10 things you need to know before the opening bell on August 5

SUMMARY

The Indian stock market is expected to open flat with negative bias on Wednesday amidst a mixed trend in Asian markets. At 7:35 am, the SGX Nifty traded 33 points lower at 11,077, indicating a negative start for the Sensex and the Nifty50. Here are the 10 vital things to know before the opening bell (inputs from agencies):

By CNBCTV18.comAug 5, 2020 7:58:37 AM IST (Published)

1. Asia: Stocks in Asia Pacific traded mixed Wednesday morning as uncertainty remains over the state of coronavirus relief stateside. In Japan, the Nikkei 225 dipped 0.53 percent in early trade while the Topix index shed 0.55 percent. The moves came after Japanese stocks saw two solid days of gains earlier this week. South Korea’s Kospi advanced 0.47 percent. Meanwhile in Australia, the S&P/ASX 200 dipped fractionally. Overall, the MSCI Asia ex-Japan index traded about 0.1 percent higher, reported CNBC International.

2. US: Stocks rose across the board on Tuesday, building on the previous session’s strong gains, as lawmakers tried to make inroads on a new coronavirus stimulus package. The Dow Jones Industrial Average gained 164.07 points, or 0.6 percent, to finish the day at 26,828.47 while the S&P 500 advanced a more modest 0.36 percent and ended at 3,306.51. Tuesday’s moves came as lawmakers worked to make inroads on a new coronavirus stimulus package, reported CNBC International.

3. Market At Close On Tuesday: The Indian equity market ended at day's high on Tuesday led by the gains in index heavyweights Reliance Industries, HDFC Bank, ICICI Bank and Maruti Suzuki. Auto stocks also surged in the trade, thus pushing the indices higher. At close, the Sensex ended 748.31 points or 2.03 percent higher at 37,688 while the Nifty50 ended at 11,095, up 204 points or 1.87 percent. Broader markets traded lower than the benchmarks, as both rose only a percent higher.

4. Crude Oil: Oil prices rose on Tuesday, on track to close at near five-month highs, on hopes the United States is making progress on a new economic stimulus package and signs America is making progress on curbing the coronavirus spread. Brent futures rose 57 cents, or 1.3 percent, to $44.72 a barrel, while West Texas Intermediate crude rose 69 cents, or 1.68 percent, to settle at $41.70 per barrel. Both benchmarks were set to close at their highest since early March, reported CNBC International.

5. Rupee Close: The Indian currency ended lower on Wednesday despite positive equity market. Forex traders said, while positive equity market and foreign fund inflows supported the rupee, factors like weak Asian currencies and rising Covid-19 cases dragged down the local unit. The Indian rupee ended at 75.04 against the US dollar as compared to Monday's close of 75.01.

6. Govt Lifts Export Ban On Ventilators: The government on Tuesday lifted the export ban on all ventilators to push the outbound shipments of the product. "All ventilators including any artificial respiratory apparatus or oxygen therapy apparatus or any other breathing appliance/device are made free for export," the directorate general of foreign trade (DGFT) said in a notification. The ban was imposed on March 24 to ensure domestic availability to fight COVID-19 pandemic.

7. NITI Aayog Recommends Measures For Auto, Real Estate Sectors: In a presentation given to the Prime Minister Narendra Modi and union finance ministry to revive the economy, NITI Aayog has highlighted that there is a lack of adequate capital for investments, the cost of power and logistics is high, there's also major infrastructure deficit, and high regulatory burden as major roadblocks hampering growth. It has highlighted that in FY21 gross domestic product (GDP) is likely to see a contraction of 5.1 percent and also expects no increase in the GDP levels for over two years. It has also highlighted that manufacturing sector growth and capacity utilisation was at a decade low even before the lockdown announced on the back of COVID-19.

8. FinMin Report Says Farm Sector To Cushion Economy: The worst seems to be over and the agriculture sector will provide a cushion for the coronavirus-hit economy this fiscal as there are prospects of good monsoon, finance ministry said in a report on Tuesday. India is well on the path of recovery from a trough in April, ably supported by proactive Government and Central Bank policies, the Macroeconomic Report for July, released by the Economic Affairs Department said. "With India unlocking, the worst seems to be over for the economy as high-frequency indicators recovered in June 2020 from unprecedented troughs in April; however, risks on account of rising COVID-19 cases and intermittent State lockdowns remain," it said.

9. Finance, Commerce Ministries Yet To Conclude MEIS Benefits: Worsening the hardships of exporters who are facing a delay in payouts of benefits committed under the Merchandise Exports from India Scheme (MEIS), both Commerce and Finance ministries have yet to reach a conclusion. Senior Finance Ministry sources have told CNBC-TV18 that “the revenue department is yet to hear from commerce ministry with clarity on sectors that should avail of these MEIS benefits and until this detailed list is shared with the revenue department the pay-outs cannot be cleared.”

10. UN Says 1 Billion Students Affected By Closures: The United Nations chief says the coronavirus pandemic has led to the largest disruption of education in history, with schools closed in more than 160 countries in mid-July affecting more than 1 billion students. In addition, Secretary-General Antonio Guterres said Tuesday that at least 40 million children worldwide have missed out on education “in their critical pre-school year.” As a result, he warned that the world faces “a generational catastrophe that could waste untold human potential, undermine decades of progress, and exacerbate entrenched inequalities.