Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 20 points loss or 0.17 percent.
The Indian market consolidated after a fierce four days of gains pushing benchmark indices above crucial resistance levels. The S&P BSE Sensex reclaimed 41,000 while Nifty50 also climbed above Mount 12K.
Sensex fell 164 points to 41,141 while the Nifty closed 39 points lower at 12,098 on February 7. For the week, Sensex rose 3.5 percent while Nifty rallied 3.75 percent.
Experts are of the view that the knee-jerk reaction was largely due to muted global cues and profit-taking at higher levels. The momentum should resume as long as Nifty holds above 12,000 levels. They feel that there could be a possibility of further downside if Nifty trades below 12,160 levels in the coming week as well.
According to the pivot charts, the key support level for Nifty is placed at 12,063.3 followed by 12,028.3. If the index continues moving up, key resistance levels to watch out for are 12,144.0 and 12,189.7.
The important pivot level, which will act as crucial support for the index, is placed at 31,085.93 followed by 30,969.96. On the upside, key resistance levels are placed at 31,343.03 and 31,484.16.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
Wall Street pulled back from record levels on Friday after a four-day rally, as investors digested a report that showed strength in the U.S. labor market, while keeping a close eye on developments surrounding the coronavirus epidemic. Nonfarm payrolls increased by 225,000 jobs last month, the Labor Department's data showed, much higher than 160,000 job additions expected by economists polled by Reuters.
The Dow Jones Industrial Average slipped 0.67% to 29,182.58. The S&P 500 dropped 0.26% to 3,337.11 and the Nasdaq Composite was down 0.14% at 9,559.00.
Asian Markets
Stocks and oil fell while safe-haven gold rose on Monday as the death toll from a coronavirus outbreak surpassed the SARS epidemic, raising alarm bells about its severity.MSCI's broadest index of Asia-Pacific shares outside Japan stumbled 0.7% to be on track for its second straight day of loss. Japan's Nikkei fell 0.8% while South Korea's KOSPI was off 1.4% and Australian shares eased 0.5% .
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 20 points loss or 0.17 percent. The Nifty futures were trading around 12,064-level on the Singaporean Exchange.
Oil prices fall on oversupply worries as virus hits China demand
Oil prices on Monday extended their decline from an early January peak above $70 as the spectre of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China, the world’s largest oil importer.
Brent crude hit a low of $53.63 a barrel and was at $54.09 by 0100 GMT, down 38 cents. US West Texas Intermediate fell 38 cents to $49.94 a barrel after striking a low of $49.56.
Rupee slips 22 paise to 71.40 against USD
The rupee declined by 22 paise to settle at 71.40 against the US dollar on Friday amid selling in domestic equities and strengthening of the American currency overseas. Forex traders said the rupee traded weak largely owing to strengthening of the US dollar ahead of the non-farm payrolls number scheduled to be released later in the day.
At the interbank foreign exchange market, the local currency opened on a weak note at 71.26.
Expect GDP to reach new heights over next few years: NITI Aayog
The country's economy would grow in the next few years and the GDP would reach a commendable position, a senior official in NITI Aayog said on Sunday.
"The Indian economy is going to rise in the next few years and the workforce of youth will take the country to new heights," Ramanan Ramanathan, mission director Atal Innovation Mission and Additional Secretary NITI Aayog, said here. Delivering the Graduation Day address of Sri Krishna College of Technology, he said the Indian workforce is creating name and fame for the country and the globe, and the GDP of India would reach a commendable position.
FPIs net buyers in Feb so far; invest Rs 5,177 cr
Foreign investors remained net buyers in Indian capital markets for a sixth straight month in February, putting in a net amount of Rs 5,177 crore mainly in the debt segment in the month so far, according to depositories data. Foreign portfolio investors (FPI) put in Rs 6,350 crore in the debt segment between February 3-7, the data showed.
However, FPIs pulled out Rs 1,172.56 crore from equities during the period, resulting in a total net investment of Rs 5,177.44 crore.
Forex kitty rises $4.6 bn to $471.3 bn
The country's foreign exchange reserves swelled by $4.607 billion to $471.3 billion in the week to January 31, helped by a rise in foreign currency assets, according to RBI data. In the sixth bi-monthly monetary policy of 2019-20 announced on Thursday, the Reserve Bank of India (RBI) had said foreign exchange reserves touched a lifetime high of $471.4 billion on February 4, 2020.
In the previous week ended January 24, the reserves had surged by $4.535 billion to touch $466.693 billion. In the reporting week, the increase in reserves was mainly on account of a rise in foreign currency assets, a major component of the overall reserves, which rose by $4.329 billion to $437.248 billion.
LIC IPO: Talks with government underway, says Chairman MR Kumar
Life Insurance Corporation of India (LIC) is all set to begin the process of initial public offering (IPO) where the government will divest a portion of its 100 percent stake. Finance minister Nirmala Sitharaman in her Budget speech had said that the government will divest its stake in LIC through an IPO.
It is likely that LIC will be listed on the stock exchanges in the second half of FY21. However, LIC Chairman MR Kumar said that he was not entirely surprised by the decision since this option was under consideration for the last three to five years.
FDI in drugs & pharma sector rose to Rs 2,065cr in April-Sept FY20: Govt
Total foreign direct investment in the drugs and pharmaceutical sector in the country rose to Rs 2,065 crore during April to September period of fiscal year 2019-20, Parliament was informed on Friday. The foreign direct investment (FDI) equity inflow in the drugs and pharmaceutical sector stood at Rs 1,842 crore in FY 2018-19, Minister of State for Shipping and Chemicals & Fertilizers Mansukh Mandaviya said in reply to a question in the Rajya Sabha.
FDI in the sector was at Rs 6,502 crore in 2017-18, Rs 5,723 crore in 2016-17, Rs 4,975 crore in 2015-16 and Rs 9,052 crore in 2014-15, he added.
Indian cos' foreign borrowings down 45% to $2 bn in Dec'19
Foreign borrowings of Indian companies fell over 45% to USD 2.09 billion in December 2019 as compared to the year-ago period, according to the Reserve Bank data. Indian firms had raised USD 3.81 billion in December 2018, which included USD 37 million through issuance of masala bonds.
Of the total money borrowed by domestic companies during December 2019, USD 1.2 billion was through the automatic route of external commercial borrowing (ECB) and USD 840 million via approval route of ECB. The remaining USD 55.98 million was raised through the rupee denominated bonds or popularly known as masala bonds.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 161.93 crore, while domestic institutional investors (DIIs) sold shares worth Rs 178.59 crore in the Indian equity market on February 7, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Yes Bank is under the F&O ban for February 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
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