SGX Nifty down 45 points; here’s what changed for market while you were sleeping

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SGX Nifty down 45 points; here's what changed for market while you were sleeping


Weak US jobs data and concerns over new virus strains in some parts of the world may trigger further correction on domestic indices, which have been falling for three days now. A fall in oil prices, though, may ease the concerns over fuel price inflation.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals negative start

Nifty futures on the Singapore Exchange traded 45 points, or 0.30 per cent, lower at 15,069.50 in signs that Dalal Street was headed for a negative start on Friday.

Tech View: Nifty support at 15,000

Nifty50 fell for the third straight day on Thursday. The 50-pack formed a bearish candle on the daily chart and continued to form lower highs and lows. Analysts ruled out any major correction in Nifty as long as it holds above 15,000 level.

Asian markets drop in early trade

Asian stocks fell on Friday, following a dip on Wall Street as disappointing US jobs data fanned concerns the economic recovery. Australia’s S&P/ASX 200 fell 0.49 per cent, while Japan’s Nikkei225 lost 0.89 per cent. Hong Kong’s Hang Seng index declined 0.44 per cent.

Oil prices decline on demand worries

Oil prices slid 2 per cent in Friday’s trade , adding to overnight declines, on worries that refineries shut by a big freeze in the US South will take some time to revive operations and dent crude demand. Brent crude futures dropped $1.07, or 1.7 per cent, to $62.86 a barrel, after declining 0.6 per cent on Thursday.

US stocks settled lower

The S&P500 index index dropped 17.36 points, or 0.4 per cent, to 3,913.97. The Dow Jones Industrial Average index lost 119.68 points, or 0.4 per cent, closing at 31,493.34 and the Nasdaq Composite fell 100.14 points, or 0.7 per cent, to 13,865.36.

RailTel IPO subscribed 42 times, closes

The initial public offering (IPO) of RailTel has been subscribed more than 42 times as the offer ended on Thursday. Secretary, DIPAM, Tuhin Kanta Pandey said: “RailTel IPO received great demand from all categories of investors and was subscribed more than 42 times.”

FPIs buy Rs 903 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 903 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,217 crore, data suggests.

MONEY MARKETS

Rupee: The rupee pared its initial losses to settle higher by 9 paise at 72.65 against the US dollar on Thursday following consistent forex inflows and losses in the American currency in the global markets.

10-year bonds: India 10-year bond yield rose 1.69 per cent to 6.13 after trading in 6.02-6.13 range.

Call rates: The overnight call money rate weighted average stood at 3.22 per cent, according to RBI data. It moved in a range of 1.9-3.50 per cent.

Data/Events to Watch

  • India Foreign Exchange Reserves 12/Feb (05:00 pm)
  • Japan Inflation Rate YoY Jan (05:00 am)
  • UK Gfk Consumer Confidence Feb (06.00 am)
  • Japan Jibun Bank Manufacturing PMI Flash Feb (06:00 am)
  • Euro Area Markit Manufacturing PMI Flash Feb (02:30 pm)
  • Euro Area Current Account Dec (02.30 pm)
  • UK Markit/CIPS UK Services PMI Flash Feb (03:00 pm)
  • US Markit Manufacturing PMI Flash Feb (08:15 pm)


MACROS


MFs seeing record new SIPs…. With the equity market scaling new highs, new systematic investment plan (SIP) account registrations rose to a record16.4 lakh in January, show data from the Association of Mutual Funds in India (Amfi). This is the second month in a row when SIP registrations hit record highs. The previous peak was in January 2018 at 12.9 lakh accounts. The two-month rolling average of new SIP registration reached 30.7 lakh accounts compared with an average 18 lakh in the past four-and-half years.

FinMin flags NUE framework of 3 banks… The finance ministry has raised concern over State Bank of India’s plan to set up a joint venture with HDFC Bank and Bank of Baroda under the central bank’s new umbrella entity (NUE) framework, worried that it could squeeze the National Payments Corporation of India (NPCI), three people aware of the matter told ET. The government doesn’t want public sector banks to set up NUEs that will rival the country’s premier payments entity, the people said.

No takers at RBI bond sale… The Reserve Bank of India (RBI) could not find takers for about Rs 25,000 crore of government bonds at reasonable rates as bidders demanded higher yields, pointing to the challenges the central bank faces in preventing a spiral in debt costs. The benchmark yield surged 11 basis points Thursday, mimicking the recent hardening of rates in the US. “There is poor appetite for government bonds,” said Lakshmi Iyer, chief investment officer (debt) and head of products, Kotak Mahindra Asset Management Co.

Ministries told to give timelines for projects… The finance ministry has reached out to ministries and departments asking for timelines for implementation of key budget announcements, mindful that the feelgood factor can disappear quickly if execution is delayed. Prime Minister Narendra Modi is keen that most decisions be implemented before April 1, a senior government official said. “Execution will be the key and that will be the big focus,” said the official who did not wish to be identified.

Retail fuel prices hit new record… Domestic fuel prices rose for the 10th day in a row on Thursday, setting new records. State oil companies raised prices of petrol and diesel by 32-34 paise per litre. Petrol now costs ₹89.88 in Delhi and ₹96.32 in Mumbai. Diesel costs ₹80.27 in Delhi and ₹87.32 in Mumbai. Rising prices have triggered protests on social media with consumers and political opposition demanding cuts in taxes that comprise about 55-60% of fuels’ retail prices.

India IT projected to grow 10% a year… The Indian IT industry is expected to grow at 10% per year to touch $300-350 billion in revenue over the next five years, according to a soon-to-be-released report by McKinsey & Company. This means the $194 billion Indian tech industry will grow at a much faster clip than the 7.5% growth rate registered over the last five years. The growth is expected to primarily come from digital services, which currently accounts for 30% of industry revenue, but its share is expected to rise to 50% over the five-year period, totalling to around $170-200 billion of revenue

India Inc may give 8% raise in FY22… Good news for India Inc employees. After a pandemic-hit 2020, bigger salary hikes are on the cards in 2021. Also, more companies will be handing them out. Average increments for India Inc are expected to go up to 7.3% from 4.4% in 2020 with 92% of companies planning to give increments in 2021, compared with only 60% last year, according to the 2021 Workforce and Increment Trends Survey (Phase 1) by Deloitte Touche Tohmatsu India. Excluding companies that do not intend to give hikes, average increments will be 8%

Cairn team meets Fin Secy… Cairn Energy’s top executives met the finance secretary on Thursday to discuss the way ahead for the $1.2 billion arbitration award that the UK company won against India in a retrospective tax case, but the two sides remained tightlipped on what transpired. Cairn’s management, prodded by shareholders, has been mounting pressure on the government to implement the arbitration tribunal’s December order asking India to pay the oil explorer damages of $1.2 billion plus interest and costs in a six-yearold retrospective tax dispute.





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