Opening Bell

Date Heading Details
03-Jul-2020   08:32 Hrs IST Benchmarks to make positive start; Services PMI eyed <p align="justify">Indian market ended higher with gains of over a percent each on Thursday with information technology companies and automakers pacing the gainers. Today, the start of the session is likely to be in green following positive global cues and ahead of economic data. Market participants will be eyeing the Services PMI data to be released later in the day. Some support will come with the Reserve Bank of India's (RBI) report that bank credit and deposits grew 6.18 percent and 11 percent to Rs 102.45 lakh crore and Rs 138.67 lakh crore, respectively, in the fortnight ended June 19. Also, traders may take note of Union minister Nitin Gadkari's statement that India needs foreign direct investments worth Rs 50 to 60 lakh crore and the money can be tapped mainly through infrastructure projects as well as MSME sector to accelerate the wheels of coronavirus-hit economy. Besides, Prime Minister Narendra Modi and Russian President Vladimir Putin discussed the coronavirus crisis and resolved to strengthen the Indo-Russia ties for jointly addressing the challenges of the post-Covid world. However, there may be some cautiousness as with nearly 22,000 cases, India has registered its biggest single-day jump in the number of coronavirus cases. The tally now stands at 627,168 and 18,225 people have died from the disease. Traders may be concerned as Care Ratings revised India's GDP growth forecast for the current financial year to (-) 6.4 percent as economic activity continues to be under restriction, due to the COVID-19 induced lockdown. The rating agency, in May, had projected a decline in GDP growth of 1.5-1.6 percent in FY21. Auto stocks will be in focus with a private report that automobile sales are likely to see a sequential improvement over the next two months even as the year-on-year decline is expected to continue up to December quarter due to disruptions related to the coronavirus pandemic. There will be some reaction in micro, small and medium enterprises (MSMEs) stocks as the RBI asked banks, financial institutions and NBFCs to reclassify MSMEs on the basis of the new criteria.</p><p align="justify">The US markets settled in green on Thursday following the release of a closely watched Labor Department report showing another record spike in employment in the month of June. Asian markets are trading higher on Friday tracking overnight gains on Wall Street.<br></p><p align="justify"></p><p align="justify">Back home, Indian equity benchmarks ended Thursday's session in green terrain that marked a second straight day of gain for the markets, on widespread buying amid a broad up-move in global markets following encouraging Covid-19 vaccine trials. Sensex and Nifty closed above their crucial 35,800 and 10,550 levels, respectively. Key gauges traded on positive note since the beginning, as traders took encouragement with Finance minister Nirmala Sitharaman's statement that the government is committed to undertaking reforms to make the tax administration simple for businesses, particularly the micro, small and medium enterprises (MSMEs). Sentiments remained optimistic as the Confederation of All India Traders (CAIT) has suggested a host of measures such as technical audits and waiver of late fees, to broaden the Goods and Services Tax (GST) base and make the taxation system simple. Key indices gathered further ground in late afternoon trade, as the government approved a scheme under which the eligible non-bank lenders will be provided short-term liquidity through a special purpose vehicle (SPV) set up by the SBICAP securities, a subsidiary of the State Bank of India (SBI). Market participants also took a note of the Ministry of Finance's latest report that the gross Goods and Services Tax (GST) revenue collected in the month of June, 2020 is Rs 90,917 crore of which CGST is Rs 18,980 crore, SGST is Rs 23,970 crore, IGST is Rs 40,302 crore (including Rs 15,709 crore collected on import of goods) and Cess is Rs 7,665 crore (including Rs 607 crore collected on import of goods). However, markets pared some gains at the end of the session, as some anxiety remained among traders with Fitch Ratings' report stating that India's non-bank financial institutions (NBFIs) will continue to face elevated near-term risks even as economic activity picks up with the easing of the country's nationwide lockdown. Finally, the BSE Sensex gained 429.25 points or 1.21% to 35,843.70, while the CNX Nifty was up by 121.65 points or 1.17% to 10,551.70.<br></p>
