Market Ahead, May 12: All You Need To Know Before The Opening Bell

The likelihood of further extension of the nationwide lockdown may put a damper on investor sentiment in today's session. In a video conference with chief ministers yesterday, Prime Minister Narendra Modi indicated the nationwide lockdown could be extended beyond May 17, albeit with eased restrictions for businesses. The Centre also indicated that an economic package for the states was on the anvil. According to a report by Business Standard, the possible quantum of the next stimulus package could total Rs 3 trillion or more. Furthermore, there could be multiple measures announced in quick succession.

Meanwhile, Covid-19 cases in India rose to 70,768 and death toll hit 2,294. Globally, over 42 lakh people have been infected so far.

Investors will also watch out for the industrial production data for March and consumer inflation for April which are slated to be announced later in the day.

On the results front, investors will first react to results announced post market hours yesterday. Piramal posted a loss of Rs 1,702 crore for the quarter as compared to profit of Rs 455 crore it had clocked in the corresponding quarter of the previous fiscal. Today, a total of 11 companies, including Nestle, Havells, and Bandhan Bank are scheduled to announce their March quarter results.

Now, let's look at some other major news today.

Revenue collection from tax deducted at source fell 22 per cent to around Rs 44,110 crore from May 1 to May 10, indicating large layoffs and salary cuts in April.

Bond yields rose 20 basis points on Monday in response to the steep hike in government’s borrowing programme. The government had surprised everyone with a revised borrowing programme of Rs 12 trillion, against Rs 7.88 trillion planned.

According to a report by Bloomberg, India’s fiscal deficit is likely to be around 5.5 per cent of GDP for FY21 after the government's latest move.

InterGlobe Aviation could be in focus today after news report said that InterGlobe Enterprises has evinced interest in Australia's second largest aviation company, Virgin Australia. Although, a spokesperson for IndiGo confirmed in a stock exchange notification that the airline was not involved in the process.

And, in the end, let's look at global cues today.

On the Wall Street, the S&P 500 closed slightly higher but otherwise Dow Jones and Nasdaq Composite both ended lower in overnight deals. Asian equities also slipped early Tuesday. Hong Kong's Hang Seng index were down 1.8 per cent while Japan's Nikkei was off 0.3 per cent. Australian ASX 200 index also fell 1.4 per cent. As for the SGX Nifty, it is trading over 50 points lower so the Indian market is expected to open with slight cuts.

In commodity markets, Brent crude was up half a per cent to $29.78 a barrel. Meanwhile, Saudi Arabia has announced it will slash oil output by another 1 million barrels as it tries to spur the recovery from an energy crisis that has devastated the kingdom’s finances.

Read by: Kanishka Gupta