Indian markets witnessed a breakout on May 27 as the bulls pushed the S&P BSE Sensex by over 1,000 points to close above 31,000 while the Nifty reclaimed the vital 9,300 level.
Easing of restrictions and the gradual resumption of business activity in India and across the world raised investors’ hopes of the economy getting back on track, say experts.
According to pivot charts, the key support level for Nifty is placed at 9,101.47, followed by 8,887.98. If the index moves up, key resistance levels to watch out for are 9,431.22 and 9,547.48.
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 stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery.
Asian shares are likely to dip on Thursday after remarks by U.S. Secretary of State Mike Pompeo that Hong Kong no longer warranted special treatment under US law reignited worries about worsening relations with Beijing.
Trends on SGX Nifty indicate a positive opening for the index in India with a 73 points gain. The Nifty futures were trading at 9370 on the Singaporean Exchange around 07:32 hours IST.
Japan approves fresh $1.1 trillion stimulus to combat pandemic pain
Japanese Prime Minister Shinzo Abe’s cabinet approved on Wednesday a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world’s third-largest economy deeper into recession.
The record stimulus of 117 trillion yen, which will be funded partly by a second extra budget, followed another 117 trillion yen package rolled out last month. The new package takes Japan’s total spending to combat the virus fallout to 234 trillion yen ($2.18 trillion), or about 40% of gross domestic product.
India may need to pump $20 billion into coronavirus-hit state banks
India may need to inject up to Rs 1.5 lakh crore rupees ($19.81 billion) into its state-owned lenders as their pile of soured assets is expected to double during the coronavirus pandemic, three government and banking sources told Reuters.
The capital plans were still being discussed and a final decision could be taken in the second half of the fiscal year, a second government source said. India's fiscal year runs from April 1. One banking source said it was unlikely the federal government would be able to fund the entire capital injection itself and may rely on indirect measures such as issuing bonds as a means of recapitalisation, a method which it has used previously.
NCLT approves IL&FS stake sale in GIFTCL to Gujarat govt
The National Company Law Tribunal has approved crisis-hit IL&FS to selling its stake in Gujarat International Finance Tec-City Company (GIFTCL) to the Gujarat government. IL&FS has 50 percent stake in GIFTC. The Gujarat government has agreed to pay a positive equity value of 100 per cent of the IL&FS stake in GIFTCL, by which, the positive equity value of over Rs 32.70 crore will come to IL&FS, according to an NCLT order.
The order said that IL&FS had sought that an amount of Rs 61.84 lakh is excluded as resolution process costs incurred for meeting various expenditures, other applicable taxes from the sale proceeds of the applicant's shareholding in GIFTCL to the Gujarat government.
Results on May 28
Lupin, Federal Bank, TVS Motor Company, CEAT, Automobile Corporation of Goa, Agro Tech Foods, Benares Hotels, Chembond Chemicals, LT Foods, Heidelbergcement India, Hindusthan National Glass, IIFL Finance, Inditrade Capital, Muthoot Capital Services, Radico Khaitan, Rain Industries, Tata Steel Long Products, Wendt (India).
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 334.74 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,408.85 crore in the Indian equity market on May 27, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Vodafone Idea is under the F&O ban for May 28. 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.
Oil prices fell in early trade on Thursday after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns.
The decline extended losses from Wednesday on uncertainty about Russia's commitment to deep oil production cuts in the lead-up to a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, dubbed OPEC+.With inputs from Reuters & other agencies