Domestic equity indices looked poised to open with a gap down as traders awaited India’s GDP growth numbers for the January-March period. Asian peers remained muted, while Wall Street was cautious on Friday ahead of a holiday today. Technical charts suggest indecisiveness for domestic indices.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 74 points, or 0.48 per cent, lower at 15,418.5 signaling that Dalal Street was headed for a negative start on Monday.
- Tech View: Nifty50 on Friday continued to form higher highs and lows and made another indecisive Doji candle on the daily chart.
- India VIX: The fear gauge tanked 12.6 per cent to 17.40 level on Friday, which is at lowest levels of the last 65 weeks since February 2020.
Asian markets mixed early trade
Asian shares edged higher on Monday, but gave up their gains as all eyes are set on US jobs figures showing the expected revival in hiring in May and keep the global recovery on track. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.20 per cent.
- Japan’s Nikkei declined 0.52%
- Hang Seng inched up 0.08%
- Seoul’s Kospi gained 0.05%
- Australia’s ASX 200 advanced 0.07%
- Shanghai Composite flat, slipped 0.02%
US Stocks ended higher
Stocks capped a listless day of trading on Wall Street with modest gains Friday and the S&P 500’s first weekly gain in three weeks, thanks to buoyancy in technology and healthcare counters. Wall street will remain closed on May 31, Monday, on the account of Memorial Day.
- Dow Jones up 0.13% to 34,529.45.
- The S&P 500 gained 0.08% to 4,204.11.
- Nasdaq advanced 0.09% to 13,748.74
The dollar continued to rebound on Friday as traders tidied positions for month-end and new data largely confirmed expectations about inflation and the strength of the U.S. economic recovery.
- The dollar index gained 0.3% to 90.236.
- Euro dipped 0.3% at $1.216.
- British Pound fell 0.3% to $1.416.
- Yen slips 0.2% to 110.02 per dollar.
- Yuan appreciates to 6.37 against the greenback.
Q4 earnings today
Aurobindo Pharma, Honeywell Automation, Magma Fincorp, Narayana Hrudalaya, Shilpa Medicare, Jamna Auto Industries, Rupe & Company, Marksans Pharma, Apar Industries, Kolte Patil Developers and Chemcon Speciality Chemicals are among companies that will announce their March quarter results today.
DII bought equities worth Rs 1275.22 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 913.59 crore, data available with NSE suggested. DIIs also bought shares to the tune of Rs 1275.22 crore, data suggests. Overall, overseas investors took out around Rs 1,730 crore from the Indian markets in May, turning out to be net sellers for the second straight month.
climbs in early trade
Oil prices climbed in early Asian trade on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter, while investors looked ahead to the OPEC meeting this week for supply guidance. Brent crude futures for August nudged up 7 cents, or 0.1%, to $68.79 a barrel by 0038 GMT after settling at their highest in two years on Friday. U.S. West Texas Intermediate crude for July was at $66.45 a barrel, up 13 cents, or 0.2%.
Rupee: The Indian rupee clocked its third straight session of gains on Friday, firming up by another 15 paise to end the session at 72.45 against the US dollar amidst improved risk-on sentiments.
10-year bonds: India 10-year bond yield climbed 0.27 per cent to 6.00 after trading in 5.97 – 6.00 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.
India’s economic data
The National Statistical Office will release the GDP growth estimates for the March 2021 quarter, as well as the provisional annual estimates for the year 2020-21 on Monday, May 31, 2021. Indian economy is now estimated to show growth rather than contraction during January-March (Q4) of FY 2020-21, according to an ET poll.
The infrastructure output and fiscal deficit for April will be announced on Monday. Markit Manufacturing PMI for May will be released on Tuesday, while Markit Services and Composite PMI for May will be declared on Thursday.
RBI policy maybe a dull one
RBI’s upcoming monetary policy review could be the one with least action in more than a year as it weighs the economic fallout of the second wave of Covid infections, state finances and price pressures — all pulling in different directions. The MPC is likely to lower the FY22 economic growth forecast as the 10.5% it had estimated earlier may not be achievable now with more than half of rural India and many urban centres under different stages of lockdown.
Banks warn customers against crypto deals
Leading Indian banks are clamping down on customers using bank accounts for cryptocurrency transactions. Over the past few months, HDFC Bank and SBI — to name two such lenders — have sent official notices to many customers warning them of curbs — including permanent closure of accounts. “Kindly clarify the nature of these transactions… within 30 days,” according to one such communication from HDFC Bank.
Sebi rejects FT settlement plea
Sebi has rejected the settlement application of Franklin Templeton Asset Management India (FT) for allegedly violating securities law in closing six debt funds last year, said people with knowledge of the matter. The regulator is expected to pass an order in the FT case under Sections 11 and 11B of the Sebi Act soon, they said. The capital market watchdog has wide-ranging powers under these sections, including the ability to issue directions to any intermediary or person associated with the securities market to protect the interests of investors.
Paytm parent’s unlisted stock swells 70%
The unlisted shares of One97 Communications, promoter of Paytm, spiralled nearly 70% last week after the company decided to go ahead with an initial public offer (IPO)—the largest ever by an Indian company. The country’s largest mobile payment firm, backed by China’s Alibaba and Softbank, is planning a public issue of around $3 billion (Rs 21,700 crore), which could value the company at $25 billion to $30 billion (Rs 1.81 – 2.17 lakh crore).