Indian markets ended lower on Thursday with cut of over half a percent each tracking global markets, amid concerns over the impact of coronavirus on global economy. Today, the markets are likely to make slightly positive start ahead of Economic survey to be out later in the day and the Union Budget due tomorrow. Positive leads from global markets and more than 2 percent fall in oil prices on Thursday are likely to aid domestic sentiments. Investors will also keep an eye on the economic data like core sector data which will be out later in the day. Some support will come with report that the government is aiming at $80 billion of jewellery exports in the next five years from the present level of $40 billion. The Centre also expects the jewellery industry to generate additional employment of 2 million. Besides, the seventh tranche of CPSE ETF received bids worth Rs 9,200 crore on Thursday from institutional investors in its anchor book. The government has floated the fresh tranche of the CPSE ETF with the view of raising at least Rs 10,000 crore. Traders may take note of Niti Aayog vice-chairman Rajiv Kumar’s statement that the government should focus on alternate measures to stimulate economy as it is not possible to give fiscal stimulus. Kumar also said growth-enhancing measures are the need of the hour to achieve India’s potential growth rate of 7-8 per cent per annum. He attributed the current slowdown to low investment, muted consumption expenditure and lagging exports. Meanwhile, An Irdai panel has suggested the introduction of daily premium payment policies to deepen insurance penetration in low-income groups. Telecom stocks will be in focus as industry body COAI is pitching for a 10-15 year payment schedule for telecom companies to pay their past statutory dues, beginning with part-payment upfront and a two-year moratorium. There will be some reaction in aviation stocks with credit rating agency ICRA’s statement that the domestic airline industry is expected to post a net loss of about Rs 7,800 crore in fiscal 2020 as against an estimated net loss of approximately Rs 10,000 crore in fiscal 2019. There will be lots of earnings announcements too, to keep the markets in action.
The US markets ended higher on Thursday as investors decided to look past fears about the economic impact of the coronavirus epidemic and focus on a spate of positive earnings reports. Asian markets are trading mostly in green on Friday as investors clutched at hopes China could contain the coronavirus, even as headlines spoke of more cases and more deaths.
Back home, bears made a comeback over the Dalal Street on Thursday, with Sensex & Nifty ending lower by around 300 & 100 points, respectively. After a weak start, indices remained under pressure, as India Ratings and Research (Ind-Ra) said that state government finances may continue witnessing revenue pressure in financial year 2020-21 (FY21) on account of subdued economic growth. The agency has cut its outlook on state finances to stable-to-negative for FY21 from stable, citing higher revenue expenditure and outstanding GST compensation. Negative cues from the global markets also hampered domestic sentiments. Bourses lingered in red terrain throughout the day, after industry body FICCI’s statement that its Economic Outlook Survey has projected the country's annual median GDP growth for 2019-20 at 5%. The survey has put the median growth forecast for agriculture and allied activities at 2.6% for 2019-20, the industry and services sector at 3.5% and 7.2%, respectively, during the current year. Market participants paid no heed towards a private report stating that Finance Minister Nirmala Sitharaman’s efforts to revive the economy have started to appear on the ground, helping to regain the lost momentum of the GDP. Finally, the BSE Sensex slipped 284.84 points or 0.69% to 40,913.82, while the CNX Nifty was down by 93.70 points or 0.77% to 12,035.80.
Download APP
