SGX Nifty up 70 points; here’s what changed for market while you were sleeping

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SGX Nifty up 70 points; here's what changed for market while you were sleeping


With US President-elect Joe Biden promising trillions in new aid, hopes of huge foreign money flowing into emerging markets such as India have risen, boosting sentiment on Dalal Street. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start

Nifty futures on the Singapore Exchange traded 75 points, or 0.52 per cent, higher at 14,451.50, in signs that Dalal Street was headed for a positive start on Monday.

Tech View: Nifty eyes 14,500 level

Analysts said the 14,200 level, which was acting as a key hurdle until now, will be the immediate support for the index, which seems to have set sights on the 14,500-14,600 zone now. Below that, the 13,950 level may continue to offer strong support to the index, they said.

Asian shares mixed; Kospi soars 3%

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat. Japan’s Nikkei was closed for a holiday after closing at a 30-year high on Friday. Hong Kong’s Hang Seng added 0.4 per cent, Korea’s Kospi soared 3.23 per cent and China’s Shanghai Composite index fell 0.6 per cent.

Oil prices fall in early trade

Oil prices fell on renewed concerns about global fuel demand amid strict coronavirus lockdowns in Europe and new movement restrictions in China, the world’s second-largest oil user, after a jump in cases there. Brent crude oil futures fell 42 cents, or 0.8 per cent, to $55.57 a barrel.

China CPI inflation rises 0.2% in Dec

China’s consumer price index (CPI) rose 0.2 per cent from a year earlier in December, the statistics bureau said. The index was expected to rise 0.1 per cent, according to the Reuters poll. The factory gate prices fell by less than expected in December, official data showed on Monday, suggesting China’s manufacturing sector continues to see a steady recovery from the COVID-19 shock. The producer price index (PPI) fell 0.4 per cent from a year earlier.

US stocks settled higher

Wall Street scaled new highs on Friday after US President-elect Joe Biden said his economic package will be in the trillions of dollars. The Dow Jones Industrial Average rose 56.84 points, or 0.18 per cent, to 31,097.97. The S&P500 index gained 20.89 points, or 0.55 per cent, to 3,824.68 and the Nasdaq Composite added 134.50 points, or 1.03 per cemt, to 13,201.98.

FPIs buy Rs 6,030 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 6,029.83 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 2,372.54 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Friday staged a smart recovery from the day’s lowest level to end 7 paise higher at 73.24 against the US dollar on Friday, tracking an intense rally in domestic equities.

10-year bonds: India 10-year bond yield flat at 5.89 after trading in 5.87-5.90 range.

Call rates: The overnight call money rate weighted average stood at 3.20 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.

DATA/EVENTS TO WATCH

  • German WPI (MoM) for Dec (12.30 pm)
  • Spanish Industrial production for Nov (1.30 pm)
  • Sentix Investor confidence for Jan (3 pm)
  • BoE’s MPC member Tenreyro speaks (5.30 pm)
  • ECB President Lagarde Speech (08:10 pm)
  • US Consumer Inflation Expectations Dec (09:30 pm)

MACROS

Exports up 16% in first week of Jan: The country’s exports grew 16.22 per cent year-on-year to $6.21 billion in the first week of January, mainly driven by healthy growth in pharmaceuticals, and engineering sectors, reflecting signs of revival, an official said on Sunday. The exports during the first week of January last year were at $5.34 billion. Imports during January 1- 7 this year too increased by 1.07 per cent to $8.7 billion as against $8.6 billion in the same period of 2020, the official said.

Fiscal deficit likely at 7.5%: India’s fiscal deficit is expected to be around 7.5 per cent of the GDP for the current fiscal owing to moderation in revenue collection due to the COVID-19 crisis, experts said. This would be a 100 per cent jump from the Budget estimate of 3.5 per cent of GDP pegged for the current fiscal. The government had pegged the fiscal deficit at Rs 7.96 lakh crore or 3.5 per cent of the GDP in the Union Budget 2020-21, which was presented by Finance Minister Nirmala Sitharaman in February 2020.

7 mega textile parks on the cards: India is likely to develop seven mega textile parks, on the lines of China and

Vietnam, as part of a plan to double the industry size to $300 billion by 2025-26. The textiles ministry has readied a Cabinet note on the proposed national textiles policy, which seeks to position India as a fully

integrated, globally competitive manufacturing and exporting hub.

FMCG cos may hike prices soon: Consumers may have to shell out more money for their daily use products as FMCG firms, which are facing inflationary pressure on their key raw material inputs, are considering a marginal hike on their products’ price to offset it. Some FMCG companies like Marico NSE 1.65 % and others have already gone for price hike, while some which include Dabur, Parle and Patanjali are closely monitoring the situa

Life insurance sector’s NBP contracts: The new business premium of life insurance industry contracted by 3 per cent year-on-year to Rs 24,383.42 crore in December. The new business or the first-year premium of 24 life insurance companies was Rs 25,079.89 crore in the same month of 2019. The country’s largest life insurer LIC contributed Rs 14,345.70 crore or 58 per cent to the total premium generated during the month, showed data from the Insurance Regulatory and Development Authority of India (Irdai).

Centre to use both Covishield and Covaxin jabs: The Centre will offer both the approved Covid-19 jabs — Serum Institute of India’s Covishield and Bharat Biotech’s Covaxin — from the beginning of the vaccination programme, even as some Opposition-ruled states oppose the launch of the Bharat Biotech vaccine. According to a senior official, the government will not divide the vaccines on a geographical basis as has been done in previous vaccination drives. While the bulk of the early shots will be Serum Institute’s as it has greater capacities and more stocks, the subsequent batches will see more supplies from Bharat Biotech as it ramps up production. “Over a period of a few weeks to a month, it (production) will plateau to its maximum steady state levels, which will not be at the same level as Serum’

V-shaped recovery ahead: India’s economy is showing decisive signs of a ‘V-shaped’ recovery in 2021 with the return of consumer confidence, robust financial markets, an uptick in manufacturing and exporters braving it out in the global market with never-say-die spirit, Assocham said on Sunday. The industry chamber said it expects immense accruals of economic benefits from the COVID-19 vaccination programme about to be rolled out.





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