SGX Nifty up 60 points; here’s what changed for market while you were sleeping

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SGX Nifty up 60 points; here's what changed for market while you were sleeping


Domestic stocks may kick off Thursday’s session on a positive note, tracking overnight Fed minutes that suggested the US economy was recovering and that the central bank would take some time before rolling back the loose money policy. Mixed cues from other Asian markets, however, may keep the upside capped.

Here’s breaking down the pre-market actions.

STATE OF THE MARKETS

SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 56.50 points, or 0.38 per cent, higher at 14,920 in signs that Dalal Street was headed for a positive start on Thursday.

Tech View: Nifty at inflection point
Nifty needs to break above the key resistance at 14,900 level. Once that happens, the index may see a rally towards 15,300 and beyond that to 15,450 mark, analysts said. A break above 14,900 level and the coil will unwound and one can expect a swift move, they said.

Asian markets mixed in early trade
Asian equities were trading mixed on Thursday after minutes from the Federal Reserve’s latest meeting reiterated its commitment to keep interest rates low until the US economy makes a more secure recovery. Japan’s Nikkei fell 0.49 per cent to 29,586.04. Hong Kong’s Hang Seng rose 0.55 per cent to 28,828.29. China’s Shanghai Composite and Korea’s Kospi were trading flat.

US stocks closed mixed; S&P500 at record highs

The S&P 500 rose 6.01 points to 4,079.95. The Dow Jones Industrial Average gained 16.02 points, or 0.1 per cent, to 33,446.26. The Nasdaq composite slipped 9.54 points, or 0.1 per cent, to 13,688.84. The S&P500 index and Dow Jones each set record highs on Monday.

Macrotech IPO sees 26% bids on Day 1

The initial public offer of Macrotech Developers was subscribed 26 per cent on the first day of subscription on Wednesday. The issue received bids for 95,91,420 shares against 3,64,18,219 shares on offer, as per NSE data. The category for qualified institutional buyers was subscribed 58 per cent, non institutional investors 11 per cent and retail individual investors 15 per cent.

DIIs buy Rs 381 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 227 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 381 crore, data suggests.

MONEY MARKETS

Rupee: The RBI’s stance on maintaining an ultra-loose monetary policy, along with liquidity infusion amidst rising Covid cases, weakened Indian rupee by 1.5 per cent on Wednesday, its biggest intraday fall since August 2019. Accordingly, the rupee closed at 74.55 to a dollar.

10-year bonds: India 10-year bond yield declined 0.65 per cent to 6.08 after trading in 6.05-6.19 range.

Call rates: The overnight call money rate weighted average stood at 3.13 per cent, according to RBI data. It moved in a range of 2.10-3.50 per cent.

MACROS

Fed minutes underscore patience… Even as the US economy gathered steam this year, Federal Reserve officials remained cautious about the continuing risks of the pandemic and committed to pouring on monetary policy support until a rebound was more secure, minutes of the central bank’s March meeting reflect.

Fintech firms to process RTGS, NEFT transactions… RBI has announced a slew of measures for digital payments such as allowing fintech companies to process RTGS and NEFT transactions, and also set new norms on interoperability and cash withdrawal facilities for digital payment wallets. These measures are aimed at leveling the playing field for non-bank payment operators and banks, while also reducing settlement risks by widening the ecosystem. This means that companies such as Paytm, Visa, Mastercard and PhonePe among others will soon be able to process RTGS and NEFT payments.

Research firm asks investors to exit Franklin funds… Prime Investor, a Chennai-based independent research firm, has asked investors to exit from all schemes managed by Franklin Templeton Mutual Fund. “Underperformance of the equity mutual fund schemes, slide in assets under management (AUM), loss of confidence, and botched handling of events, likely flight of talent and change of sponsor are some reasons that have led to this decision,” said Prime’s co-founder Vidya Bala. Franklin Templeton has been under pressure from investors and distributors after it shut down six debt schemes in April 2020 that resulted in Rs 26,000 crore of investor money getting locked up.

I-T issues 1.2 lakh faceless tax scrutiny orders... The government has issued close to 1.2 lakh orders under the faceless assessment schemes but finds itself in a spot as several taxpayers, whose cases were taken up initially, are not responding to notices issued electronically. This has prompted the Central Board of Direct Taxes to seek cooperation, failing which exparte orders may be issued or the taxman can come calling.

Guv rules out fresh loan moratorium… Governor Shaktikanta Das has ruled out any immediate moratorium on loans despite the recent surge in Covid-19 cases and partial lockdowns announced in various states across the country. Das also said that the Reserve Bank of India (RBI) is watching the asset quality situation at banks, and will take any action when required.

RBI unveils G-SAP to purchase Rs 1 lakh cr bonds… RBI has announced a government securities acquisition programme (G-SAP 1.0) where it has committed to buy bonds worth Rs 1 lakh crore in the first quarter. This unprecedented step has been taken to keep interest rates in check to support growth, which RBI governor Shaktikanta Das said was paramount. The central bank’s announcement had the intended impact with the yield on the 10-year bond falling more than 11 basis points (100bps = 1 percentage point) after the announcement to 6.07% from 6.18%.

Oyo says bankruptcy charge untrue… Oyo has challenged an order from the National Company Law Tribunal (NCLT), which admitted a plea for corporate insolvency proceedings against the company’s subsidiary Oyo Hotels & Homes, which houses the India business. Oyo founder & CEO Ritesh Agarwal took to Twitter to describe the charges as “untrue and inaccurate”. The matter is expected to be heard in the appellate tribunal on Thursday.

RBI asks banks to return interest on interest… RBI has asked all lenders to compensate borrowers with interest on interest charged between March 1, 2020 and August 31, 2020. This will apply to all borrowers irrespective of whether the moratorium had been fully or partially availed, or not availed. Earlier, the Indian Banks Association (IBA) had asked banks to refund interest on interest to those who have been charged. This followed an order by the Supreme Court on March 23 this year in a case filed by borrowers seeking interest relief.



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