STATE OF THE MARKETS
SGX Nifty signals strong start
Nifty futures on the Singapore Exchange traded 99.50 points, or 0.69 per cent, higher at 14,530.50 in signs that Dalal Street was headed for a positive start on Friday.
Tech View: Nifty likely to see more downside
Nifty50 saw a steep fall on Thursday and broke below the swing low of 14,350, a day after losing critical support from the 10-week exponential moving average (EMA) and the 50-day EMA. The index formed a bearish candle on the daily chart and made lower highs and lows for the second session. The index broke below the 27-day-old descending channel, which was in progress from the lifetime high of 15,431. Analysts said a further slide cannot be ruled out.
Asian stocks rise in early trade
Asian markets gained on Friday after US equities rose as investors weighed the outlook for economic growth and inflation and welcomed progress on vaccination rollouts. Australian S&P/ASX 200 futures rose 0.33 per cent in early trading, while MSCI’s gauge of stocks across the globe gained 0.14 per cent. Hong Kong’s Hang Seng rose 0.89 per cent, Japan’s Nikkei advanced 0.85 per cent and Korea’s Kospi added 0.28 per cent.
US stocks rebound in late-day rally
US stocks rose in a late-day rally on Thursday as investors bought stocks likely to do well in the recovery and picked up beaten-down Apple and Tesla shares in anticipation that the US economy grows at its fastest pace in decades this year. The Dow Jones Industrial Average rose 199.42 points, or 0.62 per cent, to 32,619.48. The S&P 500 gained 20.38 points, or 0.52 per cent, to 3,909.52 and the Nasdaq Composite added 15.79 points, or 0.12 per cent, to 12,977.68.
Kalyan Jewellers to make market debut
Kalyan Jewellers, whose Rs 1,175-crore IPO was subscribed mere 2.61 times subscription, will make market debut on Friday. The Kerala-headquartered company is among the biggest players in the country’s gold and diamond jewellery market, competing with Titan Company Ltd, Tribhovandas Bhimji Zaveri Ltd and others.
F&O rollovers signal weak sentiment
Traders carried forward fewer derivative bets to the April series on expiry of the March contracts on Thursday as uncertainty over rising Covid-19 cases, a stronger dollar and higher bond yields in the US kept many of them on the sidelines waiting for a clearer picture of the outlook. With foreign investors turning sellers in recent trading sessions, a sizeable portion of the positions in the April series is bearish, said analysts
FPIs sell Rs 3,384 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,383.60 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,267.69 crore, data suggests.
MONEY MARKETS
Rupee: Dropping for the third consecutive day, the Indian rupee fell by 7 paise to close at 72.62 against the US dollar on Thursday amid concerns over surging coronavirus cases in India and some other parts of the world.
10-year bonds: India 10-year bond yield fell 0.34 per cent to 6.13 after trading in 6.13-6.16 range.
Call rates: The overnight call money rate weighted average stood at 3.27 per cent, according to RBI data. It moved in a range of 1.90-3.60 per cent.
EVENTS/DATA TO WATCH
- India Deposit/Loan Growth YoY Mar/12 (05:00 pm)
- India Foreign Exchange Reserves 19/Mar (05:00 pm)
- UK Retail Sales MoM Feb (12:30 pm)
- UK Car Production YoY Feb (02:30 pm)
- US Personal Income MoM Feb (06:00 pm)
- US Goods Trade Balance Adv Feb (06:00 pm)
- EU European Council Meeting
MACROS
RBI says new Covid wave no threat to growth…India’s pace of economic revival should remain largely unaffected by a potential second wave of coronavirus infections, central bank governor Shaktikanta Das said Thursday, underscoring the strength of the visible recovery that earlier prompted Mint Road to pencil in a double-digit rate of expansion in the economy for FY22. Das, addressing the Times Network India Economic Conclave, said Thursday RBI’s preliminary findings showed that predictions made on growth rates would not require a downward revision. RBI expects India to expand at 10.5% in FY22.
Residential realty rebounding… Residential real estate in the country’s top seven property markets has staged a comeback with sales exceeding pre-pandemic levels, driven by record-low interest rates, discounts offered by developers, lower prices and stamp duty cuts in key areas. The improved sales momentum has lifted confidence among realty developers, pushing them to launch more projects as indicated by the rise in new offerings across markets. Residential property sales have grown 29% to 58,290 apartments in the January-March quarter so far, led by a robust performance in the Mumbai Metropolitan Region (MMR), Pune and Hyderabad. Rounding out the top seven are the NCR, Bengaluru, Chennai and Kolkata.
SAT cans Sebi’s WhatsApp tips order… In a verdict that market experts said will raise the evidence threshold for proving insider trading and may also lead Sebi to renew its demand for phone tapping powers, the Securities Appellate Tribunal (SAT) has quashed a dozen regulatory orders in cases against two market analysts charged with forwarding “trading tips” on social media. Sebi’s 2017 investigation into alleged leak of “price sensitive” information in WhatsApp groups had looked at “tips” on 12 companies including Bajaj Auto, Bata, Ambuja Cement and Wipro. Twenty-six market entities were raided and 190 electronic devices were seized.
Rent concessions ending at malls… Retailers won’t get rent concessions next month onward as most malls plan to revert to the original terms of agreements with tenants as sales have recovered nearly 80% despite lower footfall. Several top retailers, including Aditya Birla Fashion, Shoppers Stop, Reliance Retail and Tata Trent, negotiated lower rentals since the June quarter, when malls largely remained closed across cities due to lockdowns and other restrictions to contain Covid-19. “We supported the industry when it was required,” said Pushpa Bector, executive director at DLF Retail.
Ajay Singh ropes in partners for AI bid… SpiceJet promoter Ajay Singh has partnered with Ras Al Khaimah Investment Authority and Ankur Bhatia, promoter of Delhi-based Bird Group, to bid for a 100% stake in the national carrier Air India. Sources said both Singh and Bhatia have bid in their personal capacity. “They are likely to together hold a majority stake in Air India, if they get the airline,” said a person close to the development.
India Inc will need to disclose crypto assets… Beginning April 1, India Inc will have to disclose any investment made in cryptocurrencies, relationship with a struck off company and loans extended to related parties among host of other disclosures mandated by the government to raise transparency. Firms would have to disclose if they have been declared a wilful defaulter by any bank, financial institution or any other lender. The ministry of corporate affairs (MCA) on Wednesday announced a new set of disclosures rules under the Companies Act, significantly enhancing financial and general reporting requirements for companies.
