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14-May-2021   08:42 Hrs IST Markets likely to get cautious start on Friday <p align="justify">Indian markets extended their previous session losses and ended sharply lower on Wednesday as global rating agency Moody's lowered India's GDP forecast for the financial year 2021-22 and the country reported a record surge in coronavirus deaths. Markets remain closed on Thursday on account of Id-Ul-Fitr or Ramzan Eid. Today, the markets are likely to make cautious start amid worries over the economic impact of the second wave of COVID-19 and lockdowns and restrictions in various states. Though, drop in Covid cases may support the market sentiments. India reported a dip in fresh Covid cases to below 3.5 lakh mark at 3,43,122. This was lower than Wednesday's figure of 3,62,720 cases. Besides, V K Paul, Member (Health), Niti Aayog, said over two billion doses of Covid-19 vaccines will be made available in the country in five months between August and December, enough to vaccinate the entire population. He added that the Russian Covid vaccine Sputnik V is also likely to be available by next week. Market participants will also react to the IIP and CPI numbers released on Wednesday after market hours. India's factory output climbed 22.4 per cent in March, benefiting from the base effect of the lockdown-marred month a year back as well as a turnaround in the manufacturing sector, while retail inflation slipped to a three-month low of 4.29 per cent in April. Investors are eyeing WPI inflation data for April slated to be declared later in the day. Some support may come as Finance Minister Nirmala Sitharaman said renewing stalled real estate projects will significantly improve economic sentiment in the country grappling with a second wave of Covid. There will be some buzz in power stocks with the CEEW Centre for Energy Finance (CEEW-CEF) Market Handbook stating that India added 12.1 gigawatt (GW) power generation capacity in 2020-21, of which 7.7 GW was from renewable energy sources. FMCG stocks will in focus with a private report indicating that the April-June period remains largely volatile and dynamic for the country's Rs 4.3-trillion fast-moving consumer goods (FMCG) industry as the second Covid-19 wave rages on. There will be some reaction in aluminum sector stocks as the Aluminium Association of India (AAI) expressed urgent need for at least 5 per cent remission rate for the sector under the tax refund scheme RoDTEP to ensure global competitiveness. Meanwhile, PowerGrid Infrastructure Investment Trust (InvIT) IPO shares are scheduled to be listed on stock exchanges on Friday. The public issue was subscribed 4.83 times on the last day of the subscription. The Rs 7,735-crore issue received bids for 205 crore units against 42 crore units on offer. This is the first Infrastructure Investment Trust (InvIT) in the country to be floated by a public sector company.</p><p align="justify">The US markets ended higher on Thursday after data showed fewer Americans filed new claims for unemployment benefits last week and producer prices surged last month. Asian markets are trading mostly in green on Friday following overnight gains on Wall Street.</p><p align="justify">Back home, Indian equity benchmarks ended the disappointing day of trade in red terrain with Sensex and Nifty settling below their crucial 48,700 and 14,700 levels, respectively. Sentiments remain dampened since beginning of the trade as traders remain worried over economic growth. Rating agency Moody's has cut India's gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled out a sovereign rating upgrade - at least for now. Traders also took note of the United Nations' statement that India is forecast to grow at 10.1 per cent in 2022, becoming the fastest-growing major economy in the world, but cautioned that the growth outlook of 2021 was highly fragile as the country was the new hotbed of the pandemic. Markets traded continuously in red throughout the day as domestic rating agency Care Ratings revised its GDP growth forecast for the current fiscal to 9.2 per cent from 10.2 per cent it had estimated earlier. This is the fourth revision by the rating agency in its GDP growth forecast for FY2021-22 since March this year. On March 24 this year, it had projected GDP growth for FY22 at 11-11.2 per cent but revised downwards forecast to 10.7 per cent on April 5 and further to 10.2 per cent on April 21. Sentiments also weighed down on reports that overall job postings declined by 4 per cent (year-on-year) as of April and openings for entry-level roles declined by 5 per cent (month-on-month), according to latest data provided by the company. Industries like travel and tourism, education and engineering, cement, construction, iron/steel continue to show decline in job postings. The employment index by online job search platform Monster saw a decline in job posting activity in April compared to March by 3 per cent. Finally, the BSE Sensex declined 471.01 points or 0.96% to 48,690.80, while the CNX Nifty was down by 154.25 points or 1.04% to 14,696.50.<br></p>
