Volatility may continue in Indian stock markets on Thursday, while trends in SGX Nifty indicates a flat opening for the benchmark indices. Asian shares edged higher in the morning trade after global equities and crude prices rallied overnight on hopes of a rapid economic recovery and government support.
Global equities have received a boost this week as governments around the world gradually loosened their coronavirus lockdown restrictions, raising investor hopes the economic impact of the pandemic would be short-lived.
Back home, Finance minister Nirmala Sitharaman assured business leaders that the government will address issues that companies may face even after the government’s recent fiscal stimulus measures.
India’s markets regulator on Wednesday directed companies that have publicly traded securities, including shares and bonds, to disclose broad-ranging details about the financial fallout from the coronavirus pandemic. The Securities and Exchange Board of India (Sebi) has allowed Franklin Templeton India to list units of its shuttered schemes on stock exchanges, hoping to provide an alternative exit option for investors currently locked out of their money.
Domestic airline operations will resume from airports across all major cities in the country from 25 May, even though the existing lockdown to contain covid-19 remains in place till 31 May.
Minutes from the US Federal Reserve's April meeting released on Wednesday showed policymakers affirmed a pledge to keep interest rates near zero until they are confident the economy is on track to recovery.
The euro opened higher as the U.S. dollar sank against major currencies. The common currency was buoyed by a proposal for a common fund that could move Europe closer to a fiscal union as it tries to counter the hit from the coronavirus pandemic
Gold prices were slightly lower, under pressure from increased risk appetite, which lifted equities. Earlier, bullion was boosted by doubts about the development of a coronavirus vaccine and a wave of government stimulus.
The World Health Organization expressed concern on Wednesday about the rising number of new coronavirus cases in poor countries, even as many rich nations have begun emerging from lockdown.
(Reuters contributed to the story)