Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 6.25 points, or 0.05 per cent, lower at 13,435.50, in signs that Dalal Street was headed for a flat start on Monday.
Tech View: 13,550 key for Nifty
After the wild swings seen by the Nifty-50 index, the benchmark has created a Bullish Harami kind of pattern on the daily chart, indicating a likely continuation of the bullish sentiment, but analysts said it was too early to confirm a trend. According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, for the positive momentum to continue the Nifty 50 needs to sustain above 13,550 levels.
Asian stocks gain in early trade
Most Asian shares traded with gains with Thailand leading the pack as low level buying began. Australia’s S&P/ASX 200 was up 0.60% in early trading, following three-straight days of losses.
US stocks ended in the red on Friday
US stocks ended mostly lower over concerns the new COVID variation, which has halted movement in and out of the UK and sent vaccine makers scrambling to ensure their drugs are effective against it, could further hamper a softening economic recovery. The S&P 500 ended down 0.21% and the Dow Jones Industrial Average fell 0.67%, while the Nasdaq Composite gained 0.51%.
FIIs buy Rs 1,153 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,153 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 661.51 crore, data suggests.
MONEY MARKETS
Rupee: The rupee furthered its losses by another 5 paise to close at 73.84 against the US dollar on Tuesday in line with weaker Asian peers amid concerns over a new coronavirus strain.
10-year bonds: India 10-year bond yield were flat at 5.95 after trading in the 5.93-5.97 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 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
- BoJ Monetary Policy Meeting Minutes (05:20 am)
- Japan Leading Economic Index Final Oct (10:30 am)
- UK Car Production YoY Nov (02:30 pm)
- US Durable Goods Orders MoM Nov (07.00 pm)
- US Personal Income MoM Nov (07.00 pm)
- US Initial Jobless Claims 19/Dec (07:00 pm)
- US House Price Index MoM Oct (07:30 pm)
- US New Home Sales MoM Nov (08:30 pm)
MACROS
Tatas, SIA weight Air India bid… Tata Sons and Singapore Airlines (SIA) are said to be engaged in hectic parleys as the Indian conglomerate seeks to finalise options for the entity that will submit a bid for state-owned Air India soon. Tata Sons chairman N Chandrasekaran is engaged in active discussions on the matter with the Singaporean company’s management
US Stimulus may not be enough…Congress approved a long-anticipated new fiscal stimulus package worth nearly $900 billion late on Monday, but economists said it would likely fall short of what was needed to counter a winter of rising coronavirus infections and layoffs.
Telco-IT battle for 6GHz… It’s a battle over 6 GHz for broadband speeds like 5G. On one side are Indian telcos Bharti Airtel, Reliance Jio Infocomm and Vodafone Idea (Vi). On the other are global tech majors Google, Facebook, Microsoft, Cisco, Qualcomm, Intel, Hewlett-Packard and Broadcom. In the US, non-telecom companies are allowed to operate in this band and offer services such as WiFi-6. If this is allowed in India, these tech companies can offer ultra high speed internet to potentially over a billion people.
Economy shows signs of stabilising… India’s economic activity showed signs of stabilizing in November, even as concerns of fresh virus outbreaks and a new strain in the U.K. mount amid news of vaccines fueling hope. All eight high-frequency indicators tracked by Bloomberg News were steady last month, keeping the needle on a dial measuring the so-called ‘Animal Spirits’ unchanged at 5. The level was arrived at by using the three-month weighted average to smooth out volatility in the single-month readings.
Indian debt, rupee may draw FIIs in 2021… Indian debt and rupee may lure overseas investors in 2021, just like the nation’s equities with one caveat: the central bank will face more challenges in curbing the local currency’s gains against the greenback. Stocks have already attracted the biggest yearly inflows since 2012, adding to the woes for the RBI that has been buying up the deluge of dollars to curb the rupee’s gains. The resulting glut of cash in the financial system has caused short-term rates to crash, which, combined with high inflation, is dampening debt returns for foreign funds triggering a record outflow from bonds.
Bitcoin rally fuels hiring spree in crypto industry… The cryptocurrency craze — and Bitcoin’s morethan-200% surge to trade at record $23,000 levels this year — is fuelling a hiring spree in Indian exchanges and startups dealing with virtual currencies. CoinSwitch, Bitex, ZebPay, Unocoin and CoinDCX are among those hiring for roles across technology, product, finance, compliance and design, as they are scaling up team sizes by 40-200%. According to companies, 2020 has been a good year for the crypto industry, not only in India where the Supreme Court in March reversed a central bank ban on banks and entities regulated by it for providing services in relation to virtual currencies, but also globally, with a rising interest both at the retail and institutional levels
Small borrowers showing financial stress…Financial stress among middle- and lower-income retail borrowers is beginning to bite fintech lenders, with more than a third of their customers skipping payments in the past few weeks. Smallticket unsecured advances and loans to MSMEs and a section of retail consumers are affected due to large-scale redundancies, across-the-board wage cuts and hits to small businesses.
FB, Google had mutual deal… Facebook Inc and Alphabet Inc’s Google agreed to “cooperate and assist one another” in case of an investigation into their pact to work together in online advertising, The Wall Street Journal (WSJ) reported late on Monday. The WSJ report cited a draft version of the complaint filed by10 US states without redactions in the public version. It accused Google of working with Facebook in a manner that violated antitrust law to boost its already-dominant online advertising business. According to the report, the lawsuit said Google and Facebook were aware that their agreement could trigger antitrust investigations and discussed how to deal with them.
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