10 things you need to know before the opening bell on May 6

SUMMARY

Rising number of coronavirus infected persons in the country as well as across the world has heightened economic concerns, thus resulting into a series of weak trades in the global stock markets. Indian shares are expected to open flat on Wednesday as the SGX Nifty traded 14 points lower at 9,224, indicating at a mixed trade for the Sensex and Nifty50.

By CNBCTV18.comMay 6, 2020 7:54:24 AM IST (Published)

1. Asia: Stocks in Asia Pacific were mixed in Wednesday morning trade as oil prices continued to move higher. South Korea’s Kospi gained 1.16 percent in early trade as shares of automaker Hyundai Motor jumped more than 2 percent. The Kosdaq index also rose 1.44 percent. In Australia, the S&P/ASX 200 dipped 0.37 percent. Overall, the MSCI Asia ex-Japan index traded 0.06 percent higher.

2. US: U.S. stock futures were lower in overnight trading and pointed to losses at the open on Wednesday, following two positive sessions in the equity markets. Dow futures fell 96 points, indicating a Wednesday opening gain of about 104 points. S&P 500 and Nasdaq futures also pointed to a lower Wednesday open for the two indexes. The moves came as investors weighed the consequences of a growing number of states beginning to reopen their economies in the first two weeks of May.

3. Market At Close On Tuesday: Indian indices pared opening gains to end around 1 percent lower on Tuesday led by a slide in banking and financial stocks. The Sensex ended 262 points lower at 31,453 while the Nifty50 index shed 88 points to settle at 9,205. Kotak Bank, HDFC Bank, ICICI Bank, HDFC, and SBI contributed the most to the losses in the indices. Market breadth favored declines for the day with the advance-decline ratio at 1:2.

4. Rupee Close: The Indian rupee surged 10 paise to close at 75.63 (provisional) against the US dollar on Tuesday, amid higher domestic equity markets and gains in some Asian currencies. Forex traders said the rupee is trading in a narrow range as positive domestic equities supported the local unit, while sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit.

5. Crude Oil: Oil prices surged on Tuesday as optimism around ongoing production cuts and a recovery in demand with the reopening of economies around the world pushed prices higher. West Texas Intermediate, the U.S. benchmark, jumped 20.45 percent, or $4.17, to settle at $24.56 per barrel. International benchmark Brent crude settled 13.86 percent higher at $30.97 per barrel, and also posted its fifth-consecutive positive session.

6. Centre To Create Database Of Indians Who Lost Jobs Overseas: Narendra Modi government will soon initiate a massive exercise to bring back Indians abroad. The list of compelling cases also includes a large number of Indian workers who have lost their jobs abroad. Highly placed sources have told CNBC-TV18 that the ministry of external affairs (MEA) would also help in rehabilitating such citizens on their return. The foreign ministry is creating a data base of such citizens with their skill sets and qualifications. (Representational Image)

7. Nobel Laureate Abhijit Banerjee On Indian Economy: India should come out with a large enough stimulus package to revive demand, Nobel laureate Abhijit Banerjee said on Tuesday, asserting that putting cash in the hands of people would be the best way to boost the economy post lockdown. Banerjee, while talking to Congress leader Rahul Gandhi through video-conferencing, suggested giving money into the hands of the bottom 60 percent population to help revive demand. He was deliberating on the economic impact of the COVID-19 pandemic with Gandhi as part of a series of dialogues broadcast on Congress' social media handles.

8. Anti-Dumping Duty On Chemical from China Might Continue: The commerce ministry has recommended continuation of anti-dumping duty on a chemical from China used in food and pharma industry with a view to guard domestic players from cheap imports. In a notification, the ministry's investigation arm Directorate General of Trade Remedies (DGTR) has said there is a "positive" evidence of likelihood of dumping of Sodium Citrate and injury to the domestic industry if the existing anti-dumping duty is removed.

9. India's April Gold Imports Plunge 99.9%: India's gold imports plunged 99.9 percent year-on-year in April to their lowest in nearly three decades as air travel was banned and jewellery shops were closed amid a nationwide lockdown to curb the spread of coronavirus, a government source said. The world's second biggest consumer of the precious metal imported around 50 kilograms of gold in April, down from 110.18 tonnes a year ago, the source said on Monday, who is not authorised to speak to the media. In value terms, April imports dropped to $2.84 million from to $3.97 billion a year ago, he added.

10. ICRA On Incremental Credit Growth: The incremental credit growth in the year ending March 2020 declined by 64 percent from Rs 16.79 lakh crore in the previous year to Rs 6.04 lakh crore, a report published by rating & research agency ICRA showed. This overall credit growth includes those from banks, commercial papers and corporate bonds. The ICRA ICRA added that the incremental credit flow from banks, commercial papers (CPs) and corporate bonds outstanding could rise by Rs 7.3-9.7 lakh crore during FY21, helped by the lower base of Rs 6 lakh crore of FY20. The sharp decline in incremental credit during FY20 was driven by slowing economic growth as well as heightened risk aversion among lenders.