What changed for D-Street while you were sleeping

NEW DELHI: US policymakers are close to clearing a $2 trillion stimulus package, and that news lifted stock markets globally this morning. But Indian markets are unlikely to see any such euphoria, as the government has enforced a 21-day lockdown in a bid to contain the coronavirus endemic.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 133 points, or 1.70 per cent, lower at 7,716, indicating a negative start for Dalal Street.

Tech view: Nifty support at 7,500
The RSI oscillator is showing positive divergence on the daily scale, but there is no sign of reversal on the charts, said Chandan Taparia of Motilal Oswal Securities. “The resistance for the index has shifted to 8,200 and 8,555, while major supports are now placed at 7,500, and then at 7,200-6,800,” the analyst said.

Asian shares up in early trade
Asian shares extended their rally on Wednesday in the wake of Wall Street’s big gains as US Congress appeared closer to passing a $2 trillion stimulus package. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 per cent with Australian shares rising 4.5 per cent and South Korean shares gaining 4 per cent. Japan's Nikkei added 2 per cent.

Oil prices gain for third day
Oil prices extended gains for a third session on Wednesday. US crude touched a high of $25.10 a barrel early in the session and was at $24.61 a barrel, up 60 cents, or 2.5 per cent. Brent crude was trading up 49 cents, or 1.8 per cent, at $27.64 a barrel.

Dow jumps 11%, its best day since 1933
The Dow Jones Industrial Average surged 2,112.98 points, or 11.37 per cent, to 20,704.91. The S&P 500 increased 209.93 points, or 9.38 percent, to 2,447.33. The Nasdaq Composite Index jumped 557.18 points, or 8.12 per cent, to 7,417.86.

FPIs sell Rs 2,153 crore worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 2153.35 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,553.66 crore, data suggests.

MONEY MARKETS

Rupee: Snapping its four-session losing run, the rupee on Tuesday gained 26 paise to settled at 75.94 (provisional) against the US dollar after Finance Minister Nirmala Sitharaman said the government is working on an economic package to deal with the coronavirus crisis.

10-year bonds: India 10-year bond yield fell 1.19 per cent to 6.30 after trading in 6.28-6.36 range.

Call rates: The overnight call money rate weighted average stood at 4.99 per cent, according to RBI data. It moved in a range of 3.40-5.50 per cent.

HAPPENING TODAY

• API Crude Oil Stock Change
• BoJ Monetary Policy Meeting Minutes
• UK Feb Inflation Rate
• US March House Price Index
• EIA Crude Oil Imports Change

MACROS

21-day nationwide lockdown in India
Prime Minister Narendra Modi declared a three-week nationwide lockdown starting midnight Tuesday, explaining that it was the only way of breaking the Covid-19 infection cycle. This essentially extended the lockdown from most states and Union Territories to the entire country and provided a more definite timeline. “Social distancing is the only way to break the cycle of infection,” he said. All other lockdown conditions, such as the availability of essential commodities, remain the same, the government clarified.

FM promises economic package soon
Finance minister Nirmala Sitharaman promised a comprehensive economic package “sooner than later” to counter the disruption caused by the coronavirus outbreak and announced significant relaxation in statutory and regulatory compliances. These include raising the threshold for filings under the Insolvency and Bankruptcy Code (IBC) that will help the micro, small and medium enterprises (MSME) sector, no charges on cash withdrawals from the ATMs of any bank, and extension of the ongoing income tax settlement scheme until June 30 at the prevailing terms. More time has also been given for income tax (I-T), service tax and goods and services tax (GST) return filing.

US $2 trillion stimulus deal in final stage
Congressional and White House officials said Tuesday they were closing out final details of unprecedented legislation to rush sweeping aid to businesses and workers facing ruin from the coronavirus pandemic.

Trump pushes for re-opening US by Mid-April
US President Donald Trump pressed his case on Tuesday for a re-opening of the U.S. economy by mid-April despite a surge in coronavirus cases, downplaying the pandemic as he did in its early stages by comparing it to the seasonal flu.

FY19-20 tax-saving deadline extended
The government on Tuesday announced that taxpayers have time until June 30, 2020 to complete their tax-saving exercise for FY2019-20. The earlier deadline was March 31, 2020. The finance minister, Nirmala Sitharaman, at a press briefing said , "Due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for roll over benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between March 20 to June 29, 2020, shall be extended to 30th June 2020."

US business activity at record low
US. business activity contracted further in March, hitting a record low as the coronavirus pandemic depressed activity in both the manufacturing and services sectors, bolstering economists' views that the economy was already in recession. Data firm IHS Markit said on Tuesday its flash US Composite Output Index, which tracks the manufacturing and services sectors, dropped to a reading of 40.5 this month. That was an all-time low and followed 49.6 in February. A reading below 50 indicates contraction.

Procurement of wheat may be delayed
The federal wheat procurement is likely to be delayed by up to two weeks as Covid-19 looms large over ensuing Rabi harvest in India. Labour shortage and lack of adequate transportation is set to hit the process though states including Punjab have kept procurement-related activities out of the ambit of the lockdown. The FCI purchases bulk of the cereal produce in the month of April in Punjab, Haryana and Uttar Pradesh. The procurement process officially commences on April 1 in Northern states as farmers sell their cereal produce in designated mandis to the government agencies at minimum support price (MSP) in these states.