SGX Nifty tanks 191 points; here’s what changed for market while you were sleeping

SGX Nifty tanks 191 points; here’s what changed for market while you were sleeping


Equity investors on Friday may react to weak cues from Asian markets, a bleak Covid-19 situation and exit poll outcome that showed limited success for the ruling BJP in West Bengal, Assam, Tamil Nadu, Kerala and Puducherry. SGX Nifty so far is suggesting a gap-down start. Reliance Industries, among others, will announce March quarter numbers during the day.

Here’s breaking down the pre-market action.

STATE OF THE MARKETS


SGX Nifty signals gap-down start

Nifty futures on the Singapore Exchange traded 191 points, or 1.28 per cent, lower at 14734.7 in signs that Dalal Street was headed for a negative start on Friday.

Tech View: Nifty may enter brief consolidation

Nifty on Thursday saw selling pressure after taking out the 15,000 level in intraday trade. The NSE barometer eventually eked out marginal gains, but formed its first bearish candle on the daily chart in six sessions. During the session, the index respected its 50-day simple moving average, whose value was placed at 14,793 level. It also continued to form higher highs and lows for the fifth session. Analysts said Nifty can see a brief consolidation in the 14,700-15,000 range.

Asian markets drop in early trade

Asian markets fell in Friday’s trade Korea’s Kospi tanked 0.9 per cent while China’s Shanghai Composite index declined 0.4 per cent. Japan’s Nikkei dropped 0.5 per cent. Hong Kong’s Hang Seng tanked 1.5 per cent.

US stocks settled higher

The S&P 500 finished at a fresh record as investors weighed strong earnings and good economic data against concerns equities have little room to rise after a strong run. After a volatile session in which the index tripped into negative territory at midday, the broad-based S&P500 index ended with a gain of 0.7 percent at 4,211.47. The Dow Jones Industrial Average index rose 0.7 percent to finish at 34,060.36, while the tech-rich Nasdaq Composite index advanced 0.2 percent to 14,082.55.

Q4 earnings today

Reliance Industries, IndusInd Bank, YES Bank, Trent, Ajanta Pharma, Indian Hotels, Can Fin Homes, SCUF and NLC India are among companies which will report their quarterly earnings on Friday.

Power Grid InvIT IPO subscribed 10 per cent on Day 1

The IPO of the infrastructure investment trust, sponsored by Power Grid Corporation of India, got off to a slow start on Thursday as the issue was subscribed 10 per cent by the end of the bidding process on Day 1. The InvIT has been touted as a good long-term option for investors looking for assured 10-12 per cent returns as analysts expect the InvIT to comfortably generate that much yield annually.

FPIs buy Rs 809 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 809.37 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 942.35 crore, data suggests.

MONEY MARKETS

Rupee: The rupee rose by 29 paise to close at 74.07 against the US dollar on Thursday, extending gains for the fourth straight session amid a positive trend in domestic equities.

10-year bonds: India 10-year bond yield rose 0.10 per cent to 6.05 after trading in 6.05-6.07 range.

Call rates: The overnight call money rate weighted average stood at 3.22 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.

The DAY PLANNER

  • India Infrastructure Output YoY March (05:00 pm)
  • India Foreign Exchange Reserves 23 April (05:00 pm)
  • Japan Consumer Confidence April (10:30 am)
  • Japan Housing Starts YoY March (10:30 am)
  • France GDP Growth Rate QoQ Prel Q1 (11:00 am)
  • GB Nationwide Housing Prices YoY April (11:30 am)
  • Euro Area Core Inflation Rate YoY Flash April (02:30 pm)
  • Euro Area GDP Growth Rate QoQ Flash Q1 (02:30 pm)
  • US Personal Spending MoM March (06:00 pm)

MACROS


US economy logs solid growth in Q1… US economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses, while a labor market report showed 553,000 people filed for unemployment benefits last week, compared with 566,000 in the prior period. The initial reading on the country’s first-quarter economic performance, delivered Thursday by the Commerce Department, showed that much remained far from normal.

