Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 6.5 points, or 0.05 per cent, lower at 14,352.50 in signs that Dalal Street was headed for a flat start on Tuesday.
Tech View: Nifty trend turns negative
Nifty50 on Monday tested the lower end of the support zone in the 14,250-14,300 range, before closing just above it. The index formed a Long Black Day candle on the daily chart in a followup to the weakness seen on the weekly chart last week. Analysts said support and resistance levels for the index have also fallen and that a breach below 14,200 level can trigger a strong correction.
Asian markets rise in early trade
Asian markets were trading largely higher in Tuesday’s trade despite overnight fall in US stocks. Japan’s Nikkei jumped 1.03 per cent, Hong Kong’s Hang Seng climbed 1.2 per cent; Korea’s Kospi advanced 0.8 per cent while China’s Shanghai Composite index edged 0.04 per cent lower.
edges higher on Mideast tension
Oil prices edged higher on Tuesday on tensions in the Middle East after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites and on an expected drawdown in crude oil inventory in the United States. Brent crude oil futures was up 9 cents, or 0.1 per cent, at $63.37 a barrel while US crude oil futures gained 11 cents, or 0.2 per cent, to $59.81 a barrel.
US stocks settled lower
The S&P 500 and Dow Jones industrial average ended lower on Monday, with investors waiting for cues from the upcoming corporate earnings season and a key inflation report later this week. Overall, the Dow Jones Industrial Average index fell 55.2 points, or 0.16 per cent, to 33,745.4, the S&P500 index lost 0.81 points, or 0.02 per cent, to 4,127.99 and the Nasdaq Composite index dropped 50.19 points, or 0.36 per cent, to 13,850.
FPIs sell Rs 1,746 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,746.43 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 232.76 crore, data suggests.
Rupee: The Indian rupee fell for the sixth straight session to mark its lowest level in nearly nine months at 75.05 against the American currency on Monday as investors fretted over the prospects of lockdown in some parts of the country amid continuous rise in COVID-19 cases.
10-year bonds: India 10-year bond yield declined 0.10 per cent to 6.02 after trading in 6.00-6.02 range.
IIP contracts, retail inflation jumps… In a double whammy for the economy, retail inflation jumped to a four-month high of 5.52 per cent in March while industrial output contracted for the second month in a row, falling 3.6 per cent in February — reinforcing concerns over the pace of GDP recovery amid a fresh wave of coronavirus infections.
US budget deficit hits record high for March.. The US government posted a March budget deficit of $660 billion, a record high for the month, as direct payments to Americans under President Joe Biden’s stimulus package were distributed. The deficit for the first six months of the 2021 fiscal year ballooned to a record $1.706 trillion, compared to a $743 billion deficit for the comparable year-earlier period.
Gold price correction won’t hit NBFCs… The price correction in gold may not hurt NBFCs in terms of asset quality as much as banks, according to rating firm
. NBFCs lend against the metal at lower loan-to-value (LTV) as compared to banks, the firm said. Besides NBFCs are more agile in monetising the collateral and hence have lower credit costs, it added. Apart from regular interest collection over the past few years, they have ensured that disbursement LTV is maintained below 75%. Gold prices have slipped over 10% over the last six months.
Govt to ease compliance rules…A mobile app for corporate filings, pre-filled forms and fewer compliances — after an exercise to cut down on the number of criminal offences under company laws, the Ministry of Corporate Affairs is proposing a complete revamp of the compliance system for corporates to ease doing business for them. A senior government official told ET that the new system with these features will be rolled out from October.
Health insurers await big hit… India’s health insurance sector could face billions of dollars in fresh Covid-19 claims over the coming months as the second wave of the virus takes caseloads to new daily records, particularly in Maharashtra. As per data compiled by the General Insurance Council (GIC) and seen by ET, the insurance industry has registered10.07 lakh (1 million) coronavirus claims worth ₹14,738 crore (~$2 billion) until April 7, 2021.
RBI asks banks to ensure biz continuity… RBI Governor Shaktikanta Das told bank chiefs Monday to ensure business continuity and credit flows to underpin the nascent economic recovery even as an alarming second wave of infections is raising afresh disruption risks in Asia’s third-biggest economy. Governor Das held a virtual meeting with bank chief executives, stressing the need to raise capital for buttressing balance sheets and creating buffers against possible business losses.
Airline bookings drop 25%… Airlines are reporting 20-50% decline in flight bookings and air travel amid a sharp spike in Covid-19 cases in the country, forcing many states to announce restrictions. The second wave of the infection has come at a time when domestic airlines had started to see a rise in demand after the slump following the outbreak of the pandemic last year with many Indians planning their summer vacations to various tourism destinations within the country.
Central Bank offers extra interest to vaccine takers… In a first, the Central Bank of India has said that it will offer depositors who vaccinate against Covid 25 basis points (100bps = 1 percentage points) higher return under a special scheme. The special rate is applicable for single dose as well. “In order to encourage vaccination under Covid, the bank has brought out a special deposit product ‘Immune India Deposit Scheme’ for 1,111 days at an extra interest rate of 25 bps above the applicable card rate for citizens who got vaccinated,” the bank said. The bank currently offers a 5.1% return on deposits over three years. So, the return through the special scheme would be 5.35%.