Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 7 points, or 0.05 per cent, higher at 14,757.50 in signs that Dalal Street was headed for a flat on Tuesday.
Tech View: Nifty signals lack of direction
Nifty50 snapped a two-day losing streak on Friday and formed a Bullish Harami Cross on the daily chart, suggesting a pause in the corrective move. On the weekly chart, the index formed a bearish candle and continued to form lower highs and lows. Analysts said multiple parameters on the weekly charts entered ‘sell’ mode, and further buying is required to instill confidence among traders.
Asian stocks rise in early trade
Asian shares were trading flat to positive on Tuesday as investors shook off earlier worries about a hedge fund default that roiled global banking stocks overnight, while rekindled concerns about inflation pushed bond yields higher. Hong Kong’s Hang Seng rose 0.3 per cent to 28,433.19, Korea’s Kospi added 0.5 per cent to 3,050.83. Japan Nikkei edged 0.08 per cent lower at 29,360.98.
US stocks settled flat
The S&P 500 ended nearly flat on Monday, with bank shares falling amid warnings of potential losses from a hedge fund’s default on margin calls, while optimism over the economy limited the day’s declines. The Dow Jones Industrial Average rose 9.49 points, or 0.30 per cent, higher at 33,177.49, the S&P500 index lost 3.45 points, or 0.09 per cent, to 3,971.09 and the Nasdaq Composite dropped 79.08 points, or 0.6 per cent, to 13,059.65.
Nazara Tech to make market debut
The stock would make market debut on Tuesday.The gaming company, where Rakesh Jhunjhunwala holds 10.82 per cent stake, would be the first gaming company to list in India. The Big Bull did not participate in the Rs 583 crore crore IPO that ran from March 17 to March 19.
DIIs buy Rs 1,703 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 50.03 on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,703.14 crore, data suggests.
Rupee: The rupee snapped its three-day losing streak and closed 11 paise higher at 72.51 (provisional) against the US dollar on Friday, supported by positive domestic equities and weakening of the American currency in the overseas market.
10-year bonds: India 10-year bond yield fell 0.13 per cent to 6.12 after trading in 6.11-6.15 range.
Call rates: The overnight call money rate weighted average stood at 3.24 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
DATA/EVENTS TO WATCH
- Euro Area Economic Sentiment MAR (02:30 pm)
- Euro Area Consumer Confidence Final MAR (02:30 pm)
- Euro Area Industrial Sentiment MAR (02:30 pm)
- US Redbook MoM 27/MAR (06:25 pm)
- US S&P/Case-Shiller Home Price YoY JAN (06:30 pm)
- US House Price Index YoY JAN (06:30 pm)
- US CB Consumer Confidence MAR (07:30 pm)
Hedge fund trouble rattles markets… Turmoil at Archegos Capital Management, the investment firm of former hedge fund manager Bill Hwang, is rattling financial markets around the globe. Shares in some of the world’s largest banks plunged in Monday trading: Both Nomura Holdings and Credit Suisse fell more than 14% and said they may face significant losses because of their exposure to wrong-way bets by Archegos, following the forced liquidation of over $20 billion in positions linked to the New York-based family office. US stocks retreated from all-time highs as traders weighed the level of contagion.
FT taps diplomatic route to seek fair trial… Franklin Templeton has tapped diplomatic channels seeking a “just and fair” hearing by Sebi in the ongoing regulatory and legal proceedings involving liquidation of the asset manager’s six debt schemes in the country. “If we are hit with unfairly large penalties — whether by fine or disgorgement — that not only would discriminate against a major US-based global investment manager, it also would cause us to cut jobs and otherwise pull back our Indian operations,” Franklin Templeton’s global CEO and president Jennifer M Johnson said in a note to the Indian ambassador in Washington.
Sebi wants analyst calls made public… In a move to reduce information asymmetry, Sebi’s latest stipulation is that companies must publish the audio/video recording of analyst meetings within 24 hours or before the market opens, whichever is earlier, on their websites and to stock exchanges. The companies also have to upload a written transcript of the meeting within five days. This is an incremental step in the right direction — likely to have implications on the disbursal of information at the analyst meetings.
Tata Sons seeks to buy SP shares… Tata Sons is understood to be mulling plans to file an injunction to protect its future right of any pre-emptive purchase of its shares, if these were to be pledged by the SP Group. Top officials close to the development said this is a top concern of the Tata Group holding company’s legal team, which is currently evaluating the impact of Friday’s Supreme Court order. The salt-to-software conglomerate may seek an injunction from a city civil court, sessions court, or the high court, depending on the nature of the relief sought.
FTSE may include Indian bonds in EM index… FTSE Russell has placed the Indian and Saudi Arabian government bond markets on the watchlist for possible inclusion in its FTSE Emerging Government Bond Index, the index provider said. The announcement was included in FTSE Russell’s semi-annual country classification review released on Monday. The market accessibility level of Indian and Saudi Arabian bonds will be considered for reclassification to 1 from 0, FTSE said.
Steelmakers my hike price…India’s top steelmakers, JSW Steel, JSPL, AM/NS and Tata Steel, might raise prices by up to Rs 4,000 a tonne on the benchmark hot-rolled coil (HRC) from April after rates climbed in the global markets, particularly in China. “The decision is yet to be made, but we are planning the hike to cover the rising cost of iron ore,” said an executive at one of the top steel players. Steel mills had reduced prices by Rs 1,000 per tonne at the start of March on the back of a reduction in import prices after the customs duty reduction.
LIC shuts door to MNC banks… LIC has virtually shut the doors to MNC banks as it prepares to move its huge holdings of equity and corporate bonds to a new custodian. The prestigious mandate, which the LIC board would finalise next month, involves running demat accounts for “assets under custody” of close to Rs 10 lakh crore. The two eligibility conditions that have put global banks at a disadvantage are: first, if the bidder is a foreign company or an MNC, it must have any of its securities listed on a stock exchange in India; second, the CEO or MD of the custodian must give an undertaking that its servers are located in India and data on the servers shall not be replicated outside India.
IBA wants Centre to compensate banks… The Indian Banks’ Association has requested the centre to compensate lenders for their income loss because of last week’s Supreme Court order, which prevented them from levying compound interest on loans for the moratorium period, two people with knowledge of the matter said. The request was made in a letter sent to the finance ministry on Saturday, they said. The government has already reimbursed banks for forgoing compound interest, or interest on interest, on loans up to ₹2 crore outstanding during March-August last year, when borrowers had the option to seek moratorium on repayments.
Japan’s retail sales fall for 3rd month
Japanese retail sales fell for the third straight month in February as households kept a lid on expenditure amid the coronavirus emergency, underscoring the fragile nature of the economy’s recovery from last year’s slump. Retail sales lost 1.5 per cent in February from a year earlier, government data showed on Tuesday, a smaller fall than the median market forecast for a 2.8 per cent drop, Reuters reported.