Nifty today: SGX Nifty up 52 points; here’s what changed for market while you were sleeping

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US Treasury Secretary Janet Yellen downplayed her earlier remarks that rate hikes may be needed to stop the US economy overheating, and that may calm investor nerves a bit after US stocks, especially technology names, fell up to 2 per cent in overnight trade on rate hike concerns. Most Asian markets are closed today for a public holiday and, thus, domestic indices are likely to chart their own direction. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals flat start

Nifty futures on the Singapore Exchange traded 52 points, or 0.36 per cent, higher at 14,584.50 in signs that Dalal Street was headed for a positive start on Wednesday.

Tech View: Nifty support exists at 14,416

Nifty50 on Tuesday saw late selling that dragged the index below the 14,500 level at close. The index formed a bearish candle on the daily chart and formed a higher high and low. As long as the index stays above the swing low of 14,416, analysts see chances of a recovery.

Asia shares flat in early trade

Asian shares risked falling for a fourth straight session as sentiment took a knock from a selloff in large cap Wall Street tech darlings, combined with talk of rising US interest rates. Holidays in Japan, China and South Korea limited the early reaction, leaving MSCI’s broadest index of Asia-Pacific shares outside Japan dithering either side of flat. Japan’s Nikkei was shut, but futures traded down at 28,735 compared to the last cash close of 28,812. Hong Kong’s Hang Seng up was up 0.18 per cent at 28,609.

Oil jumps on steep drop in US crude stocks

Oil prices rose nearly 1 per cent, extending overnight gains, after industry data estimated U.S. crude stockpiles fell much more than expected last week reinforcing bullish views on fuel demand in the world’s largest economy. Brent crude futures jumped 58 cents, or 0.8 per cent, to $69.46 barrel after touching a more than seven-week high of $69.64.

US stocks settled lower

Stocks are closing lower on Wall Street Tuesday, dragged down by big technology companies like Apple and Microsoft. The S&P500 fell 28 points, or 0.7 per cent, to 4,164.66. The Dow Jones Industrial Average rose 19.80, or 0.1 per cent, to 34,133.03. The Nasdaq fell 261.61 points, or 1.9 per cent, to 13,633.50.

Q4 results today

Adani Green Energy,

, SRF, , Gillette India, , Oracle Financial, Blue Dart Express, , Ceat, Craftsman Automation, Angel Broking and Shalby are among companies that will announce their March quarter results today.

FPIs sell Rs 1,772 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,772.37 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 987.34 crore, data suggests.

MONEY MARKETS

Rupee: Rising for the second day in a row, the rupee closed 10 paise higher at 73.85 against the US currency on Tuesday on dollar selling by traders.

10-year bonds: India 10-year bond yield fell 0.48 per cent to 6.00 after trading in 6.00-6.02 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 1.90-3.50 per cent.

DATA/EVENTS TO WATCH

  • India Markit Composite PMI April (10:30 am)
  • India Markit Services PMI April (10:30 am)
  • Euro Area Markit Services PMI Final April (01:30 pm)
  • Euro Area Markit Composite PMI Final April (01:30 pm)
  • UK New Car Sales YoY April (01:30 pm)
  • US Markit Composite PMI Final April (07:15 pm

MACROS

RBI steps in to cool rupee premium… RBI on Tuesday had to firefight in the currency market with forward premium soaring up to 28.95 per cent on short-term onshore contracts, indicating that varying estimates of fund flows could cause wild swings in the local currency. RBI is said to have intervened through some state-run banks that brought down the cost of covering currency exposure across maturities, traders said.

Yellen talks of rate hike, then retracts… US Treasury Secretary Janet Yellen said interest rates may have to rise modestly to prevent the US economy from overheating due to higher levels of government spending, without specifying a timeframe. “It may be that interest rates will have to rise somewhat to make sure our economy doesn’t overheat,” Yellen said in an interview with the Atlantic. Later she clarified she was not predicting or recommending interest-rate increases.

RBI buying gold in a big way… RBI bought 42 tonnes (1.36 million troy ounces) of gold in the last fiscal year amid uncertainty on US treasury yields. The central bank ended FY21 with a valuation loss of its foreign exchange reserves as US treasury yields, where the bulk of the reserves are parked, have hardened in recent times. RBI was the second-largest buyer of gold among central banks after Turkey in FY21, according to a World Gold Council Report

Consumer firms may face revenue hit… Consumer companies are likely to suffer from weaker revenues amid margin pressures in the near term as the second wave of the Covid-19 pandemic has dented income and spending intentions, said JP Morgan. The financial services firm’s online survey of 400 people, comprising urban, salaried and young people, indicated weaker incomes, deferred spending intentions and increased online activity.

20 listed firms lose key people to Covid… At least 20 listed companies in India have lost key, board-level functionaries and top executives since early March, and these untimely deaths have put the spotlight on the need for well-defined succession plans. This toll includes only the list of key managerial personnel, whose deaths must be disclosed by listed companies under corporate governance rules. Industry insiders say several top executives, who were not part of key managerial personnel and yet worked in crucial positions, have also died in the last few weeks.

No more ombudsman in securities market… Sebi has done away with the concept of ombudsman for the securities market because of legal issues. The regulator said it does not have the power to adjudge dispute between entities. “Sebi Act does not expressly empower the Board to award compensation and therefore, Sebi may not empower an ombudsman to award compensation through delegated legislation,” Sebi said in an internal note.

NBFCs, banks seek RBI concession… A second Covid wave many times worse the first has prompted banks, NBFCs and small-finance banks to ask RBI that flexible restructuring up to two years across all categories of borrowers be allowed. Three people aware of the development said financial institutions have asked RBI to classify the second wave as a national natural calamity.

Huawei, ZTE banned in 5G trials… Chinese telecom vendors Huawei and ZTE have not found a place in the government’s ambitious 5G trials, in a clear signal that business relations with the country’s neighbour will remain restricted, amid growing concerns around network security and prevailing tensions in diplomatic and military relations. The trials are a precursor to 5G auctions that are expected to start late this year, or early next.

Govt as PSBs to protect dollar assets… The government has asked PSBs to protect their dollar deposits on concern they could be frozen if Cairn Energy moves to seize India’s offshore assets as part of a tax dispute, according to people with knowledge of the matter. Lenders aren’t committing to US dollar purchases in the forwards market since this guidance last week. The UK-based Cairn can push authorities to impound Indian assets if the government declines to honour an arbitration ruling in a $1.2-billion tax dispute

Apple firm among 19 PLI applicants… Apple’s contract manufacturers Foxconn and Wistron, computer firm Dell and domestic firms Dixon and Lava are among the 19 companies that have applied for investments under the production-linked incentive (PLI) scheme for IT hardware manufacturing, the ministry of electronics and IT (Meity) said on Tuesday. According to the ministry, the scheme is expected to lead to total production worth Rs 1.6 lakh crore.

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