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What changed for the market while you were sleeping? Top 12 things to know

Trends on SGX Nifty indicate a positive opening for the index in India with a 197 points gain.

March 31, 2020 / 07:35 AM IST

Market benchmarks Sensex and Nifty closed in the red on March 30 as fears of recession kept investors away from riskier equities.

Sensex closed the day with a loss of 1,375 points, or 4.61 percent, at 28,440.32 while Nifty settled 379 points, or 4.38 percent, lower at 8,281.10. The Nifty is back below 8,300 after two sessions, which suggests that bears may have regained their stranglehold.

According to the pivot charts, the key support level for Nifty is placed at 8,158.07, followed by 8,035.03. If the index starts moving up, key resistance levels to watch out for are 8,490.07 and 8,699.03.

Nifty Bank closed 5.94 percent down at 18,782.40. The important pivot level, which will act as crucial support for the index, is placed at 18,395.33, followed by 18,008.27. On the upside, key resistance levels are placed at 19,442.83 and 20,103.27.

Close

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 rose on Monday as President Donald Trump followed last week’s massive fiscal stimulus package by extending his stay-at-home guidelines, leaving investors to await more signs on the next stages of a deepening economic crisis.

Dow Jones Industrial Average was up 482.20 points, or 2.23%, at 22,118.98, the S&P 500 was up 66.06 points, or 2.60%, at 2,607.53 and the Nasdaq Composite was up 220.56 points, or 2.94%, at 7,722.94.

Asian Markets

Asian shares managed a tentative rally on Tuesday as factory data from China held out the hope of a rebound in activity even as other countries across the globe all but shut down.

Still, the headline number was a relief and helped MSCI’s broadest index of Asia-Pacific shares outside Japan rise 1.1%. Japan’s Nikkei firmed 1.0% after a jittery start, while South Korea added 2%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 197 points gain. The Nifty futures were trading at 8487 on the Singaporean Exchange around 07:30 hours IST.

China's March official factory activity unexpectedly expands after steep contraction

Factory activity in China unexpectedly expanded in March after contracting sharply to a record low, but the rapid global spread of the coronavirus is expected to keep businesses and the overall economy under heavy pressure as foreign demand slumps.

The Purchasing Managers’ Index (PMI) rose to 52 in March from the collapse to a record low of 35.7 in February, China’s National Bureau of Statistics said on Tuesday, and above the neutral 50-point mark that separates growth from contraction on a monthly basis.

Japan's factory output growth slows in Feb as virus fallout widens

Japan’s factory output rose in February at a slower pace than the previous month, adding to growing signs that the rapidly spreading coronavirus pandemic is taking a toll on an economy already on the cusp of recession.

Factory output rose 0.4% in February, government data showed on Tuesday, slower than the 1.0% gain in January but faster than the 0.1% increase forecast in a Reuters poll. Manufacturers surveyed by the government expect output to fall 5.3% in March and increase 7.5% in April, the data showed.

Saudi Arabia to raise oil exports to record 10.6 mn bpd

Saudi Arabia said on Monday it will raise its oil exports to a record 10.6 million barrels per day starting from May amid an escalating price war with Russia. "The kingdom plans to raise its petroleum exports by 600,000 bpd from May, so total exports will increase to 10.6 million bpd," said an official at the energy ministry, cited by the state-run SPA agency.

This means the world's top exporter, which already announced a sharp increase for April, will add at least 3.6 million bpd of additional supplies to the global market amid a production glut and low oil prices.

SEBI eases processing of documents for FPI

Relaxing compliance requirement for foreign portfolio investors (FPIs), markets regulator Sebi on Monday allowed scanned copies of documents for renewing registration in the wake of coronavirus pandemic.

The relaxation has been given till June 30, the Securities and Exchange Board of India (Sebi) said in a circular. “In light of the recent event pursuant to the COVID-19, a need has been felt for temporary relaxations with respect to compliance requirements for FPIs,” it added.

Crude rises after US, Russia agree to oil market talks

Oil recovered some ground on Tuesday as US President Donald Trump and Russian President Vladimir Putin agreed to discuss stabilising energy markets, but prices remain near 18-year lows as the coronavirus shutdown destroys demand.

Brent crude was up by 19 cents, or 0.8%, at $22.95 a barrel by 0051 GMT, after closing at $22.76 in the previous session, the lowest close since November 2002.

Rupee settles 70 paise lower at 75.59 against US dollar

The rupee settled 70 paise lower at 75.59 (provisional) against the US dollar on Monday amid rise in coronavirus cases in the country and weak domestic equities. Forex traders said heavy selling in domestic equities dragged the local unit amid mounting fears of a coronavirus-led economic slowdown.

Moreover, strengthening of the American currency in the international market also weighed on the domestic currency. At the interbank foreign exchange market, the rupee opened at 75.17. During the day, it lost further ground and finally settled at 75.59, down 70 paise over its previous close.

RBI opens up specified G-Secs fully for foreign investors

In line with the Budget announcement, the Reserve Bank on Monday opened certain specified categories of government securities (g-secs) for non-resident investors as part of an initiative to deepen the bond market. Accordingly, a separate route namely, Fully Accessible Route (FAR) for investment by non-residents in securities issued by the Government of India has been notified, the RBI said in a notification.

Finance Minister Nirmala Sitharaman in the Budget for 2020-21 had announced that "certain specified categories of Government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well." This will come under overall FPI limit of above 6 percent but those falling under specified securities can be subscribed without any restriction.

India may slash borrowing from market in April amid lockdown

India may slash or even cancel its planned borrowings from the market for April, looking at its options amid a nationwide lockdown prompted by the coronavirus outbreak, two finance ministry sources told Reuters. The travel curbs have disrupted routine bond market trading and volumes and prompted primary dealers, underwriters to bond issuances, to seek finance ministry intervention.

"We are looking at various options. Market borrowing is challenging in the current environment," a senior finance ministry official said.

RBI changes SLBC convenors in view of bank mergers

The Reserve Bank on Monday proposed to change the convenors of State Level Bankers' Committee (SLBC) in view of the merger of 10 public sector banks into 4 with effect from April 1. With the mega merger, 6 public sector banks will cease to exist from April 1, necessitating changes in the convenorship.

The convenorship of merged banks will be transferred to anchor banks. The government on March 4 notified the amalgamation scheme as part of its consolidation plan to create bigger and stronger banks in the public sector.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 4,363.61 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 3,550.33 crore in the Indian equity market on March 30, provisional data available on the NSE showed.

With inputs from Reuters & other agencies
Sandip Das
first published: Mar 31, 2020 07:35 am

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