The Indian markets look set to begin this week on a strong note. The SGX Nifty is indicating a gap-up open today with the Nifty likely to open at around 10,260 levels on the back of firm global cues. Throughout the week also, global trends will remain a major sentiment driver for the indices. Especially, the US Fed interest rate decision on Wednesday will be a key event for investors.
According to analysts, the domestic markets have largely been mirroring their global counterparts, and any negative development on the global front might derail the momentum. In that regard, investors will keep a keen eye on the US-China tensions.
Today, Asian shares advanced in early deals. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent, with Japan's Nikkei rising 0.74 per cent. On the other hand, South Korea’s Kospi slipped 0.3 per cent.
In commodities, oil prices rose to their highest in three months after OPEC and its allies including Russia agreed to extend record oil production cuts until the end of July. Brent crude climbed to as high as $43.41 a barrel and was last trading at $42.95, up 1.54 per cent.
Apart from this, much of India will today have hotels, restaurants, malls, and places of worship reopening after 75 days of lockdown, but amid observing social-distancing norms. However, malls will remain shut until June 30 in certain states and union territories.
And even though India looks to gradually open its economy, there's no respite on the Covid-19 front as India registered its highest single-day spike of cases on Sunday, with 10,864 new infections taking the country's tally to 2.57 lakh. The death toll rose to 7,207, according to Worldometer. As such, developments related to the spread of Covid-19 infections will remain a key concern for investors.
In terms of corporate results, around 110 companies like PVR, Titan, Hero MotoCorp, Hindalco Industries and M&M will report their quarterly earnings this week, which may trigger stock-specific action.
On the macro front, industrial production data for April and CPI inflation for May is due on Friday. The effect of the nationwide lockdown in April is likely to show in the industrial production data this time.
Besides, the 40th meeting of the GST Council will be held on June 12 in which the impact of the pandemic on revenues of the Centre and states and ways to bridge the revenue gap is likely to be discussed.
Reliance Industries will once again be in focus today after the conglomerate announced 1.16 per cent stake sale in Jio Platforms to Abu Dhabi Investment Authority. This is the eighth investment in Jio Platforms in seven weeks. So far, RIL has raised Rs 97,885.65 crore through 21.06 per cent stake sale to seven marquee investors.
Now, let's look at some other main news of the day.
The actual gross direct tax collection during 2019-20 fiscal dipped by 4.92 per cent to Rs 12.33 trillion on account on reduction in corporate tax rate, increased standard deduction and personal I-T exemption limit.
And, in the end, sources tell Business Standard that the Centre is likely to designate the banking and financial sector strategic under the new privatisation policy. According to the source, discussions had also been held on privatising some state-owned banks that are not on the consolidation list so far.
Read by: Kanishka Gupta