Market Ahead, April 15: All You Need To Know Before The Opening Bell

Wipro is slated to announce its Q4 numbers later in the day and most brokerages expect the company's revenue growth to come in at the lower end of the guided range of 0-2 per cent

Prime Minister Narendra Modi's decision to extend the nation-wide lockdown till May 3 will heavily impact Wednesday's session as investors return to their trading terminals after a day's break. In his televised address to the nation yesterday, Modi said detailed guidelines will be brought out today to ensure that outbreak does not spread to new areas while some relaxations may be allowed after April 20 in places where there are no hotspots.

Meanwhile, cases in India are on the rise and have surpassed 11,000 with death toll nearing 400. Globally, 130,000 people have died from Covid-19 and confirmed infections have exceeded 1.9 million.

There is also the buzz of another stimulus package. According to a report by Business Standard, the stimulus package is expected anytime this week and will be aimed at the urban and rural poor; disadvantaged sections of society; MSMEs; and some of the worst-affected sectors.

And even though the government is in works to cushion the Covid-19's blow to the country's economy, various institutions and rating agencies see dark clouds on the horizon. The International Monetary Fund has cut its projection of India’s economic growth to 1.9 per cent for the current financial year from its earlier forecast of a growth rate of 5.8 per cent due to the impact of the Covid-19 and the subsequent nationwide lockdown. The IMF also said the global economy may shrink by 3 per cent in 2020 due to the virus outbreak, in the worst downturn since the Great Depression of the 1930s.

Similarly, Barclays has pegged the economic cost of the lockdown at $234.4 billion and thus revised down their GDP growth forecast for India further to 0 per cent for calendar year 2020 from 2.5 per cent earlier.

Another big focus for investors today will be the beginning of the earnings season. Wipro is slated to announce its Q4 numbers later in the day and most brokerages expect the company's revenue growth to come in at the lower end of the guided range of 0-2 per cent in the constant currency terms.

Investors will also track the India Meteorological Department's long range forecast for the south-west monsoon later today. The southwest monsoon season is extremely crucial for the agrarian economy as it provides over 75 per cent of the country's annual rainfall.

Now, let's have a quick look at global cues for today's trade. US stocks jumped on Tuesday on optimism that the Trump administration could move to ease lockdowns. The Dow Jones rose 2.4 per cent, the S&P 500 gained 3 per cent and the Nasdaq Composite added 3.95 per cent.

Asian indices were mixed in trade. Japan's Nikkei and Australia's ASX were both down over half a per cent in early deals while Hong Kong was up 0.5 per cent. The Indian indices, though, look set to open higher as indicated by the SGX Nifty which is up nearly 200 points from Monday's close.

In energy markets, concerns about a global recession led crude oil prices to plunge by over 10 per cent overnight although they rebound a smudge early Wednesday. Brent crude was up half a per cent to $29.80 a barrel.

Courtesy : Business Standard