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Stock market today LIVE Updates: Markets open in green, Sensex up over 600 points, Nifty above 9,750-mark; Asian stocks reach 3-month peaks

startup news May 31, 2020

09:29 (IST)

Escorts Y-O-Y sales down

09:28 (IST)

Benchmark indices up

The benchmark indices opened on strong note on 1 June with Nifty above 9,750 level.

At 09:16 IST, the Sensex was up 634.86 points or 1.96% at 33058.96, and the Nifty was up 188.10 points or 1.96% at 9768.40. About 757 shares have advanced, 97 shares declined, and 42 shares are unchanged.

09:27 (IST)

JSW, Tata Steel rally

09:26 (IST)

Markets open in green

09:17 (IST)

MakeMyTrip to lay off 300 employees

09:13 (IST)

Crude falls as wary traders eye upcoming OPEC Plus meeting

Oil prices fell nearly 1 percent on Monday as traders hedged bets with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.

Brent crude LCOc1 fell 34 cents to $37.50 a barrel, in the first day of trading in the contract with August as the front month.

West Texas Intermediate (WTI) crude futures CLc1 for July delivery were at $35.17 a barrel, down 32 cents, by 0123 GMT.

The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades with demand is expected to recover as more nations emerge from coronavirus lockdowns.

09:10 (IST)

Markets at pre-open

Benchmark indices are trading higher in the pre-opening session with Nifty above 9750.

At 09:01 hrs IST, the Sensex is up 298.93 points or 0.92% at 32723.03, and the Nifty up 188.80 points or 1.97% at 9769.10.

09:09 (IST)

IEX introduces real-time trading

09:03 (IST)

Stocks to watch out for today

09:03 (IST)

'RBI should allow one-time restructuring of accounts'

08:49 (IST)

Markets expected to be positive

Aditya Agarwala, Senior Technical Analyst, YES Securities, said, "The Indian markets are expected to continue its rising streak with an another significant GAP up opening of 150 points as indicated by the trend in the SGX Nifty. The entire Asian pack is also trading in the green with gains in excess of 1%. HANGSENG is leading the charge which is trading higher by 3.30% followed by SHANGHAI, TAIWAN, STRAIT and NIKKEI. the Dow Jones Futures is trading in the green with gains of 0.25%.   

"The Nifty ended the previous trading week on a strong note with smart gains of 6% for the entire week. Following a GAP up opening of 150 points in today’s session it will comfortably cross its immediate hurdle of 9600. However, Index kay face minor resistance at 9732 which happens to be the previous GAP down area, a sustained trade beyond this resistance of 9732 will extend the gains to levels of 9890. On the flip side failure to breakout of the GAP resistance of 9732 may lead to minor profit booking dragging the Index lower to levels of 9600-9580. On the shorter time frame Index has reached overbought zone and following this GAP up it is likely to get extended, therefore traders should be cautious of any late selloff in headline Indices,” Agarwala said.

08:45 (IST)

US indices gain

08:44 (IST)

LPG cylinder price hiked

08:42 (IST)

Jet fuel price up

08:39 (IST)

Economy on course for full-year contraction this fiscal

The Indian economy is on course for a full-year contraction this fiscal, as recovery prospects from COVID-19 related disruptions remain "clouded", according to DBS Bank India economist Radhika Rao.

The comments came amid the release of key data that showed India's GDP growth tumbling to 3.1 percent in the March quarter--the slowest pace since the global financial crisis more than a decade back. In 2019-20, the Indian economy grew by 4.2 percent, the slowest in 11 years.

Commenting on the GDP data, Rao said, "Headline growth was firmer than consensus, but was constrained by data collection issues, including unavailability of earnings for many sectors. This keeps the door open for downward revision to this growth rate".

Stating that the 2Q20 (April-June) will provide a clearer picture of the economic slump during the lockdown, Rao said, adding "recovery prospects in FY21 remain clouded and the economy is on course for a full-year contraction this year".

According to DBS, consumer discretionary sectors, production and services are likely to take longer to recover.

08:29 (IST)

Markets likely to open high

Deepak Jasani, Head Retail Research, HDFC securities, said, "The markets could open higher following cues from Asian markets as Trump’s action against China was more bark than bite. The Indian markets could open higher today in line with most other Asian markets today and following mixed US indices on Friday.

"US stock indexes ended mostly higher Friday and booked sharp gains for the week and month, after a news conference from President Donald Trump on China turned out to be not as disruptive to trade and finance as had been feared. I think the market anticipating something more stringent than what was announced. WTI crude for July delivery rose $1.78, or 5.3%, to settle at $35.49 a barrel on the NYME. Front-month U.S. benchmark WTI futures rose 88.4% for May, for its best month on record, based on data going back to 1983, according to Dow Jones Market Data. August gold rose $23.40, or about 1.4%, to end the week at $1,751.70 an ounce. Gold tacked on 3.4% for the month.

