Market Movers: What changed for D-Street while you were sleeping

NEW DELHI: Benchmark equity indices are likely to open on a muted note amid concerns over a slowdown in China in the wake of its trade tensions with the US. Auto stocks will be in focus after muted monthly sales data.

Let's check out what all may move market all through Tuesday:

TRADE SETUP

• Singapore trading sets stage for a negative start
  Nifty futures on the Singapore Exchange were trading 15.50 points, or 0.14 per cent, lower at 10,832, indicating a negative start for the Nifty50.
  

  

  
  

• Tech view: Nifty in for further consolidation
  Nifty50 snapped a three-day losing streak on Friday to close almost at its 200-day moving average. But analysts say upside, if any, will be limited. The bears lacked enough ammunition to do significant damage, which suggests the market was in for a minor consolidation, said Mazhar Mohammad of Chartviewindia.in

• Passive funds outperform active funds
  Wealth managers are increasingly asking investors to allocate some portion of their portfolio to passively-managed index funds. Over the last one year, index funds have outperformed actively-managed fund categories. Actively-managed large-cap funds have lost 0.37 per cent, while the index funds mimicking the Nifty have gained 3.87 per cent, as per data from Morningstar India.

• FPIs buy Rs 198 crore worth of equities
  Foreign portfolio investors (FPIs) bought Rs 198.38 crore worth of domestic stocks on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 117.05 crore, data suggested.

MONEY MARKET

• Rupee down: The rupee weakened by 20 paise to close at 70.92 against the US dollar Friday amid strengthening of the American currency and rising crude oil prices.

• 10-yr bond yields down: India 10-year bonds' yields fell 0.03% to 7.56% on Friday from 7.59% over the previous trading session, according to RBI data.

• Call rate: The overnight call money rate weighted average was 6.19% on Friday, according to RBI data. It moved in a range of 4.80-6.35%.

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MACROS

• India Inc’s ECBs down 45% in Jan
  India Inc’s external commercial borrowings (ECBs) fell by 45 per cent to $2.42 billion in January 2019 as compared to the year-ago period, data from RBI has showed. Of the total borrowings during the month, $2.27 billion was raised through the automatic route of the ECBs.

• Sebi wants the govt to amend Companies Act
  Capital markets regulator Sebi has asked the government to amend the Companies Act to ensure that a director declared by it as a disqualified person is forced to immediately vacate the position, a plea triggered by defaulter businessman Vijay Mallya's reluctance to do so.

• Gold, oil down
  Gold has fallen for four days in a row by Monday to as low as $1,283.10 per ounce, its lowest level since Jan. 25. It last stood at $1,286.6. Silver hit two-month lows of $15.0725 per ounce. Oil prices dipped on Monday amid tepid prospects for growth in fuel demand, but OPEC-led efforts to cut output offered some support. US West Texas Intermediate (WTI) crude oil futures were at $56.46 per barrel at 0136 GMT, down 13 cents, or 0.2%, from their last settlement. Brent crude futures were at $65.60 per barrel, down 7 cents, or 0.1%.

• US-China trade war 'on the cusp' of ending
  Secretary of State Mike Pompeo said on Monday he thought the United States and China were “on the cusp” of a deal to end their trade war, adding to positive signs about negotiations from both sides of the Pacific. Pompeo, in a series of interviews with Iowa radio and television stations, said he hoped a deal could be agreed in coming weeks to make trade between the world’s two largest economies fairer and eliminate China’s retaliatory tariffs on Iowa farm commodities such as soybeans.

• China to slash taxes, boost lending
  China will cut billions of dollars in taxes and fees, increase infrastructure investment, and step up lending to small firms, Premier Li Keqiang said on Tuesday, as the world’s second-largest economy looks set to slow further this year. China cut its growth target for this year to 6-6.5 per cent. Adopting a target range rather than a single growth figure gives policymakers room to maneuver as economic uncertainties in China grow.