Shutterstock.comDomestic stocks may develop cold feet on Friday, mirroring the poor start to trade in other Asian markets and weakness on technical charts. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 31 points, or 0.21 per cent, lower at 14,612.50, in signs that Dalal Street was headed for a negative start on Friday.
Tech View: Nifty forms Dark Cloud Cover
Asian stocks drop in early trade
Asian stocks opened on a negative note on Friday. Australia's ASX200 index fell 0.08 per cent in early trade. Nikkei dropped 0.36 per cent to 28,652.51. Hang Seng declined 0,32 per cent to 29,830.85. Shanghai Composite fell 0.32 per cent to 3,609.50.
US stocks settled higher
Stocks drifted to a mixed close on Wall Street Thursday as the earnings reporting season for US. companies ramped into higher gear. The S&P500; index rose 1.22 points, or less than 0.1 per cent, to 3,853.07. The Dow Jones Industrial Average index slipped 12.37 points, or less than 0.1 per cent, to 31,176.01. The Nasdaq composite climbed 73.67 points, or 0.6 per cent, to 13,530.91.
Home First IPO subscribed 1.04x on Day 1
The Rs 1,153.71-crore Home First Finance IPO was subscribed 1.04 times on the first day of the bidding process on Thursday. The issue received bids for 1,62,08,892 shares, which was 104 per cent of the issue size of 1,56,20,948 shares. The housing finance company (HFC) had on Wednesday raised a little over Rs 346 crore from 25 anchor investors.
RIL, YES Bank to disclose Q3 results
Reliance Industries, YES Bank, JSW Steel, HDFC Life, SBI Life, Apollo Hospitals, Gland Pharma, Crompton Greaves, L&T; Finance, Oberoi Realty and Indian Bank are some of the companies which will announce their Q3 results today.
Indigo Paints IPO subscribed 7.4x on Day 2
The initial public offer of Indigo Paints was subscribed 7.38 times on the second day of bidding on Thursday. The offer received bids for 4,07,04,230 shares against 55,18,402 shares on offer, as per data available with NSE.
FPIs buy Rs 1,615 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,614.66 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,039.48 crore, data suggests.
MONEY MARKETS
Rupee: Extending its gains for the third straight session, the Indian rupee added another 6 paise to settle at a near five-month high of 72.99 against the US dollar on Thursday, tracking a weaker American currency overseas and sustained foreign fund inflows.
10-year bonds: India 10-year bond yield rose 0.22 per cent to 5.95 after trading in 5.93-5.95 range.
Call rates: The overnight call money rate weighted average stood at 3.19 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
MACROS
Export levies to go up on finished goods... India’s import tariff structure could be revamped in the upcoming budget to provide lower duty on large inputs, especially those used in products that are exported, while keeping levies high on finished goods—a structure that would encourage domestic value addition. Inputs used in producing chemicals such as methyl alcohol, acetic acid and PVC could see a reduction in tariffs, said people with knowledge of the matter.
Farmers reject govt deal... Protesting farmer unions rejected the government’s proposal of suspending the three farm laws for a year and a half to facilitate a resolution in return for an end to the ongoing protests, signalling continuance of the stalemate nearly two months after the sit-in began on Delhi’s borders. In a statement issued on Thursday after discussions lasting 10 hours, the umbrella body of the protestors, Sanyukt Kisan Morcha, reiterated the demand for repeal of the contentious farm laws and for enacting a new law guaranteeing minimum support price for crops.
E-commerce policy may be dropped... India may drop the proposed ecommerce policy as certain sections within the government have questioned its rationale, citing a lack of convergence on various issues. An inter-ministerial group on Thursday discussed the draft policy that, among other things, seeks to set up a regulator for the sector and implement a new law to restrict the data ecommerce entities can store, use, transfer, process and analyse.
RBI projection boosts sentiment... On a day the Sensex hurdled the 50,000 barrier, the usually circumspect RBI added to the cheer through its positive assessment of the recovery underway. High-frequency data, such as expansions in merchandise trade, bank credit and capital expenditure, underscored the robustness of the rebound that should help the economy log positive growth, Mint Street said.
Japan's consumer prices fall at decade-fast pace
Japan's core consumer prices slumped in December at the fastest annual pace in a decade, a sign of intensifying deflationary pressures that sharpen the case for the central bank to come up with better ways to combat the deepening impact of the COVID-19 pandemic. The nationwide core consumer price index (CPI) fell 1 per cent in December from a year earlier, government data showed.
Brisk dollar buying on... RBI has intensified its purchase of US dollars in the currency forwards market, dealers said, even as continued fund flows sent stocks to Summit 50K Thursday. The central bank is said to have bought over $1 billion on Thursday, primarily through two state-owned banks that transacted both in the spot and forwards markets, dealers said. This checked the local unit’s sharp rise.
Govt expects big bids for BPCL.... India expects some international oil majors to participate in the BPCL divestment process during the price bid stage, Union oil minister Dharmendra Pradhan has said.
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 31 points, or 0.21 per cent, lower at 14,612.50, in signs that Dalal Street was headed for a negative start on Friday.
Tech View: Nifty forms Dark Cloud Cover
Nifty50 on Thursday erased intraday gains as it settled below the 14,600 mark, forming what looked like a Dark Cloud Cover candle on the daily chart. A Dark Cloud Cover is formed when the index opens higher, but closes below the midpoint of the previous session's candle body. A short-term reversal in the index can be confirmed if Nifty50 closes below the 14,500 level on Friday, said Mazhar Mohammad of Chartviewindia.in.
