Here’s breaking down the pre-market actions.
STATE OF THE MARKETS
SGX Nifty signals gap-up start
Nifty futures on the Singapore Exchange traded 143.60 points, or 0.96 per cent, higher at 15,050 in signs that Dalal Street was headed for a gap-up start on Thursday.
Tech View: Nifty face resistance at 15,000
Nifty50 on Wednesday breached its 50-day moving average with ease and made a higher high-low formation for the fourth straight session. The index formed a bullish candle on the daily chart, similar to the one formed in the previous session. Analysts said while the daily charts looked strong, the index could face strong resistance near the 14,950-15,000 zone in the coming days.
Asian markets rise in early trade
Asian markets rose in Thursday’s trade following the Fed policy outcome. Korea’s Kospi advanced 0.48 per cent while China’s Shanghai Composite index added 0.25 per cent. Hong Kong’s Hang Seng climbed 1.18 per cent.
prices extend gains on demand outlook
Oil prices extended gains on Thursday after rising 1 per cent the previous session, as bullish forecasts on recovering demand this summer offset concerns of rising Covid-19 cases in India, Japan and Brazil. Brent crude for June edged up 8 cents, or 0.1 per cent, to $67.35 a barrel while US West Texas Intermediate crude for June was at $63.98 a barrel, up 12 cents, or 0.2 per cent.
US stocks settled lower
Wall Street stocks declined as the Federal Reserve signaled a continuation of accommodative monetary policies, while leading Dow members tumbled after earnings reports. The Dow Jones Industrial Average index finished down 0.5 per cent at 33,820.38. The broad-based S&P500 index shed 0.1 per cent to 4,183.18, while the tech-rich Nasdaq Composite index lost 0.3 per cent at 14,051.03.
Power Grid InvIT IPO kicks off today
PowerGrid Infrastructure Investment Trust raised a little over Rs 3,480 crore from anchor investors ahead of its initial public offer, which opens for subscription on Thursday. It has been decided to allocate 34,80,74,100 units at Rs 100 apiece to 47 anchor investors, aggregating the total to Rs 3,480.74 crore, according to a circular uploaded on BSE website.
Q4 earnings today
Hindustan Unilever, Titan and Bajaj Auto, Ambuja Cements,
, Bajaj Holdings, , AU SFB and Laurus Labs are among companies scheduled to announce quarterly results today.
FPIs buy Rs 766 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 766.02 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 436.20 crore, data suggests.
Rupee: The rupee rose by 30 paise to close at a nearly two-week high of 74.36 against the US dollar on Wednesday, extending its gains for a third day on the back of a strong rally in domestic equities.
10-year bonds: India 10-year bond yield fell 0.03 per cent to 6.05 after trading in 6.04-6.07 range.
Call rates: The overnight call money rate weighted average stood at 3.20 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
DATA/EVENTS TO WATCH
- Q4 Earnings: Bajaj Auto I Bajaj Holdings I Exide I HUL I IndiaMart I L&T Finance I Titan
- Australia Export/Import Prices QoQ Q1 (07:00 am)
- Euro Area Loans to Households YoY March (01:30 pm)
- Euro Area Loans to Companies YoY March (01.30 pm)
- UK Car Production YoY March (01.30 pm)
- Euro Area Consumer Confidence Final April (02.30 pm)
- Euro Area Economic Sentiment April (02.30 pm)
- US GDP Growth Rate QoQ Adv Q1 (06:00 pm)
- US Jobless Claims 4-week Average April/24 (06:00 pm)
- US Pending Home Sales MoM March (07:30 pm)
US Fed says ‘not time yet’ for tapering talk.. US Federal Reserve Chairman Jerome Powell said that “it is not time yet” to start talking about tapering the central bank’s asset purchase program despite a strengthening economic recovery. Powell noted that the US economic recovery “remains uneven and far from complete,” while it has progressed more quickly than generally expected.
ADB says India growth to rebound… The Asian Development Bank said on Wednesday that India’s GDP will rebound strongly by 11% in 2021-22 due to continued economic recovery boosted by increased public investment, vaccine rollout, and a surge in domestic demand. But it also cautioned that the surge in cases could hurt the recovery. The ADB forecast assumes that vaccines are deployed extensively across the country and the second wave of Covid is contained.
Biden says America is ‘on the move again’.. US President Joe Biden declared that America is “on the move again” at the start of a rousing speech to Congress, calling for trillions of dollars to rebuild the post-Covid US middle class and its “forgotten” workers Lauding the success of mass vaccination against Covid-19, Biden told Congress and the nation on primetime television that “in America, we always get up.”
CDS costs rise to first Covid wave levels… The cost to insure against a potential default by Indian banks has risen about a fifth in the past two weeks as various states imposed local curbs on mobility and businesses. Credit default swaps, an insurance against default, tied to
and SBI are now at levels last seen during the peak of the first wave of coronavirus. The CDS rates seem to discount the market-beating earnings of private lenders for the fourth quarter.
Sebi links MF pays to fund performance… Markets regulator Sebi on Wednesday said that each fund house should pay at least 20% of salary, perks, non-cash compensation net of income-tax, NPS, PPF, to their top executives in units of the MF schemes they’re working for. These executives include the fund house’s managing director/chief executive officer, chief investment officer, chief operating officer, fund managers, research analysts and some others who are directly involved in running each scheme. This rule will be effective July 1, 2021,
Strong FII exits raise worry… Long-term overseas investors have withdrawn a record $5.4 billion from Indian equities in February, raising concerns that a significant number of companies may also have offloaded their direct investments in the country in the current bout of exits. RBI’s monthly data showed that the outflows were due to repatriation or disinvestment. “This is a massive outflow in a single month and hence it needs to be monitored,” CARE Ratings chief economist Madan Sabnavis said.
In his first address to Congress, President Biden unveiled a package of tax credits and domestic priorities including child care, paid family leave and tuition-free community college that would be funded in part by the tax increases on wealthy Americans.
ONGC seeks foreign partners… Days after the oil ministry sought response to a plan to carve up ONGC’s functional sections into a separate company and sell stake in major producing fields, India’s largest state-run explorer has said it is eyeing foreign partnerships for prospecting in less explored acreages but critical issues needed to be addressed before looking at changing the company’s structure.