STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 28.5 points, or 0.20 per cent, higher at 14,601, in signs that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty50 sends signs of weakness
Nifty50 on Wednesday tested the 14,450 level in a sharp intraday selloff, only to recover fully by close. The index formed a higher high for yet another session, but formed a small bearish candle with a long lower wick on the daily chart, which resembled a Hanging Man pattern. Analysts said the index could be in for some consolidation, and believe Nifty testing of the 14,400-14,367 range could put an end to the momentum.
Asian markets rise in early trade
Asian equities made early trading gains on Thursday after a mixed session Wall Street buoyed by expectations of a US stimulus package even as political events in Washington culminated in the impeachment of President Donald Trump. Australian S&P/ASX 200 futures rose 0.21% in early trading, while Hong Kong’s Hang Seng index futures rose 0.3 per cent. Japan’s Nikkei was up 0.98 per cent.
Oil prices dip on rise in virus cases
Oil prices eased for a second day on Thursday as mounting coronavirus cases globally raised demand concerns, although a drawdown in US crude stocks for a fifth straight week capped losses. Brent crude oil futures dipped 5 cents, or 0.1 per cent, to $56.01 a barrel, while US WTI fell by 1 cent to $52.90 a barrel.
US stocks settled higher
Major US stock indexes closed mostly higher Wednesday, ending near the record highs they reached last week. The S&P500 index rose 8.65 points, or 0.2 per cent, to 3,809.84. The Dow Jones Industrial Average fell 8.22 points, or less than 0.1 per cent, to 31,060.47. The Nasdaq Composite index added 56.52 points, or 0.4 per cent, to 13,128.95.
Infy, Wipro post Q3 strong results
Infosys posted a 16.6 per cent rise in consolidated net profit at Rs 5,197 crore for the December 2020 quarter, and increased its revenue growth guidance for FY21 to 4.5-5 per cent on the back of large project wins and strong deal pipeline. Crosstown rival Wipro NSE 0.28 % recorded a 20.8% jump in profits for the quarter and said it would further increase revenue by 1.5-3.5% in the final quarter, as the two IT giants continued their street-beating growth buoyed by the sharp hike in digital spends by global corporations battling the ravages of Covid-19.
FIIs buy Rs 1,879 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,879.06 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 2,370.17 crore, data suggests.
Rupee: The Indian rupee strengthened gains for the second straight day and closed 10 paise higher at 73.15 against the US dollar on Wednesday, tracking upbeat Asian currencies and sustained foreign fund inflows.
10-year bonds: India 10-year bond yield rose 0.27 per cent to 5.94 after trading in 5.90-5.95 range.
Call rates: The overnight call money rate weighted average stood at 3.19 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
- India WPI Inflation YoY Dec (12.00 pm)
- India WPI Manufacturing YoY Dec (12:00 pm)
- China Balance of Trade Dec (08:30 am)
- ECB Monetary Policy Meeting Accounts (06:00 pm)
- US Jobless Claims 4-week Average Jan/09 (07:00 pm)
- US Initial Jobless Claims 09/Jan (07:00 pm)
- US Continuing Jobless Claims 02/Jan (07:00 pm)
- US Fed Chair Powell Speech (11:00 pm)
- Japan BoJ Gov Kuroda Speech
Trump first US prez to be impeached twice… 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. “Today, in a bipartisan way, the House demonstrated that no one is above the law, not even the president of the United States,” Democratic Speaker Nancy Pelosi said afterward. 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 ignominy of being forced to leave early.
Falling inflation may not trigger rate cut… 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.
ESIC to invest in stocks, MFs… 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.
RBI working group on e-lenders… RBI has set up a working group to regulate digital lending through mobile applications amid growing concerns over the unsupervised growth of loan platforms. “Recent spurt and popularity of online lending platforms/mobile lending apps (digital lending) has raised certain serious concerns that have wider systemic implications,” the central bank said in a statement on Wednesday.
Vax makers to be liable for complications…Indian vaccine makers will be held liable for any complications or adverse effects that arise from the administration of their jabs. The government has not accepted their demand that they be indemnified against mishaps. The purchase order executed by the government with the vaccine makers stipulates that the companies will have to inform the government authorities immediately in case of reports of any health risks or complications arising from the vaccine.
Mining law amendments cleared… The government cleared amendments to the mining law to remove restrictive end-use conditions on captive mines and resolve legacy issues, unlocking more blocks for auction. These changes will allow the auction of more than 500 mines for gold, diamond, platinum, copper, zinc and lead among others, and are expected to attract big-ticket investment from mining giants.
Petrol prices hit new record… Petrol prices set a new record on Wednesday with prices rising to Rs 84.45 a litre in the Capital. State oil companies raised prices of both petrol and diesel by 25 paise a litre on Wednesday. Diesel prices rose to Rs74.63 a litre in Delhi. Petrol and diesel rates have risen to Rs 91.07 and Rs 81.34 per litre in Mumbai.