The SGX Nifty suggests a mildly higher opening, at around 10,200 levels, for the Indian markets today on the back of favourable global cues, although the gains might be capped by the continuously rising Covid-19 cases and the World Bank's decision to scale down India's growth projections.
World Bank yesterday forecast a 3.2 per cent contraction in India's economy in FY21 because of the Covid-induced lockdown. It had earlier predicted 1.5-2.8 per cent growth. It, however, said that India’s economy should bounce back in FY22 and pegged growth at 3.1 per cent.
In the global markets overnight, the Nasdaq hit a record high close, becoming the first of Wall Street’s three main indexes to bounce back from the market crash caused by the pandemic. Overall, the Dow Jones rose 1.7 per cent, the S&P 500 gained 1.2 per cent and the Nasdaq Composite added 1.13 per cent.
Investors will now shift focus to the Fed’s two-day policy meeting, which starts today and where the jobs report will most likely be discussed.
Asian stocks were also up in Tuesday's early deals. Australian ASX 200 rose 2.6 per cent and Hong Kong’s Hang Seng index gained 0.93 per cent. However, Japan’s Nikkei slipped 0.86 per cent.
In commodities, oil prices fell after Saudi Arabia said the kingdom and Gulf allies Kuwait and the UAE would not cut an extra 1.18 million barrels per day in July as they are doing this month. Brent was last trading 0.8 per cent up at $41.13 a barrel after falling $1.50 overnight.
In corporate results, Titan yesterday posted largely in-line quarterly financial numbers although Covid-19-related disruptions adversely impacted its top line and profit for the fourth quarter ended March 2020. The company's net profit for the quarter declined 1.5 per cent year-on-year to Rs 343 crore.
Multiplex chain operator PVR Ltd reported a consolidated net loss of Rs 74.61 crore for the fourth quarter, as the film exhibition business was impacted because of Covid-19 pandemic.
Today, a total of 23 companies including Hero MotoCorp and Bombay Dyeing are scheduled to announce their March quarter results. Analysts expect Hero MotoCorp to report over 20 per cent fall in top-line, led by 25 per cent YoY decline in total volumes.
Meanwhile, India added over 9,983 new Covid-19 cases yesterday, taking its tally to 2.6 lakh with as many as 7,263 deaths from the disease so far. India is now the fifth worst-hit nation across the world due to Covid-19.
Now. let's look at some other top news.
Finance Minister Nirmala Sitharaman has said the government would consider an extension in the deadline for availing of the lower 15 per cent corporation tax rate on new investments. Besides, investors would track the FM's meeting with public sector bank chiefs and the chairman of SIDBI, scheduled for today, to review the credit flow in the economy after 'Unlock 1.0'.
The ratio of central taxes -to-GDP slid further in FY20 to a 10-year low of 9.88 per cent, driven by a decline in collections from customs duties and corporation tax, while excise duty posted marginal growth.
And, lastly, rating agency CRISIL has estimated that the bank credit growth may fall to a multi-decade low of 0-1 per cent in 2020-21, from 6 per cent growth in FY20, due to the economic disruptions caused by Covid-19.
Read by Kanishka Gupta
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