Indian
Equity Summary-
·
Domestic equity markets gained
during a truncated trading week and closed in the green after 7 weekly losses
in a row. Benchmark indices,Ø Sensex closed at Rs 31159, surging by 12.93% and Nifty closed up by
12.72% at 9111 on WoW basis. Sentiments were also lifted by positive FPI/FII
inflows of RS 2462 Crore recorded in the week ending 9th April as compared to
outflows of Rs 10,131 in the previous week. Sectorally, massive rally was
witnessed in Auto sector while other top gaining sectors include banking,
healthcare, metals and consumer durable .
·
Further, global cues also
impacted the market as the major oil producers agreed on their biggest-ever cut
in oil production.
·
Going forward, the growth in
number of COVID-19 cases among other factors such as the movement of rupees,
crude oil prices, foreignØ currency inflows and outflows will continue to determine the
forward-looking market pattern. We expect the trading range for Nifty between
7600 -9000 in the near term.
Indian
Debt Market-
·
Government bond prices ended
lower. Yield of the 10 year benchmark 6.45% 2029 paper settled at 6.49% on
April 9 as against 6.31% on April 9.
·
Concerns about the mounting
fiscal deficit of India and also heavy borrowing plan of Government amid
nationwide lockdown continues to pull the bond prices down.
·
States raised a total notified
Rs 37,500 crore via sale of dated securities in the state development bond
auction.
·
The RBI conducted a 3-year
targeted long term repo auction for a notified Rs 25,000 crore on the last
trading day of the week, receiving bidsamounting to ~Rs 1.13 lakh crore.
Further , RBI announced the auction of state development bonds for a total of
Rs 13,128 crore on April 13.
·
We expect the 10 year benchmark
yield to trade between 6.25-6.50% in near term.
Domestic
News
·
India Services PMI declined to
49.3 in March 2020 from February’s 85-month high of 57.5, and below market
expectations of 52.5.
·
India’s Industrial Production
Growth accelerated to 4.5% year-on-year in February 2020, from 2.1% in the
previous month.
·
The Finance ministry has
released about Rs 34,000 crore in two phases to states as compensation for
their revenue loss in the goods and servicesØ tax
(GST) regime in order to provide further relief to states amid the extended
lockdown due to coronavirus outbreak.
·
The government has disbursed
the first installment of Rs 15,841 crore to 7.92 crore farmers under the
PM-KISAN scheme.
·
World Bank sees FY21 India
growth at 1.5-2.8%; slowest since economic reforms three decades back while
Asian Development Bank (ADB) expected India’ growth to slow down to 4% in the
current fiscal owing to weak global demand.
·
India’s Fiscal deficit stood at
5.07% of GDP in February and is likely to increase in March.
·
Asian Development Bank has
assured India $2.2 billion in its fight against the Covid-19 pandemic.
International
News
·
US Broader indices, Dow Jones
and Nasdaq gained by~11% and `10% respectively on hopes of additional fiscal
stimulus by the government toØ combat the rampant spreading of Covid-19
·
US non-farm payrolls plunged by
701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in
February
·
US Institute of Supply
Management (ISM) non-manufacturing index fell to 52.5 in March from 57.3 in
February.
·
UK services PMI posted 34.5 in
March, down sharply from 53.2 in February, while the composite PMI was at 36.0
in March, down sharply fromØ 53.0 in February.
·
Japan’s core machinery orders, which
is regarded as an indicator of near term capital spending, rose 2.3% in
February on a M-o-M basis.
·
Japan Current Conditions Index
of the Economy Watchers' Survey decreased to 14.2 in March from 27.4 in
FebruaryØ
·
Japan’s outlook index that
signals future activity fell for the second straight month to 18.8 in March
from 24.6 in the previous month.
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