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Last Updated : Apr 07, 2020 08:26 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 15 things to know

Trends on SGX Nifty indicate a positive opening for the index in India with a 472 points gain.

Benchmark indices have nosedived for the seventh consecutive week ended April 3 amid worries over increasing COVID-19 infected cases globally and rating downgrade on fear of NPA pressure in banking & financials sector due to lockdown. Subdued auto sales data for March and rally in oil prices also hit sentiment.

The BSE Sensex tanked 2,224.64 points or 7.46 percent to 27,590.95 and the Nifty50 fell 576.45 points or 6.66 percent to 8,083.80 for the week, taking total seven-week loss to 33 percent each.

The market breadth was in favour of bulls for last three straight sessions during the passing week, which experts feel indicated that supressed valuations in quality stocks attracted buying interest at lower levels hoping that the worst might have discounted by the market.


According to the pivot charts, the key support level for Nifty is placed at 7,974.22 followed by 7,864.63. If the index moves up, key resistance levels to watch out for are 8,274.97 and 8,466.13.

The important pivot level, which will act as crucial support for the index, is placed at 16,819.63, followed by 16,389.96. On the upside, key resistance levels are placed at 18,002.53 and 18,755.77.

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 rocketed higher on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, the country’s biggest coronavirus hot spot, fueled optimism a leveling off of the pandemic was on the horizon.

The Dow Jones Industrial Average rose 1,627.46 points, or 7.73%, to 22,679.99, the S&P 500 gained 175.03 points, or 7.03%, to 2,663.68 and the Nasdaq Composite added 540.16 points, or 7.33%, to 7,913.24.

Asian Markets

Asian markets looked poised on Tuesday to attempt another day of gains after stocks rallied on signs of a slowdown in coronavirus-related deaths, as oil prices resumed their decline on doubts about a potential Saudi-Russian pact to cut output.

Nikkei futures opened lower but were 2.3% above the cash close. The yen eased 0.01% as traders awaited more details on the government’s stimulus package. Hong Kong futures were up and Australia futures also rose in early trade.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 472 points gain.

Oil gains as hopes rise for production cut amid coronavirus outbreak

Oil rose on Tuesday amid hopes that the world’s biggest producers of crude will agree to curtail production as the coronavirus pandemic ravages the global economy, even as analysts cautioned the cuts may do little to boost demand.

Brent crude was up by 73 cents, or 2.2%, at $33.78 a barrel by 0026 GMT after falling more than 3% on Monday. US crude was up by 97 cents, or 3.7%, at $27.05 a barrel, having dropped nearly 8% in the previous session.

Fitch slashes India growth forecast to 30-year low of 2% for FY21

Fitch Ratings on Friday said it has slashed India's growth forecast for the current fiscal to a 30-year low of 2 percent, from 5.1 percent projected earlier, as economic recession gripped global economy following the lockdown due to COVID-19 pandemic. "The initial disruptions to regional manufacturing supply chains from a lockdown in China as the coronavirus spread have now broadened to include local discretionary spending and exports even as parts of China return to work.

"Fitch now expects a global recession this year and recently cut our GDP growth forecast for India to 2 percent for the fiscal year ending March 2021 after lowering it to 5.1 percent previously, which would make it the slowest growth in India over the past 30 years," it said in a statement.

SEBI revises cutoff time for investments in mutual fund schemes

Market regulator Securities and Exchange Board of India (SEBI) has revised the cutoff time for mutual fund schemes for both liquid and overnight funds and other schemes.

As per communication from the Association of Mutual Funds in India (AMFI), the revised cutoff timings will be applicable from April 7 to 17, 2020. Earlier, the cutoff time for liquid and overnight funds was 1:30 PM and for other funds, it was at 3 PM. Other funds include bonds, equity, and hybrid funds.

RBI announces 3rd targeted LTRO for Rs 25,000 crore

To ensure adequate liquidity in the system, especially in the corporate bond market, the Reserve Bank of India (RBI) on Friday announced the third targeted long-term repo operation (TLTRO) on April 7 for Rs 25,000 crore. The central bank announced the LTROs on February 6 and has pumped in liquidity worth Rs 1 lakh crore since then, and the TLTRO was announced on March 27 and has so far done two tranches worth Rs 50,000 crore and the initial target is Rs 1 lakh crore.

The second tranche was conducted for Rs 25,000 crore on Friday. The new issue coming up on April 7 is of three-year tenor, the central bank said.

India's March services activity contracts amid COVID-19 disruptions

India's dominant services sector, the lifeblood for economic growth and jobs, contracted in March as new business and export demand fell sharply as the coronavirus pandemic wreaked havoc globally, a private survey showed.

