Moneycontrol
Get App
Last Updated : May 12, 2020 08:56 AM IST | Source: Moneycontrol.com

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

Trends on SGX Nifty indicate a negative opening for the index in India with a 68 points loss.


The Indian stock market is expected to open lower as investors remain concerned that the nationwide lockdown may be extended as virus cases continue to rise.

Trends on SGX Nifty indicate a negative opening for the index in India with a 68 points loss.

The Indian stock market on May 11 closed in the red despite opening with a gap up. The S&P BSE Sensex took a knock of more than 700 points from the highs, while the Nifty50 failed to hold on to the 9250-level towards the close.

Close

The Nifty50 has witnessed selling pressure above 9,300 in nine of the last 10 trading sessions, which suggests that there is a crucial resistance which the index has to breach convincingly for markets to move higher.

Analysts believe the market will continue to remain volatile in the near term, reacting to the spread of novel coronavirus, or COVID-19, newsflow regarding development of its vaccine and government's measures on stimulus and restarting the economy.

According to pivot charts, the key support level for Nifty is placed at 9,159.47, followed by 9,079.73. If the index moves up, key resistance levels to watch out for are 9,379.42 and 9,519.63.

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

The S&P 500 closed slightly higher on Monday as investors looked beyond new spikes in coronavirus infections to focus on expectations that an economy crippled by mandated shutdowns will soon be re-opened for business.

Dow Jones Industrial Average fell 0.45% to end at 24,221.99 points, while the S&P 500 gained 0.01%, to 2,930.19. The Nasdaq Composite climbed 0.78% to 9,192.34.

Asian Markets

Asian markets were little changed as investors await the release of Chinese inflation data expected to be out later in the day. Nikkei 225 was largely flat in early trade while South Korea’s Kospi dipped 0.38%. Meanwhile, the S&P/ASX 200 in Australia slipped 0.67%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the index in India with a 68 points loss. The Nifty futures were trading at 9,146 on the Singaporean Exchange around 07:30 hours IST.

Chinese advisers call for talks on new trade deal with US: Report

Hawkish voices have emerged in China seeking a reevaluation of its Phase 1 trade deal with the United States, with some advisers urging fresh talks, a state-controlled tabloid said, citing sources close to the Chinese government. Advisers close to the talks have suggested that Chinese officials revive the possibility of invalidating the trade pact and negotiate a new one to tilt the scales more to the Chinese side, the Global Times reported on Monday, citing the sources.

Oil prices rise

Oil futures climbed in early trade on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain the glut in the global market that has grown as the coronavirus pandemic crushed fuel demand. Brent crude futures climbed to a high of $30.11 a barrel and were up 0.9%, or 28 cents, at $29.91 at 0021 GMT, clawing back some of the previous session’s losses.

SEBI cuts broker turnover fees, filing charges for documents on public issues, buyback

Continuing with its efforts to help market participants tide over the challenges due to COVID-19 pandemic, Sebi has reduced broker turnover fees and filing charges on offer documents for public offering, rights issue and buyback of shares. The broker turnover fee has been reduced to 50 per cent of the existing fee structure for the period June 2020 to March 2021, the Securities and Exchange Board of India (Sebi) said in a notification dated May 8.

“Every stock broker in cash segment, equity derivatives segment, currency derivatives segment, interest rate derivatives segment and commodity derivatives segment (other than agri commodity derivative) liable to pay fees as a percentage of their turnover...for period June 1, 2020 to March 31, 2021, pay only 50 per cent of fees as calculated therein, including for off-market transactions undertaken by them,” the regulator noted.

India will be risking economic hara-kiri, if lockdown extended for much longer: Anand Mahindra

Leading industrialist Anand Mahindra on Monday said that if lockdown is extended for much longer duration then the country will be "risking economic hara-kiri". The Mahindra Group chairman said that while the lockdown has been able to save lakhs of lives, its further extension could lead to severe difficulties for weaker sections of the society.

"The number of new cases has risen, despite flattening the previous few days. With higher testing, a continuing rise is inevitable given the low absolute number of cases relative to our population & the rest of the world. We shouldn't expect a swift flattening of the curve," Mahindra said in a tweet.

Economy requires Rs 4.5 lakh crore fiscal support at current juncture: FICCI to FM

Seeking immediate support for the Indian economy hit by COVID-19, industry body Ficci said an additional fiscal support of Rs 4.5 lakh crore is required at the current juncture besides a quick release of Rs 2.5 lakh crore stuck in refunds and other government payments. In a letter to Finance Minister Nirmala Sitharaman, Ficci President Sangita Reddy also made a case for the need to create a self-sufficiency fund for innovation, construction and manufacturing clusters to make use of the emerging opportunities in the wake of disruption in global supply chain.

Seeking an "immediate support", Reddy said the problem being faced is largely that of liquidity, and immediate release of money stuck in refunds and other government payments to the tune of Rs 2.5 lakh crore will immensely help tide over the crisis.

Automakers warn of up to 45% sales drop as economy slumps amid pandemic

India's automakers have warned that total automobile sales could fall as much as 45 percent in the current fiscal year in a worst-case scenario as economic growth slumps due to the COVID-19 pandemic, and they are seeking government help through the crisis.

The Society of Indian Automobile Manufacturers (SIAM), an industry trade body, told government officials last week that if India's economy contracts by 2 percent in the year starting April 1, sales of cars, trucks and motorbikes could decline by as much as 45 percent from a year before.

SIAM presented two more scenarios to the government -- one where the economy grows by 2 percent-3 percent, which would lead to a 20 percent decline in auto sales, and a second where growth stagnates from last year, resulting in a 35 percent decline in sales.

Zerodha to offer option to invest in US stocks, says no minimum investment

Indian brokerage firm Zerodha is planning to offer US stocks on its trading platform. However, the timeline for the services is yet to be determined. "We have been working internally on offering US stocks on the Zerodha platform, by partnering with a US-based stockbroker," Nithin Kamath, Founder & CEO, Zerodha told Moneycontrol adding that their will likely be no minimum investment required.

Indian bond yields surge as government borrowing balloons

India's benchmark 10-year bond yield surged on Monday following the government's decision to sharply increase market borrowing amid a major hit to the economy and public finances from the coronavirus pandemic. The government plans to borrow Rs 12 lakh crore ($160 billion) in the fiscal year to March 2021, up from the previously budgeted Rs 7.8 lakh crore, to cushion the blow from the pandemic, it said on Friday.

The benchmark 10-year bond yield rose as much as 27 basis points to 6.24% in opening deals and was last trading at 6.17% at 0628 GMT.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 534.87 crore, while domestic institutional investors (DIIs) sold shares worth Rs 821.6 crore in the Indian equity market on May 11, provisional data available on the NSE showed.

Stock under F&O ban on NSE

Vodafone Idea is under the F&O ban for May 12. 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

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 12, 2020 07:27 am
Sections
Follow us on