>> Building materials stocks emerge new comeback kid
>> Future Retail urges Sebi to clear deal with RIL
>> RBI says 4% inflation target ideal
>> Union Minister confirms Tesla is coming to India
And there is more. But first, a quick glance at the state of the markets..
>> Nifty futures on the Singapore Exchange traded 33.75 points higher at 7:45 am (IST), signalling a bounce ahead on Dalal Street.
>> Asian shares jumped on Tuesday, with Japanese stocks hitting a 29-year high. Nikkei leapt 0.9% to its highest since March 1991, while Australian shares climbed 0.7%, South Korea’s Kospi rose 0.1% and Hong Kong’s Hang Seng 0.8%. Shanghai Composite Index was little changed.
>> Each of Wall Street’s main indices closed at record highs overnight, as President Donald Trump’s signing of the $2.3 trillion pandemic aid bill increased optimism for an economic recovery. Dow rose 204 points, or 0.68%; the S&P500 gained 32.3 points, or 0.87%, and the Nasdaq 94.69 points, or 0.74%.
>> The rupee appreciated by 6 paise to close at 73.49 against the US dollar on Monday, tracking weakness in the American currency and positive domestic equities.
>> The dollar slipped on Tuesday. The yen traded 0.1% higher, while the offshore yuan rose 0.1%, the euro 0.1% and the British pound 0.2%
IN OIL MARKET
>> Oil rose on Tuesday, for the third time in four sessions, on expectations of a rise in fuel demand as the US expands pandemic aid payments. Brent crude futures climbed 36 cents, or 0.7%, to $51.22 a barrel, while WTI crude futures added 34 cents, or 0.7%, to $47.96.
AND IN BULLION
>> Gold prices rose by Rs 185 to Rs 49,757 per 10 gm on Monday in line with a global rally in the price of the precious metal, while silver prices jumped by Rs 1,322 to Rs 68,156 a kg. In international markets, gold prices rose 0.2% to $1,878.08 an ounce.
All in all, the trade setup on Dalal Street looked set for further gains this morning. On Monday, Nifty50 rose for the fourth straight session to make a small bullish candle on the daily chart and form higher highs and lows for the third session in a row.
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… Suppliers of building materials such as plumbing pipe, tile, sanitaryware and MDF (medium-density fibreboard) in the organised segments are likely to outperform the market in 2021, analysts said. Stocks like Prince Pipe, Greenply Industries, Somany Ceramics, Astral Poly Technik, Supreme Industries, Pidilite and Kajaria Ceramics can be good picks for the New Year, they said. An impressive performance by real estate stocks in recent weeks on the back of improving demand situation in the sector augurs well for them.
… A 4% inflation target for the Indian Monetary Policy Committee is just ideal as it matches with the average trend inflation measured since 2014, an RBI research paper said. The real time estimate of trend inflation was around 5% till the end of 2013, while it fell steadily to 4.1% in the first quarter of 2019, before rising to breach the 6% upper tolerance limit during the last nine months due to the Covid-led disruptions.
… There was ministerial confirmation on Monday that Tesla is coming to India next year, with transport minister Nitin Gadkari saying Elon Musk’s company will first start sales operations and, based on the response it gets, consider local assembly and manufacturing. “American auto major Tesla will have its distribution facility (sale centres) for its cars in India from next year and, considering the demand, it would look into setting up of manufacturing here (too),” Gadkari said
… Future Retail has written to Sebi, asking the market regulator to review and approve its deal with Reliance Retail Ventures quickly. The Kishore Biyani-owned firm pointed to the Delhi High Court saying that the Future Retail board’s decision to approve the merger of listed entities and sell retail assets to RIL was valid. In view of this, the application for Sebi’s no objection certificate or observations on the scheme to the stock exchanges should be reviewed as soon as possible.
… Serum Institute of India is expecting approval for its Covid-19 vaccine ‘very soon’ as the company awaits a decision from India’s drug regulator and closely watches the UK regulator which is likely to give the go-ahead to the AstraZeneca-Oxford vaccine in the next few days. “We should have good news very soon… we are expecting the emergency licensure by January from the Indian regulators,” said SII CEO Adar Poonawalla.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
>> LIC sold 2% stake in private sector lender ICICI Bank through open market transactions between November 27 and December 24
>> SAIL is on a path to deleverage its balance sheet and is planning to bring down the debt level to Rs 45,000 crore by the end of this month and to Rs 40,000 crore by March 2021 from Rs 50,638 crore now, said chairman Anil Kumar Chaudhary.
>> Dixon Technologies has entered into an agreement to manufacture smartphones for phone brand Motorola, pushing up the Indian electronics maker’s shares over 6%.
>> TCS became the second Indian firm to hit a market capitalisation of Rs 11 lakh crore during intra-day trade on Monday, raising its market capitalisation to more than double of its nearest competitor Infosys
>> Sterlite Technologies is planning to spend at least Rs 300 crore to boost its optic fibre cable production capacity to tap into demand for the product expected to rise to nearly 25 million fibre kilometres by 2022
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye