STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 54 points, or 0.39 per cent, higher at 14,070, in signs that Dalal Street was headed for a positive start on Monday.
Tech View: Nifty charts suggest a pause
Nifty50 on Friday settled above 14,000 level for the first time after trading in a narrow range. The index formed a bullish candle on the daily and weekly charts. It has been forming higher highs and lows for the past seven sessions now. Analysts said the index can attempt to move towards 14,200 level and find firm support near the 13,800 level.
Asian markets fall on Japan lockdown talks
Asian share markets hit pause on Monday as reports of a possible tightening in coronavirus emergency rules for Tokyo pulled Japanese stocks off 30-year highs, while also lifting the safe-haven yen. Japan’s Nikkei shed its early gains to fall 1.1 per cent when Fuji TV reported the government was considering a state of emergency for capital Tokyo and three surrounding prefectures. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 per cent, a whisker from a record high.
S&P500 futures edge lower
E-Mini futures for the S&P 500 dipped 0.2 per cent after touching a new all-time top in early trade. Investors are cautiously watching runoff elections in Georgia for two US Senate seats on Tuesday that will determine which party controls the Senate. If the Republicans win one or both, they will retain a slim majority in the chamber and can block President-elect Joe Biden’s legislative goals and judicial nominees.
Oil prices fall on demand risks
Oil prices edged lower ahead of a meeting of OPEC and allied producers to discuss output levels for February. Brent crude for March was at $51.76 a barrel, down 4 cents or 0.08 per cent. Mohammad Barkindo, Secretary General of the OPEC, said that while crude demand is expected to rise by 5.9 million barrels per day (bpd) to 95.9 million bpd this year, the group sees plenty of downside demand risks in the first half of 2021.
US stocks at record high
Financial markets in the US were closed on Friday for a public holiday. The S&P500 index and the Dow Jones Industrial Average ended 2020 at more record highs on Thursday, closing out one of the most tumultuous years in recent memory. The S&P500 index rose 24.03 points, or 0.6 per cent, to 3,756.07. The Dow Jones Industrial Average gained 196.92 points, or 0.7 per cent, to 30,606.48. The Nasdaq Composite picked up 18.28 points, or 0.1 per cent, to 12,888.28.
FIIs buy Rs 506 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 506.21 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 69.40 crore, data suggests.
Rupee: Snapping its six-session winning streak, the rupee depreciated by 4 paise to settle at 73.11 against the US dollar on the first trading day of the New Year on Friday. At the interbank forex market, the domestic unit opened at 73.09 against the US dollar and witnessed an intra-day high of 73.02 and a low of 73.11.
10-year bonds: India 10-year bond yield rose 0.07 per cent to 5.89 after trading in 5.88-5.90 range.
Call rates: The overnight call money rate weighted average stood at 3.31 per cent, according to RBI data. It moved in a range of 1.9-3.6 per cent.
The DAY PLANNER
- India Markit Manufacturing PMI Dec (10:30 am)
- India Balance of Trade Prel Dex (05:50 pm)
- Japan Jibun Bank Manufacturing PMI Final Dec (06:00 am)
- China Caixin Manufacturing PMI Dec (07:15 am)
- Euro Area Markit Manufacturing PMI Final Dec (02:30 pm)
- BoE Consumer Credit Nov (03:00 pm)
- GB Markit/CIPS Manufacturing PMI Final Dec (03.00 pm)
- UK Mortgage Approvals Nov (03:00 pm)
- US Markit Manufacturing PMI Final Dec (08:15 pm)
- Opec and non-Opec Ministerial Meeting
Govt okays use of Covishield, Covaxin… Drugs regulator Drugs Controller General of India (DGCI) on Sunday approved Oxford COVID-19 vaccine Covishield, manufactured by the Serum Institute, and indigenously developed Covaxin of Bharat Biotech for restricted emergency use in the country, paving the way for a massive inoculation drive. The DCGI granted the approval on the basis of recommendations by a COVID-19 Subject Expert Committee (SEC) of the Central Drugs Standard Control Organisation (CDSCO).
Pent-up demand lifts auto sales in Dec… Pent-up demand, along with attractive year-end discounts, accelerated the year-on-year sales of major automobile players’ during December. Maruti Suzuki reported a growth of 20.2 per cent in its overall sales during December 2020 on a year-on-year basis. Mahindra and Mahindra reported a 10 per cent fall in its overall auto sales in December 2020 at 35,187 units. Hero MotoCorp clocked “its best ever third quarter” with 18.45 lakh units sold during the October-December period.
GST numbers show recovery… Transactions under the goods and services tax show that the economy is on a continued path of recovery even after a resurgence of Covid-19 forcing reimposition of movement restrictions and lockdowns in major parts of the country, finance secretary Ajay Bhushan Pandey has said. That and improved compliance aided GST collections to touch a record high of Rs 1.15 lakh crore in December, Pandey told ET in an interview.
Valuation gains help forex buildup… Almost one-fourth of the $66.9 billion forex reserve pileup in April-September in the current fiscal was due to valuation gains, reflecting the depreciation of the US dollar against major currencies and increase in gold prices, compared to a minuscule share of valuation impact on reserves in the same period a year ago. Valuation gain amounted to $15.5 billion, or 23% of the reserves pileup in the first half of the fiscal, against $1.7 billion valuation gain during April-September 2019, which was about 8% of the total pileup of $20.9 billion then
Loan recast requests far less… Indian lenders have received loan recast requests of about Rs 2 lakh crore, considerably lower than the Rs 8 lakh crore anticipated earlier, as the deadline drew to a close at the stroke of midnight on Saturday. Requests have come in from the likes of Shapoorji Pallonji, Future Group, Jain Irrigation, IRB, Ashok Buildcon and a dozen other corporates, three lenders aware of the proposals told ET. A significant part of the recast requests have come from the midcorporate loan category and MSMEs, they said. Lenders now have 180 days to implement these requests.
DHFL lenders question Piramal bid…Several lenders to DHFL believe that the Piramal bid for the failed mortgage company should be delinked from its proposed merger with a Piramal group entity. Banks have no objection to any plan by Piramal to merge DHFL with a group company once it succeeds in acquiring it. But, they do not want a merger plan to be a part of the bid. Piramal, US asset manager Oaktree, and Adani group are in the race to acquire DHFL. The creditors will have to vote the resolution plans by January 14.
UK PM talks to tougher lockdown… British Prime Minister Boris Johnson said on Sunday that tougher lockdown restrictions were probably on the way as Covid-19 cases keep rising, but that schools were safe places and children should continue to attend where permitted. Cases of Covid-19 in Britain are at record levels and increasing, fuelled by a new and more transmissible variant of the virus. That has already forced the government to cancel the planned reopening of schools in and around London, with calls from teaching unions for wider closures.
Biyani says Amazon didn’t help… Amazon didn’t help Future Group when it needed rescue, Kishore Biyani said in an interview. The US company is now trying to halt the Indian retailer’s acquisition by Reliance Retail, which the Future Group founder called a “saviour,” saying Amazon wants “the company to languish.” Biyani said he had discussed his dire financial situation eight times with the Seattle-based company but it didn’t help, even when lenders invoked shares.