Markets likely to get pessimistic start on Friday

Indian markets ended higher for the second straight session on Thursday, with IT and private banks’ stocks leading the surge amid strong recovery in global markets. Today, the start of last session of the week is likely to be negative tracking weakness in global markets amid concerns over coronavirus treatment. Traders will be concerned with rising coronavirus cases in the country. Total COVID-19 cases in India has gone up to 21,700. This includes 16,689 active coronavirus cases, while 4324 patients have been cured/discharged. As many as 686 people have died due to coronavirus in the country. Also, there will be some cautiousness with the Confederation of Indian Industry’s (CII) report that India's GDP is likely to range between a decline of 0.9% and a growth of 1.5% in the current financial year, with the economy undergoing a turbulent phase caused by the coronavirus-induced lockdown. Though, some support may come later in the day with report that Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman will again meet on April 24 to finalise a second stimulus package for industry, the poor and farmers. Traders may take note of report that relaxing norms, the Reserve Bank of India (RBI) has permitted banks to issue electronic cards to persons having overdraft accounts that are only in the nature of personal loan without any specific end-use restrictions. Meanwhile, providing compliance relaxation amid the coronavirus pandemic, markets regulator Sebi has gave time till September-end to certain companies for conducting their annual general meetings. There will be some reaction in refinery stocks with Crisil Rating’s report that Indian oil refiners may have incurred an inventory loss of Rs 25,000 crore in the January-March period as oil prices slumped and are now likely seeing a plunge in refining margins in the current quarter. Metal stocks will be in focus with the World Steel Association’s latest report showing that India’s crude steel output declined 14% to 8.65 million tonne (MT) during March. Also, hospital sector stocks will be in action with ICRA’s report that the Covid-19 epidemic has not just impacted the functioning of hospital sector, but has also dragged down the short- term outlook to negative on account of a sharp fall in volumes both at the out- patient department (OPD) and the in-patient department (IPD).

The US markets ended mostly lower on Thursday as traders reacted to conflicting reports regarding Gilead Sciences' (GILD) potential coronavirus treatment remdesivir. Asian markets are trading in red on Friday after an overnight report that raised doubts over a potential coronavirus treatment.

Back home, Indian equity benchmarks continued their winning run for the second straight day and ended with gains of over a percent on Thursday, on the back of positive global cues. Sensex and Nifty settled above their crucial 31,850 and 9,300 levels, respectively. Key indices opened in green and stayed in the positive terrain for whole trading session, as traders took encouragement with Principal Economic Adviser Sanjeev Sanyal’s statement that more calibrated monetary and fiscal stimulus measures are on the anvil to deal with the economic fallout from COVID-19 and the consequent lockdown. He expressed hope that a significant part of the economy will be functioning, if not everything, by May 3. However, key indices trimmed some of their gains in late afternoon session as Fitch Ratings slashed India's economic growth projections to 0.8 per cent in the current 2020-21 fiscal saying an unparalleled global recession was underway due to disruptions caused by the outbreak of coronavirus pandemic and resultant lockdowns. But, markets regained its upward momentum to end near day’s high, as traders found support with the Centre slashing the subsidy on non-urea fertilisers, a move that would reduce the burden on the exchequer to Rs 22,186.55 crore in this fiscal amid the COVID-19 outbreak. Investors were also eyeing the two-day (April 23-24) meeting of the economic advisory council which is expected to deliberate on the impact of the Covid-19 pandemic on economic growth in this fiscal year and the next. Finally, the BSE Sensex gained 483.53 points or 1.54% to 31,863.08, while the CNX Nifty was up by 126.60 points or 1.38% to 9,313.90.