>> Mt 50K may elude Sensex for now
>> Brokerages give thumbs-up to HDFC Bank stock
>>ELSS, NPS choicest tax-saving options
>> SAIL likely to see short squeeze
And there is more. But first, a quick glance at the state of the markets..
>> Nifty futures on the Singapore Exchange traded 24 points lower at quarter past 8 O’clock this morning, signalling a negative bias on Dalal Street.
>> Asian share markets retreated from highs on Monday as disappointing news on US consumer spending tempered risk sentiment. Japan’s Nikkei index slipped 1% while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3%.
>> On Friday, Wall Street’s main indices finished lower, weighed down by top American banks after they reported their quarterly earnings. Dow Jones industrial average fell 0.57%, S&P500 lost 0.72% and the Nasdaq Composite 0.87 per cent.
>> The rupee snapped a three-session winning streak and settled for the day 3 paise lower at 73.07 against the US dollar on Friday, tracking weaker Asian peers and heavy selloffs in domestic equities.
>> Poor US data boosted the safe-haven US dollar and caused the Dollar Index to rally to 90.837. The euro retreated to $1.2068 from its January peak of $1.2349, while the yen held steady.
IN OIL MARKET
>> Oil prices ran into profit taking on worries the spread of increasingly tight lockdowns globally would hurt demand. Brent crude futures were off 12 cents at $54.98 a barrel, while WTI crude eased 11 cents to $52.25.
AND IN BULLION
>> Gold prices slumped to Rs 48,702 per 10 gm on Friday while silver prices fell by Rs 1,703 to Rs 64,980 a kg. The yellow metal slipped in three out of five trading sessions on the MCX last week. In international market, gold prices were undermined by the bounce in the dollar, leaving the metal down at $1,812 an ounce>>
All in all, the trade setup on Dalal Street looked weak. A few analysts said Friday’s fall could just be a single-day affair, but for that to be true, the index needs to close above the 14,500 level on Monday.
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… Brokerages have raised price targets on India’s largest private sector lender HDFC Bank after the lender reported an 18% rise in its net profit for the December quarter to Rs 8,758.3 crore, beating Street estimates. The lender also reported a 15.1% rise in net interest income, which was also above estimate. Shares of HDFC Bank ended down 0.1% at Rs 1,467 on Friday.
… As taxpayers scurry to complete the tax planning for the year, they are dogged by dilemmas. ELSS plans have earned good returns, but when the Nifty PE is close to 40, future performance is usually poor. NPS has exclusive tax benefits, but the lock-in extends till retirement. PPF is safe but returns are low and the lock-in period is long. Tax-saving fixed deposits and NSCs have shorter lock-in but the interest is fully taxable. Ulips have lower charges and offer tax-free income, but you are stuck with the same insurer and plan for years.
… The 50,000-mark on the Sensex is likely to remain elusive. Technical analysts see profit booking setting in the market after a rally of over 90% in the Sensex and Nifty from March 2020 lows without any major correction. They see support for the Nifty at 14,400. Frontline IT stocks are also poised for a correction after the recent rally and investors should stick to FMCG, auto, insurance, and selectively in the pharma space, they said.
… A week after RBI announced its intention to lift overnight market interest rates toward its policy rates, the money market is in disarray. Almost every rate appears to have been affected — except the overnight rate. The decision to suck out Rs 2 lakh crore in a 14-day reverse repo auction last Friday came in ahead of market expectations and the manner in which it was communicated soon after a warning about financial stability spooked investors.
… Traders who have initiated bearish or short bets on the SAIL stock ahead of the government’s offer for sale (OFS) announcement, could face a short squeeze this week, given the overwhelming response from retail and non-retail investors to the share sale on January 14-15. Short squeeze refers to traders being forced to cover their short derivatives positions because of a rise in asset prices.
… Franklin Templeton Mutual Fund said on Sunday that its six shut schemes have received Rs 13,789 crore from maturities, pre-payments and coupon payments since closing down in April. Franklin Templeton MF shut six debt mutual fund schemes on April 23, 2020 citing redemption pressures and lack of liquidity in the bond market.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
>> Amid easy global liquidity and low US bond yields, Bharti Airtel is preparing to raise $1 billion through perpetual bonds — securities with no maturity date for investors.
>> DLF is restructuring existing loans with a target of saving ₹300 crore annually, taking advantage of the benign interest rate environment
>> The Adani Group on Sunday refuted allegations levelled by Rajya Sabha MP Subramanian Swamy that it owes Rs 4.5 lakh crore in non-performing assets to banks
>> South Korea’s state-run Korean Development Bank could play the peacemaker at cash-strapped SsangYong Motor, which has filed for court receivership and is dealing with labour problems, as Indian parent M&M is trying to exit.
>> ONGC’s plan to complete the merger of its refining subsidiary MRPL with recently-acquired HPCL to align its upstream and downstream operations into two verticals has got delayed.
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye