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Weak opening on the cards

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Local stocks are poised for weak start as trading resumes after a long weekend. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could slide 225 points at the opening bell.

On May 1, the government announced extension of nationwide lockdown for two more weeks starting from May 4. However, several relaxations will be allowed as per zones. Apart from zone-wise restriction, there is a limited number of activities that will remain prohibited throughout the country, irrespective of zones

On the macro front, Markit Manufacturing PMI for April will be declared today, 4 May 2020.

The output of eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP) dipped by 6.5% in March 2020. The cumulative output rose marginally by 0.6% in April-March FY2020.

Overseas, Asian stocks were trading lower as US-China tensions weigh on investor sentiment. Markets in China, Japan and Thailand are closed on Monday for holidays.

Meanwhile, tensions are rising between Washington and Beijing, as U.S. President Donald Trump reportedly said Sunday that he believed that a mistake in China was the cause of the spreading coronavirus pandemic, though he did not present any evidence for the claim.

In US, Wall Street sold off sharply on Friday after President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic, which has brought global economies to a grinding halt.

Back home, domestic shares extended gains for the fourth straight session on Thursday, tracking positive global cues. The barometer S&P BSE Sensex gained 997.46 points or 3.05% at 33,717.62. The Nifty 50 index added 306.55 points or 3.21% at 9,859.90. Trading was volatile on account of the monthly F&O expiry.

Domestic stock markets were closed on Friday, 1 May 2020 on account of Maharashtra Day.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 1,968.80 crore on 30 April 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 579.03 crore on 30 April 2020, as per provisional data.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, May 04 2020. 07:46 IST
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