02-Jul-2020   08:32 Hrs IST Benchmarks to make positive start on Thursday <p align="justify">Indian markets ended higher with significant gains on Wednesday, after a survey showed the pace of contraction in India's manufacturing sector slowed further in June. Today, the markets are likely to make positive start following gains in Asian peers. Traders will be taking encouragement with Finance minister Nirmala Sitharaman's statement that the government is committed to undertaking refo&shy;rms to make the tax administration simple for businesses, particularly the micro, small and medium enterprises (MSMEs). Traders may take note that traders' body CAIT suggested a host of measures, like technical audits and waiver of late fees, to broaden the GST base and make the taxation system simple. However, there may be some cautiousness with over 19,000 cases being reported in the last 24 hours, India's total tally of coronavirus cases has crossed the 600,000 mark. At present, the country has 605,220 cases, of which 17,840 are fatalities. Traders may also be concerned as the International Labour Organisation (ILO) has warned that if another Covid-19 wave hits in the second half of 2020, there would be global working-hour loss of 11.9 per cent - equivalent to the loss of 340 million full-time jobs. Meanwhile, SEBI came out with a set of standard operating procedures for stock exchanges, clearing corporations and depositories to deal with possible defaults by trading or clearing members. The framework, which will come into force from August 1, is aimed at protecting the interest of non-defaulting clients of trading members or clearing members in the likely event of default by trading member or clearing member. There will be some buzz in the metal stocks as the government assured steel makers that it will take appropriate measures to reduce the logistics cost of products that currently reaches as high as 28 percent. Banking stocks will be in focus with Fitch Ratings' report that Indian banks may continue to face heightened asset quality and earning pressure for at least two years, as disruption to business activity and supply chains and shrinking personal incomes damage banks' balance sheets.</p><p align="justify">The US markets ended mostly higher on Wednesday after drug giant Pfizer and German biotech company BioNTech announced positive data from an early-stage human trial of a potential coronavirus vaccine. Asian markets are trading in green on Thursday following positive news overnight around the development of a potential coronavirus vaccine.</p><p align="justify">Back home, Indian equity benchmarks have showcased a strong performance on Wednesday, by gaining over a percent in the session and settling above the psychological 10,400 (Nifty) and 35,400 (Sensex) levels. After making a cautious start, markets gained traction and traded in fine fettle, as the data released by the Reserve Bank of India (RBI) showed that India's current account balance recorded a marginal surplus in the January-March quarter of FY20. Traders also took note of the Reserve Bank of India's data showing that direct investment into the country rose by $19 billion during 2019-20. Sentiments remained optimistic with Union Minister Nitin Gadkari's statement that the government is looking at ways to boost India's exports. He is also hopeful that a solution will be found in the next 4-6 months to address the issue of delay in payment to micro, small and medium enterprises. Benchmark indices gained more strength in late afternoon session, as investors' morale remained upbeat with Niti Aayog Vice Chairman Rajiv Kumar's statement that India's economy will recover following the containment of COVID-19 pandemic, and ongoing reforms would keep the country's growth rate ahead of peers. The market participants overlooked weak economic data. The growth of eight core infrastructure industries has contracted by 23.4 percent in May 2020 as compared to same period of last year, due to the coronavirus-induced lockdown.&nbsp; Traders also paid no heed towards Fitch Ratings in its June update of Global Economic Outlook lowered India's growth forecast for financial year 2021-22 to 8 percent from 9.5 percent projected last month. However, the rating agency retained its projection of Indian economy contracting by 5 percent in the current fiscal (FY21).&nbsp; It projected Indian economy to grow 5.5 percent in 2022-23. Finally, the BSE Sensex gained 498.65 points or 1.43% to 35,414.45, while the CNX Nifty was up by 127.95 points or 1.24% to 10,430.05.<br></p>
01-Jul-2020   08:22 Hrs IST Markets to get cautious start; manufacturing PMI eyed
30-Jun-2020   08:19 Hrs IST Markets to get optimistic start on Tuesday
29-Jun-2020   08:25 Hrs IST Benchmarks to make negative start of new week
26-Jun-2020   08:26 Hrs IST Markets to open in green amid firm global cues
25-Jun-2020   08:27 Hrs IST Markets to get gap-down opening on Thursday
24-Jun-2020   08:27 Hrs IST Benchmarks to make flat-to-negative start
23-Jun-2020   08:25 Hrs IST Markets to get slightly positive start on Tuesday
22-Jun-2020   08:28 Hrs IST Benchmarks to make flat-to-negative start of new week