Weak Asian markets, which are at one-month lows, and a second day’s fall in US stocks overnight may hit domestic market sentiment on Wednesday. There are concerns globally that rising inflation in the US will trigger a Fed rate hike soon. Back home, Covid cases in India fell for the third day, raising hopes that the country may soon see a peak in daily cases.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 21.50 points, or 0.14 per cent, lower at 14,828.50, signalling that Dalal Street was headed for a negative start on Wednesday.
Tech View: Nifty support seen at 14,770
Nifty50 on Tuesday snapped a four-day winning streak and negated a pattern of higher lows that it was making on the daily charts over the past five sessions. During the day, the index recovered from the opening lows, taking some support at its 50-day moving average. Analysts see a near-term hurdle for the index in the 15,000-15,050 zone while support is likely in the 14,770-14,740 zone.
Asia shares at one-month lows
Asian shares fell to one-month lows as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes. MSCI’s broadest index of Asia-Pacific shares outside Japan faltered 0.5 per cent. Shares in China opened in the red, with the blue-chip index off 0.2 per cent. South Korea’s Kospi index skidded 0.7 per cent. Japan’s Nikkei was down 0.4 per cent.
US stocks sagged for second day
Wall Street stocks sagged for a second straight day Tuesday, although tech shares finished well above their session lows following bargain-hunting. The Dow Jones Industrial Average dropped 1.4 per cent to end the day at 34,269.16, its worst session since late February. The broad-based S&P500 index shed 0.9 per cent to close at 4,152.10, while the Nasdaq slipped 0.1 per cent to 13,389.43.
Q4 results today
Asian Paints, Pidilite Industries, Tata Power, Lupin, Jindal Steel and Power, UPL, Voltas, Vaibhav Global, Happiest Minds, Apollo Tyres, Birla Corp, Prince Pipes and Fittings, Sonata Softwares, Orient Electric, Borosil Renewables and Saregama India are among companies that will announce their March quarter results today.
DIIs sell Rs 677 crore worth shares
Net-net, DIIs were net sellers to the tune of Rs 676.67 crore, data available with NSE suggested. Foreign portfolio investors (FPIs) were seller of domestic stocks to the tune of Rs 336 crore, data suggests.
Rupee: The rupee recovered from early lows to close almost flat at 73.34 against the US currency on Tuesday on the back of dollar sales by exporters and weak crude oil prices. Forex traders said concerns over rising COVID-19 cases and losses in the domestic stock markets, however, weighed on the local unit.
10-year bonds: India 10-year bond yield shed 0.10 per cent to 6.01 after trading in 6.01 -6.03 range.
Call rates: The overnight call money rate weighted average stood at 3.24 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
EVENTS/DATA TO WATCH
- Q3 Earnings: Asian Paints | Birla Corp | Jindal Steel | Lupin | Pidilite | Tata Power | Voltas
- India Industrial Production YoY March (05:30 pm)
- India Inflation Rate YoY April (05:30 pm)
- India Manufacturing Production YoY March (05:00 pm)
- Japan Leading Economic Index Prel March (10:30 am)
- UK Balance of Trade March (11:30 am)
- UK GDP Growth Rate YoY Prel Q1 (11:30 am)
- ECB Non-Monetary Policy Meeting (01:30 pm)
- BoE Gov Bailey Speech (02:30 pm)
- US Core Inflation Rate YoY April (06:00 pm)
- China Vehicle Sales YoY April
India growth forecast slashed… Moody’s Investors Service slashed India’s growth forecast to 9.3% for this financial year, a 4.4 percentage point drop from 13.7% projected in February, on account of the second wave of Covid-19. The negative economic impact of the resurgence in cases will be limited to April-June and would be followed by a strong rebound in the second half of FY22, the global ratings company said in a report on Tuesday
Biz activity hits June 2020 low… India’s business activity witnessed a sharp drop last week as restrictions imposed by states due to the second wave of Covid-19 impacted mobility. The Nomura India Business Resumption Index (NIBRI), which tracks the pace of business activity, dipped to 64.5 for the week ended May 9, down from 69.7 in the previous week, falling to levels last seen in June 2020 when the country was emerging from a nation-wide lockdown.
PSBs raise guard against Cairn claim… The Department of Financial Services has asked PSU banks to appoint a nodal officer amid increasing concerns that overseas assets or deposits of these lenders could be attached during a contested arbitration award involving Cairn Energy and the Centre. The department wrote a letter to PSB chiefs suggesting they immediately inform Sanjay Kumar, Director of banking operations, if they receive ‘any intimation/notice/letter’ from Cairn Energy and its subsidiary Cairn UK Holdings.
Jio beats Airtel in subscriber addition… Reliance Jio added more mobile phone users than Bharti Airtel in February, bucking a trend of losing to the Sunil Mittal-led telco for six straight months, while Vodafone Idea added users for the first time in 15 months, according to the telecom regulator’s data. Mukesh Ambaniled Jio gained 4.26 million wireless subscribers compared with Airtel’s 3.73 million, TRAI said on Tuesday.
PIC to replace promoter in companies… Sebi has proposed to do away with the concept of a ‘promoter’ for listed companies, seeking to align the definition of executive ownership with that in the West, where the concept of a ‘person in control’ is used to link decision making and primary shareholding. “Unlike the past, the concentration of ownership and controlling rights of Indian companies does not vest completely in the hands of the promoters or the promoter group,” Sebi said in a discussion paper on Tuesday.
US job openings at new high… US job openings surged to a record high in March, further evidence that a shortage of workers was hampering job growth, even as nearly 10 million Americans are looking for employment. The Labor Department’s monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday also showed layoffs dropping to a record low in March. The report could put pressure on the White House to review government-funded unemployment benefits programs, including a $300 weekly supplement, which pay more than most minimum wage jobs