Key benchmark indices are likely to open higher on Tuesday on positive global stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 185 points at the opening bell.
India's merchandise exports dipped 36.5% to US$ 19.05 billion in May 2020 over a year ago. Meanwhile, merchandise imports also declined 51.0% to US$ 22.20 billion. The trade deficit fell 79.5% to US$ 3.15 billion in May 2020 from US$ 15.36 billion in May 2019.
Merchandise exports in rupees plunged 31.1% to Rs 144166 crore, while imports rose declined 46.9% to Rs 167978 crore in May 2020 over May 2019. The trade deficit eased to Rs 23812 crore in May 2020 compared with Rs 107168 crore in May 2019.
As per the data released by the Reserve Bank of India, India's services exports declined 8.9% to US$ 16.45 billion in April 2020 over April 2019. Meanwhile, India's services imports dipped 18.4% to US$ 9.30 billion in April 2020.
India's services trade surplus improved 7.3% to US$ 7.15 billion in April 2020 from US$ 6.66 billion in April 2019.
Overseas, Asian stocks are trading higher on Tuesday following the positive cues overnight from Wall Street after the U.S. Federal Reserve also announced plans to buy individual corporate bonds to support market liquidity.
Investors now look ahead to the Bank of Japan's monetary policy decision due later in the day. The BoJ is widely expected to keep its benchmark lending rate unchanged at -0.1 percent, although it may introduce other means of stimulus.
Beijing closed the city's largest wholesale food market after scores of people tested positive for COVID-19. China on June 13 recorded its largest daily increase in cases since mid-April, as per reports.
In US, stocks benchmarks closed higher Monday, booking a sharp turnaround after the Federal Reserve took further steps to keep credit flowing to big businesses during the pandemic, amid signs of a resurgence of the deadly COVID-19 pandemic in parts of the world.
Zoom Video Communications Inc. shares climbed nearly 8.9% to a record high Monday on renewed pandemic fears on a resurgence of COVID-19 cases in China and in parts of the U.S. ViacomCBS Inc shares jumped 8.7%, making it the S&P 500's biggest gainer on Monday. The company's Chief Executive Bob Bakish said that live sports will return to TV in June, starting with PGA golf.
Stocks rose Monday after the Federal Reserve said it is expanding the scope of its $750 billion emergency corporate debt loan facility to include individual corporate bonds, while also scrapping some earlier restrictions for potential borrowers.
Meanwhile, increases in infections in Florida and Texas have raised fears about the success of efforts to gradually reopen the U.S. economy, with phased restarts of business activity in all 50 states. Reports on Sunday showed that Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina all had record numbers of new cases in the past three days.
Meanwhile, White House economic adviser Larry Kudlow on Sunday played down the increase in coronavirus cases and said the country has got to open. Kudlow attributed the rise of new cases seen in a number of states to an increase in testing.
Back home, domestic equity barometers slumped on Monday, as fears of a second wave of COVID-19 infections sent jitters across global stock markets. Several districts of China's capital Beijing closed schools and ordered people to be tested after an unexpected rise in infections linked to the biggest wholesale food market in Asia. The barometer S&P BSE Sensex tumbled 552.09 points or 1.63% at 33,228.80. The Nifty 50 index lost 159.20 points or 1.6% at 9,813.70.
Foreign portfolio investors (FPIs) sold shares worth Rs 2,960.33 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,076.38 crore in the Indian equity market on 15 June, provisional data showed.
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