Bright start for the day!

After a long weekend, Indian market participants will return to their terminals today. The bulls are seen in full enthusiasm after a long break and helping the cause is the positive leads from the Asian peers! In early trade, SGX Nifty hopped 72 points to 9154 levels, indicating a fantastic start to the day. However, main challenge for the market is to withstand at higher levels. As back home, the rapid rise in the coronavirus cases is likely to keep market participants on the backfoot and profit booking can be witnessed at higher levels. On the upside, the 20-DMA would act as a stiff resistance for the day.

On the earnings front, companies including key stocks such as Torrent Pharmaceuticals and Deepak Nitrite are slated to report their earnings today for quarter ended March 2020.

On Tuesday, it’s a sea of green for Asian equities, amid optimism about a recovery in global economic growth. This optimism was caused as lockdown restrictions are being lifted in the many parts of the world such as Spain and Japan. Japan’s Nikkei 225 has surged over 2 per cent followed by Hong Kong’s Hang Seng and China’s Shanghai Composite that jumped 1.89 per cent and 0.58 per cent respectively.

On Friday, due to negative global cues and sell-off in the financial stocks as RBI announced further extension in moratorium period to end-borrowers from May 31 till August 31, domestic markets snapped their three-day rally.  Even, the rate cut announcement of 40 basis point to 4 per cent failed to cheer market participants as RBI governor said the impact of Coronavirus turning out to be more than expectation, which may lead GDP growth to remain in the negative category. At close, Sensex slipped 0.84 per cent to 30,673 and Nifty fell 0.74 per cent to 9,039. In the broader markets, Nifty mid-cap and small-cap declined by 0.74 per cent and 0.63 per cent respectively. On the sectoral front, majority of the sectoral indices ended in red with Nifty Financial services deteriorated the most followed by Nifty Private Bank and Nifty Bank to become the top losers. On the other hand, Nifty IT, Nifty Media and Nifty Pharma were top gainers.

On Monday, US markets were closed on account of Memorial Day. European stocks on Monday were buoyant as market participants turned optimistic post reports indicating that in some region there were smallest daily rise in new cases and deaths due to coronavirus infections. Further, a better than expected IFO German business sentiment for May month boosted confidence.