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

SUMMARY

Indian shares are set to open lower on Monday following weak cues from global markets and as investors turned cautious ahead of Lok Sabha election results and amid ongoing March-quarter earnings season. In global markets, Asian shares fell, oil prices slumped and the safe-haven yen strengthened as trade negotiations between China and the US deteriorated suddenly, reversing apparent progress made in recent months. On Friday, Indian benchmark indices ended flat as investors remained cautious amid March-quarter earnings season. The indices posted marginal gains for the week. At 07:00 AM, the SGX Nifty, an early indicator of the Nifty 50's trend in India, was down 0.42 percent at 11,711, indicating a weak start for the Sensex and Nifty.

By CNBC-TV18May 6, 2019 8:24:40 AM IST (Updated)

1. Asia: In early Asian trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent. Australian shares were 0.6 percent lower in early trade. Japanese financial markets remain closed until Tuesday for a national holiday, but Nikkei 225 futures dropped 1.8 percent to 22,085. E-Mini futures for the S&P 500 slid 1.7 percent after the US payroll data had helped to lift Wall Street stocks on Friday. Investors around Asia will be keeping an eye on Chinese markets, which open after a three-day national holiday last week.

2. US: The Dow Jones Industrial Average rose 197.16 points, or 0.75 percent, to 26,504.95, the S&P 500 gained 28.12 points, or 0.96 percent, to 2,945.64, and the Nasdaq Composite added 127.22 points, or 1.58 percent, to 8,164.00.

3. Markets At Close On Friday: The benchmark indices ended flat on Friday as investors remained cautious amid March-quarter earnings season. Fall in crude oil prices and a stronger rupee kept the sentiment positive. The BSE Sensex closed at 38,963, down 18 points, while the broader NSE Nifty50 ended at 11,712, falling 12 points. The indices posted marginal gains for the week.

4. Crude Oil: US West Texas Intermediate (WTI) crude futures were at $60.44 per barrel at 0032 GMT on Monday, down $1.50 per barrel, or 2.4 percent, from their last settlement. Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 percent, from their last close.

5. Rupee: The rupee on Friday was up 14 paise to close at 69.22 against the US dollar.

6. US Dollar: The dollar index, which tracks the greenback against a basket of six major rivals, was up at 97.574.

7. FIIs & DIIs: Foreign institutional investors (FIIs) sold shares worth Rs 401 crore on a net basis in the cash market, while domestic institutional investors (DIIs) bought shares worth Rs 57 crore on May 3.

8. US-China Trade Talks: President Donald Trump turned up the pressure on China on Sunday, threatening to hike tariffs on $200 billion worth of Chinese goods. Trump's comments, delivered on Twitter, came as a Chinese delegation was scheduled to resume talks in Washington on Wednesday aimed at resolving the trade war. Trump turned up the heat by saying he would raise import taxes on $200 billion in Chinese products to 25 percent from 10 percent on Friday. He's twice pushed back deadlines in January and March to raise the tariffs in a bid to buy more time for a negotiated settlement.

9. NSE To Extend Trading Hours On Akshaya Tritiya: The National Stock Exchange (NSE) will conduct an extended live trading session on May 7 in the capital market segment on the occasion of Akshaya Tritiya. The extended live trading session will be held for trading in gold exchange-traded fund (ETF) and sovereign gold bonds only, the NSE said in a circular. The outstanding orders of gold ETF and sovereign gold bonds will be carried forward to the extended trading session and can be cancelled by members during the pre-open period of the extended market session between 1625 hours and 1630 hours.

The extended trading session will commence at 1630 hours and close at 1900 hours.

There will be no closing session after the extended market is closed, the exchange said.

10. S&P Energy Stocks: The stock market surge since the start of the year that has sent the benchmark S&P 500 index up to new record highs is leaving behind one sector that typically outperforms in an expanding economy: energy. A sharp rebound in the price of oil has not been enough to offset a long-standing reluctance on the part of investors to hold energy companies after prices collapsed in 2014. Energy companies in the S&P 500 are down 13 percent over the last year, while the broad index is up 10 percent. Over the last 5 years, energy companies have sunk 31 percent, while the S&P 500 as a whole is up nearly 60 percent.