ETMarkets Morning Podcast: FII-heavy stocks take a big hit in current selloff | The Economic Times Markets Podcast

ETMarkets Morning Podcast: FII-heavy stocks take a big hit in current selloff | The Economic Times Markets Podcast

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh, and here is what we have to start your day.

>> FII-heavy stocks take a big hit in current selloff
>> Deutsche Bank avoids Adani bond over green concern
>> Sebi wants minority investors’ say in appointment of executives
>> US Fed pledges to keep rates low for long

And there is more. But first, a quick glance at the state of the markets..

>> Nifty futures on the Singapore Exchange traded 102 points or 0.73 per cent lower at 8:40 in the morning, in signs that there could be more pain ahead on Dalal Street.

Asian stocks skidded on Thursday following a sharp Wall Street decline amid deepening concerns about stretched valuations in equities markets. Japan’s Topix index declined 1%, Hong Kong’s Hang Seng 0.9% and South Korea’s Kospi 0.9%. Australia’s S&P/ASX 200 sank 2.3%.

On Wall Street, the benchmark S&P 500 index fell nearly 2.57%. Dow fell 2.05% and the Nasdaq Composite 2.61%.

The rupee edged higher by 2 paise to settle at 72.92 against the US dollar on Wednesday, ahead of the outcome of the US central bank’s meeting.

The dollar extended its advance. The euro dropped 0.1%, the yen slid 0.2% while the offshore yuan slipped 0.2%.

Crude prices slipped. WTI crude slipped 0.5% to $52.57 a barrel.

Gold prices in Delhi declined by Rs 231 to Rs 48,421 per 10 gm on Wednesday, while silver dipped by Rs 256 to Rs 65,614 a kg. In international markets, the yellow metal slipped 0.4% to $1,837.58 an ounce.

All in all, the trade setup on Dalal Street looked weak. On Wednesday, Nifty tested its 34-day exponential moving average. Analysts said this level can now prove to be a crucial support for the 50-pack.

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… Concerns over reversal of flows from overseas funds have put the focus on stocks with higher foreign holdings. Out of the 60 stocks from the NSE500 index where FPIs hold more than 25% stake, 40 have corrected between 10% and 30% from their highs in January. Analysts say some actively-managed foreign funds could be cutting stakes in some of these stocks.

… The Fed pledged on Wednesday to keep its low interest rate policies in place even well after the economy has sustained a recovery from the viral pandemic. The US central bank said the improvement in the economy and job market has slowed in recent months, particularly in industries affected by the raging pandemic. Officials kept their benchmark short-term rate pegged near zero and said they would keep buying Treasury and mortgage bonds to restrain longer-term borrowing rates and support the economy.

… Markets regulator Sebi on Wednesday sought to empower minority investors on the appointment of key executives, proposing that board candidatures rejected by ordinary shareholders be reversed only after detailed justification by the company’s statutory panel that oversees director-level rewards. The proposals were published in a discussion paper, and Sebi would accept suggestions from the public until February 12.

… HUL said the worst is over on the demand front after reporting 20% growth in sales and 19% rise in profit in the December quarter. Excluding the GSK Consumer business, which was integrated in April, revenue rose 7%, also helped by a lower base in the same quarter last year, when the company saw its slowest expansion since demonetisation.

… IMF’s chief economist Gita Gopinath says the Indian economy may not be back to pre-Covid growth levels before 2025 and the pace of recovery will depend on reforms in the upcoming budget. “Based on our numbers out into 2025, there is a big distance. But that’s not just India, there are many countries in that bucket that aren’t closing the gap,” she said.

… Deutsche Bank was denied internal clearance to act as an arranger for Adani Ports and Special Economic Zone’s $500 million bond issue that was launched on Tuesday due to environmental concerns flagged by the Frankfurt-headquartered lender’s sustainability committee. The Adani group company was in discussions with a group of international banks to act as arrangers for the issue. Deutsche was part of those discussions but pulled out later.


>> PowerGrid on Wednesday filed draft papers for an IPO (initial public offering) of its first InvIT (infrastructure investment trust) for nearly Rs 8,000 crore, making it the first state-run entity to monetise its assets through this route.

>> PNB Housing Finance has renewed a plan to raise equity capital through a qualified institutional placement or QIP, as the proposed rights issue/preferential issue is stalled

>> Aditya Birla Fashion & Retail (ABFRL) has acquired 51% in Sabyasachi Couture, the company founded by fashion designer Sabyasachi Mukherjee, for Rs 398 crore.

>> Talks between M&M, the largest shareholder of SsangYong Motor, and US-based Haah Automotive for sale of a controlling stake in the South Korean carmaker may have hit a roadblock owing to differences,

That’s it for now. For all the market news through the day, do track Have a great day ahead! Bye-bye

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