Covid 2.0 cripples industry… The fresh wave of the coronavirus has crippled industrial activity across key manufacturing units as factory output has drastically reduced for many, and even come to a halt for some top ones, in view of rising infections and closure of showrooms, with states and cities putting in place lockdowns and mobility restrictions. Companies that have announced closures include Toyota, Maruti Suzuki, Hero Moto and Honda Motorcycles and Scooter India (HMSI), while those that have reduced output are understood to include Havells, Nippon Paints, Panasonic, Mercedes-Benz, Mahindra & Mahindra (M&M), LG (Pune factory) and Tata Motors.

India Inc rushes to hedge overseas debt… Indian companies with US dollar borrowings are increasing their hedges as they expect the rupee to depreciate in the coming months driven by rising yields overseas and foreign investors’ belief that Indian assets are overvalued, which may lead to a flight of capital. The rising Covid cases, too have cast a shadow on the earnings outlook

Exit polls project tight contest in West Bengal… Exit polls on Thursday forecast a tight contest between the incumbent Trinamool Congress and the BJP in the high-profile West Bengal assembly polls and put the saffron combine ahead in Assam, while projecting a win for the ruling Left alliance in Kerala and for the DMK-led opposition in Tamil Nadu.

China manufacturing PMI expands at slower pace… China’s factory activity expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum. The official manufacturing Purchasing Manager’s Index (PMI) fell to 51.1 in April from 51.9 in March, data from the national Bureau of Statistics (NBS) showed on Friday.

Japan’s Industrial output rebound in March… Japan’s industrial output posted a surprise increase in March, as a jump in car production helped keep an economic recovery from last year’s deep coronavirus slump on track. Government data released on Friday showed factory output grew 2.2 per cent from the previous month in March, lifted by a sharp jump in car production and higher output of organic and inorganic chemicals.

India’s unemployment rate rises again… India’s unemployment rate shot up in the first two weeks of April and is likely to swell to about 8 per cent this month from 6.5 per cent in March, with lower absorption of labour in the market, the Centre for Monitoring Indian Economy said. The weekly unemployment rate was 7.4 per cent in the seven days ended April 25, according to CMIE data, compared with 8.2 per cent in the first week, 8.6 per cent in the second and 8.4 per cent in the third week.

MCA seeks change in startup listing rule… The Ministry of Corporate Affairs (MCA) has nudged the market regulator Sebi to partially roll back a relaxation proposed for listing of startups in India. Currently, Sebi has created a special platform to cater to the startups looking for a listing, which is called Innovators Growth Platform. This is a niche platform that can only be accessed by big ticket institutions and wealthy investors, and hence has limited liquidity compared with the mainboard where all the bluechip stocks trade.

CCI clears Bigbasket sale to Tatas… The Competition Commission of India (CCI) cleared Tata Digital’s acquisition of a majority stake in Bigbasket without conditions. Tata Digital’s interest in Bigbasket first became public last October. The acquisition of a 64.3 per cent stake in Bigbasket will make Tata Digital the leading player in e-grocery, setting the scene for a big battle with Amazon, Flipkart, JioMart and Soft-Bank-backed Grofers.

Jan-March gold demand rose 37 per cent… Pent-up demand for the yellow metal after months of lockdown in 2020 and an appreciating rupee, which saw its price stabilise in the first three months of 2021, helped demand for gold in India rise 37 per cent during the January-March quarter this year. During the period, total demand for gold was 140 tonne compared to 102 tonne during the same period of 2020. According to data released by World Gold Council on Thursday, while jewellery demand during Q1 2021 rose by 39 per cent, investment demand, which includes bars, biscuits, e-gold and ETFs, rose 34 per cent.

Sebi put Brickwork on notice… Sebi has issued a showcause notice to Brickwork Ratings India, asking why its licence should not be cancelled for repeated lapses in the credit rating process. “During Sebi’s inspection, it noticed several repeated lapses that were pointed out earlier also to the credit rating agency,” said a person familiar with the development. Sebi in the past had asked Brickwork Ratings to make corrections; however, it has not addressed the concerns raised by the regulator, the person said.



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