>> FPI investments in Indian stocks hit all-time high
>> RBI turns aggressive to tame bond yields
>> Big spurt in India’s new company registrations
AND
>> Setback for Amazon in legal war with Future Retail
But first, a quick glance at the state of the markets..
Dalal Street looked somewhat fatigued after some solid gains over the past six sessions though Asian markets started the day with gains. Bitcoin is creating a lot of buzz, surging to an all-time high of $47,565.86 after Tesla said it has invested $1.5 billion in the biggest endorsement of the controversial cryptocurrency by a mainstream company. In currencies, the dollar languished near its lowest in a week, in bullion, gold futures strengthened, and in energy, crude oil edged higher.
Analysts said Nifty’s record-breaking run could face hurdles in the near term, with technical indicators pointing to possibilities of the momentum running out of steam.
Yet, the good news is FPI holdings in India have hit a five-year high of 22.74% of total market capitalisation as of December quarter end, up from 21.51% at the end of September. There was a net inflow of some Rs 1.42 lakh crore during the three-month period. In terms of value, FPI owned Indian equity assets worth Rs 41.83 lakh crore on December 31, which was an all-time high
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Also, there has a massive spurt in the number of new companies that were registered in the country during the first nine months of the financial year. Latest data available with the ministry of corporate affairs showed that the number of companies incorporated during April-December 2020 went up by nearly 21% to over 1.1 lakh.
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RBI is turning aggressive in its bid to tame bond yields. The central bank has indicated that it will leave no stone unturned to keep bond yields under check. After rejecting all bids for its benchmark bond, RBI on Monday announced a Rs 20,000 crore bond buyback on February 10. Later in the evening, it announced a twin sale (re-issue) of two dated securities for Rs 22,000 crore. This is for the first time that two auctions are being conducted in the same week.
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For the first time in India, stock exchanges and depositories have decided to sell the assets of a stockbroker to settle the dues it owed clients. NSDL has invited bids to sell some 7.23 lakh demat and trading accounts of Karvy Stock Broking, which had a custody value of Rs 2.84 lakh crore as on January 31, 2021.
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The seesaw legal war between Amazon and Future Retail continues. The global e-commerce giant suffered a setback on Monday, when a two-judge bench of Delhi High Court lifted the status quo on Future Group’s deal with Reliance Industries.
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Before I wrap up this edition, here is a look at some of the stocks buzzing this morning…
>> InterGlobe Aviation, operator of the country’s largest airline IndiGo, has filed a consent application with the Sebi for settling securities law violations.
>> The Bombay High Court dismissed a plea filed by two Ruias-owned companies that challenged the single bench ruling asking them to deposit ₹82 crore in the court as security in two separate arbitration suits filed by ArcelorMittal Nippon Steel India
>> Aberdeen Standard Investments, AIA Group and Pimco are among global investors that may have bought Indian cement maker UltraTech’s maiden US dollar bonds offering 167.5 basis points higher yields than the benchmark US Treasury bonds.
>> HCL Technologies is rolling out a one-time special bonus of Rs 700 crore to employees globally to celebrate the IT firm joining the $10 billion revenue club.
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That’s it for now. For all the market news through the day, keep tracking ETMarkets.com. Happy investing!
