Top 10 things to know before the market opens

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© Kshitij Anand Top 10 things to know before the market opens

The Indian stock market is expected to open flat as trends on SGX Nifty indicate a flat opening for the index in India with a 1 point loss.

Benchmark indices settled with 1.8 percent losses on April 19. The BSE Sensex was down 882.61 points at 47,949.42, while the Nifty50 declined 258.40 points to 14,359.50.

According to pivot charts, the key support levels for the Nifty are placed at 14,239.83, followed by 14,120.17. If the index moves up, the key resistance levels to watch out for are 14,430.73 and 14,501.97.

Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

U.S. stocks closed lower on Monday, slipping from last week’s record levels, as investors awaited guidance from first-quarter earnings to justify high valuations, while Tesla Inc shares fell after a fatal car crash.

The Dow Jones Industrial Average fell 123.04 points, or 0.36%, to 34,077.63. The S&P 500 lost 22.21 points, or 0.53%, at 4,163.26; while the Nasdaq Composite dropped 137.58 points, or 0.98%, to 13,914.77.

Asian Markets

Asian markets were mixed in the morning of April 20 as investors await the release of China’s latest benchmark lending rate. Stocks in Japan led losses among the region’s major markets, with the Nikkei 225 falling 1.31% while the Topix index shed 1.22%. South Korea’s Kospi gained 0.11% while the S&P/ASX 200 in Australia declined 0.14%.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the index in India with a 1 point loss. The Nifty futures were trading at 14,388 on the Singaporean Exchange around 07:30 hours IST.

Govt to open up vaccination for everyone above 18 from May 1

The vaccination drive will be opened up for all citizens above the age of 18 from May 1, the Government of India announced on April 19. The immunisation drive was currently restricted to only citizens aged above 45.

“Everyone above the age of 18 to be eligible to get vaccine against COVID-19,” said a statement issued by the government. “Vaccine manufacturers incentivised to further scale up their production, as well as attract new national and international players,” it added.

“Vaccine manufacturers empowered to release up to 50 percent of their supply to state governments and in the open market at a pre-declared price,” the Centre further stated.

IEX starts cross-border electricity trade on its platform

The Indian Energy Exchange (IEX) on Monday announced the commencement of cross-border electricity trade (CBET) on its platform. This is a first-of-its-kind initiative for the exchanges to expand their power markets beyond India to the South Asia region towards building an integrated South Asian regional power market, IEX said in a statement.

In a remarkable development following the notification of CBET Regulations by CERC (central electricity regulatory commission) in the year 2019 and the recent notification of CBET Rules in March 2021 by the Central Electricity Authority (CEA), NVVN (Vidyut Vyapar Nigam Ltd, a trading arm of NTPC) has secured approval from the CEA, for Nepal’s participation in the day-ahead market on the Exchange.

RBI decides not to activate countercyclical capital buffer

The Reserve Bank of India on April 19 said it has decided against activating the countercyclical capital buffer (CCyB) framework as the current situation does not warrant such an action. The RBI had in February 2005 put in place CCyB guidelines with the overall objective of strengthening the banking sector. It was envisaged that the CCyB would be activated as and when the circumstances warranted.

“Based on the review and empirical testing of CCyB indicators, it has been decided that it is not necessary to activate CCyB at this point in time,” the RBI said in a release.

Dollar slumps to 6-week low

The dollar slumped to a six-week low against other major currencies on Monday as markets sorted out the plunge in U.S. Treasury yields last week after the Federal Reserve reiterated that any spike in inflation is likely to be temporary.

Improved risk sentiment shown by the recent rally in global stocks to record highs also weighed on the greenback. The dollar index fell 0.58% to 91.082, continuing a downtrend that started at the end of March.

Oil climbs

Oil prices edged higher on Monday, supported by a weaker U.S. dollar but gains were capped by concerns about the impact on demand from rising coronavirus cases in India.

Brent crude settled up 28 cents, or 0.4%, at $67.05 a barrel, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil ended the session up 25 cents, or 0.4%, at $63.38 a barrel, having gained 6.4% last week.

Results on April 20

Nestle India, Swaraj Engines, Network18 Media & Investments, Tata Steel Long Products, TV18 Broadcast, Welspun Investments and Commercials, Narendra Investments (Delhi), and Chandrima Mercantiles will release their quarterly earnings on April 20.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,633.70 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 2,355.56 crore in the Indian equity market on April 19, as per provisional data available on the NSE.

2 stocks under F&O ban on NSE

SAIL and Sun TV Network are under the F&O ban for April 20. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies.