Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 56 points, or 0.38 per cent, higher at 14,771.50 in signs that Dalal Street was headed for a positive on Tuesday.
Tech: Nifty forms Doji candle
The index on Monday failed to take out its 50-day moving average, whose value now stands at 14,760. That said, it negated the lower highs it was making for the previous three sessions. The short-term trend remains weak, but analysts advised traders to buy on dips.
Asian markets rise in early trade
Asian stocks gained on Tuesday as bond yields pulled back, easing concerns about inflation although investors are keeping a close eye on rising Covid-19 cases in Europe. Hong Kong’s Hang Seng index rose 0.10, while Japan’s Nikkei was 0.6 per cent higher. E-mini futures for the S&P500 gained 0.06 per cent .
US stocks settled higher
US stocks pushed higher on Monday as bond yields pulled back. The Dow Jones Industrial Average closed up 103.23 points, or 0.32 per cent, at 32,731.2. The S&P500 index gained 27.49 points, or 0.70 per cent, to 3,940.59 and the Nasdaq Composite added 162.31 points, or 1.23 per cent, to 13,377.54.
FPIs sell Rs 787 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 786.98 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 542.70 crore, data suggests.
MONEY MARKETS
Rupee: The Indian rupee continued its winning run for the third straight session on Monday, adding another 15 paise to close at 72.37 against the US dollar as some stability in crude oil prices and sustained foreign fund inflows kept investor sentiment upbeat.
10-year bonds: India 10-year bond yield fell 0.21 per cent to 6.18 after trading in 6.16-6.20 range.
DATA/EVENTS TO WATCH
- UK Employment Change Dec (12:30 pm)
- UK Average Earnings excl. Bonus Jan (12.30 pm)
- US Current Account Q4 (06:00 pm)
- US New Home Sales MoM Feb (07:30 pm)
- US Fed Chair Powell Testimony (09:30 pm)
MACROS
SC to pronounce verdict on moratorium today
The Supreme Court will on Tuesday pronounce verdict on a batch of pleas by various trade associations, including from real estate and power sectors, seeking extension of loan moratorium and other reliefs in view of the Covid-19 pandemic. A bench headed by Justice Ashok Bhushan which had reserved its verdict on the batch of pleas on December 17, last year, will pronounce the judgement.
Fed’s Powell sees ‘strengthening’ US recovery
The US recovery from the Covid-19 pandemic “looks to be strengthening,” Federal Reserve Chair Jerome Powell said on Monday, but vowed the central bank would continue its efforts to aid racial minorities and other groups hurt most by the downturn. In testimony released ahead of his appearance scheduled for Tuesday before the House Financial Services Committee, Powell underscored that the central bank would continue policies like zero interest rates.
Sebi softens glide path for AT1 bonds… To resolve issues that had cropped up between itself and the department of financial services within the Finance Ministry on the issue of valuation of AT1 bonds, Sebi on Monday provided another way to value these instruments. The new process would maintain a middle path between the two entities. Sebi said till March 31, 2022, these bonds will be valued at 10-year residual maturity, between April and September 2022 at 20-year, between October 2022 and March 2023 at 30-year and thereafter (in effect, from fiscal 2023-24) at 100-year residual maturity.
RBI forms panel to issue bank licences… RBI has set up a standing external advisory committee headed by former deputy governor Shyamala Gopinath to evaluate on-tap applications for universal and small finance banks. Although the guidelines for on-tap licensing were announced as early as 2016, the central bank had said that applications would need to be scrutinised by a standing committee, which has been appointed only now.
Tata, Ajay Singh shortlisted for AI bid… Tata Group and SpiceJet promoter Ajay Singh have been shortlisted for the bid to buy out Air India, TOI reported quoting people familiar with the development. The two will now have to submit their financial bids after completing due diligence on the national carrier’s books, agreements and liabilities. In their financial bids, the parties have to state the quantum of AI’s debt they will be willing to take up and the upfront payment they will make for the asset. Whoever quotes the highest economic value for AI will be the winner of the bid.
Covid revival shakes up hiring plans… The revival in hiring sentiment across sectors in the first few months of the year may be shaken by rising Covid cases as a second wave sweeps across several states. Concerns have been spreading among recruiters over the past two-three weeks with companies delaying interviews, search mandates being put on hold and companies adopting a “cautious approach”.