The Nikkei/IHS Markit Services Purchasing Managers' Index fell sharply to a five-month low of 49.3 in March from February's seven-year high of 57.5, below the 50-mark separating growth from contraction for the first time since October.

Japan to declare coronavirus emergency, launch stimulus of almost $1 trillion - PM

Japan is to impose a state of emergency in Tokyo and six other prefectures as early as Tuesday to contain the coronavirus, while the government prepares a $990 billion stimulus package to soften the economic blow.

“Japan won’t, and doesn’t need, to take lockdown steps like those overseas,” Prime Minister Shinzo Abe told reporters, citing the opinion of infectious disease experts. “Trains will be running and supermarkets will be open. The state of emergency will allow us to strengthen current steps to prevent an increase in infections while ensuring that economic activity is sustained as much as possible,” he said.

India's March gold imports hit 6-1/2-year low on record price: Govt source

India's gold imports plunged more than 73% year-on-year in March to their lowest in 6-1/2 years as record domestic prices and a lockdown to curb the spread of coronavirus squeezed retail demand, a government source said on Monday.

The world's second-biggest consumer of the precious metal imported 25 tonnes of gold in March, down from 93.24 tonnes a year ago, the source said, who is not authorised to speak to the media. In value terms, March imports dropped nearly 63% to $1.22 billion, he added.

Forex reserves surge $5.65 bn to $475.56 bn

After falling massively in the week ended March 20, the country's foreign exchange reserves surged by $5.65 billion to $475.56 billion in the week ended March 27, helped by an increase in foreign currency assets, according to the latest data from the Reserve Bank of India (RBI).

In the week ended March 20, the reserves had declined by $11.98 billion to $469.91 billion as the RBI was supplying dollars to contain fall in the rupee, which has breached the 76 mark against the US dollar.

Rupee settles 53 paise lower at 76.13 against US dollar

The rupee settled 53 paise lower at 76.13 (provisional) against the US dollar on Friday amid a significant 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 75.97. During the day, it lost further ground and finally settled at 76.13, down 53 paise over its previous close.

Finance ministry, RBI consider easing NPA classification duration to 180 days: Report

Amid the coronavirus pandemic, the Reserve Bank of India (RBI) and finance ministry may ease the time period for classifying overdue loans as non-performing assets (NPAs) to 180 days from the current 90 days, Business Standard reported.

The NPA delinquency relaxation to 180 days "may be heavily qualified to prevent its abuse" a source told the publication. The revision in the timeline to recognise NPAs will be staggered, having ‘start-stop dates’ which will finally be brought back to the current 90 days by the end of 2020-21, the report said.

Coronavirus lockdown would have deeper impact, 52% foresee job losses: CII CEOs Snap Poll

The coronavirus outbreak and the subsequent country-wide lockdown has deeply impacted India's economy, with a majority of the firms expecting a significant decline in revenues, falling demand and job losses, according to a CII CEOs Snap Poll. The online survey saw a cross-country participation of around 200 CEOs across sectors.

"The survey results indicate that a significant majority of the firms expect revenues to fall more than 10 per cent and profits to decline more than 5 per cent in both the current quarter (Apr-Jun 2020) as well as the preceding quarter (Jan-Mar 2020).

Aviation industry to shrink, says CAPA India

Indian aviation sector is likely to shrink significantly, with the first quarter expected to be a 'virtual washout', and with 250 of the total 650 aircraft becoming surplus in the next 12 months, according to a report by advisory firm CAPA India. Not only will the airlines look to return these aircraft - but with limited success - the carriers will also look to delay delivery of new planes for want of demand in the industry.

"For India to return to a pre-COVID operational fleet of 650 aircraft is likely to take up to 12 months from the time that restrictions are lifted, and this may be conservative," CAPA India said, in its third report since the industry was disrupted due to COVID-19.

Online brokerages see spurt in business in March amid nationwide coronavirus lockdown

At a time when traditional brokers are struggling to continue their services due to nationwide lockdown to curb the spread of coronavirus pandemic, online brokerages, including Upstox, 5paisa.com and Angel Broking, have seen a spurt in business.

The current crisis seems to be a blessing in disguise for these brokerages, as their number of clients, as well as orders, increased in March. Moreover, there has been a significant increase in trading volumes and demand for opening new accounts as well.

"Currently our entire operations are being carried out smoothly without any hindrance. As 99.9 per cent of our turnover happens online there is hardly any impact on our business. Actually with markets being volatile client activity has increased and business has shown decent growth this month,” said Prakarsh Gagdani, CEO, 5Paisa.com.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 1,960.97 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 226.55 crore in the Indian equity market on April 3, provisional data available on the NSE showed.

With inputs from Reuters & other agencies
First Published on Apr 7, 2020 07:38 am