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

SUMMARY

Indian shares are expected to open in the green on Tuesday following its Asian peers. At 7:19 am, the SGX Nifty traded 109 points or 1.17 percent higher at 9,367, pointing at a positive start for the Sensex and the Nifty50.

By CNBCTV18.comMay 5, 2020 7:38:41 AM IST (Published)

1. Asia: Stocks in Australia rose in Tuesday morning trade, with major markets in Asia closed for holidays. The S&P/ASX 200 rose 0.69 percent in early trade.The Reserve Bank of Australia is expected to announce its interest rate decision on Tuesday, set to be out around 12:30 p.m. Investors will continue to watch for developments on both the global coronavirus pandemic as well as rising U.S.-China tensions, with Hong Kong’s Hang Seng index closing more than 4 percent lower on Monday amid the uncertainty. Markets in China, Japan and South Korea are closed on Tuesday for holidays.

2. US: Stock futures rose in overnight trading on Monday as investors remained focused on the reopening of the U.S. economy. Futures on the Dow Jones Industrial Average climbed 167 points, implying a Tuesday opening gain of around 100 points. The S&P 500 and Nasdaq futures also pointed to a positive Tuesday start for the two indexes. Investors weighed fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions.

3. Market At Close On Monday: A slide in banking shares sent Indian stock indices tumbling on Monday as the government extended the coronavirus lockdown by two weeks while rising US-China tensions sapped optimism about a pick up in global economic activity. The BSE Sensex ended 2,002 points lower at 31,715, while the Nifty50 index 566 points lower at 9,293.

4. Indian Rupee: Indian rupee has finished lower by 61 paise at 75.71 per dollar, amid heavy selling seen in the domestic equity market. It opened 63 paise lower at 75.73 per dollar against Thursday's close of 75.10. The currency market was shut on Friday, May 1 on account of Maharashtra Day.

5. Crude Oil: Oil rose on Monday as more countries announced they would begin easing coronavirus lockdowns and crude supply cuts take hold, though a fresh spat between the United States and China over the origin of the virus limited the rise in prices. Brent crude gained 28 cents, or 1.1 percent, to $26.72 a barrel, while West Texas Intermediate crude jumped 61 cents, or 3.08 percent, to settle at $20.39 per barrel.

6. India's Factory Activity Slumps To Record Low In April: India's manufacturing activity declined at its sharpest pace on record in April as the lockdown announced by the government to curb the rapid spread of the deadly coronavirus led to a fall in demand and supply chain disruptions, according to a private sector survey. The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, declined to 27.4 last month from 51.8 in March, its lowest since the survey began in March 2005. For the first time, it is below the 50-mark separating growth from contraction in nearly three years.

7. RBI May Extend Moratorium Loans By Another 3 Months: With further extension of the nationwide lockdown, the RBI is considering a proposal for extending the moratorium on bank loans by another three months to help people and industry impacted by the ongoing lockdown to contain COVID-19. Suggestions from various quarters, including from Indian Banks' Association, have come for the further extension of moratorium and the RBI is actively considering them, according to sources.

8. Nitin Gadkari On Government Dues: The ministry of micro, small and medium enterprises (MSME) is talking to the Finance Ministry, Public Sector Undertakings department and state chief ministers to see to it that small firms are paid their dues within a month. “…there is also a big problem, the MSMEs, what they supply to state government undertaking, central government undertaking and major industries, they are not getting their payments,” Nitin Gadkar, Minister for Road Transport and MSMEs, said in an interview to CNBC-TV18.

9. Most Firms Keeping Salary Hike Budgets Unchanged, Says Survey: With the unprecedented situation arising out of COVID-19 pandemic, companies across the world have re-evaluated their HR practices, and while 50 percent organisations across industries are keeping their salary hike budgets unchanged, 36 percent have opted for a decline, says a survey. In its India's COVID-19 HR Practices Survey Report, KPMG said around 70 percent of the organisations across levels have reported no change in the planned impact on fixed pay at the non-management and junior management levels.

10. Sebi Levies Rs 79 Lakh Fine On 25 Entities: Markets regulator Sebi has imposed a total fine of Rs 79 lakh on 25 entities for indulging in fraudulent trading in the scrip of Richa Industries Ltd and violating market norms. Sebi had conducted an investigation into the scrip of Richa Industries to look into the irregularities of trading activities of certain entities while dealing in the scrip of the firm. Sebi found that the two groups which included these entities were connected to each other by one way or the other and had dealt in the scrip of Richa Industries in a fraudulent and manipulative manner, without real change in beneficial ownership of shares.