STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 64.5 points, or 0.41 per cent, higher at 15,793, signaling that Dalal Street was headed for a positive start on Tuesday.
- Tech View: Nifty50 on Monday ended up forming a long bullish candle on the daily chart, following Friday’s ‘Hammer’ candle, and this giving the bulls an advantage.
- India VIX: The fear gauge jumped 3 per cent to 15.06 level on Monday over its close at 14.80 on Friday.
Asian markets mostly higher in early trade
Asian stocks mostly opened higher on Tuesday tracking an overnight rally on Wall Street, as investors snapped up value stocks that are expected to outperform along with an economic recovery. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.12 per cent.
- Japan’s Nikkei soared 2.35%
- Korea’s Kospi climbed 0.60%
- Australia’s ASX 200 gained 1.35%
- China’s Shanghai Composite gained 0.34%
- Hong Kong’s Hang Seng shed 0.23%
US shares ended higher
Wall Street rallied on Monday, with the Dow completing its strongest session in over three months as investors piled back in to energy and other sectors expected to outperform as the economy rebounds from the pandemic. previously expected spooked investors.
- Dow Jones surge 1.76% to 33,876.97
- S&P 500 gained 1.40% to 4,224.79
- Nasdaq climbed 0.79% to 14,141.48
Dollar takes a breather
The dollar paused for breath on Tuesday as traders looked to testimony from US Federal Reserve chair Jerome Powell for guidance, after a surprise shift in the central bank’s policy outlook.
- Dollar index slipped to 91.915
- Euro gained to $1.1909
- Pound steady at $1.3917
- Yen at 110.31 per dollar
- Yuan at 6.4665 against the greenback
Q4 earnings today
NMDC, Bharat Electronics, ITI, Aster DM Healthcare, Avanti Feeds, Sobha, Religare Enterprises, GE Power India, Centrum Capital, PNB Gilts, Sastasundar Ventures and Ashapura Minechem are among the companies that will announce their March quarter results today.
FPIs sell shares worth Rs 1,245 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1,244.71 crore, data available with NSE suggested. DIIs, turned buyers to the tune of Rs 138.09 crore, data suggests.
MONEY MARKETS
Rupee: The rupee on Monday slumped to its lowest level in nearly eight weeks, shedding 24 paise to close at 74.10 to the US dollar as participants turned cautious apprehending foreign fund outflows after hawkish comments from the US Federal Reserve.
10-year bond: India 10-year bond yield jumped 0.38 per cent to 6.03 after trading in 6.01 – 6.04 range.
DATA/EVENTS TO WATCH
- UK Public Sector Net Borrowing May (11:30 am)
- UK CBI Industrial Trends Orders June (03:30 pm)
- Euro Area Consumer Confidence Flash June (07:30 pm)
- US Existing Home Sales MoM May (07:30 pm)
- US Existing Home Sales May (07:30 pm)
- US Fed Chair Powell Testimony (11:30 pm)
MACROS
Covid 2.0 hit 58% of India Inc
The second wave of Covid-19 and resultant lockdowns in several states significantly impacted about 58% of Indian companies but India Inc remains optimistic about a strong recovery in the coming months, a private industry survey has said. About 58% of respondents cited weak demand as a major challenge in the current environment, the survey conducted this month by Ficci and Dhruva Advisors showed.
SAT lets PNB Housing go ahead with EGM
The Securities Appellate Tribunal (SAT) on Monday allowed PNB Housing Finance to hold its extraordinary general meeting on Tuesday, as part of the controversial Rs 4,000 crore investment proposal by PE major Carlyle Group and its associates in the mortgage lender. The SAT, however, has asked PNBHFL to not announce the result of the shareholders’ voting on the proposed deal, which is the most important part of the EGM.
FMCG mart sees sharp rebound
India’s FMCG market has recovered sharply after several states eased restrictions as the second Covid-19 wave abated, helping the market expand 15% in the first two weeks of June from the month earlier. Sales were also boosted by a 28% increase in the number of kirana outlets that reopened this month, a contrast from the last two months, when the local grocer count fell sharply, according to the latest study by Bizom, which tracks sales of 7.5 million retail stores across the country.
Cost of buying Bitcoins to rise for Indians
The cost of buying Bitcoins and other cryptocurrencies may have increased about 2% for investors who purchased them from exchanges outside the country as they are all set to face additional tax in the form of equalisation levy. The tax department is now looking into whether the 2% levy is applicable on crypto assets bought online by Indians from overseas exchanges, people in the know said.
10% of NBFC books up for rejig
With NBFCs rushing to mitigate the impact of the second Covid wave on their balance sheets, estimates suggest that about one-10th of their loan books could be going in for recast — nearly three times that during the first wave. Chief executives ET spoke with said that profitability, too, could take a beating in the June quarter despite collection efficiencies improving in the past month.
