Indian market is expected to tread sideways amid rising cases of coronavirus and souring relations between the US and China and deteriorating macroeconomic environment. Besides, most bank and financial stocks may also extend their losses of the previous session after the Reserve Bank of India (RBI) announced the extension of loan moratorium by three months.
Trends on SGX Nifty indicate a positive opening for the index in India with a 77 points gain. Nifty futures was trading at 9,159 level on the Singaporean Stock Exchange at 07:45 hours.
The Sensex ended the session 260 points lower at 30,672 on May 22 while the Nifty50 slipped 67 points to 9,039.
According to pivot charts, the key support level for the Nifty is placed at 8,955.33, followed by 8,871.42. If the index moves up, key resistance levels to watch out for are 9,136.38 and 9,233.52.
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:
Asian shares crept ahead on Tuesday following an upbeat session in Europe and further gains in U.S. stock futures as investors looked past Sino-U.S. trade tensions to a re-opening world economy.
Japan's Nikkei led the way with a rise of 1% to its highest since early March when the economic impact of the coronavirus was just becoming clear. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1% in early trade, while South Korea rose 0.4%.
Trends on SGX Nifty indicate a positive opening for the index in India with a 77 points gain. Nifty futures was trading at 9,159 level.
Oil climbs as suppliers stick to output cuts, coronavirus lockdowns ease
Oil prices rose on Tuesday on clear signs that producers are sticking to commitments to cut crude supply as more cars get back on the road with coronavirus lockdowns easing around the world.
Brent crude futures inched up 0.7%, or 23 cents to $35.76, adding to a 1.1% gain on Monday in thin holiday trading. US West Texas Intermediate (WTI) crude futures gained 2.3%, or 75 cents, to $34.00 as of 0057 GMT.
Shares in depository account can be used as margin till August 31: SEBI
Markets regulator SEBI on Monday said shares in depository account, which may be pledged or repledged, can be used as margin for another three months till August 31 in the wake of coronavirus pandemic.
Under the framework, trading or clearing member need to accept collateral from clients in the form of securities, only by way of ''margin pledge'', created in the depository system with effect from June 1.
Japan lifts Tokyo's state of emergency, eyes fresh stimulus
Japanese Prime Minister Shinzo Abe said on Monday that Japan will lift a state of emergency for Tokyo and four remaining areas later in the day but that it could be reimposed if the pace of infections picked up. Abe also told a news conference that the total amount of stimulus from two economic packages would exceed 200 trillion yen but it would still take considerable time to get back to normal life while controlling infection risks.
India's retail trade lost business worth Rs 9 lakh crore in last 60 days: CAIT
The country's retail trade lost business worth Rs 9 lakh crore in the last 60 days, mainly due to the nationwide lockdown to contain coronavirus pandemic, trader's body CAIT said on Sunday. Confederation of All India Traders (CAIT) said domestic trade is facing its worst period as shops and commercial markets across the country since last Monday could register only about 5 per cent of the business, and only 8 per cent of the workforce could resume their duties in shops after migration of about 80 per cent employees to their native places.
CAIT Secretary General Praveen Khandelwal said during the span of 60 days of national lockdown, the domestic trade has lost business to the tune of about Rs 9 lakh crore, causing a revenue loss of about Rs 1.5 lakh crore to both the central and state governments on account of GST.
Telecom players approach Trai seeking early decision on floor price issue
Telecom players have urged regulator Trai to move forward quickly on the issue of fixing floor price for tariffs, saying the matter is imperative to ensure that the sector is sustainable and in a position to bear the deferred spectrum and AGR dues. Notwithstanding the nudge from the industry, the latest report by ICICI Securities has said that any huge tariff hike is unlikely for at least a quarter or two.
"Given the financial pressure on the sector and the fact that ARPU (Average Revenue Per User) and tariffs of the Indian telecom sector are the lowest in the world, floor pricing is imperative to ensure that the sector is sustainable, and is in a position to bear the deferred spectrum and AGR (Adjusted Gross Revenue) dues while continuing to invest in world-class networks and services," COAI said in its letter to Trai Chairman R S Sharma.
Gold imports dip for fifth consecutive month in April, fall by almost 100%
India's gold imports contracted for the fifth consecutive month in a row, falling by about 100 percent to USD 2.83 million in April due to the lockdowns imposed globally on account of coronavrius outbreak. The import of the yellow metal stood at USD 3.97 billion in April 2019, according to the commerce ministry's data. Gems and jewellery exports declined 98.74 percent to USD 36 million in April.
Major automakers see demand for personal vehicles going up
Automakers like Maruti Suzuki, Honda, Toyota and Tata Motors expect demand for personal vehicles to go up in the country as social distancing and fear associated with COVID-19 veer people away from public transport. The country's largest carmaker Maruti Suzuki India (MSI) expects demand to shift towards lower-priced cars in the post-lockdown scenario. "People will prefer personal vehicles over public transport and it comes out from different consumer surveys which we have conducted," said MSI Executive Director, Marketing and Sales, Shashank Srivastava.
FPIs invest Rs 9,000 cr in May so far on attractive valuations
Foreign investors have infused over Rs 9,000 crore into the Indian equity markets in May so far amid attractive valuations of stocks and a mega block deal involving HUL. The inflow comes following a net withdrawal of Rs 6,883 crore in April and Rs 61,973 crore in March on fears of a coronavirus-induced global recession.
According to depositories data, FPIs invested a net sum of Rs 9,089 crore in the equity markets during May 1-22. However, they pulled out a net Rs 21,418 crore from the debt markets during the period under review.
RBI to auction G-Secs worth Rs 30,000 crore on May 29
The government has announced to sell dated securities worth Rs 30,000 crore on May 29, the Reserve Bank of India (RBI) said in a statement on Friday. The auction is part of government's market borrowing programme. Earlier this month, the government had decided to modify the indicative calendar for issuance of government dated securities for the remaining part of the first half of the fiscal 2020-21 (May 11-September 30, 2020) after reviewing its cash position and requirements.
The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per Budget Estimate (2020-21).
Strict surveillance measures to tackle market volatility to continue until June 25: SEBI
Regulator Sebi on Friday said stricter surveillance measures to tackle market volatility amid coronavirus pandemic will continue till June 25. Besides, ensuring orderly trading and settlement, these steps are aimed at effective risk management, price discovery and maintenance of market integrity.
"As the stock markets (both domestic and global) are expected to be volatile in the near future, keeping in view the objective of ensuring orderly trading and settlement, effective risk management, price discovery and maintenance of market integrity, it has been decided that the measures implemented since March 23, 2020 will continue to be in force till June 25, 2020," the regulator said.
India's forex reserves rise $1.73 billion to $487.04 billion
The country's foreign exchange reserves increased by $1.73 billion to $487.04 billion in the week to May 15, which is equivalent to 12 months of imports, according to the Reserve Bank of India. Between April 1 and May 15, the foreign exchange reserves have increased by $9.2 billion. In the week ended May 8, the reserves had surged by $4.23 billion to $485.31 billion. It had touched a life-time high of $487.23 billion in the week to March 6, after it rose by $5.69 billion.
The increase in reserves in the week ended May 15 was on account of a rise in foreign currency assets (FCA), a major component of the overall reserves. FCA rose by $1.12 billion to $448.67 billion in the reporting week, RBI data showed.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,353.9 crore, and domestic institutional investors (DIIs), too, sold shares worth Rs 344.16 crore in the Indian equity market on May 22, provisional data available on the NSE showed.With inputs from Reuters & other agencies