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Capital Market
Last Updated : May 11 2020 | 9:05 AM IST

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 106 points at the opening bell.

The government on May 8 said it has raised the estimated gross market borrowing to Rs 12 lakh crore from Rs 7.8 lakh crore as per the Budget Estimates for FY21. The extra borrowing is mainly aimed at covering the likely revenue losses.

Overseas, Asian stocks followed Wall Street higher on Monday as investors looked ahead to more countries restarting their economies.

In US, stock market ended sharply higher on Friday (8 May) despite grim monthly jobs report as investors bet the worst of the coronavirus crisis has passed. Investors also hoped for an eventual reopening of the economy.

The Dow Jones Industrial Average rose 455.43 points, or 1.9%, to close at 24,331.32 and the S&P 500 index gained 48.61 points, or 1.69% to end the session at 2,929.80. The Nasdaq Composite Index advanced 141.66 points, or 1.58%, to 9,121.32.

The monthly report on the employment situation in the US showed that 20.5 million jobs were eliminated in April, and the unemployment rate rocketed 14.7% from 4.4% last month.

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Sentiment was also aided after top US and Chinese trade representatives played down deep differences and said they would press ahead with implementing their Phase 1 trade deal. US Trade Representative Robert Lighthizer discussed the deal with Chinese Vice Premier Liu He and US Treasury Secretary Steven Mnuchin on the phone call. The US officials said in a joint statement that both sides agreed the obligations would be met.

Back home, the market ended with decent gains on Friday, supported by positive global cues. Firmness in index majors Reliance Industries (RIL) and Hindustan Unilever (HUL) boosted indices higher. However, weakness in banks shares capped gains. The barometer S&P BSE Sensex gained 199.32 points or 0.63% at 31,642.70. The Nifty 50 index gained 52.45 points or 0.57% at 9,251.50.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,724.71 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,503.14 crore in the Indian equity market on 8 May, provisional data showed.

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First Published: May 11 2020 | 8:04 AM IST

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