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

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

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Weak economic data in the US may set the stage for a negative start for domestic stocks on Monday. The sentiment may, however, improve if China’s quarterly GDP numbers scheduled for the day come better-than-expectations. Domestic investors would eye IRFC’s IPO opening today and a slew of quarterly earnings on the midcap front. Here’s breaking down the pre-market actions: STATE OF THE MARKETS

SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 64 points, or 0.44 per cent, lower at 14,395, in signs that Dalal Street was headed for a negative start on Monday.

Tech View: Nifty forms Dragonfly Doji
Nifty50 tanked over 1 per cent on Friday and formed a bearish candle on the daily chart and an indecisive Gravestone Doji on the weekly scale. The fact that Nifty could not defend its immediate support at 14,450 level has made a few analysts turn wary of the recent rally.

Asia shares fall ahead of China economic data

Asian share markets retreated from highs on Monday as disappointing news on US consumer spending tempered risk sentiment ahead of a reading on the Chinese economy. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3 per cent. Japan’s Nikkei slipped 1 per cent and away from a 30-year high. E-Mini futures for the S&P500 dipped 0.3 per cent, though Wall Street will be closed on Monday for a holiday.

Oil prices fall in early trade

Oil prices ran into profit-taking on worries the spread of increasingly tight lockdowns globally would hurt demand. Brent crude futures were off 12 ents at $54.98 a barrel, while US crude eased 11 cents to $52.25 a barrel.

China’s Q4 GDP data today

Chinese GDP data are expected to show growth picked up to an annual 6.1% last quarter, from 4.9% in the third quarter. Monthly figures on retail sales and industrial output should show brisk activity as the year ended, Reuters reported. “We expect Q4 Chinese GDP growth accelerated to an above-consensus 6.5% a year,” said Joseph Capurso, head of international economics at CBA.

US stocks settled lower on Friday

Wall Street’s main indices finished lower, weighed down by big US banks after their earnings reports. The Dow Jones Industrial Average fell 177.26 points, or 0.57 per cent, to 30,814.26, the S&P500 index lost 27.29 points, or 0.72 per cent, to 3,768.25 and the Nasdaq Composite dropped 114.14 points, or 0.87 per cent, to 12,998.50.

Mindtree, IndiaMart to disclose Q3 results

L&T Finance, Alok Industries, Mindtree, IndiaMart, Trident, Rallis India, IRB Infra, Indiabulls Real Estate, Snowman Logistics are some of the companies which will disclose their December quarter earnings during the day.

IRFC IPO to open today

The Rs 4,633 crore IPO by Indian Railway Finance Corporation (IRFC), hitting on Monday, has many brokerages recommending ‘subscribe’ on it with long-term gains. Analysts said the IPO looks attractively priced and can be a good bet for conservative long-term investors, as expansion drivers for return on equity (RoE) or margins are missing, even as the company is seen reporting consistent growth numbers.

FPIs invest Rs 14,886 cr in first half of January

Foreign portfolio investors (FPI) put in Rs 14,866 crore in Indian markets in the first half of January with participants expecting strong third-quarter results by companies. As per depositories data, FPIs invested a net Rs 18,490 crore into equities but pulled out Rs 3,624 crore from debt segment between January 1-15.

MONEY MARKETS

Rupee: The rupee snapped its three-session winning streak and settled for the day 3 paise lower at 73.07 against the US dollar on Friday, with weaker Asian peers and heavy selloffs in domestic equities weighing on sentiment.

10-year bonds: India 10-year bond yield rose 1.08 per cent to 5.98 after trading in 5.92-5.98 range.

Call rates: The overnight call money rate weighted average stood at 3.25 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.

DATA/EVENTS TO WATCH

  • China NBS Press Conference (07:30 am)
  • China Fixed Asset Investment (YTD) YoY Dec (07:30 am)
  • China Q4 GDP Growth Rate QoQ (07.30 am)
  • China Dec Industrial Production YoY (07.30 am)
  • China Unemployment Rate Dec (07:30 am)
  • Japan Industrial Production MoM Final Nov (10:00 am)
  • ECB President Lagarde Speech

MACROS

Faster tax resolution framework coming… The Union Budget 2021 could unveil a new and continuous framework for faster resolution of disputes over direct taxes. The government is considering options such as mediation or a permanent dispute resolution system with pre-specified benchmarks on the lines of the ‘Vivad Se Vishwas’ scheme.

FinMin revives BIC option… The finance ministry is looking at other avenues for affordable capital infusion, including setting up of a Bank Investment Company, as RBI has raised concern over the issuance of zero coupon bonds for recapitalisation of public sector banks, sources said. Setting up BIC as a holding company or a core investment company was suggested by the P J Nayak Committee in its report on ‘Governance of Boards of Banks in India’.

Beneficiary reluctant on Covid vaccine… At least three of the 11 states — Tamil Nadu, Telangana and Bihar — that administered Bharat Biotech’s Covaxin on Saturday have pointed out that the beneficiaries were reluctant to sign the consent forms, resulting in less than 50% strike rate on the first day of the public immunisation drive. Rajasthan stood out as an exception, saying it faced no hesitancy issues. It administered 314 Covaxin doses out of a target of 600 and also reported no adverse event from the Bharat Biotech vaccine, whose approval has sparked concerns.

India Inc plans to vaccinate staff… Top conglomerates and companies such as the Godrej Group, Tata Group, Mahindra, Marico, Maruti Suzuki, TVS Motor and Vedanta are gearing up to secure Covid-19 vaccines from manufacturers and suppliers for their employees once government approvals and protocols for the next phase of vaccination are in place, top officials said. They are ready to absorb the vaccination costs for their employees, according to executives at some of these companies

Scepticism hurts vaccination drive… India’s Covid-19 vaccination drive has yet to pick up pace as misinformation and scepticism regarding vaccines creeping in on social media platforms and elsewhere, besides technical glitches, create bumps in the way. While Facebook has banned anti-vaccine groups, other platforms such as Twitter and WhatsApp are fuelling vaccine rumours and fear mongering.

Urban demand picks up for FMCG… After three quarters of downturn, urban demand has picked up for packaged consumer goods companies, riding on strong growth in discretionary categories and companies regaining their pricing power. Since the nationwide lockdown beginning March-end, villages had been driving the overall market growth, outpacing cities which were severely impacted by pandemic-induced disruptions, companies and analysts said.

Tesla takes Netherlands route to India… US automaker Tesla has chosen the tax-friendly jurisdiction of the Netherlands to route its India investment. Tesla Motors Amsterdam is the parent company for Tesla Motors and Energy, India, the company’s incorporation documents showed. This corporate structure in India would offer Tesla tax benefits related to capital gains and dividend payments, say experts.

Credit: Stocks-Markets-Economic Times

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