STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 56 points, or 0.40 per cent, higher at 13,944, in signs that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty eyes 14,000 level
Nifty50 rose for the fourth straight session on Monday. The index formed a small bullish candle on the daily chart and continued to form higher highs and lows for the third session in a row. The index can now attempt to take out the 14,000 level in the short term, said analysts, who believe holding above the 13,750 level is key for further upside.
Asian shares jump on US stimulus
Asian shares jumped on Tuesday, with Japanese stocks hitting a 29-year high, as hopes that a long-awaited US pandemic relief package would be expanded and a Brexit trade deal supported investor risk appetites. Japan’s Nikkei leapt 0.9 per cent to its highest since March 1991, while Australian shares climbed 0.7 per cent and futures for the S&P 500 added 0.3 per cent.
Oil gains on hopes of rise in fuel demand
Oil rose, for the third time in four sessions, on expectations for rising fuel demand as the United States may expand their pandemic aid payments and a final Brexit deal is set to stabilize trade between Europe and the UK. Brent crude futures climbed 36 cents, or 0.7 per cent, to $51.22 a barrel and US WTI crude futures added 34 cents, or 0.7 per cent, to $47.96 a barrel.
US stocks hit record highs
US stocks hit record highs in overnight trade after President Donald Trump signed the latest Covid-19 relief bill into law. The S&P500 index rose 0.9 per cent to close at 3,735. The Nasdaq Composite index gained 0.7 per cent to settle at 12,899, after a record peak at 12,930. The Dow Jones Industrial Average, Wall Street’s broadest stocks gauge, edged up 0.7 per cent to close at 30,404.
FIIs buy Rs 1,589 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,588.93 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,386.55 crore, data suggests.
MONEY MARKETS
Rupee: The rupee appreciated by 6 paise to close at 73.49 against the US dollar on Monday, following a rally in stock markets and weakness in the US currency.
10-year bonds: India 10-year bond yield fell 0.07 per cent to 5.92 after trading in 5.91-5.92 range.
The DAY PLANNER
- Brazil Unemployment Rate Oct (05:30 pm)
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- US S&P/Case-Shiller Home Price MoM Oct (07:30 pm)
MACROS
RBI says 4% inflation target ideal… A 4% inflation target for the Indian Monetary Policy Committee is just ideal as it matches with the average trend inflation measured since 2014, an RBI research paper said. The real time estimate of trend inflation was around 5% till the end of 2013, while it fell steadily to 4.1% in the first quarter of 2019, before rising to breach the 6% upper tolerance limit during the last nine months due to the Covid-led disruptions.
Future Retail asks Sebi to clear RIL deal… Future Retail has written to Sebi, asking the market regulator to review and approve its deal with Reliance Retail Ventures quickly. The Kishore Biyani-owned firm pointed to the Delhi High Court saying that the Future Retail board’s decision to approve the merger of listed entities and sell retail assets to RIL was valid. In view of this, the application for Sebi’s no objection certificate or observations on the scheme to the stock exchanges should be reviewed as soon as possible.
Tesla coming to India… There was ministerial confirmation on Monday that Tesla is coming to India next year, with transport minister Nitin Gadkari saying Elon Musk’s company will first start sales operations and, based on the response it gets, consider local assembly and manufacturing. “American auto major Tesla will have its distribution facility (sale centres) for its cars in India from next year and, considering the demand, it would look into setting up of manufacturing here (too),” Gadkari said
MF investors can diversify to EMs… Domestic investors looking to diversify their portfolios to emerging markets other than India could consider the funds offered by Edelweiss Mutual and PGIM Mutual Fund, say investment advisors. A weak US dollar, near-zero interest rates in developed markets and underperformance vis-a-vis US markets over the last decade are driving global investors towards emerging market equities. Investors could allocate up to 5% of their portfolio to these funds, say advisors.
Capacity utilisation levels rise… India Inc registered continued improvement in capacity utilisation and sales in December but high managing costs and weak demand still remain sore points for businesses, a survey conducted by industry lobby Ficci and Dhruva Advisors showed on Monday. The prospect of a vaccine for Covid-19, continued support from the government and the Reserve Bank of India, and the expected benefits from a shifting global supply chain have improved business sentiment, the survey found.
