Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 51 points, or 0.34 per cent, higher at 15,247 in signs that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty may see consolidation ahead
Nifty50 on Wednesday broke below its immediate support level at 15,240 and barely held above the 15,200 mark at close. Analysts said further consolidation is likely, with the 15,100-15,080 range now a key support to watch out for. Since Nifty50 has closed below its five-day simple moving average, weakness is likely to set in unless the 50-pack index registers a close above the 15,313 mark, analysts said.
Asian shares fall in early trade
Asian markets were trading lower in Thursday’s trade as lingering pandemic concerns pushed against stronger economic data, and with little firm direction from Wall Street. Korea’s Kospi fell 0.47 per cent to 3,118. Japan’s Nikkei was trading 0.06 per cent lower at 30,269. Hong Kong’s Hang Seng declined 0.80 per cent to 30,830. China’s Shanghai Composite bucked the trend and was up 0.8 per cent.
Brent breaches $65 a barrel mark
Brent blew past $65 a barrel as a worsening US energy crisis took out almost 40 per cent of the nation’s crude production. Futures in London jumped as much as 1.8 per cent at the open after closing at the highest in almost 13 months. The global crude benchmark last traded above $65 on January 21, 2020 before Covid-19 wreaked havoc on global energy markets.
US stocks settled mixed
Investors weighed better US economic data against inflation worries Wednesday, resulting in a mixed session with another Dow record but a lower Nasdaq. The Dow Jones Industrial Average scored a third straight record, finishing 0.3 percent higher at 31,613.02. The broad-based S&P500 INDEX slipped less than 0.1 per cent to end at 3,931.31, while the tech-rich Nasdaq Composite Index shed 0.6 per cent to 13,965.49.
Nureca IPO subscribed 39.93 times, concludes
The initial public offer of Nureca Limited, which is into the business of home healthcare and wellness products, was subscribed 39.93 times on the last day of subscription on Wednesday. The Rs 100 crore-public issue received bids for 5,59,65,945 shares against 14,01,595 shares on offer, according to data available with the NSE.
RailTel Corporation IPO subscribed 6.64 times on Day 2
The initial public offer of telecom infrastructure provider RailTel Corporation of India was subscribed 6.64 times on the second day of subscription on Wednesday. The Rs 819.24-crore offer received bids for 40,64,63,940 shares against 6,11,95,923 shares on offer, as per NSE data.
FPIs buy Rs 1,008 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,008.20 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,283.38 crore, data suggests.
MONEY MARKETS
Rupee: The rupee depreciated by 5 paise to close at 72.74 against the US dollar on Wednesday tracking losses in the domestic equity markets and strengthening American currency in the global markets.
10-year bonds: India 10-year bond yield rose 0.13 per cent to 6.03 after trading in 6.01-6.04 range.
Call rates: The overnight call money rate weighted average stood at 3.21 per cent, according to RBI data. It moved in a range of 1.9-3.50 per cent.
MACROS
Sebi clears decks for LIC IPO… Sebi on Wednesday cleared the decks for ultra-mega initial share sales locally by its giant closely held companies, easing the minimum public offer norms at a time when the total market capitalisation of listed assets is beginning to outrun the country’s gross domestic output. Sebi said for issuers with post-issue market capitalisation exceeding Rs 1 lakh crore, the need for the minimum public offer will be reduced from 10% of post-issue market capital to Rs 10,000 crore, plus 5% of the incremental amount beyond Rs 1 lakh crore.
India to be faster growing EM… India is likely to be among the fastest-growing emerging markets this year, Standard & Poor’s predicted, even as the US rating company said new variants of the Covid-19 virus could lead to a much larger second wave and pose a risk to economic recovery. The steep contraction in the current financial year will be followed by a bounce back to 10% growth in FY22, putting India among the fastest-growing economies in 2021, said Andrew Wood, S&P director of sovereign and international public finance ratings.
PLI scheme for telecom gear unveiled … The government unveiled details of the Rs 12,195-crore production-linked incentive (PLI) scheme for telecom equipment that’s expected to lead to investment of more than Rs 3,000 crore and local production worth Rs 2.4 lakh crore, of which exports are pegged at Rs 2 lakh crore. The range of telecom equipment covered under the scheme includes routers, Internet of Things (IoT) access devices, radio access networks for 4G and 5G and wireless equipment, with the main aim being to boost exports. Currently, equipment worth about Rs 50,000 crore is imported, mainly from China.
Petrol price tops Rs 100 in Rajasthan… The price of regular petrol used by the masses shot past Rs 100 a litre in Rajasthan’s Sri Ganganagar on Wednesday, the first time an automotive fuel has crossed the threshold anywhere in the country. In other states, the prices mostly ruled above Rs 90 a litre mark as high central and state taxes bumped up the impact of rising crude prices. Diesel prices too made a record at Rs 92.1 a litre in Sri Ganganagar. Unmoved by these record prices, the Centre has ruled out any tax cut and is blaming oil exporters for jacking up crude prices. In Mumbai, central taxes make up 32% of petrol retail price
Life insurance premium set to rise… Indian life insurance companies are set to hike premiums for their term plans after several reinsurers increased rates for underwriting portfolios of these pure-protection covers. The move comes even as the domestic life companies face higher-than-expected mortality claims due to Covid. Reinsurance rates for Indian life companies had been hardening before the pandemic.
RBI tightens rules for HFCs… RBI has tightened norms for housing finance companies, particularly those raising public deposits. In terms of the master directions issued on Wednesday, HFCs must cease lending if they are not in a position to repay fixed deposit holders. The comprehensive rule book for HFCs is in the wake of the central bank taking over the regulation and supervision of these specialised lenders from the National Housing Bank in 2019.
Govt aims to sell United India, GIC Re… The government is considering the privatisation of United India Insurance and debating whether reinsurer General Insurance Corp. of India (GIC Re) should also be divested, people aware of the matter told ET. The Finance Ministry and Niti Aayog will together finalise the general insurer that will be considered for privatisation, a senior government official said.
Gold hits lowest in 2 months…. Gold held near the lowest level in more than two months as an uptick in the dollar and further signs of economic recovery pummeled demand for the haven asset. Bullion capped a five-day skid on Wednesday, the longest run of losses since March, as data showed U.S. retail sales surged in January by the most in seven months. In addition, production at manufacturers rose more than forecast as factories continued to recover from pandemic-related disruptions.
