SGX Nifty down 30 points; here’s what changed for market while you were sleeping

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SGX Nifty down 30 points; here's what changed for market while you were sleeping


Stocks in the US and in Asia fell as US Democrats moved to impeach President Donald Trump in his final days in office for the Capitol insurrection. Add to that the rising cases of virus globally, and the trade setup for Tuesday would look depressed.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals muted start

Nifty futures on the Singapore Exchange traded 36.5 points, or 0.25 per cent, lower at 14,459.50, in signs that Dalal Street was headed for a muted start on Tuesday. Here are a few stocks which may buzz the most in today’s trade:

Tech View: Nifty forms Dragonfly Doji

Nifty50 on Monday scaled a new high and closed near the immediate resistance at 14,500 level. The index formed a higher high for the 13th session in a row. Analysts said nothing concrete on the technical charts suggests the index’s ongoing rally is in danger. If anything, the index formed a ‘Dragonfly Doji’ on the daily chart. Such a pattern is usually seen around potential turning points, which is hinting at a balance of power between the bulls and the bears at the top.

Asian stocks drop on Washington turmoil

Asian stocks were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season. Japan’s Nikkei slipped 0.48 per cent, South Korea’s KOSPI fell 0.91 per cent and Hong Kong’s Hang Seng index lost 0.24 per cent.

Crude prices fall on demand concerns

Oil prices slipped on Tuesday as investors remained concerned about climbing coronavirus cases globally, though an anticipated drawdown in crude oil inventory in the United States for a fifth straight week stemmed losses. After falling on Monday, Brent crude oil futures slipped by 9 cents, or 0.2 per cent, to $55.57 a barrel while US West Texas Intermediate (WTI) fell by 8 cents, or 0.2 per cent, to $52.17 a barrel.

Wall Street retreats from record highs

US stocks on Monday retreated from records set last week as political uncertainty, including efforts to remove President Donald Trump from power, has finally shaken investors. The benchmark Dow Jones Industrial Index was down 0.3 percent to end at 31,008.69. The broad-based S&P500 index fell 0.7 per cent to 3,799.61, while the tech-rich Nasdaq Composite Index dropped 1.2 per cent to finish at 13,036.43, AFP reported.

Q3 results today

Karnataka Bank, Tata Elxsi, Hathway Bhawani Cabletel, Steel Strips Wheels, Ind Bank Housing and HPL Electric & Power are some of the companies that will announce their December quarter results today.

FPIs buy Rs 3,139 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 3,138.9 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 2,610.13 crore, data suggests.

MONEY MARKETS

Rupee: The rupee depreciated by 16 paise to close at 73.40 against the US dollar on Monday, tracking a rebound in the American currency overseas.

10-year bonds: India 10-year bond yield rose 0.54 per cent at 5.92 after trading in 5.91-5.94 range.

MACROS

SC likely to stay farm laws… The Supreme Court proposes to pass orders on Tuesday “staying the implementation of the farm laws” and set up an “expert” panel to examine the “grievances” of farmers protesting against the legislation to facilitate an “amicable resolution”. The three-judge bench led by Chief Justice of India SA Bobde expressed disappointment at the manner the issue has been handled. “We are very disappointed with the way the government has been handling all this or your efficacy in resolving the problem,” the CJI said.

Centre to bear vaccine cost for priority group… Prime Minister Narendra Modi on Monday said the Centre will bear the entire cost of vaccinating the 30-million-strong priority group against Covid-19, in the first phase of the mammoth exercise that kicks off on January 16. He made it clear that politicians will not be part of this group. The PM urged all chief ministers to ensure that politicians do not jump the queue, and take the vaccine only when their turn comes.

Liquidity helping banks to avoid NPAs…The extraordinary easy liquidity policies of RBI have helped banks report strong financial parameters but these numbers do not necessarily reflect the true stress in the system due to the pandemic, Governor Shaktikanta Das said. For the second time in a row, the governor warned of the divergence between the financial markets and the real economy and raised red flags about ballooning stock and bond values, but said financial stability will be the “overarching goal” of the regulator.

Kris panel for dropping NPD clause… A key clause requiring private businesses to mandatorily share anonymised data with each other has been dropped from the latest draft of the non-personal data (NPD) report submitted by a committee led by Infosys cofounder S (Kris) Gopalakrishnan. Global technology giants and Indian companies had criticised the provision as it would have led to conflicts with intellectual property rights.

RBI’s reverse repo plan lifts rates… Overnight borrowing costs surged up to 35 basis points Monday after the Reserve Bank of India (RBI) late last week announced plans that aim to align short-term market rates with the reverse repurchase benchmark, underscoring the central bank’s calibrated shift toward an eventual drawdown of excess liquidity.

Retail expenditure on a high… India’s retail expenditure in December continued its northward trajectory, climbing about a fifth over November and surpassing that of last March by 12%, illustrating sustainable rebound in consumer demand that should help underpin broader economic growth. Data collated by leading cash management company CMS Info-Systems, which tracks 98% of Indian districts through its 53,000 retail points and 62,000 ATM installations, showed that total retail payments on its channels were Rs 14,488 crore in December versus Rs 12,218 crore in November and Rs 12,826 crore in March 2020.

ICRA sees 10% GDP growth in FY22… India’s economy is expected to see 10.1% growth in FY22, according to ICRA. The rating agency, however, said that in absolute terms, the GDP would only “mildly” surpass the levels of FY20. “The seemingly-sharp expansion will be led by the continued normalisation in economic activities as the rollout of Covid-19 vaccines gathers traction, as well as the low base,” Aditi Nayar, principal economist at ICRA, said in the report.

Higher FDI limit in pension sector likely… The government is considering a higher limit for foreign investment in the insurance and pension sectors, currently pegged at 49% of paid-up equity capital. The proposal under consideration is to raise the limit to 74%, on par with that for private banks, an official aware of deliberations said.





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