SGX Nifty up 110 points; here’s what changed for market while you were sleeping

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SGX Nifty up 110 points; here's what changed for market while you were sleeping


Domestic stock bourses would play catchup with global peers on Wednesday after remaining shut on Tuesday on account of Republic Day. All eyes would be on quarterly earnings, which have surprised a bit on the negative side, and the Fed money policy later tonight.

Here’s breaking down the pre-market actions.

STATE OF THE MARKETS

Nifty futures gain in Singapore trading
After falling in Tuesday’s trade, Nifty futures on the Singapore Exchange traded 110.5 points, or 0.78 per cent, higher at 14,191.50. Domestic bourses, which were closed on Tuesday on account of Republic Day, would play a catch up on Wednesday.

Tech View: Nifty charts suggest negative momentum
Nifty50 on Monday fell below its five-day, 13- and 20-day simple moving averages, which resulted in a ‘Three Black Crows’ formation on the daily chart. The index also formed lower highs and lows for the second straight session. Support levels also shifted lower, with analysts suggesting a weak momentum ahead.

Asian stocks rise in early trade

Asian equities rose on Wednesday, bouncing back from a steep sell-off on Tuesday. Japan’s Nikkei added 0.48 per cent to 28,683.63. Korea’s Kospi climbed 1.01 per cent to 3,171.96. Hong Kong’s Hang Seng added 0.6 per cent to 29,568.71. China’s Shanghai Composite index rose 0.16 per cent to 3,575.25.

US stocks settled lower

Stocks ended lower on Wall Street Tuesday after spending most of the day in the red as investors weighed solid corporate earnings results against growing concerns about the pandemic. The S&P 500 fell 5.74 points, or 0.1 per cent, to 3,849.62. The Dow Jones Industrial Average declined 22.96 points, or 0.1 per cent, to 30,937.04. The Nasdaq dropped 9.93 points, or 0.1 per cent, to 13,626.06.

HUL, Axis Bank to announce Q3 results today

Hindustan Unilever, Axis Bank, ICICI Prudential Life, Marico, United Spirits, Bank of Baroda, Canara Bank, Emami, Nalco, Quess Corp, PNB Housing, Nippon LIfe Asset Management and India Cements are among companies which will announce their December quarter results on Wednesday.

FPIs sell Rs 765 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 765.30 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 387.76 crore, data suggests.

MONEY MARKETS

Rupee: The rupee rose by 3 paise to settle at 72.94 against the US dollar on Monday, extending its gains for the fifth straight session despite heavy selling in the domestic equity market.

10-year bonds: India 10-year bond yield rose 0.25 per cent to 5.95 after trading in 5.93-5.96 range.

DATA/EVENTS TO WATCH

  • Q3 Earnings: Axis Bank I BoB I Canara Bank I HUL I ICICI Pru Life I India Cement I Marico
  • Japan Leading Economic Index Final Nov (10:30 am)
  • US MBA Mortgage Applications 22/Jan (05:30 pm)
  • US Durable Goods Orders MoM Dec (07:00 pm)
  • US EIA Crude Oil Stocks Change 22/Jan (09:00 pm)
  • US Fed rate decision

MACROS

IMF super-bullish on India… India’s economy is expected to bounce back strongly in the next fiscal year with 11.5% growth, the International Monetary Fund (IMF) said on Tuesday, forecasting a sharp global recovery in 2021 after the havoc wrought by the pandemic. India is the only major economy forecast to grow in double digits next year and forecast to follow that up with the highest 6.8% rise in the FY23 fiscal.

India Inc raises record money via bonds… Indian companies raised record amounts through corporate bonds in 2020 taking advantage of the high liquidity and lower interest rates. Firms mobilised Rs 7.77 lakh crore during the year with banks and financial services companies cornering a sizeable chunk of the fund-raising. The money garnered was through private placements. The amount mobilised in 2020 was 10% over the Rs 7.10 lakh crore mobilised the year before.

China industrial profits surge 20.1% in Dec

Profits at China’s industrial firms surged 20.1% year-on-year in December to 707.11 billion yuan ($109.40 billion), official data showed on Wednesday. The rebound followed a 15.5% gain in November and marked the eighth month of growth in a row, according to data from National Bureau of Statistics.

India Inc’s overseas investment drops… Overseas investment by domestic firms fell by over 42% to $1.45 billion in December 2020, according to RBI data. In the year-ago period, companies in India had invested $2.51 billion in their foreign firms (joint ventures / wholly-owned units). In November 2020, the total outward foreign direct investment (OFDI) was of $1.06 billion, down by 27% from a month ago period.

Realty markets with most stuck units… Delhi-NCR property market has maximum stuck housing units at 1.9 lakh, worth nearly Rs 1.2 lakh crore, that were delayed by at least seven years, according to property consultant Anarock. A total of 1,90,120 housing units, worth Rs 1,19,291 crore, were stuck in the Delhi-NCR as of 2020-end. These flats were launched in 2013 and before. The property market of Mumbai Metropolitan Region (MMR) has the second highest number of stuck housing units at 1,80,250, worth Rs 2,02,145 crore.

OMCs raise fuel prices again… State-run oil companies have raised prices of petrol by Rs 5 per litre and of diesel by nearly Rs 6 per litre in 10 weeks, sending rates to record highs. Domestic fuel rates appear unstoppable even as international crude oil has stabilised in the last 20 days, with prices ranging between $55 and $56 per barrel.

Steel prices may stabilize soon… Domestic steel prices, which have been on an upswing, will stabilise once global rates come down, JSW Steel’s joint managing director Seshagiri Rao said. The benchmark price of hotrolled coil – a key price gauge – was Rs 47,000-47,500 per tonne on average in the December quarter, before hitting a record high of Rs 58,000 per tonne earlier this month. Indian prices are following the global trend, he said.

Business normalisation moderates… The pace of normalisation of business activity in India moderated in the week ended January 24 compared to the start of the year, according to an index of high frequency indicators. The Nomura India Business Resumption Index (NIBRI) marginally dipped to 92.7 for the week from 94.4 at the start of the month, and also down from the previous week’s reading of 93.2, Nomura said in a note on Tuesday.

Apple grows fast in India… Apple had a record quarter in India, with iPhone shipments crossing 1.5 million for the first time in the October-December period, doubling its market share to 4%, according to market research firms. Apple also had its best year in the country as annual sales volumes exceeded 3.2 million in 2020, a 60% growth over 2019 sales. Apple’s market share stood at 2.4% in 2020. The company’s other products including MacBooks, Apple Watches and AirPods also registered record sales.

Farmers hoist flat on Red Fort… In unprecedented scenes on Republic Day, protesting farmers on a tractor rally broke away from their designated route and forced their way into the Red Fort, where they hoisted a religious flag on a flagpole in the forecourt as a mark of defiance. Some of the protestors also climbed the ramparts and held up flags near the place where the tricolour is hoisted on Independence Day. The chaos and tension continued late into the evening as many protestors stayed on in the fort premises.





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