Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals tepid start
Nifty futures on the Singapore Exchange traded 45 points, or 0.33 per cent, lower at 13,662, in signs that Dalal Street was headed for a tepid start on Thursday.
Tech View: Nifty bulls eye 13,800
Nifty50 advanced on Wednesday, as intraday selling triggered brisk buying, as was the case in the recent sessions. The index formed a small bullish candle on the daily chart after forming indecisive Dojis for four consecutive days. Analysts said Nifty momentum looks strong, and it can attempt to scale the 13,750-13,800 range in the short term.
Asian shares mixed in early trade
Asian stocks were mixed on Thursday amid progress towards the US stimulus package and a pledge by the Federal Reserve to keep interest rates low. Australia’s S&P/ASX benchmark rose 0.64 per cent in early trading. Japan’s Nikkei 225 added 0.02 per cent while the e-mini futures for the S&P500 rose 0.07 per cent. Hang Seng and Shanghai Composite fell up to 0.20 per cent.
Oil prices hit nine-month high
Oil prices hit a nine-month high early on Thursday after US government data showed that crude stockpiles fell last week and on optimism over a coronavirus relief package in the United States. Brent crude futures rose by 28 cents, or 0.6 per cent, to $51.36 a barrel at 0116 GMT, while US WTI crude futures rose by 27 cents, or 0.6 per cent, to $48.09 a barrel. Both benchmarks hit their highest since early March.
US stocks settled higher
In overnight trade, the Nasdaq Composite closed at a record high, adding 63.13 points, or 0.5 per cent, to 12,658.19. The S&P500 index gained 6.55 points, or 0.18 per cent, to 3,701.17. The Dow Jones Industrial Average fell 44.77 points, or 0.15 per cent, to 30,154.54.
Mrs Bectors IPO subscribed 11.40 times on Day 2
Mrs Bectors Food Specialities initial public offer was subscribed 11.40 times on the second day of bidding on Wednesday. The IPO had got oversubscribed within a few hours of opening for subscription on Tuesday and ended the day with 3.72 times subscription.
FIIs buy Rs 1,982 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,982 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,718 crore, data suggests.
MONEY MARKETS
Rupee: The rupee appreciated 5 paise to close at 73.58 against the US dollar , propped up by sustained foreign fund inflows and a weak greenback overseas.
10-year bonds: India 10-year bond yield edged 0.05 per cent higher at 5.94 after trading in 5.94-5.95 range.
Call rates: The overnight call money rate weighted average stood at 3.21 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
- Australia Employment Change Nov (06:00 am)
- Australia Unemployment Rate Nov (06:00 am)
- EU New Car Registrations YoY Nov (12:30 pm)
- Euro Area Core Inflation Rate YoY Final Nov (03:30 pm)
- BoE Interest Rate Decision (05:30 pm)
- BoE Quantitative Easing (05:30 pm)
- US Initial Jobless Claims 12/Dec (07:00 pm)
- US Housing Starts MoM Nov (07:00 pm)
- US Continuing Jobless Claims 05/Dec (07:00 pm)
MACROS
Fed’s long-end bond buying elusive… Investors hoping the US Federal Reserve would make a concerted push into longer-duration bonds at Wednesday’s meeting did not materalise, Reuters reported. A recent ramp-up in 10- and 30-year Treasury yields raised expectations that the Fed would announce after its monthly policy meeting a plan to buy more long-dated debt to cap yields, which could have been done by shifting purchases to the long end. That did not happen.
SBI projects 7.4% contraction in FY21… The research wing of India’s largest bank State Bank of India has revised its economic forecast for the current fiscal to a 7.4% contraction in GDP from 10.9%, on the back of acceleration seen in many high-frequency indicators. Over half or 58% of 41indicators in its nowcasting model, such as revenue earning of freight traffic, weekly food arrival and petrol and diesel consumption, showed acceleration in the third quarter, SBI Research said in a report on Wednesday.
Negotiators close in on US stimulus deal… US congressional negotiators on Wednesday were “closing in on” a $900 billion COVID-19 aid bill that will include $600 to $700 stimulus checks and extended unemployment benefits, and Congress could start voting within 24 hours, lawmakers and aides said. Top members of the Democratic-controlled House of Representatives and Republican-controlled Senate sounded the most positive they have in months on a fresh response to a crisis that has killed more than 300,000 Americans and thrown millions out of work.
Rs 3,500 cr sugar export subsidy unveiled… The government on Wednesday announced a Rs 3,500 crore subsidy for export of 6 million tonnes of sugar for 2020-21 marketing year, which has started in October, to help cashstrapped mills liquidate surplus sugar and clear sugarcane arrears to farmers. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs. The subsidy will be transferred directly to the accounts of 50 million sugarcane farmers on behalf of the mills against cane price dues.
New appeal to RBI on LVB bonds… IDBI Trusteeship Services has sent yet another appeal to the Reserve Bank of India, requesting compensation for tier-2 bond holders of Lakshmi Vilas Bank. The trusteeship, which manages a large portion of bonds that retail investors had bought, has appealed to the regulator to reconsider its decision to write-off tier 2 bonds worth Rs 318 crore. IDBI Trusteeship in its letter said that bond holders have been requesting to either provide for paying-off or transferring the liability to DBS Bank as per the servicing schedule.
4G spectrum auction okayed… The Cabinet has approved the auction of 4G airwaves in March 2021, which is expected to fetch it Rs 3.92 lakh crore based on reserve prices. The sales will help Reliance Jio renew a chunk of expiring spectrum permits and offer Bharti Airtel and Vodafone Idea (Vi) a chance to strengthen their bandwidth holdings as data usage rises. “Spectrum will be offered for assignment for validity period of 20 years. A total of 2251.25 MHz is being offered with total valuation of Rs 3,92,332.7 crore (at reserve price),” the government said
List of ‘trusted sources’ for telecom gear soon… The government will soon declare a list of ‘trusted sources’ for acquiring gear for telecom networks and amend permits accordingly, a move aimed at keeping Chinese gear suppliers Huawei and ZTE out of India’s Future telecom expansion as well as its 5G technology rollout, amid continuing tensions on the borders. “Considering the need to ensure India’s national security, the Cabinet has accorded approval for the National Security Directive on Telecommunication Sector,” telecom minister Ravi Shankar Prasad said on Wednesday
Festive spending fizzling out… The festive spending mood is fizzling out, key indicators show. Credit growth, business volumes, digital transactions, credit card spends all slowed down in the first fortnight of December. Banks and payment companies ET spoke with said they are bracing for tepid consumer activity in the coming months. A rebound, they reckon, may happen after more clarity on availability and distribution of vaccines. Some banks and payments company executives spoke off the record.
