Market may open lower

Domestic stocks are likely to open lower as trading resumes after a local holiday as an overnight surge in crude oil prices may impact sentiment. Local stock markets were closed on Thursday (2 April 2020) on account of Ram Navami.

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 66 points at the opening bell.

Overseas, stocks in Asia were little changed in Friday trade. The moves came after an overnight surge in oil prices, which saw U.S. crude futures soaring more than 24%.

On the economic data front, a private survey released Friday showed China's services sector shrank further in March. The Caixin/Markit services Purchasing Managers' Index (PMI) for March was at 43 following a record low of 26.5 in February. PMI readings below 50 indicate contraction, while figures above that level signify an expansion.

In US, stock benchmarks on Thursday finished near the highs of the session, as investors appeared to focus on hope that a detente between some of the biggest oil producers on the planet might be achieved to substantially curb oil production and stabilize battered prices.

US President Donald Trump reportedly tweeted that he had been in contact with Saudi Arabian Crown Prince Mohammed bin Salman and that he expected the Saudis and Russia to cut production of 10 million to 15 million barrels a day.

In economic news, the government said that the U.S. trade deficit narrowed to $39.9 billion in February from $45.5 billion in January.

The U.S. Labor Department said Thursday that initial jobless claims surged to more than 6 million last week, reaching a new record as coronavirus-related shutdowns roll through the country.

Back home, the domestic stock market slumped on Tuesday, 1 April 2020 dragged by weakness in IT and banks shares. The barometer index, the S&P BSE Sensex, tanked 1,203.18 points or 4.08% at 28,265.31. The Nifty 50 index tumbled 343.95 points or 4% at 8,253.80.

The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 1,116.79 crore on 1 April 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 450.36 crore on 1 April 2020, as per provisional data.

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