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10 things you need to know before the opening bell on May 11 – CNBCTV18

Market

Updated : May 11, 2021 08:08 AM IST

The Indian stock market is expected to open lower as trends on SGX Nifty indicate a gap-down opening for the index in India with a 220-points loss.

1. US stocks | Wall Street closed lower on Monday as inflation jitters drove investors away from market-leading growth stocks in favor of cyclicals, which stand to benefit most as the economy reopens. Industrial and healthcare shares limited the Dow's decline but the blue-chip average reversed course late in the session to snap a three-day streak of record closing highs. Dow Jones Industrial Average fell 34.94 points, or 0.1 percent, to 34,742.82, the S&P 500 lost 44.17 points, or 1.04 percent, to 4,188.43 and the Nasdaq Composite dropped 350.38 points, or 2.55 percent, to 13,401.86.

1. US stocks | Wall Street closed lower on Monday as inflation jitters drove investors away from market-leading growth stocks in favor of cyclicals, which stand to benefit most as the economy reopens. Industrial and healthcare shares limited the Dow’s decline but the blue-chip average reversed course late in the session to snap a three-day streak of record closing highs. Dow Jones Industrial Average fell 34.94 points, or 0.1 percent, to 34,742.82, the S&P 500 lost 44.17 points, or 1.04 percent, to 4,188.43 and the Nasdaq Composite dropped 350.38 points, or 2.55 percent, to 13,401.86.

2. Asian markets | Asian shares declined in early trade on Tuesday as Wall Street retreated on worries about accelerating inflation, prompting investors to cut back on their exposure to growth-focused stocks on bets of higher interest rates in the not-too-distant future. In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.7 percent, with Australian stocks off 1.2 percent and Tokyo’s Nikkei 2.63 percent lower. China’s blue-chip index fell 0.77 percent in morning trade, while Hong Kong’s Hang Seng index opened down 2 percent.

2. Asian markets | Asian shares declined in early trade on Tuesday as Wall Street retreated on worries about accelerating inflation, prompting investors to cut back on their exposure to growth-focused stocks on bets of higher interest rates in the not-too-distant future. In early trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.7 percent, with Australian stocks off 1.2 percent and Tokyo’s Nikkei 2.63 percent lower. China’s blue-chip index fell 0.77 percent in morning trade, while Hong Kong’s Hang Seng index opened down 2 percent.

3. Indian market on Monday | The Indian equity benchmark indices ended higher on Monday led by strong gains in metals and pharma stocks amid positive global cues. The Sensex rallied 295.94 points, or 0.60 percent to 49,502.41, while the Nifty closed 119.20 points, or 0.80 percent higher at 14,942.35. Midcap and smallcap indices ended over 1 percent higher each. All the sectoral indices ended in the green with auto, energy, infra, pharma, metal, and PSU bank indices rising 1-3 percent.

3. Indian market on Monday | The Indian equity benchmark indices ended higher on Monday led by strong gains in metals and pharma stocks amid positive global cues. The Sensex rallied 295.94 points, or 0.60 percent to 49,502.41, while the Nifty closed 119.20 points, or 0.80 percent higher at 14,942.35. Midcap and smallcap indices ended over 1 percent higher each. All the sectoral indices ended in the green with auto, energy, infra, pharma, metal, and PSU bank indices rising 1-3 percent.

4. Crude oil | Oil prices settled higher on Monday after a major U.S. fuel pipeline said it could largely restart within the week after a cyberattack forced its shutdown. Potential U.S. demand growth boosted crude prices, offsetting fears that a resurgent coronavirus pandemic in India would cut demand in Asia. Brent crude LCOc1 settled up 4 cents, or 0.1%, at $68.32 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 settled up 2 cents, or 0.03% at $64.92. Both benchmarks rose more than 1% last week, their second consecutive weekly gain.

4. Crude oil | Oil prices settled higher on Monday after a major U.S. fuel pipeline said it could largely restart within the week after a cyberattack forced its shutdown. Potential U.S. demand growth boosted crude prices, offsetting fears that a resurgent coronavirus pandemic in India would cut demand in Asia. Brent crude LCOc1 settled up 4 cents, or 0.1%, at $68.32 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 settled up 2 cents, or 0.03% at $64.92. Both benchmarks rose more than 1% last week, their second consecutive weekly gain.

5. Rupee | The rupee rose by 16 paise to close at more than one-month high of 73.35 against the US dollar on Monday, marking its third straight session of gains on the back of positive domestic equities and weak American currency. However, sharp gains were prevented on surge in crude oil prices and FII outflows, analysts said. At the interbank forex market, the rupee opened at 73.34 and hit an intra-day high of 73.33 and a low of 73.48. The local unit finally settled at 73.35, registering a gain of 16 paise over its previous close. On Friday, the rupee had settled at 73.51 against the American currency. The rupee has strengthened by 56 paise in the three sessions to Monday.

5. Rupee | The rupee rose by 16 paise to close at more than one-month high of 73.35 against the US dollar on Monday, marking its third straight session of gains on the back of positive domestic equities and weak American currency. However, sharp gains were prevented on surge in crude oil prices and FII outflows, analysts said. At the interbank forex market, the rupee opened at 73.34 and hit an intra-day high of 73.33 and a low of 73.48. The local unit finally settled at 73.35, registering a gain of 16 paise over its previous close. On Friday, the rupee had settled at 73.51 against the American currency. The rupee has strengthened by 56 paise in the three sessions to Monday.

