GW Investors Education initiative                                        : 17th MAY 2021

Goodwill’s Eagle Eyes !

• Markets open higher

• Rupee up

• Oil slightly up

• FPIs -sellers

• M-Cap stocks slide

The Indian markets open higher on Monday as the trend on SGX Nifty indicates a positive start for the broader index in India. The Nifty futures were trading 55.00 points or 0.37 percent higher at the 14,765.00 level on the Singaporean Exchange at 7:55 am.

1. US stocks | Wall Street closed higher in a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters. All three major US indexes extended Thursday’s gains, which saw S&P 500 notch its biggest one-day percentage bump in over a month. The Dow Jones Industrial Average rose 360.68 points, or 1.06 percent, to 34,382.13, the S&P 500 gained 61.35 points, or 1.49 percent, to 4,173.85 and the Nasdaq Composite added 304.99 points, or 2.32 percent, to 13,429.98.
2. Asian markets | Asian share markets turned mixed on Monday as data on Chinese retail sales missed expectations though industrial output stayed solid, while more evidence of global inflation pressures helped gold to a three-month peak. MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a rise of 0.2 percent, nudging further away from a four-month trough hit last week. Chinese blue chips proved resilient with a gain of 1.8 percent. Japan’s Nikkei lost 0.7 percent, having also touched its lowest since early January last week.
3. Indian market on Friday | Indian equity benchmark indices ended Friday’s volatile session flat as losses in metal, auto stocks offset a surge in FMCG majors. The Sensex inched 41.75 points, or 0.09 percent higher at 48,732.55, while the Nifty ended 18.70 points or 0.13 percent lower at 14,677.80. Broader markets underperformed benchmarks with the midcap and smallcap indices down around 1.5 percent each for the day. Among sectors, the Nifty Metal index shed 3.7 percent while Nifty Auto lost 2 percent for the day. Nifty Pharma also fell over a percent and Nifty Bank was down 0.9 percent. However, Nifty FMCG surged over 2 percent.
4. Crude oil | Oil prices edged higher after see sawing last week as the Colonial Pipeline restarted from a hacker shutdown. Brent added 16 cents to $68.86 a barrel, while U.S. crude rose 16 cents to $65.53 per barrel.
5. Rupee | The Indian rupee strengthened by 13 paise to settle at a near seven-week high of 73.29 against the US dollar on Friday, tracking weaker American currency in the overseas market. At the interbank forex market, the local unit opened at 73.41 against the greenback and witnessed an intra-day high of 73.22 and a low of 73.41. It finally ended at 73.29 against the American currency, registering a rise of 13 paise over its previous closing the best closing level for the rupee since March 31. On a weekly basis, the rupee has appreciated by 22 paise against the American dollar.
6. GDP growth may be below 9% in FY22 due to 2nd COVID wave: Survey | Amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and the country’s GDP growth is likely to be below nine per cent for the current fiscal, according to a survey. At least 80 per cent of the respondents expect consumer demand for non-essential items as well as investment to be severely impacted due to the current COVID situation, the survey conducted by Care Ratings said.
7. Indian hotel industry takes over Rs 1.30 lakh cr revenue hit in FY21, seeks govt support: FHRAI | The Indian hotel industry has taken a hit of over Rs 1.30 lakh crore in revenue for the fiscal year 2020-21 due to the impact of the COVID-19 pandemic, the Federation of Hotel & Restaurant Associations of India (FHRAI) said on Sunday. The apex industry body said it has submitted representation to the Prime Minister and a few other union ministers urging immediate support from the government to save the hospitality sector from imminent collapse and has requested several fiscal measures for this. “The Indian hotel industry’s total revenue in FY2019-20 stood at Rs 1.82 lakh crore. As per our estimates, in FY2020-21, approximately 75 per cent of the industry’s revenues got wiped off. That is more than Rs 1.30 lakh crore revenue hit,” the FHRAI said in a statement. The businesses are steadily closing and non-performing assets (NPAs) are rising, it added.
8. Gold import jumps to USD 6.3 bn in April | Gold import, which has a bearing on the country’s current account deficit (CAD), zoomed to USD 6.3 billion for the month of April due to a surge in domestic demand, according to the Commerce Ministry data. Silver imports during the month, however, dipped by 88.53 per cent to about USD 11.9 million. Gold import stood at USD 2.83 million (Rs 21.61 crore) in April 2020, the data showed. The rise in gold imports pushed the country’s trade deficit to USD 15.1 billion in April 2021 as against USD 6.76 billion in the same month a year ago.
9. FPIs net sellers so far to the tune of Rs 6,452 cr in May| Foreign portfolio investors (FPIs) pulled out Rs 6,452 crore so far in May from Indian markets amid tumbling investor sentiment due to the second wave of the COVID-19 pandemic. As per depositories data, the overseas investors pulled out Rs 6,427 crore from equities and Rs 25 crore from the debt segment during May 1-14. The net outflow during the period under review stood at Rs 6,452 crore. In the preceding month, the total net outflow from the Indian capital markets (equities and debt) was Rs 9,435 crore.
10. 10. M-cap of eight most valued companies plummets over Rs 1.13 lakh crore| Eight of the top-10 most valued companies witnessed a combined erosion of Rs 1,13,074.57 crore in market valuation last week, with Tata Consultancy Services, Infosys and HDFC Bank emerging as the worst hit. Among the top-10 most valued companies, only Reliance Industries Limited and State Bank of India managed to book gains on a weekly basis. During the holiday-truncated trading week, the BSE benchmark Sensex tanked 473.92 points or 0.96 per cent. The valuation of Tata Consultancy Services tumbled Rs 30,054.79 crore to Rs 11,28,488.10 crore. Infosys witnessed an erosion of Rs 15,168.41 crore, taking its market worth to Rs 5,61,060.44 crore.

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