SGX Nifty up 25 points; here’s what changed for market while you were sleeping
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 26 points, or 0.17 per cent, higher at 15,061 signaling that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty50 on Wednesday formed a Shooting Star candle on the daily chart, which is generally found in an uptrend and suggests a potential trend reversal.
F&O: India VIX moved up marginally by 0.40% from 19.24 to 19.31 level. The fear gauge needs to hold below 20 level to extend the bullish momentum.
Asian markets mixed
Stocks in other Asian markets started steady, as investors weighed the Fed minutes that flagged the possibility of a debate on scaling back asset purchases.
- Japan’s Nikkei225 fell 0.48%
- Shanghai Composite slipped 0.29%
- South Korea’s Kospi index fell 0.5%
- Hang Seng retreated 0.63% earlier
US stocks shed weight
Wall Street’s main indexes closed lower on Wednesday after minutes from an April Federal Reserve meeting showed participants agreed the US economy remained far from the central bank’s goals, with some considering discussions on tapering its bond buying program.
- Dow Jones Industrial Average fell 164.62 points, or 0.48%,
- S&P 500 lost 12.15 points, or 0.29%, to 4,115.68
- Nasdaq Composite dropped 3.90 points, or 0.03%, to 13,299.74.
Dollar mildly higher
The dollar held an advance on Thursday. On Wednesday, the rupee galted a three-day winning run and declined by 13 paise to close at 73.18 against the US dollar in line with the fall in the domestic equity market.
- The Japanese yen was at 109.23 per dollar
- The offshore yuan traded at 6.4409 per dollar
- The euro was at $1.2174
- US treasury yields were steady after climbing to 1.67%.
Bitcoin hits rock bottom & bounces
A bout of volatility swept over cryptocurrencies, with Bitcoin posting a same-day plunge and rally of about 30%. It last traded at $35,500.
- Bitcoin fell to $30,000 and then topped $40,000 before falling again to $35,500
- Ether, the second-biggest coin, sank more than 40% before ended down 26%.
- Dogecoin, the meme crypto popularised by Musk, lost 45 per cent, before paring some losses
Commodities stable
Crude oil prices stabilised after slumping to the lowest in three weeks. WTI crude traded steady at $63.37 a barrel after falling 3.3%
- Indian gold fell by Rs 97 to Rs 47,853 per 10 gm
- India silver down by Rs 1,417 to Rs 71,815 a kg.
- International gold traded at $1,867.70 an ounce
Q4 results today
Havells India, Bosch, HPCL, Relaxo Footwears, Torrent Power, ZEE Entertainment, KNR Constructions, JK Lakshmi Cement, Meghmani Organics and Usha Martin are among companies which will announce their March quarter results today.
DIIs sell Rs 853 cr worth shares
Net-net, foreign portfolio investors (FPIs) turned seller of domestic stocks to the tune of Rs 697.75 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 852.52 crore, data suggests.
Axis OFS to open for retail investors today
Axis Bank’s Rs 4,000 crore OFS will open for retail investors on Thursday. The central government’s sale of shares, held through SUUTI, in Axis Bank got subscribed over four times on the first day of offer on Wednesday, according to DIPAM.
MONEY MARKETS
Rupee: Snapping its three-day winning run, the rupee on Wednesday declined by 13 paise to close at 73.18 against the US dollar in line fall in Asian currencies ahead of the release of US Fed minutes.
10-year bonds: India 10-year bond yield fell up 0.02 per cent to 5.97 after trading in 5.96 -5.98 range.
Call rates: The overnight call money rate weighted average stood at 3.11 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.
DATA/EVENTS TO WATCH
- Q4 Earnings: HPCL | JK Lakshmi | Torrent Power | ZEE
- Australia Employment Change April (07:00 am)
- China Loan Prime Rate 1Y (07:00 am)
- Euro Area Current Account March (01:30 pm)
- UK CBI Industrial Trends Orders May (03:30 pm)
- US Jobless Claims 4-week Average May/15 (06:00 pm)
MACROS
Fed may talk tapering ‘at some point’
The US Fed minutes released overnight indicated some officials may be open “at some point” to discussing adjustments to the pace of massive bond purchases if the US economy keeps on progressing rapidly. “It was a surprise to hear the talk about Fed tapering,” Joyce Chang, J.P. Morgan Global Research Chair, said on Bloomberg TV. “The market had been thinking there might be a couple of months before you really saw this particular issue come into focus.” Still, Chang said it was not the time to bet against the broader fundamentals right now on the outlook for growth.
PSBs ask RBI for loan recast for all
PSU bankers have asked the RBI to extend a second round of restructuring to all companies — and on a reduced provision rate of 5%, versus last year’s 10%. In a video conference with RBI governor Shaktikanta Das, CEOs of all 12 PSU lenders were unanimous in their request for a second round of restructuring as the second wave of the Covid-19 pandemic has hit both lives and livelihoods more severely.
Unlock to benefit big bank stocks
Large banks should be the biggest beneficiaries as India passes the hump in the second Covid wave. Investors now appear to have a far better understanding of the loans landscape than they had during the 2020 shutdown. It has given them the confidence to look favourably at top banks, which they believe will escape with limited asset quality slippages. Analysts say stocks like HDFC, HDFC Bank, ICICI Bank, SBI, Axis, IndusInd and Bandhan can give 15-35% returns in a year.
Crypto investors make money on arbitrage
Cryptocurrency investors have started making gains through price arbitrage on Indian and foreign platforms as prices turned volatile over the past few days. Trading volumes doubled at some exchanges as prices of Bitcoin and other cryptocurrencies fluctuated. Bitcoin traded at $33,130, or Rs 24.26 lakh, on international exchanges at 6:30 pm on Wednesday. At the same time, prices quoted on Indian exchanges rose to Rs 30.04 lakh.
FII ownership of G-sec too low
FPI interest and ownership of sovereign bonds remains low at a time when North Block, like several other emerging countries, is expanding its balance sheet to ride out the pandemic. Although equities have lately lost out, stocks have had significant overseas ownership since valuations hit decadal lows last March. FPI share in the ownership of central government securities fell to 1.87% in March, from 2.44% a year ago, RBI data showed.
Lenders told to weigh Wadhawan offer
NCLT has asked the committee of creditors to consider the proposal made by jailed promoter Kapil Wadhawan for DHFL, against which insolvency proceedings were initiated by RBI. Lenders are perplexed with the order, as they have agreed to sell the company to Piramal Group after an elaborate process. Wadhawan had in October 2020 offered his personal and family properties, which he claimed were worth Rs 43,000 crore.
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