6. FY22 growth may slip to 8.2% if second wave peak comes in end-June: Crisil | India’s economic growth may slip to 8.2 per cent if the second wave peaks in end of June, domestic rating agency Crisil warned, maintaining its baseline estimate of 11 per cent uptick in activity. The agency made it clear that the risks to its 11 per cent growth forecast are “firmly tilted downwards”, and presented two likely scenarios. If the second wave peaks in May-end, the GDP expansion will come at 9.8 per cent, and can go down to 8.2 per cent if the peaking happens in June-end, it warned.

6. FY22 growth may slip to 8.2% if second wave peak comes in end-June: Crisil | India’s economic growth may slip to 8.2 per cent if the second wave peaks in end of June, domestic rating agency Crisil warned, maintaining its baseline estimate of 11 per cent uptick in activity. The agency made it clear that the risks to its 11 per cent growth forecast are “firmly tilted downwards”, and presented two likely scenarios. If the second wave peaks in May-end, the GDP expansion will come at 9.8 per cent, and can go down to 8.2 per cent if the peaking happens in June-end, it warned.

7. Sebi proposes for segregation, monitoring of collateral at client level | Market regulator Sebi on Monday came out with a fresh proposal for segregation and monitoring of collateral at client level amid instances of misuse of client collateral by trading members. Also, it has proposed to build a mechanism for reporting, dissemination and usage of information pertaining to collateral other than securities collateral received by way of pledge or repledge mechanism. Issuing a consultation paper, Sebi said that the proposed framework is aimed at ensuring protection of client collateral.

7. Sebi proposes for segregation, monitoring of collateral at client level | Market regulator Sebi on Monday came out with a fresh proposal for segregation and monitoring of collateral at client level amid instances of misuse of client collateral by trading members. Also, it has proposed to build a mechanism for reporting, dissemination and usage of information pertaining to collateral other than securities collateral received by way of pledge or repledge mechanism. Issuing a consultation paper, Sebi said that the proposed framework is aimed at ensuring protection of client collateral.

8. RBI modifies norms for undertaking govt business by private banks | The Reserve Bank on Monday came out with modified guidelines that allow sound private sector banks to undertake government business, whether at the Centre or in states. According to the modified norms, scheduled private sector banks, which are not under the Prompt Corrective Action (PCA) framework of the RBI, can undertake government business after executing an agreement with the central bank.

8. RBI modifies norms for undertaking govt business by private banks | The Reserve Bank on Monday came out with modified guidelines that allow sound private sector banks to undertake government business, whether at the Centre or in states. According to the modified norms, scheduled private sector banks, which are not under the Prompt Corrective Action (PCA) framework of the RBI, can undertake government business after executing an agreement with the central bank.

9. Debt MFs see Rs 84,202-cr outflow in Mar qtr on redemption from liquid funds | Debt mutual funds witnessed an outflow of Rs 84,202 crore in three months ended March 2021, with liquid schemes contributing 56 per cent of the withdrawal, according to a Morningstar report. This was the only quarter in 2020-21 that saw outflow in the fixed-income or debt category. The outflow comes following an inflow of Rs 1.69 lakh crore in December quarter, Rs 35,522 crore in September quarter and Rs 1.09 lakh crore in June quarter.

9. Debt MFs see Rs 84,202-cr outflow in Mar qtr on redemption from liquid funds | Debt mutual funds witnessed an outflow of Rs 84,202 crore in three months ended March 2021, with liquid schemes contributing 56 per cent of the withdrawal, according to a Morningstar report. This was the only quarter in 2020-21 that saw outflow in the fixed-income or debt category. The outflow comes following an inflow of Rs 1.69 lakh crore in December quarter, Rs 35,522 crore in September quarter and Rs 1.09 lakh crore in June quarter.

10. Non-life insurance cos register 22% growth in gross premium at Rs 17,310 cr in Apr | The gross direct premium written by non-life insurance companies rose by over 22 per cent in April this year to Rs 17,309.54 crore, as per regulatory data. All the 33 insurance companies in the non-life segment had generated a gross written premium of Rs 14,174.10 crore in the same month of 2020. Of these, the 25 players which are categorised as general insurers registered nearly 20 per cent increase in their collective gross premium at Rs 15,946.46 crore in April 2021, as against Rs 13,328.16 crore in year-ago same period, data from Insurance Regulatory and Development Authority (Irdai) showed. The five standalone health insurance providers witnessed more than 43 per cent jump in gross premium at Rs 1,259.23 crore as against Rs 809.20 crore.

10. Non-life insurance cos register 22% growth in gross premium at Rs 17,310 cr in Apr | The gross direct premium written by non-life insurance companies rose by over 22 per cent in April this year to Rs 17,309.54 crore, as per regulatory data. All the 33 insurance companies in the non-life segment had generated a gross written premium of Rs 14,174.10 crore in the same month of 2020. Of these, the 25 players which are categorised as general insurers registered nearly 20 per cent increase in their collective gross premium at Rs 15,946.46 crore in April 2021, as against Rs 13,328.16 crore in year-ago same period, data from Insurance Regulatory and Development Authority (Irdai) showed. The five standalone health insurance providers witnessed more than 43 per cent jump in gross premium at Rs 1,259.23 crore as against Rs 809.20 crore.

Published : May 11, 2021 08:08 AM IST