STATE OF THE MARKETS
SGX Nifty signals gap-up start
Nifty futures on the Singapore Exchange traded 92 points, or 0.64 per cent, higher at 14,368, in signs that Dalal Street was headed for a gap-up start on Tuesday.
Tech view: Nifty forms bearish candle
Nifty50 on Monday extended losses to the second consecutive day and formed another big bearish candle on the daily chart. In the process, the index violated its multiple day support level of 14,350, indicating a negative bias. Analysts said bears appear to be slowly tightening their grip on the market as intraday recovery towards 14,400 had huge selling pressure in the afternoon session.
Asian shares edge higher
Asian share markets edged ahead on Tuesday as investors wagered China’s economic strength would help underpin growth in the region, even as pandemic lockdowns threatened to lengthen the road to recovery in the West. MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.2 per cent, to be a whisker from record highs. Japan’s Nikkei bounced 1 per cent, recovering all the losses suffered on Monday.
US markets to resume trade today
US markets were shut on Monday on account of Martin Luther King Jr. Day. On Friday, 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. The trading would resume on Tuesday.
L&T Infotech, ICICI Lombard to disclose Q3 results
L&T Infotech,ICICI Lombard, Tata Communications, Alembic Pharma, Hatsun Agro, Bank of Maharashtra, DCM Shriram and CEAT are some of the companies which will disclose their December quarter earnings during the day.
IRFC IPO subscribed 65% on Day 1
The initial public offer of the Indian Railway Finance Corporation (IRFC) was subscribed 65 per cent on the first day of subscription on Monday. The offer received bids for 80,89,30,700 shares against 1,24,75,05,993 shares on offer, as per data available with the NSE.
FPIs buy Rs 651 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 651 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 42.51 crore, data suggests.
Rupee: The rupee plunged by 21 paise to settle at a week’s low of 73.28 against the US dollar on Monday, tracking weak domestic equities and a rebound in the American currency.
10-year bonds: India 10-year bond yield declined 0.52 per cent to 5.95 after trading in 5.95-5.98 range.
DATA/EVENTS TO WATCH
- EU New Car Registrations YoY Dec (12:30 pm)
- Euro Area Current Account Nov (02:30 pm)
- UK Labour Productivity QoQ Final Q3 (03:00 pm)
- Euro Area Construction Output YoY Nov (03:30 pm)
- Euro Area ZEW Economic Sentiment Index Jan (03:30 pm)
- China FDI (YTD) YoY Dec
India among top 10 US treasury buyers… For the first time, India has featured in the list of top 10 sovereign investors in US Treasuries. At the end of October, the count was at a new record high of $222.4 billion, showed the latest data. That should give sufficient cushion to Asia’s third-biggest economy when interest rates turn globally — and currency volatility becomes manifest in the money hubs of London, New York and Tokyo.
India economic uptrend continues… The uptrend in economic and business activities in the country is continuing in the New Year after a broad-based rebound in December, latest reports from Japanese brokerage Nomura and rating agency Icra show. Nomura India Business Resumption Index inched up to 93.4 for the week ended January 17 from 93.2 the previous week. “Positive pandemic-related developments – both, on cases and vaccination – are helping clear the decks for a faster pace of economic normalisation,” Nomura economists Sonal Varma and Aurodeep Nandi said in a note on Monday.
Equity funds face redemption pressure… Domestic mutual funds are witnessing rising redemption pressure at a time when the equity indices are trading at record levels. Their three-month rolling average of equities sold reached to Rs 71,680 crore in December 2020, the highest since the data was first made available by Sebi in 1999. It includes exposure of equity funds, index funds, exchange-traded funds and balance funds.
Investors vote to shut Franklin schemes… Most unitholders in the six debt schemes of Franklin Templeton Mutual Fund have voted in favour of shutting them down. The Supreme Court made this observation on Monday during the hearing of a petition filed by Franklin challenging an earlier ruling by Karnataka High Court that had asked the fund house to obtain the consent of the unitholders before shutting the schemes down. About 96-98% of the unitholders in the schemes voted for winding up, according to people familiar with the matter.
Pay cut for those working from small towns… Moving to a small town to work from home? You may see a salary cut. Companies in the services sectors have begun evaluating the option of salary reduction for employees who opt to move to smaller towns from metros and tier-I cities, as stakeholder discussions begin on the labour ministry’s draft rules on the service sector’s work from home norms. Sectors that may see such salary rejig are IT/ITeS, financial services and professional services.
India’s top-tier IT services providers.. Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro — have hired a combined 36,487 employees in the December quarter of FY21, significantly higher than during the same period in 2019, as clients demanded faster execution of digital projects. The top four firms account for nearly a fourth of India’s 4.3 million information technology workforce.
India seeks to fix CoWIN glitches… With serious issues continuing to plague CoWIN— the backbone of India’s vaccination drive — in parts of the country, the government is updating the platform to remove glitches in the app as well as the portal. CoWIN is supposed to handle minute details for India’s Covid-19 immunisation programme, including registering beneficiaries, allocating vaccination centres, sending text messages with name of their vaccinator to beneficiaries and live monitoring of vials in cold storage. Its performance has, however, been variable.