The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a gap-up opening for the index in India with a 107 points gain.
The BSE Sensex climbed 256.71 points to 49,206.47 on May 7 while the Nifty50 was up 98.40 points at 14,823.20. According to pivot charts, the key support levels for the Nifty are placed at 14,771.47, followed by 14,719.73. If the index moves up, the key resistance levels to watch out for are 14,868.97 and 14,914.73.
The Dow and S&P 500 hit record closing highs on Friday while registering gains for the week, and the Nasdaq recovered after U.S. jobs data eased concerns over prospects for rising rates.
Stocks rose on Monday amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while oil prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets.
Futures for Japan’s Nikkei rose 0.03%. Australian S&P/ASX 200 futures were down 0.06%. U.S. stock futures rose 0.12%.
Trends on SGX Nifty indicate a gap-up opening for the index in India with a 107 points gain. The Nifty futures were trading at 14,975 on the Singaporean Exchange around 07:30 hours IST.
COVID-19: Finance Ministry not in favour of nationwide lockdown despite second wave
Amid surging COVID-19 cases in India, the Finance Ministry on May 7 indicated that it is not in favour of a national lockdown to curb the pandemic, citing global experience of handling the second wave of COVID-19.
“Global experience also suggests that economic impacts from subsequent waves are smaller than from the first as economies learn to ‘operate with COVID’. The increased coverage of population under vaccination has been effective both in controlling the spread of COVID and boosting mobility,” the Finance Ministry said.
Oil rises 1% after cyber attack
Crude prices climbed more than 1% on Monday after a major cyber attack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.
Brent crude was up by 76 cents, or 1.1%, at $$69.04 a barrel by 0039 GMT, having risen by l.5% last week. U.S. West Texas Intermediate futures rose by 70 cents, or 1.1%, at $65.60 a barrel, after gaining more than 2% last week.
India’s forex reserves jump by $3.91 billion to $588.02 billion
The country’s foreign exchange reserves swelled by $3.913 billion to reach $588.02 billion in the week ended April 30, 2021, RBI data showed on Friday. In the previous week ended April 23, the reserves had risen by $1.701 billion to $584.107 billion. The forex kitty had touched a lifetime high of $590.185 billion in the week ended January 29, 2021.
In the reporting week ended April 30, 2021, the rise in reserves was on account of an increase in foreign currency assets (FCAs), a major component of the overall reserves.
US employment growth slows sharply in April amid labor shortages
US job growth unexpectedly slowed in April, likely restrained by worker shortages that have left businesses scrambling to meet booming demand as the economy reopens amid rapidly improving public health and massive financial help from the government.
Nonfarm payrolls increased by only 266,000 jobs last month. Data for March was revised down to show 770,000 jobs added instead of 916,000 as previously reported. Economists polled by Reuters had forecast payrolls would advance by 978,000 jobs.
Sebi notifies relaxed rules for listing start-ups
With an aim to boost listing of start-ups, markets regulator Sebi has notified a slew of relaxations to norms, including reducing holding period for pre-issue capital and allowing discretionary allotment to eligible investors. The changes have been made to the framework for listing on the Innovators Growth Platform (IGP), according to two separate notifications issued on Wednesday.
This is aimed at making the platform more accessible to companies in view of the evolving start-up ecosystem. The regulator has reduced the period of holding of 25 per cent of pre-issue capital of the issuer company by eligible investors to one year from the current requirement of two years.
Results on May 10
Artemis Medicare Services, Chambal Fertilisers & Chemicals, Dai-Ichi Karkaria, DE Nora India, Escorts Finance, Ganges Securities, Gayatri Tissue & Papers, HFCL, HSIL, Inspirisys Solutions, Intellect Design Arena, JMC Projects (India), Nutricircle, Oriental Aromatics, Onesource Ideas Venture, Paushak, PPAP Automotive, Sangam Renewables, Satia Industries, Suryalakshmi Cotton Mills, TTI Enterprise, Venky’s (India) and Zydus Wellness.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,142.75 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1,468.09 crore in the Indian equity market on May 7, as per provisional data available on the NSE.