The domestic equity market looked set to open higher on Tuesday, tracking gains in other Asian markets. Falling crude prices and strengthening of the rupee may boost investor sentiment. Stocks of private hospitals will be in focus after the announcement of a cap on the service charge at Rs 150 per Covid vaccine dose. Religare will be in focus ahead of its board meeting on fund raising.
Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 42.5 points, or 0.27 per cent, higher at 15,822, signaling that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty50 on Monday formed a small bullish candle on the daily chart. Analysts said while some cautiousness has been observed at higher levels, the 16,000 level is a real possibility.
India VIX: The fear gauge eased 2 per cent to 15.57 level on Monday over its close at 15.94 on Friday.
Asian markets edge higher
Asian stock markets opened lower on Tuesday after Wall Street shares lost steam following recent rallies, but regained strength as investors continue to weigh optimism about economic recovery. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.27 per cent.
- Japan’s Nikkei surged 0.49%
- Korea’s Kospi advanced 0.19%
- Australia’s ASX 200 inched up 0.15%
- China’s Shanghai Composite gained 0.23%
- Hong Kong’s Hang Seng added 0.28%
US shares ended mixed
Wall Street ended a languid session mixed on Monday, with investors standing by on news of a global minimum corporate tax rate, lingering inflation fears, and a lack of market-moving economic news.
- Dow Jones slipped 0.36% to 34,630.24
- S&P 500 declined 0.08% to 4,226.62
- Nasdaq climbed 0.49% to 13,881.72
Dollar remained subdued
The US dollar was subdued on Tuesday as investors looked to U.S. inflation data due later in the week after softer-than-expected jobs data quelled expectations of an early tapering in the Federal Reserve’s stimulus.
- The Dollar Index slipped to 90.021
- Euro recovered to $1.2192
- Pound steady at $1.4169
- Yen gained to 109.26 per dollar
- Yuan depreciates to 6.3914 against the greenback
Crude oil prices fall in early trade
Oil prices lost more ground on Tuesday as concerns about the fragile state of the global recovery in demand for crude and fuels were heightened by data showing China’s oil imports fell in May. Brent crude was down 11 cents, or 0.2%, at $71.38 a barrel by 0151 GMT, after declining 0.6% overnight. U.S. oil was off by 13 cents, or 0.2%, at $69.10 a barrel, having dropped by 0.6% in the previous session.
Q4 earnings today
Petronet LNG, Max Financial Services, Suven Pharmaceuticals, Prestige Estates Projects, Galaxy Surfactants, Engineers India, Ion Exchange, Hester Biosciences, Bajaj Hindusthan Sugars, Wonderla Holidays and Titagarh Wagons are among companies that will announce their March quarter results today.
DII buy shares worth Rs 984 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 186.46 crore, data available with NSE suggested. DIIs, turned sellers to the tune of Rs 983.97 crore, data suggests.
Rupee: The Indian rupee appreciated by 19 paise to settle at 72.80 against the US dollar on Monday, buoyed by persistent foreign fund inflows into capital markets.
10-year bonds: India 10-year bond yield retreated 0.10 per cent to 6.02 after trading in 6.00 – 6.04 range.
DATA/EVENTS TO WATCH
- Q4 Earnings: Essar Shipping | Petronet |
- Japan GDP Growth Rate QoQ Final Q1 (05:20 am)
- Japan Eco Watchers Survey Current May (10:30 am)
- Euro Area Employment Change YoY Final Q1 (02:30 pm)
- Euro Area GDP Growth Rate QoQ 3rd Est Q1 (02:30 pm)
- US Balance of Trade April (06:00 pm)
- US JOLTs Job Openings April (07:30 pm)
Crisil cuts India GDP estimate
Ratings agency Crisil on Monday slashed India’s 2021-22 GDP growth estimate to 9.5% from its earlier projection of 11%, citing the impact of the localised lockdowns in the second wave of Covid. The downward revision is premised on the clearly evident hit to the two engines of growth — private consumption and investment — by the second wave, it said. “Our new base forecast assumes that mobility will remain affected at least till August,” according to the report.
Sebi bars 11 entities from market
Sebi on Monday barred 11 entities from the market for front-running trades in Fidelity Group, a foreign portfolio investor (FPI), and asked these to disgorge nearly Rs 2.1 crore of illegal profits. According to the order, Vaibhav Dhadda, a trader with Fidelity Group, along with his mother Alka and sister Arushi, were front-running the exact trades that the FPI employee was putting in.
Piramal’s DHFL takeover okayed
NCLT on Monday approved Piramal Group’s bid to acquire DHFL. In their order, H P Chaturvedi and Ravikumar Duraisamy of the tribunal’s Mumbai bench said that the approval was subject to the final judgment from the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court’s decision. On May 19, the NCLT had asked lenders to consider an offer made by jailed promoter Kapil Wadhawan, which lenders found ineligible to be voted on.
Covid vax must for life insurance
Max Life and Tata AIA have taken the lead in asking for mandatory Covid-19 vaccine certificates for buyers of term life insurance — opening the doors for other insurers to follow suit to reduce future claims payouts, but depriving cover to those who have not yet been inoculated. While Max Life is issuing term covers to people over the age of 45 only if they are able to produce their final vaccination certificates, Tata AIA is issuing policies, irrespective of age, only to those who have received their first shot.
Shareholders red-flag PNB Housing deal
With Punjab National Bank and minority shareholders losing Rs 2,400 crore in just six trading days, the Rs 4,000 crore transfer of control deal in PNB Housing Finance to a private equity (PE) consortium led by Carlyle is facing opposition from sections of the minority shareholders and a proxy advisory firm who claim the transaction is non-transparent. However, a senior finance ministry official told ET that there have been no “regulatory issues” with the transaction.