A rally on the cards

Benchmark indices are geared to extend their three-day upmove. Reliance Industries (RIL), Hindustan Unilever and Tech Mahindra among others will release their quarterly numbers today, 30 April 2020.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 162 points at the opening bell.

The foreign portfolio investors (FPIs) were net buyers of equity on Wednesday (29 April). FPIs bought shares worth a net Rs 722.08 crore on 29 April 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 78.67 crore on 29 April 2020, as per provisional data.

Overseas, Asian equity markets are trading higher on Thursday following positive developments overnight on a potential new treatment for Covid-19. Markets in Hong Kong and South Korea are closed on Thursday for a holiday.

Gilead Sciences said Wednesday preliminary results of a coronavirus drug trial showed at least 50% of patients treated with a five-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks.

On the economic data front, China said manufacturing activity in the country expanded slightly in April. The official manufacturing Purchasing Managers' Index for April came in at 50.8, as compared to 52 in March.

In US, stocks surged on Wednesday as hopes for an effective COVID-19 treatment prompted a broad rally and helped investors shrug off words of warning from US Federal Reserve Chair Jerome Powell.

Meanwhile, Federal Reserve policymakers on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy, saying the ongoing coronavirus pandemic will weigh heavily on the near-term outlook and poses considerable risks for the medium term.

On the economic data front, the Commerce Department says the gross domestic product, the total output of goods and services, posted a quarterly drop for the first time in six years. The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country.

Powered by Capital Market - Live News