Trends on SGX Nifty indicate a negative opening for the index in India with a 40 points loss.
Indian stock market is expected to open lower on May 22 following global cues after fresh wave of China-US trade tension. Also, markets felt jittery as Beijing was set to impose new national security legislation on Hong Kong.
Market is likely to open lower on May 22 as trends on SGX Nifty indicate a negative opening for the index in India with a 40 points loss.
Equity market witnessed mild bouts of volatility due to weekly F&O expiry on May 21. Eventually, the Sensex closed the day 114 points, or 0.37 percent, higher at 30,932.90 while Nifty finished with a gain of 40 points, or 0.44 percent, at 9,106.25.
Broader markets outperformed the benchmarks. The BSE Midcap and Smallcap indices settled 0.76 percent and 0.72 percent higher, respectively.
According to pivot charts, the key support level for Nifty is placed at 9,048.72, followed by 8,991.18. If the index moves up, key resistance levels to watch out for are 9,171.17 and 9,236.08.
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:
Wall Street ended lower on Thursday, a day after hitting two-month highs, on a fresh wave of China-US tensions that raised doubts about the trade deal reached early this year between the world’s two largest economies.
The Dow Jones Industrial Average fell 0.41% to end at 24,474.12 points, while the S&P 500 lost 0.78% to 2,948.51. The Nasdaq Composite dropped 0.97%, to 9,284.88.
Asian markets traded lower on Friday morning as tensions between the US and China rise. Shanghai composite down 0.4% while Nikkei 225 slipped 0.22% in morning trade. Topix index was 0.27% lower and Kospi fell 0.85%.
Trends on SGX Nifty indicate a negative opening for the index in India with a 40 points loss. The Nifty futures were trading at 9,040 on the Singaporean Exchange around 07:30 hours IST.
Oil prices climb as countries ease coronavirus curbs
Oil prices were on the rise on Friday, heading for a fourth straight week of gains, amid more evidence that fuel demand is recovering as countries ease business and social restrictions that were imposed to counter the coronavirus pandemic.
Brent crude was up 14 cents, or 0.4%, at $36.20 a barrel by 0040 GMT, after gaining nearly 1% on Thursday. West Texas Intermediate crude was up 5 cents, or 0.2%, at $33.97 a barrel, having gained more than 1% in the last session.
Amid lockdown, motor insurance sales plunge 50% in April: Report
Amid the novel coronavirus-led lockdown, the motor insurance space saw a massive drop in sales in April. Motor insurance fell 50 percent year-on-year to Rs 2,621 crore in April, The Times of India reported. Insurance in categories such as marine, engineering, aviation, crop and personal accidents also saw a drop of 5-40 percent, the report added.
"More individuals are now aware of the need for health insurance given the high costs of private healthcare. But some corporates want to cut costs and have asked if the number of dependents insured for employees can be reduced," S Prakash, Managing Director, Star Health Insurance Co, told the paper.
Don’t wait for 90-days to upgrade a defaulted firm if it makes payments: Sebi to rating agencies
The Securities and Exchange Board of India (Sebi) has told credit rating agencies (CRAs) that they can upgrade a company from default to a higher grade if the firm manages to pay back quickly and there is a policy change in place. Till now, rating agencies have to wait for 90-days before upgrading a defaulted company.
In other words, the market regulator has allowed rating agencies to deviate from this earlier 90-day period to upgrade the rating of an entity from default to non-investment after the default is cured and payments are regularised.
“CRAs may deviate from the said period of 90 days on a case to case basis, subject to the CRAs framing a detailed policy in this regard. The said policy will also be placed on the CRA’s website. Cases of deviations from stipulated 90 days, if any, will be placed before the Ratings Sub-Committee of the CRA's board, on a half yearly basis, along with the rationale for such a deviation, Sebi said.
China sets 2020 budget deficit target of at least 3.6% of GDP
China has set a budget deficit target for this year of “at least” 3.6 percent of gross domestic product (GDP), Premier Li Keqiang said in his work report at the start of the annual parliamentary gathering on Friday. The target compares with the 2.8 percent target set for 2019
Banks knock on MCA's doors, seek speedy approval for 40 resolved IBC cases
With uncertainty looming large, banks have approached the Ministry of Corporate Affairs (MCA) seeking a fast-tracking of 40 resolved, high-value insolvency cases in which a decision from the bankruptcy courts is pending, The Economic Times reported.
The extremely low recovery prospects in the imminent months have bankers worried sick as they fear they may lose buyers due to delay in pending approvals in the aforementioned cases, the report noted. A fall in the value of these deals due to the lack of movement in the economy may dissuade buyers from going ahead with these deals. Additionally, companies that have been admitted for insolvency and are awaiting hearings also featured on the list that was sent to the MCA.
Economic activity picking up in Asia: Goldman Sachs CEO David Solomon
Despite the world being ravaged by COVID-19 disruptions, Goldman Sachs Chairman and CEO David Solomon feels economic activity is picking up in Asia and this is happening market-by-market. He made the observation in a conversation with IHS Markit chairman and CEO Lance Uggla, wherein he lauded the swiftness of economic relief by the world’s governments while also comparing the pace of recovery in Asia as compared to the trajectory of Europe and the US.
"There are a number of things that have helped there. I think one of the things that have helped—and I think we'd be in a very, very different place in the United States and Europe—masks are part of the culture there. They did at the beginning, they got through the crisis and we were just very late to that in Europe and the US I think that made a big difference," Solomon said.
India Ratings sees total slippages rise up to Rs 5.5 lakh crore
India Ratings (Ind-Ra) expects most sectors to experience varying degrees of revenue contraction during FY21 due to demand and supply disruptions caused by the novel coronavirus, or COVID-19, pandemic. It feels the current crisis presents fresh challenges for banks, which over the last four years have been reeling under corporate stress.
Between FY16 and FY20, banks faced elevated provisions resulting from the corporate stress cycle. "They had largely provided for the existing corporate stress and were progressing towards a more moderated credit cost cycle. However, the COVID-19 related measures are likely to result in another cycle of stress," it warned.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 258.73 crore, while domestic institutional investors (DIIs) bought shares worth Rs 401.78 crore in the Indian equity market on May 21, provisional data available on the NSE showed.
With inputs from Reuters & other agencies