STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 62.5 points, or 0.43 per cent, higher at 14,706.50 , in signs that Dalal Street was headed for a positive on Thursday.
Tech view: Short-term Nifty bottom in place
Nifty50 jumped on Wednesday and formed a bullish candle on the daily chart, for a second time in two days. Analysts said the fast retracement of the last leg of the fall is hinting that a short-term bottom is in place, and the index has resumed its rally after a brief halt.
Asian stocks gain in early trade
Asian markets rose on Thursday after US stocks closed at record highs on hopes that newly inaugurated U.S. President Joe Biden would put in place further economic stimulus to offset damage wreaked by the COVID-19 pandemic. MSCI’s gauge of stocks across the globe gained 0.07 per cent. Australia’s ASX 200 jumped more than 0.80 per cent in early trade Thursday. Japan’s Nikkei index rose 0.81 per cent.
Oil rises on US stimulus hopes
Oil edged higher on Wednesday on expectations that US President Joe Biden’s administration will deliver hefty pandemic-related economic stimulus that will lift fuel demand and enact policies that will tighten crude supply. Brent crude settled at $56.08 a barrel, gaining 18 cents. US West Texas Intermediate (WTI) crude settled at $53.24 a barrel, climbing 26 cents.
US stocks settled at record high
US stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th U.S. president, while solid results from Netflix sparked a rally in shares of “stay-at-home” beneficiaries. The Dow Jones Industrial Average rose 257.86 points, or 0.83 per cent, to 31,188.38, the S&P500 gained 52.94 points, or 1.39 per cent, to 3,851.85 and the Nasdaq Composite added 260.07 points, or 1.97 per cent, to 13,457.25.
Home First Finance to open today
The Rs 1,153.71 crore Home First Finance IPO will open for subscription on Thursday, a day after the housing finance company (HFC) raised a little over Rs 346 crore from 25 anchor investors. On the block is an offer for sale (OFS) of Rs 888.72 crore worth shares and a fresh issue of Rs 265 crore worth shares. The price band for the issue is fixed at Rs 517-518 price band. Investors can bid for a minimum of 28 equity shares and and in multiples thereafter.
Asian Paints, Bajaj Auto to disclose Q3 results
Asian Paints, Bajaj Auto, SBI Cards, Bandhan Bank, Biocon, Mphasis, Kajaria Ceramics, MCX and Mphasis are some of the companies which will announce their Q3 results today.
IRFC IPO concludes, subscribed 3.49x
The initial public offer of Indian Railway Finance Corporation Limited was subscribed 3.49 times on the final day of bidding on Wednesday. The offer received bids for 4,35,22,57,225 shares against 1,24,75,05,993 shares on offer.
Bitcoin now a crowded trade
Bullish bets on bitcoin have emerged as the most crowded trade for the first time since October 2019, according to a survey of fund managers by Bank of America Securities. About 36% of the respondents identified ‘long bitcoin’ as the most crowded trade. A total of 217 fund managers with $596 billion worth of assets under management participated in the survey.
Indigo Paints IPO subscribed 1.9x on Day 1
The initial public offer of Indigo Paints was subscribed 1.90 times on the first day of bidding on Wednesday. The offer received bids for 1,04,67,410 shares against 55,18,402 shares on offer, as per data available with NSE. The portion reserved for qualified institutional buyers (QIBs) was subscribed 10 per cent, non institutional investors 1.10 times and retail individual investors (RIIs) 3.29 times.
FPIs buy Rs 2,289 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 2,289.05 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 864.62 crore, data suggests.
Rupee: Rising for the second session on the trot, the rupee finished 12 paise higher at 73.05 against the US dollar on Wednesday amid a rally in domestic equities and a weak greenback overseas.
10-year bonds: India 10-year bond yield declined 0.12 per cent to 5.93 after trading in 5.93-5.94 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
- Q3 Earnings: Asian Paint I Bajaj Auto I Bandhan Bank I Biocon I Jindal Steel I SBI Card
- Japan Balance of Trade Dec (05:20 am)
- Australia Employment Change Dec (06:00 am)
- BoJ Interest Rate Decision (08:30 am)
- BoE Credit Conditions Survey (03:00 pm)
- UK CBI Business Optimism Index Q1 (04:30 pm)
- ECB Interest Rate Decision (06:15 pm)
- US Jobless Claims 4-week Average Jan/16 (07:00 pm)
- US Housing Starts MoM Dec (07:00 pm)
Centre may suspend farm laws… The Centre proposed suspending the implementation of three contentious farm laws for up to a year and a half so that the government and protesting farmers can arrive at a consensus on them. The government said a joint committee will also be set up toward this end. The farmers’ unions said they will revert on Friday after discussing the proposal among themselves. They said the government had offered to suspend the laws for as much as two years.
Joe Biden regime begins in the US
In his inaugural speech after being sworn in as the 46th President of the United States in a historic but scaled down ceremony under the unprecedented security umbrella of thousands of security personnel, the 78-year-old veteran Democratic leader said: “We’ll be a strong and trusted partner for peace, progress and security”.
Voda eyes Indus stake sale… Vodafone Group is considering selling a small portion of its 28.12% stake in Indus Towers to inject capital into its ailing Indian telecom joint venture, Vodafone Idea (Vi). This comes even as Vodafone Idea’s potential global lenders are pressing the telco’s co-promoters — the UK telecom major and India’s Aditya Birla Group — for some capital infusion to improve their overall comfort levels, three people with direct knowledge said.
Good news for white-collar India… At least 60% of employers intend to give salary increments and 55% bonus payouts in 2021. Coming after a year that saw the economy slump and most businesses hit, the salary hike news is even better because 30% of companies are as yet deciding on whether to reward employees. So, the proportion of employers who bring cheer can only go up. Only some 10% employers are freezing salaries this year.
Sebi okays RIL-Future deal…. The market regulator has approved Reliance Retail’s acquisition of Future Group’s retail assets, which is being opposed by Amazon. The market regulator wrote to the BSE on Wednesday and based on Sebi’s observations, the stock exchange said it has no adverse observations on the listing or de-listing requirements and that the scheme can be filed with the NCLT.
Govt weighs g-sec product for retail investors…. The Centre is considering the launch of a Bharat Bond ETF product that would include central government securities to increase both safe investment options for retail investors and liquidity in sovereign papers. Finance ministry is in talks with the market regulator Sebi and they are exploring the broad contours of the proposed product.
India Inc seeks demand push in Budget… India Inc is eyeing a demand push from Budget 2021-22, along with an increased outlay for infrastructure and social sector projects, according to a private survey. The budget should also continue with the Centre’s policy focus on strengthening the manufacturing sector while promoting research and development and incentivising new technologies, said the Federation of Indian Chambers of Commerce and Industry (Ficci)-Dhruva pre-budget survey released on Wednesday.