Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 31 points, or 0.23 per cent, lower at 13,560.50, in signs that Dalal Street was headed for a negative start on Tuesday.
Tech View: Third Doji in a row is bad omen
Nifty50 on Monday formed a ‘Doji’ candle on the daily chart, the third in a row. The formation of such an indecisive candle at highs suggests the momentum is weakening, even as the buying momentum continues at lows. The support for the index stands at 13,470 level.
Asian stocks dip on easing enthusiasm
Asian stocks came under pressure on Tuesday as concerns about increasing Covid-19 deaths overshadowed optimism about the start of coronavirus vaccinations. Australian S&P/ASX 200 lost 0.12 per cent while Japan’s Nikkei 225 fell 0.13 per cent. Hong Kong’s Hang Seng declined 0.86 per cent. China’s Shanghai Composite fell 0.5 per cent.
Oil drops on demand worries
Oil prices dipped in early trade on Tuesday, with demand worries due to tighter lockdowns in Europe outweighing relief from vaccination rollouts and concerns about a flare-up of tension in the Middle East. US WTI crude futures fell 16 cents, or 0.3 per cent, to $46.83 a barrel, while Brent crude futures fell 20 cents, or 0.4 per cent, to $50.09 a barrel.
US stocks settled mostly lower
The S&P 500 fell 15.97 points to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween.The S&P500 index fell 15.97 points to 3,647.49. The index declined 1 per cent last week, its worst weekly performance since Halloween. The Dow Jones Industrial Average dropped 184.82 points, or 0.6 per cent cent, to 29,861.55. The Nasdaq rose 62.17 points, or 0.5 per cent, to 12,440.04. The Russell 2000 index gained 2.16 points, or 0.1 per cent, to 1,913.86.
Mrs Bectors IPO to kick off today
Ahead of its IPO, Mrs Bectors Food Specialities on Monday raised Rs 162 crore from anchor investors ahead of its initial public offer opening on Tuesday. HDFC Life Insurance Company, Goldman Sachs India, Franklin India Smaller Companies Fund and SBI Debt Hybrid Fund are among the anchor investors.
FIIs buy Rs 2,264 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 2, 264.38 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,721.11 crore, data suggests.
MONEY MARKETS
Rupee: The rupee advanced by 9 paise to settle at 73.55 against the US dollar on Monday, buoyed by sustained foreign fund inflows.
10-year bonds: India 10-year bond yield fell 0.17 per cent to 5.94 after trading in 5.93-5.97 range.
DATA/EVENTS TO WATCH
- India Balance of Trade Final Nov (05:50 pm)
- Australia RBA Meeting Minutes (06:00 am)
- China Industrial Production YoY Nov (07:30 am)
- China Retail Sales YoY Nov (07:30 am)
- China Unemployment Rate Nov (07:30 am)
- UK Unemployment Change Oct (12:30 am)
- US Industrial Production YoY Nov (07:45 pm)
MACROS
Inflation slows, but above RBI target… Retail inflation slowed to a three-month low at 6.93% in November but stayed above the central bank’s upper margin of 6%, ruling out any immediate easing in interest rates. Food inflation cooled last month, helped by a fall in vegetable inflation. Separately released data on Monday showed India’s wholesale inflation firming up to a nine-month high of 1.55%, driven by manufactured items even as that in vegetables declined.
RBI, DBS Bank move SC on LVB merger… RBI and DBS Bank have moved the Supreme Court asking it to transfer all matters related to the LVB-DBS merger to the apex court. The Supreme Court is likely to hear the matter before it closes for the winter holidays. The amalgamation scheme of Lakshmi Vilas Bank and DBS is under challenge before Bombay High Court, Karnataka High Court, Madras High Court and Delhi High Court.
Apple probes India plant violence… US smartphone major Apple has launched a full-fledged investigation into the Wistron factory violence to probe if there has been any violation of labour rights by its supplier, with more company officials and auditors rushing to the facility in Kolar, Karnataka. “Apple is dedicated to ensuring everyone in our supply chain is treated with dignity and respect. We have teams on the ground and immediately launched a detailed investigation at Wistron’s Narasapura facility in India,” the Cupertino-based firm said in a statement.
Rules on investing in insolvent firms may ease… The capital markets regulator is likely to ease rules on investing in insolvent companies. The Securities and Exchange Board of India (Sebi) is likely to relax the oneyear lock-in requirement for incoming investors and revise rules on minimum public holding for companies emerging out of the insolvency process. These proposals, among some others, are expected to be discussed in the the Sebi board meeting scheduled on December 16.
Start-ups listing rules to be eased… Seeking to boost listing of start-ups, markets watchdog Sebi on Monday proposed a slew of relaxations to norms, including reducing holding period for pre-issue capital, providing differential voting rights to promoters and allowing discretionary allotment to all eligible investors.
Tata among parties bidding for AI… The Tata Group was among “multiple” interested parties that submitted expressions of interest (EoIs) for Air India, a response that a government official described as “overwhelming”. Others in the fray include a group led by employees, and Interups Inc., a US-based firm that specialises in turning around assets. Incidentally, the latter’s plan also involves the participation of staff. Low-cost carrier SpiceJet is also said to have shown interest in Air India.
Race for DHFL hots up… It’s a toss-up between Oaktree Capital and Piramal Enterprises after they trumped Adani Properties in the fourth round of bids submitted on Monday for the troubled mortgage lender DHFL. Multiple people involved in the discussions said that Oaktree’s Rs 36,646 crore offer has the quickest repayment timelines and a higher overall recovery but the equity infusion is only about Rs 1,500 crore. Piramal Group has offered to make the highest cash payment upfront of Rs 12,700 crore to DHFL creditors and a higher equity contribution of Rs 2,500 crore. Adani has offered Rs 10,750 crore upfront and Rs 19,110 crore as deferred payment over a seven-year horizon.