12-May-2021   08:33 Hrs IST Benchmarks likely to make negative start ahead of IIP, CPI data <p align="justify">Indian markets snapped four-day gaining streak and ended lower on Tuesday dragged by selling in metals, pharma and IT stocks. Today, the markets are likely to continue sluggish momentum with negative start amid weakness in global peers coupled with worries over economic growth. Investors will be eyeing the key economic data on industrial output and inflation to be released later in the day. Traders will be concerned as rating agency Moody's cut India's gross domestic product (GDP) forecast for FY22 to 9.3 per cent from the earlier projection of 13.7 per cent and has ruled out a sovereign rating upgrade - at least for now. The downward revision in GDP estimates comes on the back of a second wave of Covid infections across the country, which triggered localised lockdowns and mobility curbs, except for essential services. There will be some cautiousness as the United Nations said India is forecast to grow at 10.1 per cent in 2022, becoming the fastest-growing major economy in the world, but cautioned that the growth outlook of 2021 was highly fragile as the country was the new hotbed of the pandemic. However, some respite may come later in the day as active Covid cases declined for the third straight day and the fresh Covid cases remained below the 3.5 lakh mark for the second day in a row at 3,48,371. Some support may come as Commerce and Industry Minister Piyush Goyal said a sharp rise in exports in April is giving a hope that the ambitious target of USD 400 billion merchandise shipments can be achieved this year. He also said that the Department of Commerce has taken up several issues of exporters with the Ministry of Finance for their early resolution, like RoDTEP (remission of duties and taxes on export products), MEIS (merchandise export from India scheme), and inverted duty structure. There will be some buzz in aviation stocks as Moody's Investors Service revised its outlook for the global airlines industry to positive from negative, reflecting that industry fundamentals will materially improve over the next 12 to 18 months. Mining and construction equipment industry stocks will be in focus as ICRA said the mining and construction equipment industry is likely to grow by 15-20 per cent in the calendar year 2021 but stressed that the economy, in the grip of a pandemic, could throw up sudden negative surprises. There will be some reaction in metal stocks with report that the government has proposed to slash import duties on steel items further bringing it to zero or near zero levels to provide relief to MSMEs, which have been hit hard by the high cost of raw materials amidst the raging pandemic. Telecom stocks will be in limelight as TRAI data showed Reliance Jio added 4.2 million mobile subscribers, Bharti Airtel added 3.7 million users, while Vodafone Idea added 6.5 lakh users in February.</p><p align="justify">The US markets ended lower on Tuesday as rising commodity prices and labor shortages fed fears that despite reassurances from the US Federal Reserve, near-term price spikes could translate into longer-term inflation. Asian markets are trading mostly in red on Wednesday as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally.</p><p align="justify">Back home, snapping four day winning streak, Indian equity benchmarks ended Tuesday's trade in red terrain with frontline gauges ending below their crucial 49,200 (Sensex) and 14,900 (Nifty) levels. Markets started the day on pessimistic note amid concerns that the second wave of the coronavirus pandemic could bring down India's GDP growth. Sentiments also remained down beat after domestic rating agency Crisil warned India's economic growth may slip to 8.2 per cent in FY22 if the second wave peaks in end of June, maintaining its baseline estimate of 11 per cent uptick in activity. Adding more pessimism, State Bank of India's economic research arm warned that a huge buildup of carry positions could negatively impact the exchange rate and lead to inflation. Besides, Regulator Sebi came out with disclosure requirements under business responsibility and sustainability reporting, covering environmental, social and governance perspectives, which will be applicable on the top 1,000 listed entities by market capitalisation. However, markets pared some of their initial losses in noon deals but recovery proved short lives as sentiments turned fragile as World Health Organziation states that the coronavirus variant first identified in India last year was being classified as a variant of global concern, with some preliminary studies showing that it spreads more easily. The WHO has said the predominant lineage of B.1.617 was first identified in India in December, although an earlier version was spotted in October 2020. Traders were also remained anxious as Fitch Ratings said that there are growing indications that India's latest wave of Covid-19 infections will add to risks among financial institutions (FIs) by sapping near-term momentum from the economic recovery. Measures announced by the Reserve Bank of India (RBI) on May 5 will provide some relief to FIs in the next 12 to 24 months, but largely at the expense of postponing the recognition and resolution of underlying asset-quality problems. Finally, the BSE Sensex declined 340.60 points or 0.69% to 49,161.81, while the CNX Nifty was down by 91.60 points or 0.61% to 14,850.75.<br></p>
11-May-2021   08:33 Hrs IST Markets likely to get gap-down opening on Tuesday
10-May-2021   08:31 Hrs IST Markets likely to make gap-up opening of holiday-shortened week
07-May-2021   08:36 Hrs IST Benchmarks likely to get optimistic start for yet another day
06-May-2021   08:29 Hrs IST Markets likely to continue gaining momentum with positive start
05-May-2021   08:32 Hrs IST Benchmarks to make positive start; all eyes on RBI Governor's speech
04-May-2021   08:34 Hrs IST Markets likely to get flat-to-negative start on Tuesday
03-May-2021   08:31 Hrs IST Markets likely to make negative start of new week
30-Apr-2021   08:37 Hrs IST Domestic indices likely to make weak start amid unabated rise in Covid cases