Last week's stocks rebound the world over had some commonalities: a strong trend in developed market equities, outperformance of broader markets and a shift in leadership from defensives to cyclicals. Back home, an extended decline in India VIX showed rejuvenation in sentiment. Nifty's option band suggested a higher trading range ahead. Do they show this rally has legs? Far from it. FIIs' long-short ratio on Nifty rose 14%, signalling erratic behaviour. They net-sold stocks worth Rs 4,197 crore last week. DIIs were net sellers too, worth Rs 339 crore. This suggests a tug-of-war between hope and fear.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 46 points lower at 7 am (IST), signalling weakness ahead on Dalal Street. |
| Nifty on Friday took support near its 20-day EMA before staging a rebound, but formed a Hanging Man pattern, which is a bearish sign. |
| India VIX fell 7.61 per cent to 42.59 level on Friday. The cooling of the volatility index is providing support to the market. |
| Elsewhere in Asia, stocks traded mixed as investors awaited a busy week for corporate earnings amid signs of easing in global coronavirus spread. Australian shares opened lower. Japan's Nikkei fell 1.3%, South Korea's Kospi 0.1% |
| US stock index futures tanked on Sunday in thinly traded weekend action, as investors assessed the staggered plans for the reopening of economies all over the world. Dow futures fell 232 points, or 1%, while those for the S&P 500 came off 0.9% and Nasdaq futures 0.7%. |
| Oil prices dropped to the lowest since 2001 in New York. WT crude plunged past $16 a barrel. |
| The rupee rebounded by 48 paise to settle at 76.39 against the US dollar on Friday, buoyed by RBI measures to prop up the economy. |
| LOOK WHO'S |  |
FIIs Less Bearish... Foreign portfolio investors have trimmed bearish derivative bets in India in last one month in the wake of the market rebound. The FPIs, who were mostly holding net short positions in index futures — Nifty and Bank Nifty — since January 22, have become almost neutral. Latest data on NSE showed their outstanding net short positions on index futures were just 26 contracts on April 17 against 173,133 on March 6.
Read More Sebi Weighs Relief for MFs... Markets regulator Sebi is debating how it can help mutual funds and NBFCs to tide over the current difficult situation despite the regulator not having any power to lend like RBI. One of the options being discussed is to allow mutual funds a moratorium on holdings of bonds and debentures issued by NBFCs as a fallback option.
Read More More PF Bonanza... Keen to prevent job cuts, the government may soon pay both the employer and employee shares of provident fund contributions at more companies. An announcement on this could be part of an economic package that is in the works. Earlier, the government had said it would pay the entire PF contribution of those who earn less than Rs 15,000 per month in companies that employ up to 100 people.
Read More | WHO'S |  |
Sebi Scans FPI Roots... A day after the government put up a barrier to scrutinise FDI from China, Sebi has begun digging deeper into the composition of FPIs. On Sunday morning, the markets regulator told custodian banks to scan offshore investors in various FPIs to try and verify if the control of these funds rests with the Chinese govt or its entities.
Read More FDI Curbs to Hit Unicorns... India's top startup unicorns — including Paytm, Zomato, BigBasket and Dream11 — that count Chinese investors among their largest backers are likely to face delays in raising capital after the government said all FDIs from the world's second-largest economy would be subject to its approval. A slew of growth and early-stage companies, too, will likely face difficulties in raising new investments.
Read More FDI Watch Widens... The government move to screen FDI from China will also cover overseas transactions in other nations that involve the country. The measure is wide enough to apply to additional investment in existing ventures or wholly owned subsidiaries of MNCs and cover cases in which the direct investor may be from a country not covered but the ultimate investor is from China.
Read More Meanwhile... No Tax Sops Likely... The government support for businesses hit by the pandemic and lockdown may come in the form of measures like a higher working capital limit rather than outright tax concessions. Official sources told TOI that with the government's fiscal situation stretched, meeting demands for relief and waivers spanning virtually all sectors of the economy will be hard.
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