The domestic equity market looks set to open higher on Tuesday, tracking overnight gains on Wall Street and early gains seen in Asian peers. A drop in Covid cases is a relief for domestic investors and so are positive signals on the technical charts that are showing no signs of any halt to the rally. Here’s breaking down the pre-market actions. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 101 points, or 0.66 per cent, higher at 15,302.50 signaling that Dalal Street was headed for a positive start on Tuesday.
- Tech View: Nifty50 on Monday formed an indecisive Doji candle on the daily chart, but as long as the index trades above the 15,100-15,000 zone, the momentum will remain positive, analysts said.
- India VIX: The fear gauge gained 0.26 per cent to close at 19.13 level on Monday over its Friday’s close of 19.08 level.
Asian markets rise in early trade
Asian share markets opened higher on Tuesday, tracking Wall Street gains overnight. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.79 per cent.
- Japan’s Nikkei jumps 0.55 per cent
- Kong Kong’s Hang Seng climbs 0.75 per cent
- South Korea’s Kospi advances 0.68 per cent
- Australia’s ASX 200 adds 0.62 per cent
- China’s Shanghai Composite rises 0.38 per cent
Wall Street shrugged off volatility
Wall Street stocks were back in rally mode on Monday, shrugging off recent bouts of volatility and embracing hopes for brighter days as the pandemic ebbs.
- Dow Jones gained 0.54 per cent to 34,393.98
- S&P500 jumped 0.99 per cent to 4,197.05
- Nasdaq Composite soared 1.41 per cent to 13,661.17
Dollar drifts to 4-month low
The dollar coasted at the bottom of its recent range, as softer-than-expected U.S data and fresh insistence from Federal Reserve officials that policy would stay on hold allayed investor fears about inflation forcing interest rates higher. The dollar index was down 0.2 per cent below the 90 level.
- Euro gained 0.3 per cent to $1.2213
- British pound up to $1.4160
- Japanese Yen traded at 108.79
- Chinese yuan traded at 6.4380
Crude oil rises to one-week high
Oil prices were steady on Tuesday, holding around one-week highs after jumping more than 3 per cent the previous session as prospects of an early return of oil exporter Iran to international crude markets lessened. Brent crude futures were down 6 cents at $68.40 a barrel, having jumped 3 per cent on Monday. US West Texas Intermediate futures fell 8 cents to $65.97 a barrel, after gaining 3.9 per cent the previous session.
Q4 earnings today
Alkem Laboratories, Bayer Cropsciences, Emami, AIA Engineering, Thermax,
, TTK Prestige, , Vardhman Textiles, Laxmi Organics Industries, VIP Industries and LA Opala RG are among companies that will announce their March quarter results today.
DIIs sold equities worth Rs 708 cr
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 585.36 crore, data available with NSE suggested. DIIs, turned seller to the tune of Rs 707.69 crore, data suggests.
Rupee: The Indian rupee fell by 13 paise to close at 72.96 against the US currency on Monday, as investors appeared unsure amid lack of cues on the domestic and global front.
10-year bond: India 10-year bond yield dipped marginally 0.08 per cent to 5.97 after trading in 5.97 -5.99 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 1.90-3.45 per cent.
DATA/EVENTS TO WATCH
- UK Public Sector Net Borrowing April (11:30 am)
- US S&P/Case-Shiller Home Price YoY March (06:30 pm)
- US House Price Index MoM March (06:30 pm)
- US New Home Sales MoM April (07:30 pm)
- US CB Consumer Confidence May (07:30 pm)
GST on Covid vaccine?
The Goods and Services Tax (GST) Council will consider whether Covid-19 vaccines should be exempt from the levy at a meeting on Friday. The two options under consideration, as suggested by some of the states, are to completely remove GST on vaccines or levy a nominal 0.1 per cent tax. The council will also take up proposals for reduction or exemption with regard to Covidrelated products and legislative changes to the GST framework made in the last budget.
Icra projects 2 per cent GDP growth
Domestic ratings agency Icra on Monday forecast a 2 per cent uptick in growth during the March FY21 quarter, and 3 per cent from the gross valueadded perspective. Its chief economist Aditi Nayar expects the annualised GDP growth at 2 per cent in the March quarter, up from 0.4 per cent in the December quarter.
India’s m-cap tops $3 trillion
India’s market capitalisation crossed the $3 trillion mark on Monday for the first time as the stock market made a remarkable turnaround since one of the fiercest sell-offs witnessed in March 2020 and a relatively stable rupee, backed by India’s record-high forex reserves. On Monday, the BSE said its market cap crossed $3 trillion, nearly four years since crossing the $2 trillion mark in July 2017. At the close of trade on Monday, the figure was at Rs 218 lakh crore or a little over the $3-trillion mark.
Brokers seek peak margin review
Stockbrokers have yet again urged the regulatory authorities to review the proposed 100 per cent levy on day-trade peak margins, arguing that the measure far outweighs the associated exposure risks. Rates of overnight margins are almost 3.33 times more than what is warranted based on the risks of the trades, they argued. They maintain that the ideal margin based on the attendant risks should not exceed 33.33 per cent of the SPAN margin.
DHFL issue goes to NCLAT
The RBI-appointed administrator for DHFL has approached the appellate tribunal against the NCLT order on May 19 directing the committee of creditors to consider an offer made by the jailed promoter of DHFL Kapil Wadhawan. They feel following the directions would undermine all the progress achieved towards the resolution of the case. Lenders said there was no question of doing a one-time settlement with Wadhawan because that would involve RBI withdrawing the case from NCLT.