ETMarkets Morning Podcast: Tatas regain top position as India’s most valuable business group | The Economic Times Markets Podcast

ETMarkets Morning Podcast: Tatas regain top position as India's most valuable business group | 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.

>> Tatas emerge the most valued group again
>> Steel Authority of India is set to kick off its offer for sale today
>> Analysts worry about the blistering stocks rally
>> Donald Trump is the first US president to be impeached twice

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

>> Nifty futures on the Singapore Exchange traded 12 points lower near 14,600 levels at 7:30 am (IST), signalling a negative bias on Dalal Street.

>> Asian stocks had a cautious start as traders awaited comments from US Fed Chairman Jerome Powell for clues on the policy outlook. Japanese stocks outperformed, while Australia’s S&P/ASX 200 Index rose 0.3%. South Korea’s Kospi dipped 0.1%.

>> Wall Street’s main indices had a mixed show on hope of a hefty Covid-19 relief package even as political events culminated in the impeachment of President Donald Trump. Dow fell 0.03%, the S&P500 gained 0.23%, and the Nasdaq added 0.43%.

>> The rupee gained for a second straight day to close 10 paise stronger at 73.15 against the US dollar on Wednesday, tracking upbeat Asian currencies and sustained foreign fund inflows.

>> The dollar held most of its advance from Wednesday. The euro was down 0.42%. The Japanese yen weakened 0.11%.

>> Oil prices fell as the threat of lower demand due to rising global Covid-19 cases outweighed support from a greater-than-anticipated drop in US crude inventories. WTI crude fell 0.6% to $52.89 a barrel while Brent slipped 0.95% to $56.04

>> Gold prices fell by Rs 108 to Rs 48,877 per 10 gm in the national capital on Wednesday as rupee appreciation capped upside in the price of the precious metal. Silver prices rose by Rs 144 to Rs 65,351 a kg. In international markets, gold rose 0.2% to $1,848.50 an ounce

All in all, the trade setup on Dalal Street looked weak. On Wednesday, Nifty50 formed a higher high for yet another session, but formed a small bearish candle with a long lower wick on the daily chart. Analysts said the index could be in for some consolidation,

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

… Donald Trump became the first US president in history to be impeached twice when the House of Representatives voted Wednesday to charge him with inciting last week’s mob attack on Congress. However, the Senate will not hold a trial before January 20, when Democrat Joe Biden assumes the presidency, meaning the real estate tycoon will escape the embarrassment of being forced to leave early.

… Tata Group has regained the top position as the most valuable business conglomerate in India thanks to the rebound in some of the beatendown shares. The total market capitalisation of all Tata Group companies was Rs 17 lakh crore on Wednesday, followed by HDFC Group at Rs 15.25 lakh crore. Analysts said better use of resources and buoyancy in the commodities businesses augured well for the group. The Tata Group has gained Rs 1.9 lakh crore or 13% in overall market cap in one month and Rs 3.33 lakh crore or 42% during the past year. The Sensex gained 19% last year.

… The government will sell up to 10% equity in SAIL through an offer for sale slated for January 14-15. It will sell 5% equity in the central public sector enterprise under the steel ministry while keeping the greenshoe option, or the option to sell further equity of 5%, in case of an oversubscription. “The floor price of the offer will be Rs 64 per equity share,” a SAIL statement to BSE showed.

… The government is eyeing changes to the investment pattern of the Employee State Insurance Corporation to allow it to invest up to 15% of its corpus in equities and mutual funds, bringing it on a par with the formula followed by the Employees’ Provident Fund Organisation. The move is aimed at ensuring that the growing ESIC corpus fetches higher returns, as the government opens up the scheme to gig workers and expands its coverage pan India from April 1.

… A drop in inflation to a 14-month low might not prompt India’s central bank to lower short-term rates further. Instead, RBI is likely to focus on calibrated liquidity normalisation to minimise price risks. Inflation measured by the consumer price inflation eased to 4.59% in December, more than the market estimated, compared with 6.93% in November. Core inflation, which does not factor in food and oil prices, softened to 5.2% against 5.4% earlier.

… Analysts are cautioning against the blistering rally in India’s stock market as the country braces for its biggest annual economic contraction on record. Overly optimistic earnings estimates and a reduction in liquidity pose the biggest threats to the scorching pace of gains, strategists from Nomura Holdings Inc. to Union Asset Management Co. warned. The S&P BSE Sensex Index has risen for 10 straight weeks — its longest winning streak since 2009.


>> Coal India has raised its capital expenditure budget by 30% to Rs 13,000 crore for the ongoing financial year

>> The Indian Railway Finance Corporation’s initial public offering of about Rs 4,600 crore will open on January 18 in a price band of Rs 25-26 per share.

>> Shares of Bharti Airtel firmed up after the company on Tuesday said that it had received approvals for enhancing FPI limits for its subsidiary companies and will initiate the process to revise its foreign investment limit to 100%.

>> The Delhi High Court has directed Future Group and its promoter Kishore Biyani to file their reply to an appeal filed by Amazon challenging a single-judge bench’s recent observation that Reliance Retail’s deal to acquire assets of Future Retail was valid

>> Next in the stocks buzzing this morning, we have Sterlite Power announcing the completion of merger of its arm Sterlite Power Grid Ventures with itself.

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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