"The US trade deficit in goods increased by 7.2% in April, according to the Commerce Department’s advanced estimate. The May Chicago Purchasing Managers Index fell to 32.3 in May from 35.4 in April. A final May reading on the University of Michigan’s consumer confidence index rose to 72.3 from an April level of 71.8. April consumer spending slumped 13.6% but personal income soared by 10.5%,

"The final Japan Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 38.4 from 41.9 in March, its lowest since March 2009 while South Korea’s IHS Markit purchasing managers’ index (PMI) edged down to 41.3 in May, the lowest since January 2009 and below 41.6 in April. The Chinese Caixin/Markit manufacturing PMI for May came in at 50.7.

"India's fiscal deficit for FY20 widened to 4.59 percent of the gross domestic product (GDP) overshooting government target of 3.8 percent by nearly 80 basis points. This is an area of concern as the deficit in FY21 will be even more given the poor revenue collections and extra spend to revive the economic growth.   Lockdown in India has been extended to June 30 albeit with a lot of relaxations in non-containment zones. This could bring in some positivity in markets.

"Stocks in Asia Pacific were higher in Monday morning trade as a Chinese data release over the weekend showed the country’s factory activity expanding in May. With specific and verifiable measures against China appearing to be weak, markets may draw hollow consolation that the US is treading carefully. China’s factory activity rose for a third straight month in May as companies got back to business after strict measures to contain the coronavirus, but worldwide lockdowns and weak demand are likely to weigh on the economy’s recovery. The official manufacturing Purchasing Manager’s Index (PMI) eased to 50.6 in May from 50.8 in April

"The benchmark indices ended higher for the third consecutive day on the first day of June F&O series with Nifty closing 90.2 points or 0.95% higher at 9580.30 on Friday. For the week, the Sensex posted gains of 5.7 percent while the Nifty advanced 5.9%. Technically Nifty has closed at the highest ion almost a month. Following the week-on-week gains, Nifty could rise further towards 9753, while 9440-9511 could provide support," Jasani said..

Stock market today LIVE Updates: Markets open in green, Sensex up over 600 points, Nifty above 9,750-mark; Asian stocks reach 3-month peaks

Sydney: Asian share markets started on a cautious note and gold gained on Monday as images of riots in burning US cities unnerved investors already tense over Washington’s power struggle with Beijing.

E-Mini futures for the S&P 500 ESc1 retreated 0.5 percent in early action, while gold rose 0.77 percent to $1,739 an ounce. Oil prices also slipped, while sovereign bonds picked up the usual safe-haven bid.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent, as did Japan's Nikkei.

“If American consumers were reluctant to come out of their COVID-19 lockdown cocoon, fearing a secondary spreader with police cars ablaze, freeways blocked, and videos of mass looting shared through social media like wildfire, they’re not going to feel any safer,’ said Stephen Innes, chief global markets strategist at AxiCorp.

Major US cities were cleaning up streets strewn with broken glass and burned out cars as curfews failed to stop confrontations between activists and law enforcement.

Protesters have flooded streets after weeks of lockdowns during the coronavirus pandemic that threw millions out of work and hit minority communities especially hard.

The turmoil was a fresh setback for the economy which was only just emerging from a downturn akin to the Great Depression. Following poor data on spending and trade out on Friday, the Atlanta Federal Reserve estimated economic output could drop a staggering 51 percent annualised in the second quarter.

The May jobs report due out on Friday is forecast to show the unemployment rate surged to 19.8 percent, smashing April’s record 14.7 percent. Payrolls are expected to drop by 7.4 million, on top of the 20.5 million jobs lost the previous month.

“Current unemployment numbers go far beyond what has been experienced in any post-war recession,” wrote Barclays economist Christian Keller in a note.

“To the extent that some sectors may never return to pre-pandemic business-as-usual, labour faces a substantial challenge to reallocate workers,” he added. “Such a process could be a matter of years rather than months or quarters and in the meantime it would weigh on consumer demand.”

In Asia, an official business survey from China over the weekend showed its factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened, pointing to an uneven recovery.

Bond investors suspect economies will need massive amounts of central bank support long after they reopen and that is keeping yields super low even as governments borrow much more.

Yields on US 10-year notes were trading at 0.66 percent having recovered from a blip up to 0.74 percent last month when the market absorbed a tidal wave of new issuance.

The decline in US yields has been a burden for the dollar, but the world’s reserve currency also tends to benefit from safe-haven status to limit the losses.

Early Monday, the dollar was a fraction softer on a basket of peers at 98.223 having touched an 11-week low of 97.944 on Friday. It was steady on the yen at 107.76.

Much of the dollar's recent decline has come against the euro which has been broadly boosted by plans for an EU stimulus package. The single currency was last at $1.1114 after climbing 1.8 percent last week.

Markets are awaiting a meeting of the European Central Bank on Thursday where it is widely expected to raise its asset buying by around 500 billion euros to 1.25 trillion.

In commodity markets, oil prices started soft on worries about US. demand, but found some support from reports Russia had no objection to the next meeting of OPEC and its allies, known as OPEC+, being brought forward to 4 June from the following week. Brent crude LCOc1 futures were off 8 cents at $37.76 a barrel, while US crude CLc1 dipped 13 cents to $35.36.



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