Friday, December 4

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

NEW DELHI: An apparent tussle between the US Treasury Department and the US Fed following comments by Treasury Secretary Steven Mnuchin’s comments on emergency funding facilities spooked stocks globally on Friday. A rise in US jobless claims and worsening of Covid situation also added to the worries. They could have a bearing on domestic stocks on Friday.
Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start

Nifty futures on the Singapore Exchange traded 28.50 points, or 0.22 per cent, higher at 12,802.50, in signs that Dalal Street was headed for a positive start on Friday.

Tech view: Nifty forms Shooting Star

Analysts said the index was facing tough resistance in the 12,900-950 range and the formation of this candle after a couple of Hanging Man patterns suggests weakness ahead. The 12,600 level looks likely, they said. On the upside, Nifty50 has a hurdle at 12,900 level, they said.

Oil slips as coronavirus cases spiral

US oil prices slipped on Friday, dropping for a second day as concerns mounted about the hit to demand from the surge in COVID-19 infections forcing new lockdowns, but prices were supported by signs of movement on a stimulus deal in Washington. WTI was down 9 cents, or 0.2 per cent, at $41.65 a barrel.

Asian shares mixed in early trade

Asian shares staged a mixed open. Australia’s S&P/ASX 200 rose 0.44 per cent in early trading, while Hong Kong’s Hang Seng index rose 0.22 per cent. Japan’s Nikkei opened 0.6 per cent lower. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.11 per cent per cent.

S&P futures drop on Mnuchin comment

S&P500 futures were trading 0.66 per cent lower at 3,555.88 on Friday after Treasury Secretary Steven Mnuchin asked the Fed to return money earmarked under the March pandemic relief act for emergency lending to businesses, nonprofits and local governments, marking an end on December 31 to most of the crisis-response programs.

US stocks settled higher

US stocks ended in positive territory on Thursday as fresh stimulus hopes buoyed investor sentiment. The Dow Jones Industrial Average rose 44.81 points, or 0.15 per cent, to 29,483.23, the S&P 500 gained 14.08 points, or 0.39 per cent, to 3,581.87 and the Nasdaq Composite added 103.11 points, or 0.87 per cent, to 11,904.71.

Gland Pharma to debut today

Gland Pharma, whose IPO ran from November 9 to November 11, will make the market debut today. The issue, sold in the Rs 1,490-1,500 range, was subscribed mere 2.06 times in the three-day bidding process with HNI and retail quotas largely remaining undersubscribed.

FPIs buy Rs 1,180 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,180.61 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 2,854.94 crore, data suggests.

MONEY MARKETS

Rupee: The Indian rupee saw its first decline in four sessions on Thursday, depreciating by 8 paise to settle at 74.27 against the US dollar tracking weakness in Asian currencies and a lacklustre trend in domestic equities.

10-year bonds: India 10-year bond yield stood at 5.87 after trading in 5.87-5.89 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 1.8-3.40 per cent.

DATA/EVENTS TO WATCH

  • India Deposit/Loan Growth YoY Nov 06 (05.00 pm)
  • RBI Foreign Exchange Reserves Nov 13 (05.00 pm)
  • Japan Inflation Rate MoM Oct (05:00 am)
  • UK GfK Consumer Confidence Nov (05:31 am)
  • Japan Jibun Bank Services PMI Flash Nov (06:00 am)
  • Japan Jibun Bank Manufacturing PMI Flash Nov (06:00 am)
  • China Loan Prime Rate 1 year (07:00 am)
  • UK Public Sector Net Borrowing Oct (12:30 pm)
  • Euro Area Consumer Confidence Flash Nov (08:30 pm)
  • US Baker Hughes Oil Rig Count 20 Nov (11:30 pm)

MACROS

Moody’s upgrades India growth forecast, Barclays degrades… Moody’s Investors Service said India’s GDP will contract 10.6% in FY21, less than the 11.5% it had projected in September. The government’s latest fiscal stimulus package, aimed at manufacturing, infrastructure, job creation, credit supply and stressed sectors of the economy, provided a potential upside to the estimated growth, Moody’s said in a report on Thursday. However, Barclays projected a slightly deeper contraction of 6.4% for FY21 against 6% before to reflect incoming data that’s marginally weaker than expected.

Indian HNIs gain from US stock bets…. Rich Indians have joined the global investment game of buying stocks of pharma MNCs at the frontline of Covid vaccine development. In the last couple of months, especially in recent weeks, many high networth individuals and even a few retail investors have bought stocks of Moderna, Pfizer, Johnson & Johnson, AstraZeneca, GlaxoSmithKline, Abbott and Sanofi. It’s all perfectly above board – the stock buys happen via the Liberalised Remittance Scheme (LRS)

RBI unlikely to review LVB merger decision… RBI is unlikely to be swayed by the challenge posed by shareholders of Lakshmi Vilas Bank (LVB) to its plan to merge the severely loss-making bank with the Indian subsidiary of Singapore’s DBS. The erosion of LVB’s capital and the fact that bad loans comprised a quarter of its total loans mean that the central bank was left with very little choice in the matter, experts said. RBI’s decision came after it had exhausted all options.

Sebi seeks $8.4b from Sahara… Sebi has filed a petition with the Supreme Court, asking it to direct embattled Sahara conglomerate chief Subrata Roy and two of his companies to deposit Rs 62,600 crore ($8.4 billion) that it said was due to its investors. Sebi told the apex court that Sahara had failed to comply with 2012 and 2015 court orders to deposit the entire amount it had collected from investors along with 15% annual interest. Sebi said Sahara’s non-compliance over eight years caused the regulator “great inconvenience” and those guilty of contempt should be taken into custody if they failed to deposit the amount.

Steel price rise signals economic rebound… A steady rise in steel prices is perhaps a more accurate gauge of aggregate demand than any academic analysis is pointing to a V-shaped rebound in the Indian economy. That helps explain the second price increase by Indian steel mills in three weeks — prices have been raised by around Rs 750-1,000 a tonne this time. Industry sources said JSW Steel and ArcelorMittal Nippon Steel have raised prices by Rs 750 a tonne, whereas JSPL has hiked it by around Rs 1,000 effective November 18. TataSteel and SAIL will also likely be raising prices.

Adani wealth grows most in 2020… Gautam Adani’s personal wealth, as reflected in his share of the Adani Group market cap, has risen the most in 2020 when compared with other Indians of similar standing. Adani’s wealth has risen $19.4 billion so far in 2020 to $30.7 billion with six listed companies adding $27 billion (Rs 2.01 lakh crore) in market cap since January this year. Adani is the world’s ninth-biggest wealth creator, ahead of Steve Ballmer, Larry Page and Bill Gates.

Covid hospitalisation in US up 50% in 2 weeks

The number of people hospitalised with COVID-19 in the United States has jumped nearly 50 per cent in the last 14 days, straining the nation’s healthcare system and forcing states to impose new restrictions to curb the alarming spread of the coronavirus.

US jobless claims rise to 7,42,000

New filings for unemployment benefits in the United States climbed to 742,000 last week, the Labor Department said Thursday, reversing their recent decline amid a surge in Covid-19 cases. The data also showed 320,237 people applying for benefits under a special program for workers who aren’t normally eligible, while the level of claims reported in the week ended November 7 was revised slightly upwards.

Credit: Stocks-Markets-Economic Times

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