Asian stocks drop in early trade
Asian stocks opened on a negative note on Friday. Australia's ASX200 index fell 0.08 per cent in early trade. Nikkei dropped 0.36 per cent to 28,652.51. Hang Seng declined 0,32 per cent to 29,830.85. Shanghai Composite fell 0.32 per cent to 3,609.50.
US stocks settled higher
Stocks drifted to a mixed close on Wall Street Thursday as the earnings reporting season for US. companies ramped into higher gear. The S&P500; index rose 1.22 points, or less than 0.1 per cent, to 3,853.07. The Dow Jones Industrial Average index slipped 12.37 points, or less than 0.1 per cent, to 31,176.01. The Nasdaq composite climbed 73.67 points, or 0.6 per cent, to 13,530.91.
Home First IPO subscribed 1.04x on Day 1
The Rs 1,153.71-crore Home First Finance IPO was subscribed 1.04 times on the first day of the bidding process on Thursday. The issue received bids for 1,62,08,892 shares, which was 104 per cent of the issue size of 1,56,20,948 shares. The housing finance company (HFC) had on Wednesday raised a little over Rs 346 crore from 25 anchor investors.
RIL, YES Bank to disclose Q3 results
Reliance Industries, YES Bank, JSW Steel, HDFC Life, SBI Life, Apollo Hospitals, Gland Pharma, Crompton Greaves, L&T; Finance, Oberoi Realty and Indian Bank are some of the companies which will announce their Q3 results today.
Indigo Paints IPO subscribed 7.4x on Day 2
The initial public offer of Indigo Paints was subscribed 7.38 times on the second day of bidding on Thursday. The offer received bids for 4,07,04,230 shares against 55,18,402 shares on offer, as per data available with NSE.
FPIs buy Rs 1,615 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,614.66 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,039.48 crore, data suggests.
MONEY MARKETS
Rupee: Extending its gains for the third straight session, the Indian rupee added another 6 paise to settle at a near five-month high of 72.99 against the US dollar on Thursday, tracking a weaker American currency overseas and sustained foreign fund inflows.
10-year bonds: India 10-year bond yield rose 0.22 per cent to 5.95 after trading in 5.93-5.95 range.
Call rates: The overnight call money rate weighted average stood at 3.19 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.
DATA/EVENTS TO WATCH
- Q3 Earnings: RIL I HDFC Life I SBI Life I Yes Bank I JSW Steel
- India Foreign Exchange Reserves 15/Jan (05:00 pm)
- Japan Inflation Rate YoY Dec (05:00 am)
- UK Gfk Consumer Confidence Jan (05:31 am)
- Japan Jibun Bank Manufacturing PMI Flash Jan (06:00 am)
- Euro Area Markit Manufacturing PMI Flash Jan (02:30 pm)
- US Markit Services PMI Flash Jan (08:15 pm)
- US Existing Home Sales MoM Dec (08:30 pm)
- US EIA Cushing Crude Stocks Change 15/Jan (09:30 pm)
MACROS
Export levies to go up on finished goods... India’s import tariff structure could be revamped in the upcoming budget to provide lower duty on large inputs, especially those used in products that are exported, while keeping levies high on finished goods—a structure that would encourage domestic value addition. Inputs used in producing chemicals such as methyl alcohol, acetic acid and PVC could see a reduction in tariffs, said people with knowledge of the matter.
Farmers reject govt deal... Protesting farmer unions rejected the government’s proposal of suspending the three farm laws for a year and a half to facilitate a resolution in return for an end to the ongoing protests, signalling continuance of the stalemate nearly two months after the sit-in began on Delhi’s borders. In a statement issued on Thursday after discussions lasting 10 hours, the umbrella body of the protestors, Sanyukt Kisan Morcha, reiterated the demand for repeal of the contentious farm laws and for enacting a new law guaranteeing minimum support price for crops.
E-commerce policy may be dropped... India may drop the proposed ecommerce policy as certain sections within the government have questioned its rationale, citing a lack of convergence on various issues. An inter-ministerial group on Thursday discussed the draft policy that, among other things, seeks to set up a regulator for the sector and implement a new law to restrict the data ecommerce entities can store, use, transfer, process and analyse.
RBI projection boosts sentiment... On a day the Sensex hurdled the 50,000 barrier, the usually circumspect RBI added to the cheer through its positive assessment of the recovery underway. High-frequency data, such as expansions in merchandise trade, bank credit and capital expenditure, underscored the robustness of the rebound that should help the economy log positive growth, Mint Street said.
Japan's consumer prices fall at decade-fast pace
Japan's core consumer prices slumped in December at the fastest annual pace in a decade, a sign of intensifying deflationary pressures that sharpen the case for the central bank to come up with better ways to combat the deepening impact of the COVID-19 pandemic. The nationwide core consumer price index (CPI) fell 1 per cent in December from a year earlier, government data showed.
Brisk dollar buying on... RBI has intensified its purchase of US dollars in the currency forwards market, dealers said, even as continued fund flows sent stocks to Summit 50K Thursday. The central bank is said to have bought over $1 billion on Thursday, primarily through two state-owned banks that transacted both in the spot and forwards markets, dealers said. This checked the local unit’s sharp rise.
Govt expects big bids for BPCL.... India expects some international oil majors to participate in the BPCL divestment process during the price bid stage, Union oil minister Dharmendra Pradhan has said.
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 | leelapath0210 Nishad20 days ago good for trade |
