Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 41 points, or 0.28 per cent, higher at 14,430 in signs that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty charts signals buying at lows
Nifty50 tumbled over 250 points on Monday, but formed a Bullish Hammer candle on the daily scale, suggesting that intraday selling was bought into. Analysts said it was testing of the 14,200 level that brought buying on Nifty50 at lows. This level has been offering strong support to the index for the past few weeks and will do so in the immediate future, they said.
Other Asian markets mixed in early trade
Asian markets were trading mixed in Tuesday’s trade. Japan’s Nikkei tanked 1.76 per cent lower at 29,166, Hong Kong’s Hang Seng fell 0.17 per cent; Korea’s Kospi was up 0.45 per cent while China’s Shanghai Composite index was flat.
US stocks settled lower
Technology companies dragged US stocks lower on Monday, pulling the indices below the record highs they reached last week. The S&P500 index fell 22.21 points to 4,163.26. The benchmark index came off after a fourth straight weekly gain. The Dow Jones Industrial Average index lost 123.04 points, or 0.4 per cent, to 34,077.63. The tech-heavy Nasdaq composite slid 137.58 points, or 1 per cent, to 13,914.77.
Nestle, Tata Steel Long to report Q4 results
Nestle India, Tata Steel Long, Network 18 Media, Swaraj Engines and TV18 Broadcast would be among companies which would announce their quarterly results on Monday.
DIIs buy Rs 2,356 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,633.70 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,355.56 crore, data suggests.
MONEY MARKETS
Rupee: The rupee plunged by 52 paise to close at 74.87 against the US dollar on Monday as fresh lockdown measures by some states to control spiralling cases of Covid-19 unnerved investors and stoked fears of forex outflows.
10-year bonds: India 10-year bond yield fell 0.11 per cent to 6.08 after trading in 6.07-6.10 range.
DATA/EVENTS TO WATCH
- Q4 Earnings: Nestle India I Swaraj Engine I 5Paisa
- Australia RBA Meeting Minutes (07:00 am)
- China Loan Prime Rate 1-Year (07:00 am)
- Japan Tertiary Industry Index MoM Feb (10:00 am)
- UK Unemployment Rate Feb (11:30 am)
MACROS
US brands India currency manipulator… The US treasury department has placed India on a watchlist of currency manipulators, citing the central bank’s dollar purchase that it said at 5% of the GDP exceeded the 2% threshold, and India’s large trade surplus with the US. This is the second time since the start of the pandemic that India has figured on the list, even as the Reserve Bank of India has purchased large quantities of dollars on account of huge capital inflows. RBI’s official stand is that it would continue its intervention to avoid any undue volatility in the currency market.
Indian cryptos delinked from global peers… While an early Sunday flash crash shook traders in the world’s cryptocurrency hotspots, Indian crypto prices — which should ideally shadow global prices in a seemingly seamless and decentralised system — rose on Monday. A premium of about 3% that Indian crypto rates usually trade at touched more than13% on Monday. That’s because unlike stocks, bonds, or currencies whose movements in offshore markets influence prices in India, the distortion in the crypto market stems from the absence of foreign fund inflow, dearth of fresh coin supply in India, and unclear laws on foreign investments and tax that make it difficult to cash in on lucrative arbitrage opportunities. The absence of an arbitrage can sometimes keep crypto prices in India artificially high.
India Inc wants wage rule relaxed… India Inc has asked the government to relax the cap on the allowance component of wages from the proposed 50% under the Labour Code, saying that it would financially hit companies. The industry associations have also reached out to top industrial states seeking relaxation in the above provisions for establishments under their domain. Industry is keen that the cap be relaxed to 60% from 50% and gratuity norms be deferred to offset the immediate financial impact at a time when the Covid-19 pandemic had dented revenues.
Templeton sees more high-level exits… Franklin Templeton Mutual Fund, one of the earliest overseas money managers to start operations in India, has seen a slew of executive departures in the past few months amid the regulatory and legal proceedings involving liquidation of its six debt schemes. The latest to exit the embattled mutual fund is its national sales director Peshotan Dastoor, who has quit after spending 13 years with the firm.
Auto sales may drop by one-third...Automobile sales are expected to fall by a third to half in April compared with the estimates for the month, as the surge in Covid-19 cases has put a brake on sales that were witnessing a spectacular uptrend until two weeks ago. Auto dealers expect much of the demand to return when the pandemic situation improves, but still estimate they would not be able to recover a revenue loss of as much Rs 6,000 crore. Hundreds of showrooms have shut their doors amid curfews and strict restrictions on people’s movement in several cities and states.
Restaurants, cinema owners fear big hit… Restaurants and cinema owners have said that they would be able to tide over a six-day lockdown announced by the Delhi government despite facing a severe cash crunch, but an extension of the restrictions or the lockdown would be catastrophic for their businesses. Delhi hospitality players have already seen dwindling occupancy levels in the last few days, and they expect the lockdown to further add to their distress. Recovery in both the corporate and leisure market will be hit hard, especially if cases keep on rising for a longer period.
Centre lowers vax threshold to 18… In a big step to accelerate the pace of vaccination, the Centre on Monday permitted anyone above 18 to receive anti-Covid shots from May 1, opening options for states, hospital chains as well as corporate houses to procure and vaccinate those eligible. The decision was taken at a meeting chaired by PM Modi, which noted that satisfactory coverage of vulnerable groups currently eligible for vaccination was expected by April 30, setting the stage for a more liberalised approach in terms of pricing as well as age-deter mined eligibility.
Delhi goes into lockdown… Delhi chief minister Arvind Kejriwal announced a lockdown from Monday night to 5 am on April 26 “to avert a tragedy” as the capital’s healthcare system is at “breaking point” due to the surge in Covid-19 cases. “Delhi’s health system is at a breaking point — I will not say it has collapsed but the Covid situation is critical,” the chief minister said. All essential services will be allowed to function. Weddings will be allowed with 50 guests as long as they have e-passes. Anyone going to buy medicines will need to carry a prescription.
Govt pays vax makers in advance… The government has approved Rs 4,500 crore in “advance payments” to the Serum Institute of India and Bharat Biotech against future supplies of Covid-19 vaccines, officials said. Both companies had asked the government for financial aid to enhance their vaccine production. The finance ministry has relaxed the general financial rules to allow the advance payment without any bank guarantees, a top government official told ET.
