Here’s breaking-down the pre-market actions.
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 77 points, or 0.51 per cent, higher at 15,235 in signs that Dalal Street was headed for a positive start on Monday.
Tech view: Nifty resistance at 15,300
Nifty on Friday continued to consolidate in a range, as traders looked undecided on the direction of the market amid weak global cues. For the week, the bias remained positive. Above the 15,250-15,300 range, the index may head towards the 15,500-15,800 range, analysts said, adding that the 15,000 mark will be a crucial support to watch for on the downside.
Asian markets hit all-time highs
Asian shares advanced to record highs on Monday as successful coronavirus vaccine rollouts globally raise hopes of a rapid economic recovery amid new fiscal aid from Washington. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.4 per cent to 736.4. Japan’s Nikkei climbed 1.3 per cent. Australia’s benchmark index was up 1 per cent. E-mini futures for the S&P500 were up 0.2 per cent in early Asian trading.
rises on West Asia tensions
Oil prices rose to their highest in more than a year on Monday, after a Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group, raising fears of fresh Middle East tensions. Brent crude was up 66 cents, or 1.1 per cent, at $63.09 a barrel, after climbing to a session high of $63.44, the highest since January 22, 2020.
US stocks settled higher on Friday
On Friday, the Dow Jones Industrial Average index rose 27.7 points, or 0.09 per cent, to 31,458.4, the S&P500 index gained 18.45 points, or 0.47 per cent, to 3,934.83 and the Nasdaq Composite index added 69.70 points, or 0.5 per cent, to 14,095.47. All three indices posted gains for the week.
Rs 100 cr Nureca IPO opens today
Nureca will kick off its initial public offer (IPO) today, comprising a fresh issue of Rs 100 crore. The IPO will be sold in a Rs 396-400 price band and prospective retail investors could bid for a minimum of 1 lot of 35 shares and a maximum of 490 shares or 14 lots. Employees of the company will be offered a discount of Rs 20 per share.
DIIs sell Rs 598 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 37.33 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 597.62 crore, data suggests.
Rupee: The rupee gained 12 paise to finish at 72.75 against the US dollar on Friday, propped up by sustained foreign capital inflows and softening crude oil prices.
10-year bonds: India 10-year bond yield rose 0.47 per cent to 5.99 after trading in 5.95-5.99 range.
Call rates: The overnight call money rate weighted average stood at 3.25 per cent, according to RBI data. It moved in a range of 1.9-3.50 per cent.
DATA/EVENTS TO WATCH
- Q3 Earnings: Jet Airways
- India WPI inflation YoY Jan (05:50 pm)
- India Balance of Trade Final Jan (05.50 pm)
- Japan GDP Growth Rate QoQ Prel Q4 (05:20 am)
- Japan Industrial Production MoM Final Dec (10:00 am)
- Euro Area Balance of Trade Dec (03:30 pm)
- Euro Area Industrial Production YoY Dec (03.30 pm)
Economy may see modest growth in Q3… The Indian economy is likely to post modest growth in the December quarter, reversing the technical recession caused by Covid-19, following a strong recovery towards the end of calendar 2020. An ET survey of economists estimated a median of 0.32% growth in the third quarter of FY21, marking a bounceback from the previous two quarters of contraction in gross domestic product (GDP).
IIP grows 1%, inflation cools off
Indicating some signs of recovery, industrial production recorded a positive growth of 1 per cent in December while retail inflation cooled to a 16-month low of 4.06 per cent in January, providing some leeway to RBI to cut interest rate to boost consumption.
Data on January WPI inflation today
The Wholesale Price Index for January, which shows the wholesale inflation rate, will be released on Monday. Lower food prices, especially those of vegetables and cereals, brought down India’s sequential retail price inflation in January 2021. The Consumer Price Index (CPI) released on Friday declined to 4.06 per cent from 4.59 per cent reported for December 2020.
Amazon sought $40m compensation… US etail giant Amazon had asked for $40 million to forego its “right of first refusal” to buy Future Group’s assets in Future Retail, the Indian retailer has alleged in documents submitted with the Singapore International Arbitration Centre. In its submission to the emergency arbitrator, the homegrown retailer claimed that Abhijeet Mazumdar, head of corporate development and private investments at Amazon, had made a verbal offer to Future Group promoter Kishore Biyani on behalf of the e-tailer, asking for “$40 million as compensation.”
Double-digit profit growth in Q3… India Inc registered a strong double-digit, year-on-year growth in aggregate net profit for the second straight quarter, primarily helped by cost optimisation and partly by festive demand as the economy revived. A majority of the companies continued to beat street expectations in the December quarter. In addition, management commentaries reflected the upbeat growth scenario. A sample of 3,087 companies reported 68.7% year-on-year growth in net profit for the October-December 2020 period, the strongest in nine quarters.
Interest delay for EPFO subscribers… At least 6 million, or 10-12%, of EPFO subscribers will have to wait longer for their 2019-20 interest payment, as inaccuracies in the data of individual subscribers have held up fund transfers to many establishments. This may also impact the interest earned by the individuals on the enhanced provident fund kitty when interest is credited for 2020-21.
Shadow banks seek glide path… NBFCs have suggested that RBI lay down a transition path for top-tier shadow lenders wishing to convert into highstreet banks as they are largely prepared for such a conversion. In a five-page letter addressed to the chief general manager in charge of regulations at Mint Road, NBFCs have suggested allowing a 3-4 year transitory period before bringing down NPA recognition norms to 90 days from 180 days now.
Crypto talent may flee India… Apprehensive that the coming bill on cryptocurrency will propose a blanket ban, CEOs of crypto exchanges and investors are fearing a drain of both talent and business from India. The crypto industry is expecting a brain drain similar to what happened in 2018 after RBI directed banks to desist from dealing in any transactions involving cryptocurrencies. Blockchain experts rushed to regulated countries like Switzerland, Singapore, Estonia and the US, and an outright ban will have a similar effect.
CBDT to relook at equalisation levy… The Central Board of Direct Taxes (CBDT) may relook at the ‘equalisation levy’ for purchases where Indian businesses use overseas ecommerce platforms to sell goods and services to Indian consumers. The 2% levy paid by foreign ‘ecommerce operator’ on gross consideration attempts to address tax challenges in an increasingly digital economy.
Templeton investors to get back money… After almost 10 months, about 3 lakh investors in five of Franklin Templeton Mutual Fund’s six debt schemes that are in the process of closing down will receive part of their money during this week. Under a Supreme Court order, SBI MF — the executor for the distribution of the funds — will return Rs 9,122 crore to the investors of those five schemes. Only those who had invested in Franklin’s Income Opportunities Fund will not get any money for now.
Bharat 22 ETF sees spike in volume… Investor appetite for Bharat 22 Exchange Traded Fund, a product that invests in 19 public sector and three private sector companies, has shot up in the past month as the government looks to step up its disinvestment programme. With valuations of PSUs still below market averages, wealth managers are asking rich investors to accumulate units of the ETF. Average daily trading volumes of Bharat 22 ETF on the NSE have doubled to19.5 lakh units compared to 9.09 lakh units a month ago.