Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 61 points at the opening bell.
Indian stocks are expected to trade volatile in the near term, tracking domestic news regarding the spread of infections. Rising cases of novel coronavirus, or COVID-19, and government stimulus package will be closely watched. Globally, investors await monthly nonfarm payrolls and unemployment report which will be released later today.
The government is reportedly working on a comprehensive financial package not only for MSMEs but for all sectors of the economy. Government of India, Prime Minister's Office and the Department of Economic Affairs are already working on a package, which includes not only the MSME but also the entire industry, reports indicated.
Back home, domestic shares ended with modest losses on Thursday, 7 May 2020. A rapid increase in new cases of coronavirus in India in the last few days spoiled investors sentiment. The barometer S&P BSE Sensex lost 242.37 points or 0.76% at 31,443.38. The Nifty 50 index fell 71.85 points or 0.78% at 9,199.05.
Foreign portfolio investors (FPIs) bought shares worth Rs 19,056.49 crore, while domestic institutional investors (DIIs), were also net buyers to the tune of Rs 3,818.41 crore in the Indian equity market on 7 May, provisional data showed. The spike is due to stake sale in Hindustan Unilever through block deals by Horlicks and GlaxoSmithKline.
Overseas, Asian stocks were trading higher tracking overnight gains in US stocks.
The Reserve Bank of Australia on Friday released its statement on monetary policy, where it highlighted that global GDP is expected to fall sharply in the first half of 2020.
In US, Wall Street's indexes climbed on Thursday following a clutch of upbeat earnings reports led by PayPal as investors looked past more weak jobs data caused by the coronavirus-induced economic downturn.
Digital payment processor PayPal Holdings fell short of first-quarter expectations due to the impact of the covid-19 pandemic in March but saw improvement since April, with 1 May recording the highest volume transaction in a day in its history. Revenues are expected to grow 15% in constant currency and adjusted EPS 15% in Q2 of CY 2020. It also projects 15 million to 20 million net new active accounts in the quarter.
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