The Indian stock market is expected to see a muted start on May 4 as trends on SGX Nifty indicate a flat opening for the index in India.
Indian market closed flat after a gap-down start on Monday. The S&P BSE Sensex closed with a loss of 63 points while the Nifty50 managed to hold on to 14600.
Sectorally, buying was seen in telecom, metals, FMCG, and power space while profit-taking was visible in consumer durables, energy, banks, oil & gas, and realty space.
Broader markets also closed mixed. The S&P BSE Mid-cap index rose marginally but the S&P BSE Small-cap index ended with gains of over 1 percent.
India VIX moved up by 2.88 percent on Monday from 23.02 to 23.69 levels. India VIX needs to hold below 20 zones to again attract a bullish stance.
On the options front, the maximum Put OI is seen at 14000 followed by 13500 strikes while maximum Call OI is seen at 15000 followed by 15500 strike. Options data suggests a wider trading range in between 14200 to 15200 zones.
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 that could impact Indian as well as international markets:
The S&P 500 and the Dow indexes ended higher on Monday amid a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and “economy reopening” stocks continued.
The Dow Jones Industrial Average rose 0.7% to close at 34,113.23 points, while the S&P 500 gained 0.27% to 4,192.66. The Nasdaq Composite dropped 0.48%, to 13,895.12.
Blaming the slow pace of vaccinations and uncertainty around the number of those infected and dead in the second COVID-19 wave, global brokerage firm Barclays cut India’s FY22 GDP growth estimate to 10 per cent from earlier 11 per cent.
Trends on SGX Nifty indicate a flat start for the broader index in India, with a loss of 11.50 points or 0.08 percent. The Nifty futures were trading flat around 14,671 level on the Singaporean Exchange at 7:20 IST.
Kota Mahindra Bank chief managing director and chief executive officer, Uday Kotak on May 3 said the bank is prepared with a succession plan after his term ends in December 2023, as per the new rules of the Reserve Bank of India (RBI) on terms of chief executives at banks.
As India faces a shortage of medical-grade oxygen, hospital beds, and life-saving medicines like Remdesivir, there have been calls from various quarters to reduce the taxes on these items, whether produced domestically or imported.
Some states have even called for an emergency meeting of the Goods and Services Tax (GST) Council to review the GST applicable on medical equipment, devices and drugs.
Fed’s Powell says economic recovery clouded
The U.S. economy is doing better but is “not out of the woods yet,” Federal Reserve Chair Jerome Powell said on Monday in remarks that flagged an upcoming central bank study documenting the disproportionate blow suffered by the less educated and working parents during the coronavirus downturn, said a Reuters report.
Warren Buffett, the founder of Berkshire Hathaway, said that Greg Abel, Berkshire’s vice chairman of non-insurance businesses, would most likely succeed him if he stepped down.
Buffett told CNBC that the board was in agreement that the 58-year-old would be the most likely successor at the company if anything were to happen to him, Bloomberg reported.
The Reserve Bank of India (RBI) on May 3 imposed a monetary penalty of Rs 3 crore on ICICI Bank for certain rule violations. The penalty has been imposed for contravention of certain directions issued by the RBI on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’, the central bank said in a release.
Chemplast Sanmar Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 3,500 crore through an initial share sale. The initial public offer (IPO) comprises a fresh issue of equity shares worth Rs 1,500 crore and an offer for sale of Rs 2,000 crore.
Supply chain bottlenecks amid roaring demand slow U.S. manufacturing
U.S. manufacturing activity grew at a slower pace in April, restrained by shortages of inputs as rising vaccinations against COVID-19 and massive fiscal stimulus unleashed pent-up demand.
The ISM’s index of national factory activity fell to a reading of 60.7 last month after surging to 64.7 in March, which was the highest level since December 1983. A reading above 50 indicates expansion in manufacturing, which accounts for 11.9% of the U.S. economy. Economists polled by Reuters had forecast the index edging up to 65 in April.
UK and India announce $1.4 billion investment boost, step closer to trade deal
Britain and India announced 1 billion pounds ($1.39 billion) of private-sector investment and committed to seek a free trade deal ahead of a virtual meeting between Prime Minister Boris Johnson and Indian leader Narendra Modi on Tuesday.
The meeting replaces an in-person visit Johnson had planned to make last month to deepen cooperation as Britain seeks new trading partners after leaving the European Union. That visit was cancelled due to surging COVID-19 cases in India.
20 companies to report Q4 results today:
There are as many as 20 companies on the BSE that will report their March quarter results on May 4 which include names like Adani Ports, Alembic Pharma, Adani Total Gas, L&T Infotech, RBL Bank, Suven Life Sciences etc. among others.
FII and DII data
Foreign institutional investors (FIIs) net sellers of shares worth Rs 2289 crore, while domestic institutional investors (DIIs) net buyers of shares worth Rs 552 crore in the Indian equity market on May 3, as per provisional data available on the NSE.
1 stock under F&O ban on NSE
Sun TV was the only stock under the F&O ban for May 4. 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.