SGX Nifty down 40 points; here’s what changed for market while you were sleeping

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SGX Nifty down 40 points; here's what changed for market while you were sleeping


Domestic stocks may open on a tepid note on Friday, tracking an overnight fall in US stocks. Technical charts suggested a consolidation ahead for key domestic indices. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals negative start

Nifty futures on the Singapore Exchange traded 40 points, or 0.27 per cent, lower at 14,583, in signs that Dalal Street was headed for a negative start on Friday.

Tech View: Nifty forms Inside Bar candle

Nifty50 on Thursday negated the formation of higher highs in the past 15 sessions and formed an Inside Bar on the daily chart. While the index has been holding up well of late, analysts said one must closely look at the advance-decline ratio and believe Nifty needs to respect the support at 14,435 level to keep the ongoing positive momentum going.

Asian markets rise on US stimulus hope

Asian shares rose on Friday, brushing off a late Wall Street dip as expectations of large US stimulus under President-elect Joe Biden shored up sentiment while oil prices perked up on upbeat Chinese trade figures. In Asia, investors held a broadly more optimistic view with Australia’s S&P/ASX 200 up 0.2 per cent, Japan’s Nikkei 225 0.3 per cent higher and South Korea’s Kospi inching up 0.2 per cent.

Oil prices mixed in early trade

Oil prices were mixed on Friday as strong import data from China, the world’s biggest crude importer, that boosted sentiment earlier ran into concerns about Chinese cities in lockdown due to coronavirus outbreaks. Brent was down 3 cents at $56.69, after gaining 0.6 per cent on Thursday. US WTI crude was up 12 cents at $53.69 a barrel, having risen more than 1 per cent the previous session.

Tech stocks drag US indices lower

A late slide in several Big Tech stocks left major US indices lower Thursday, even as small-company stocks marched to another record high. On Thursday, the S&P500 index fell 14.30 points, or 0.4 per cent, to 3,795.54. The Dow Jones Industrial Average slid 68.95 points, or 0.2 per cent, to 30,991.52. The Nasdaq composite dropped 16.31 points, or 0.1 per cent, to 13,112.64.

SAIL OFS subscribed 4.14x, retail bids today

The offer for sale (OFS) of Steel Authority of India (SAIL) has been oversubscribed by 4.14 times on the first day of the issue. The government has decided to exercise the green shoe option and retail investors will be able to bid on Friday. On Thursday, the issue was open for non-retail investors.

HCL Tech, PVR to disclose Q3 results

HCL Tech, PVR, Shoppers Stop, L&T Finance Holdings, Hathway Cable and Aditya Birla Money are some of the companies which will disclose their December quarter earnings during the day.

FIIs buy Rs 1,077 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,076.62 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 188.10 crore, data suggests.

MONEY MARKETS

Rupee: The rupee gained for the third straight day and closed 11 paise higher at 73.04 against the US dollar on Thursday, supported by sustained foreign fund inflows and weak American currency.

10-year bonds: India 10-year bond yield fell 0.39 per cent to 5.92 after trading in 5.92-5.95 range.

Call rates: The overnight call money rate weighted average stood at 3.21 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.

DATA/EVENTS TO WATCH

  • India Loan/Deposit Growth YoY Jan/01 (05:00 pm)
  • India Foreign Exchange Reserves 08/Jan (05:00 pm)
  • India Balance of Trade Final Dec (05:00 pm)
  • China House Price Index YoY Dec (07:00 am)
  • UK Balance of Trade Nov (12:30 pm)
  • UK GDP 3-Month Average Nov (12:30 pm)
  • UK Industrial Production YoY Nov (12.30 pm)
  • UK GDP YoY Nov (12:30 pm)
  • Euro Area Balance of Trade Nov (03:30 pm)
  • US Industrial Production YoY Dec (07:45 pm)

MACROS

Powell rules out pre-mature tapering… US Fed Chair Jerome Powell sought to stamp out talk of a premature reduction in the central bank’s massive bond-buying campaign, saying “now is not the time” to hold that discussion. “We know we need to be very careful in communicating about asset purchases,” he said Thursday during a virtual discussion. “Now is not the time to be talking about exit. I think that is another lesson of the global financial crisis, is be careful not to exit too early.”

Biden’s new stimulus cheers markets… US President-elect Joe Biden’s proposal to pour $1.9 trillion into a hobbled economy could lay the foundation for a surge in jobs and spending that many economists say is needed to avoid long-term damage from a record-breaking pandemic recession. The incoming Democratic administration’s proposed package provides targeted aid that economists say delivers the most effective economic boost, including an increase to the current extra weekly benefit to the unemployed, to $400 from $300.

India’s growth to slow down from FY23... India’s medium-term growth is expected to slow down to 6.5% from financial year 2023 after an initial rebound to 11% in the next fiscal year starting April 1, Fitch Ratings said, as the economy suffers lasting damage from the Covid-19 pandemic. The agency also downgraded its projection for supply-side growth to 5.1% annually over the five-year period from 2020- 25, compared to its prepandemic expectation of 7%.

Vaccine may drive India rebound... India could see a vaccine-driven turnaround — or pivot point — during the second half of the current calendar year and full resumption of economic activity by the December quarter, experts said. Nomura defined the vaccine pivot point as “the point at which vaccines start to become more widely available and show demonstrative success in suppressing the virus, allowing governments to lift most social-distancing restrictions and citizens to become less fearful.”

WPI inflation hits 4-month low… Wholesale inflation in India fell to a four-month low of 1.22% in December driven by lower food inflation, data released by the commerce and industry ministry showed on Thursday. The inflation based on WPI was 1.55% in November 2020, and 2.76% in December 2019. The inflation in the vegetables basket was -13.2 % in December as against 12.24 % in the preceding month, while that in onion was -54.69% compared to -7.58 % in November.

Google removes lending apps… Google has begun to remove money-lending apps that do not comply with the country’s banking regulations from its Android Play Store following directions from RBI to monitor the glut of fintech applications hosted on the search giant’s platform. In a virtual meeting held earlier in January, RBI officials had alerted Google to hundreds of fintech loan applications that were live on the Play Store despite being non-compliant with local laws.

Govt to end zero-coupon bonds… The government has decided not to issue any more zero-coupon bonds towards bank capitalisation, said two officials aware of the developments. This comes after banking regulator RBI, and Department of Investment and Public Asset Management (DIPAM) raised concerns over the innovative capital infusion instrument resorted to by the government.





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