STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on Singapore Exchange traded 19.5 points, or 0.12 per cent, lower at 15,722, signaling that Dalal Street was headed for a negative start on Tuesday.
- Tech View: Nifty50 on Monday formed a Doji candle on the daily chart. Analysts said the index needs to sustain above 15,630-600 zone for any recovery to take place.
- India VIX: The fear gauge jumped over 8 per cent to 12.68 level on Monday over its close at 11.70 on Friday.
Asian stocks opened lower
Asian shares opened lower on Tuesday following losses overnight on Wall Street as the renewed coronavirus fears soured the risk appetite. MSCI’s broadest index of Asia-Pacific shares outside
- Japan’s Nikkei tanked 0.73%
- Korea’s Kospi declined 0.32%
- Australia’s ASX 200 fell 0.22%
- China’s Shanghai Composite shed 0.52%
- Hong Kong’s Hang Seng retreated 0.04%
Dow Jones plunges 2% overnight
A surge in Delta variant infections sparked a broad sell-off on Wall Street as investors feared renewed Covid-19 shutdowns and protracted economic recovery. All three major US stock indices ended the session sharply lower.
- Dow Jones tanked 2.09% to 33,962.04
- S&P 500 declined 1.59% to 4,258.49
- Nasdaq shed 1.06% to 14,274.98
Dollar nears multi-month high
Safe-harbour currencies like the Japanese yen and US dollar held near multi-month highs against the riskier Australian dollar and British pound on Tuesday, as fears grow that a rampant coronavirus variant could upend the global economic recovery.
- Dollar index inched up to 92.858
- Euro declined to $1.17965
- Pound slipped to $1.3655
- Yen gained to 109.07 per dollar
- Yuan at 6.4872 against the greenback
Crude prices firm in early trade
Oil prices stabilised on Tuesday after slumping around 7 per cent in the previous session amid a broader market retreat led by concerns about a resurgence of Covid infections, which came just as producers inked a new supply deal. Brent crude gained 38 cents, or 0.6 per cent, to $69.00 a barrel. US crude for September delivery was up around 1 per cent at $66.99 a barrel.
FPIs sell shares worth Rs 2,199 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 2,198.71 crore, data available with NSE suggested. DIIs, turned buyers to the tune of Rs 1,047.66 crore, data suggests.
Q1 earnings today
Bajaj Finance, Asian Paints, ICICI Prudential Life Insurance Company, Syngene International, ICICI Securities, Crisil, DCM Shriram, Shyam Metalics and Energy, ITDC, Mangalam Organics and Newgen Software Jubilant Ingrevia are among the company that will announce quarterly earnings today.
MONEY MARKETS
Rupee: The rupee tumbled 31 paise to end at 74.88 against the US dollar on Monday, marking its second straight session of loss amid a negative trend in domestic equities and strengthening of the greenback overseas.
10-year bond: India 10-year bond yield retreated marginally 0.05 per cent to 6.12 after trading in 6.11 – 6.14 range.
DATA/EVENTS TO WATCH
- Q1 Earnings: Asian Paints | Bajaj Finance | Crisil | ICICI Pru Life | ICICI Securities | RIIL
- China Loan Prime Rate 1 Year (07:00 am)
- Euro Area Current Account May (01:30 pm)
- US Housing Starts MoM June (06:00 pm)
- US Building Permits MoM June (06:00 pm)
MACROS
Telcos dispute DoT’s AGR calculations
Telcos have asked the Supreme Court for permission to show the telecom department that ‘arithmetical errors’ were committed while computing their AGR dues, while asserting that they were not seeking a review of the original SC judgment. At a hearing in the Supreme Court on Monday, Vodafone Idea, along with Bharti Airtel and Tata Teleservices, highlighted errors made by the DoT while calculating AGR dues, which had led to inflated demands.
IT firms to hire 150,000
The IT services sector will hire over 150,000 fresh graduates in this financial year, according to industry estimates as the $150-billion industry races to meet the burgeoning demand for technology services worldwide. The country’s top four software exporters — Tata Consultancy Services, Infosys, HCL Technologies and Wipro — will hire over 120,000 freshers, primarily in India, while mid-size firms like LTI and Mindtree will also hire significantly more college graduates this fiscal, staffing forecasts by the companies show. TCS, Infosys, HCL and Wipro together account for over a third of the country’s total IT services revenue.
Govt may sell off ITC stake
The government is considering the disinvestment of its holding in ITC as it looks to meet the ambitious disinvestment target for the year. At Monday’s closing price of Rs 207.8 a share, the government’s 7.93% stake in the cigarettes and consumer goods to hotels conglomerate is worth Rs 20,250 crore. The government holds the stake in ITC through the Special Undertaking of the Unit Trust of India (SUUTI).
Parekh projects strong economic rebound
The Indian economy is expected to make a strong rebound in FY22, registering economic expansion of 8-10% albeit on a low base, said Deepak Parekh, chairman of the HDFC, on Monday at HDFC Life’s annual general meeting. Parekh said the economic impact of the deadly second wave of the coronavirus is expected to be milder than the first wave, and largely restricted to the June quarter.
Sebi plans swing pricing of MFs
Sebi has proposed to introduce the concept of ‘swing pricing’ in mutual fund schemes in a bid to reduce first-mover advantage during redemption pressures in schemes. Swing pricing is a mechanism by which fund houses can adjust a scheme’s net asset value (NAV) in response to the flows into or out of the fund. It could also reduce the impact of redemptions on existing investors by reducing dilution of the value of a fund’s units.
NCLAT stays Videocon selloff
The NCLAT has stayed the sale of the Videocon group of companies to Vedanta’s Twin Star Technologies. Bank of Maharashtra, which has a small portion of the loan, had appealed against the order under which creditors were to get around 4% of the admitted claims of Rs 64,838 crore. BoM had raised two main objections — the sale price was close to the liquidation price, and even the 4% that was being paid was largely in the form of debentures with very little cash coming in.
