When May futures of West Texas Intermediate oil plunged into the negative territory on Monday, they marked the first time in history when oil prices went negative. The contract value effectively meant those holding oil must now pay buyers to take barrels off their hands. It reflected dearth of capacity to store the black gold as refineries, storage facilities, pipelines and ocean tankers all got filled up amid a massive demand drop due to the coronavirus disruption. The world has indeed been unsettled unimaginably!
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 66 points lower at 7 am (IST), signalling weakness ahead on Dalal Street. |
| Nifty on Monday formed a Small Bearish Candle on the daily charts, but market breadth favoured advancing counters in relief for the bulls. |
| India VIX rose 2.03 per cent to 43.45 level after a decline in last three sessions, in signs that it may trigger a pause in the market bounce. |
| Elsewhere in Asia, stocks followed their US counterparts lower this morning. Equities opened lower in Japan, Australia and South Korea. Australia's S&P/ASX 200 Index fell 1.1%, Kospi lost 0.7% and the Hang Seng 0.8%. |
| Wall Street tumbled overnight after US crude futures turned negative for the first time ever. The Dow dropped 2.44% to end at 23,650 points, while the S&P500 lost 1.79% and the Nasdaq 1.03%. |
| US crude oil jumped more than $20 per barrel on Tuesday but still traded below $0. WTI Crude for May delivery rose by $21.96 to -$15.67 a barrel after settling down at a $37.63 discount per barrel in the previous session. |
| The rupee declined by 14 paise to settle at 76.53 against the US dollar, amid strengthening of the greenback overseas and a sharp rise in coronavirus cases in the country. |
| WHO'S |  |
Oil in the Red... Oil futures in the US collapsed to below zero for the first time ever as the deepening economic turmoil caused by the coronavirus crisis left traders desperate to avoid taking delivery of physical crude. In an unprecedented day of trading, the price for the May contracts wiped out all value, breaking every low for oil prices since 1946.
Read More Bank Stocks Cut to Size... CLSA has cut price targets for Indian banks by 20-70% as Covid-19 has disrupted an already struggling credit growth trend in the country as well as raised asset quality risks. It said the unprecedented disruption caused by Covid-19 and a 40-day lockdown have put brakes on an already struggling credit environment. The foreign brokerage quoted banks as having said that normalcy could be restored in two to three quarters depending on the severity of the disruption.
Read More NBFC Headache for MFs... Delhi High Court has granted non-banking financial company Indiabulls permission to not pay its debenture holders, including fund houses, interest and principal as long as RBI allows banks and NBFCs to offer moratorium to their borrowers. Mutual Funds now fear other NBFCs may take the same route and not pay them for the next few weeks.
Read More | LOOK WHO'S |  |
Bid to Revive Economy... Cement makers resumed production in a phased manner on Monday, while steelmakers began to prepare for a gradual increase in output after the Centre allowed some sectors to open up from April 20, but left it to states to approve resumption on a case-by-case basis. Auto firms haven't resumed and neither have smartphone makers. Critically, most construction sites are still silent. Some are awaiting greater clarity and, in some instances, approvals from state governments. Others are located in hot spots and can't restart.
Read More NBFC Dollar Bonds Rally... Dollar bonds of last-mile financiers such as IIFL Finance, Manappuram Finance, Muthoot Finance and Shriram Transport Finance rallied 11-36% from record lows in the past two-three weeks, indicating increasing appetite overseas for debt sold by Indian NBFCs. Deutsche Bank, Varde Partners, Avenue Capital, SC Lowy, and BlackRock were among those seen negotiating secondary market deals, even as high-yield bonds from other emerging markets such as Mexico found few takers.
Read More Bond with the Best... The Series 1 sovereign gold bond scheme of 2020-21 opened on Monday and financial advisers said higher market risks and free-flowing liquidity from global central banks make gold a favourable asset in the given circumstances. They advised savers to increase allocation to gold, and said the sovereign gold bond can be one of the best ways to buy into the asset.
Read More Meanwhile... VCs Seek Extra Time... A number of venture capital fund managers are likely to ask investors to extend the lifecycle of their funds, as they look to ride out the impact of the Covid-19 pandemic that has brought deal making and fundraising to a grinding halt. India's VC-backed startups have been hit significantly as the country imposed a mandatory lockdown to contain the outbreak. Industry watchers said funds which have a 10-year lifecycle are going back to their Limited Partners to get 1-2 year extensions.
Read More 
Buy
No comments:
Post a Comment