SGX Nifty down 35 points; here’s what changed for market while you were sleeping

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SGX Nifty down 35 points; here's what changed for market while you were sleeping


Domestic stocks are likely to open on a muted note on Wednesday amid weak sentiment globally. All eyes would be on Anupam Rasayan’s market debut and the opening of the IPO by Rakesh Jhunjhunwala-backed Barbeque Nation.

Here’s breaking down the pre-market actions.

STATE OF THE MARKETS

SGX Nifty signals weak start
Nifty futures on the Singapore Exchange traded 35 points, or 0.24 per cent, lower at 14,790 in signs that Dalal Street was headed for a negative start on Wednesday.

Tech View: Nifty shows signs of strength
Nifty50 on Tuesday rose half-a-per cent and closed above the 14,800 mark after four sessions. The index formed a small bullish candle on the daily chart and made higher lows for the second session, suggesting that support has shifted higher. The index may see support at 14,700 level and could face resistance near the 15,000 level, analysts said.

Asian markets fall in early trade
Asian stocks fell in Wednesday’s trade as the cost of the US stimulus and infrastructure plans and new pandemic curbs limited investors’ risk appetite. Hong Kong’s Hang Seng index declined 0.6 per cent. In Japan, Nikkei tanked 1 per cent. Korea’s Kospi and China’s Shanghai Composite fell 0.2 per cent each.

prices rise on bargain hunting

Oil prices edged higher on Wednesday as investors looked for bargains following the previous day’s plunge, but gains were capped as pandemic lockdowns in Europe and a build in US crude stocks curbed risk appetite and raised oversupply fears. Brent crude futures rose 27 cents, or 0.4 per cent, to $61.06 a barrel, after tumbling 5.9 per cent and hitting a low of $60.50 the previous day.

US stocks settled lower

Stocks closed broadly lower on Tuesday and gave back nearly all of their gains from a day earlier as technology, industrial and bank stocks fell. The S&P500 index fell 30.07 points, or 0.8 per cent, to 3,910.52. Technology stocks were the biggest drag on the market and pushed the Nasdaq 149.85 points lower, or 1.1 per cent, to 13,227.70. The Dow Jones Industrial Average fell 308.05 points, or 0.9 per cent to 32,423.15.

Barbeque Nation IPO kicks off today

Rakesh Jhunjhunwala-backed Barbeque Nation Hospitality will open its initial public offer (IPO) on Wednesday. The casual dining restaurant chains had on Tuesday raised Rs 202 crore from 15 anchor investors, allocating 40,57,861 shares at Rs 500 a piece. The IPO is a fresh issuance of aggregating up to Rs 180 crore and an offer for sale of up to 54,57,470 shares. Shares aggregating up to Rs 2 crore will be reserved for eligible employees. The issue will close on Friday.

Anupam Rasayan set for market debut

The Rs 760 crore IPO, which was sold from March 12 to March 16, had received 44.06 times bids, with the HNI quota (NII) receiving 97.42 times subscription. QIB quota was subscribed 65.74 times while the retail quota attracted bids for 10.77 times. The listing ceremony of the company will take place at the BSE Convention Hall at 9 am.

DIIs sell Rs 529 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 108.24 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 529.69 crore, data suggests.

MONEY MARKETS

Rupee: The rupee gave up all its intra-day gains to settle 6 paise lower at 72.43 against the dollar on Tuesday, in line with weakness in other peers against the American currency.

10-year bonds: India 10-year bond yield fell 0.58 per cent to 6.14 after trading in 6.13-6.15 range.

Call rates: The overnight call money rate weighted average stood at 3.27 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.

EVENTS/DATA TO WATCH

  • BoJ Monetary Policy Meeting Minutes (05:20 am)
  • Japan Jibun Bank Manufacturing PMI Flash March (06:00 am)
  • Japan Jibun Bank Composite PMI Flash March (06:00 am)
  • UK Inflation Rate YoY Feb (12:30 pm)
  • UK PPI Core Output YoY Feb (12:30 pm)
  • ECB Non-Monetary Policy Meeting (01:30 pm)
  • Euro Area Markit Manufacturing PMI Flash March (02:30 pm)
  • US Markit Composite PMI Flash March (07:15 pm)
  • US Fed Chair Powell Testimony (07:30 pm)

MACROS

India appeals Cairn award… India is believed to have challenged in a court in The Hague an arbitration tribunal verdict that overturned its demand for Rs 10,247 crore in back taxes from Cairn Energy Plc — the second time in three months that it has refused to accept an international award against retrospective tax. The appeal was filed on Monday, a source with knowledge of the matter said. The finance ministry spokesperson did not immediately respond to an e-mail sent for comments.

Withholding tax of FPI debt exposure restored… The Centre has reintroduced the clause in the Income-Tax Act that provided for preferential 5% withholding tax applicable to foreign portfolio investors (FPIs). As a part of amendments to the Finance Bill 2021 introduced in Lok Sabha on March 22, the government has put back the deleted clause of Section 115, which had referred to the 5% withholding tax rate for FPIs in case of interest earned from debt securities.

Tatas restored staff salaries, plan pay hikes… Tata Sons, the holding company of the diversified Tata Group, and several operating entities in the salt-to-software conglomerate have already restored staff salaries and will likely announce pay increases in 2021 after top executives took an estimated 20% pay cut last year to hold down costs through the Covid-induced economic downturn. TCS, Voltas, Tata Consumer, Titan, Tata Motors, Tata Chemicals, Tata Power, Tata Steel, Trent and Tata Capital are among the group blue-chip entities that have already announced pay increases and staff bonuses

Bank bad loans likely to surge… Banks will see bad loans rise by Rs 1.3 lakh crore and face an outgo of Rs 7,000-9,000 crore as reimbursement of interest on interest to those with loans outstanding during the moratorium period. The Supreme Court on Tuesday said it would not interfere in the classification of non-performing assets, but directed lenders to waive interest on interest for all borrowers. Earlier, the government had reimbursed interest on interest dues to those who had loans outstanding below Rs 2 crore.

Cars, two-wheelers set to become costlier… Brace for a hike in car and two-wheeler prices from next month. This will be the second hike after a similar exercise in January as companies grapple with rising commodity and metal costs amid a global shortage of supplies. Maruti Suzuki, the country’s largest carmaker, said that price hikes will vary across different models and variants. Other manufacturers have also said that prices are being reviewed, and may be announced soon. Apart from direct input costs, companies have also been burdened with a rise in fuel and freight costs.

Banks may see change in fortunes… Fortunes of Indian banks have swung — first from the doomed to an unmitigated disaster, and then to the golden age of growth — in exactly a year as the faster-than-expected economic recovery, high provisions and strong capital positions have adequately prepared the lenders for an expanding credit cycle that should last the next few years. Private lenders should gain disproportionately as they are better placed to take advantage of the recovery as the economic pendulum swings to the other extreme following an unprecedented contraction in Q1FY21. Motilal Oswal Securities forecasts that private banks will increase their market share to 45% by fiscal 2025 and will dominate the market with a 54% share in total credit by fiscal 2030, up from 40% now.

Tax-free PF limit raised to Rs 5 lakh… In an amendment to the Finance Bill, the Finance Minister on Tuesday said the exemption limit for tax-free PF contribution will be raised to Rs 5 lakh, provided the employer has not contributed to the PF corpus. The change will benefit those who are working in entities with under 20 workers or cases where the employee’s salary is above the threshold and the employer does not make any contribution. While several MPs in the Lok Sabha demanded a review, the FM defended the move, arguing that it impacts only 1% of subscribers.





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