As the lives-versus-livelihood debate rages, Anand Mahindra says a 45-day lockdown is optimal enough. No phased lifting; let us look at comprehensively lifting the lockdown and allow the industry to function again. NR Narayana Murthy says accept the virus as the new normal and start functioning, so we don't damage the economy. It cannot become an emotional or ideological issue. Obviously, there is not going to be consensus. Like the lockdown decision itself, lifting it has to be a bold yet careful decision. We will know in three days hence!
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 27 points higher at 7 am (IST) in signs that Dalal Street may continue its winning spree |
| On Wednesday, Nifty formed a bullish candle on daily scale and managed to close well above key hurdle at 9,400 level. Analysts expect the index to trend up towards the 9,600-9,700 range. |
| Options data indicated an immediate trading range between 9,400 and 9,700 levels. Put writing at immediate strikes suggests continuation of positive stance. India VIX moved down 4.30% to 33.84. Rising PCR with falling Volatility suggests Nifty's shift to a higher trading zone. |
| Elsewhere in Asia, stocks rose on the final day of the month amid optimism from corporate results and signs of progress in treating the coronavirus. Japanese shares climbed more than 1.5% along with gains in Sydney, while Hong Kong and South Korea were shut for a holiday. |
| US stocks finished at their highest levels in weeks overnight, as investors assessed progress on treatment for the novel strain of coronavirus and the Federal Reserve pledged to use its policy tools to help limit the economic damage from business shutdowns. Dow rose 530 points, or 2.2%; S&P500 gained 2.7% and the Nasdaq 3.6% |
| Oil prices surged more than 10% on Wednesday after U.S. crude stockpiles grew less than expected and gasoline posted a surprise draw. US WTI crude futures settled at $15.06 a barrel, jumping $2.72, or 22%. Brent crude futures settled at $22.54 a barrel, up $2.08, or 10.2%. |
| The rupee surged 52 paise to close at 75.66 against the US dollar on Wednesday, tracking positive domestic equities and a weak American currency in the overseas market. |
| The dollar nursed losses after the US Federal Reserve left the door open to more monetary easing. The euro was little changed at $1.0867, while against the pound, the common currency traded 87.25 pence. |
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More promoter control in private banks?... RBI is looking to raise the 15% ceiling on promoter shareholding in private sector lenders as part of new rules that are being drawn up. Voting rights will however be capped at 15-20%. The move to balance ownership and control comes as some private sector banks have sought a relaxation in licensing norms, citing the regulator's recent decision on Kotak Mahindra Bank.
Read More Gilead claims success for Covid drug... Gilead Sciences claims its experimental antiviral drug remdesivir helped improve outcomes for patients with Covid-19 in a clinical trial, and provided data suggesting it worked better when given earlier in the course of illness. The drug has moved markets in the past few weeks. On Wednesday, broader markets again rose on the data and Gilead shares gained 4%.
Read More Fed keeps rates at near zero... Federal Reserve policymakers on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy, saying the ongoing coronavirus pandemic will "weigh heavily" on the near-term outlook and poses "considerable risks" for the medium term. Chair Jerome Powell said policy stance and pace of asset purchases are appropriate for now and the Fed will continue to use tools to ensure when recovery starts, it is as robust as possible.
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Credit risk funds bleed badly... Pronounced outliers in the debt basket, credit risk funds have lost one-fifth of their assets in just three days since Franklin Templeton made its surprise announcement to wind up six schemes. Amfi data showed assets under management of these funds fell to Rs 39,510 crore on April 28 from Rs 48,576 crore on April 23 due to both the impact of redemptions and shrinkage in net asset value of units.
Read More US economy begins recession... The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record. The Commerce Department says the GDP posted a quarterly drop for the first time in six years. And it was the sharpest fall since the economy shrank at an 8.4% annual rate in the fourth quarter of 2008 in the depths of the Great Recession.
Read More Banks bargain for MSME loan guarantee... Bankers want a near total government guarantee on all incremental loans sanctioned to MSMEs, and also on up to 20% of new asset purchases from non-bank lenders. Tough negotiations are going on with the government on these two issues, with bankers reluctant to budge on their demands and the government undecided how much it can offer as a guarantee.
Read More Meanwhile... Deal-making comes to halt... India deal-making fell by more than a third in fiscal 2020 thanks to global tensions, economic slowdown, debt distress and the coronavirus outbreak. From a record high of $128 billion in fiscal 2019, M&A value declined to $82 billion. While several headline-making transactions were announced in fiscal 2020, a few of them like Brookfield's purchase of Jio's tower assets, Adani's acquisition of Krishnapatnam Port and French company ADP's purchase of a stake in GMR Airports are still pending closure.
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