The Indian stock market is expected to open flat as trends on SGX Nifty indicate a cautious opening for the index in India with a 4 points gain.
The BSE Sensex fell 870.51 points or 1.74 percent to 49,159.32 on April 5 while the Nifty50 was down 229.60 points or 1.54 percent at 14,637.80. According to pivot charts, the key support levels for the Nifty are placed at 14,448.27, followed by 14,258.73. If the index moves up, the key resistance levels to watch out for are 14,838.57 and 15,039.33.
Stay tuned to Moneycontrol to find out what happens in the 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
U.S. stocks rallied on Monday with the Dow and S&P 500 closing at record levels, as a round of strong economic data buoyed investor optimism for the economic reopening and a muted climb in the 10-year U.S. Treasury yield kept inflation worries in check.
The Dow Jones Industrial Average rose 373.98 points, or 1.13%, to 33,527.19, the S&P 500 gained 58.04 points, or 1.44%, to 4,077.91 and the Nasdaq Composite added 225.49 points, or 1.67%, to 13,705.59.
Asian Markets
Asian equities are poised to rise on Tuesday after the S&P 500 and Dow indexes set records as a streak of strong U.S. economic data fueled optimism even as a smaller-than-expected climb in 10-year Treasury notes eased inflation concerns.
Australian S&P/ASX 200 futures rose 0.34% in early trading, while Hong Kong’s Hang Seng index futures rose 0.40%.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 4 points gain. The Nifty futures were trading at 14,727 on the Singaporean Exchange around 07:00 hours IST.
Oil down 5% as rising OPEC+, Iranian output weighs
Oil fell more than $3 a barrel on Monday as rising supply from OPEC+ and higher Iranian output countered signs of a strong economic rebound in the United States.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed on Thursday to monthly production hikes from May to July. OPEC member Iran, exempt from making voluntary cuts, is also boosting supply. [OPEC/O]
Brent crude for June fell $3.08, or 4.8%, to $61.78 a barrel by 1:42 p.m. EDT (1742 GMT). U.S. West Texas Intermediate crude for May dropped $3.21, or 5.2%, to $58.24.
U.S. services sector gauge scales record high; cost pressures mounting
A measure of U.S. services industry activity surged to a record high in March amid robust growth in new orders, in the latest indication of a roaring economy that is being boosted by increased vaccinations and massive fiscal stimulus.
The upbeat survey from the Institute for Supply Management (ISM) on Monday followed news on Friday that the economy added 916,000 jobs last month, the most since August. Economic growth this year is expected to be the best in nearly four decades.
The ISM’s non-manufacturing activity index rebounded to a reading of 63.7 last month also due to warmer weather. That was the highest in the survey’s history and followed 55.3 in February.
Japan real wages eke out first rise in a year as COVID-19 hits prices
Japan’s real wages rose for the first time in a year in February, the government said on Tuesday, largely due to prices weakening as the coronavirus pandemic continued to weigh on the economy.
Inflation-adjusted real wages, a key measure of households’ purchasing power, rose 0.2% in February compared with the same month a year earlier, the labour ministry said on Tuesday. It was the first rise in inflation-adjusted real wages in 12 months, after a revised 0.6% decline in January.
Icra revises fertiliser sector outlook to positive on expectations of healthy profitability
Icra on Monday revised its outlook for the fertiliser sector to positive on expectations of healthy profitability in 2021-22, following a normal monsoon for the upcoming kharif season. Additionally, the agri-economy witnessed a strong performance in 2020-21 with healthy farm incomes, and Icra expects the benefit of the current year to rub off on the next fiscal as well, it said in a report.
Further, the report said the credit profile of the fertiliser sector is expected to witness a significant improvement in this new fiscal year, driven by the removal of the subsidy backlog following the pay-out of additional subsidy of Rs 62,602 crore by the government under the Aatmanirbhar 3.0 package. Going forward, Icra expects the subsidy receipts from the government to be paid in a timely manner, which will lead to lower working capital intensity.
Residential property sales up 44% in Jan-Mar 2021 across 8 cities: Knight Frank India
The residential market in India has seen a steady rise in both sales and launches in the January-March quarter with as many as 71,963 units sold during the first quarter of 2021 which is 44 percent more than the same quarter last year, a report by Knight Frank India said.
Launches were recorded at 76,006 units. Mumbai and Pune led the table in both launches as well as sales due to discounts in stamp duty charges, said a report by Knight Frank India.
"71,963 units were sold during Q1 2021, 44 percent more than in Q1 2020. This healthy growth in sales also encouraged developers to launch new projects which are reflected in the 76,006 units launched during the quarter, substantial growth of 38 per cent year-on-year," Knight Frank India said in a statement.
Freight traffic handled by 12 major ports in India contracted 4.6% Y-o-Y in FY21
Freight traffic handled by 12 major ports in the country contracted 4.6 percent year on year to 672.61 million tonne in FY 2020-21 due to disruptions caused by the COVID-19 pandemic mainly in the first half of the year, data released on April 5 by the Indian Ports Association showed.
Ports' freight traffic showed a year-on-year increase for the fifth consecutive month in March. Ports' freight traffic boomed in March, rising 16.4 percent on year, the largest in at least a year.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 931.66 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 75.48 crore in the Indian equity market on April 5, as per provisional data available on the NSE.
With inputs from Reuters & other agencies