly above its 100-day moving average, a closely watched technical indicator that has acted as a resistance level. The Nasdaq finished at its highest close in three months and was less than 5% below record levels, as shares of Facebook Inc and Amazon.com Inc surged to all-time highs.
Asian shares were poised to open higher on Thursday after global equities and crude prices rallied overnight on hopes of a rapid economic recovery and government support.
Hong Kong futures edged higher. Nikkei futures were trading above the Nikkei 225 index's previous close. Australian shares were also set to rise.
Trends on SGX Nifty indicate a flat to negative opening for the index in India with a 37 points fall. The Nifty futures were trading at 9,046 on the Singaporean Exchange around 07:32 IST.
Oil prices edged higher on Thursday after data showed U.S. crude inventories fell again, easing concern about a supply glut, though lingering fears over the global economic fallout from the COVID-19 pandemic capped gains.
ICRA warns of deep recession
Domestic rating agency Icra on Wednesday warned of a deep recession as it drastically lowered FY21 growth forecast for India to minus 5 percent, citing the very modest fiscal support, extension of the nationwide lockdown and looming labour shortage.
The agency also sharply revised downwards the growth contraction in Q1 to 25 percent as against the previous forecast of 16-20 percent and to minus 2.1 percent in Q2 from 2.1 percent growth previously, which implies a recession.
RBI may need to aggressively cut rates alongside fiscal stimulus - economists
The Indian government’s frugal economic stimulus package has put pressure on the Reserve Bank of India to intervene, as analysts and economists say measures announced so far are unlikely to have any meaningful impact soon.
The RBI cut interest rates by a sharper-than-expected 75 basis points in late March. Markets and economists now expecting at least another 75-100 basis points cuts in the remainder of this fiscal year.
SEBI allows listing of mutual fund units of schemes in process of winding up
The Securities and Exchange Board of India has allowed listing of mutual fund units of the schemes that are in the process of winding up on the stock exchanges with immediate effect.
This move will allow Franklin Templeton Mutual Fund to list their units for those investors who wish to exit.
No cut in income tax rates: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman said the economic stimulus package unveiled by the government under the Atmanirbhar Bharat Abhiyan will enable businesses to open up, which will then ensure workers are paid their wages.
In an exclusive interview to CNN-News18, she said the focus of the first package under the PM Garib Kalyan Yojana, which came soon after the lockdown was announced, was to ensure that no one goes hungry.
Sitharaman ruled out more stimulus measures announcements at present but left the door open for the same in future, stating: "I don't have anything more to announce at the moment."
She categorically ruled out any cuts in personal or indirect taxes at present.
Domestic flights to resume operations
Flight operations will resume on May 25 with one-third the schedule, with most airports expected to be open for service, senior officials said.
Top executives of all airlines are expected to meet officials of the Ministry of Civil Aviation, and industry regulator DGCA, on May 21 to chart out the details.
The government has decided on re-open the skies from May 25. Flights were suspended from March 25, when the first phase of the national lockdown was announced to limit the outbreak of novel coronavirus, or COVID-19.
Japan April exports fall 21.9%
Japan's exports fell 21.9% in April from a year earlier, Ministry of Finance (MOF) data showed on Thursday, in a sign the coronavirus pandemic is taking a heavy toll on the country's export-reliant economy.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,466.52 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,373.19 crore in the Indian equity market on May 20, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Vodafone Idea is under the F&O ban for May 21. 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