The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 50 points gain.
The BSE Sensex surged 689.19 points, or 1.43 percent, to 48,782.51 on January 8 while the Nifty50 climbed 209.90 points, or 1.48 percent, to 14,347.30.
According to pivot charts, the key support levels for the Nifty are placed at 14,256.83, followed by 14,166.47. If the index moves up, the key resistance levels to watch out for are 14,402.43 and 14,457.67.
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 scaled new highs on Friday as hopes of more stimulus from Washington were shaken a bit by a senator’s comments but later bolstered after U.S. President-elect Joe Biden said his economic package will be in the trillions of dollars.
The Dow Jones Industrial Average rose 56.84 points, or 0.18%, to 31,097.97. The S&P 500 gained 20.89 points, or 0.55%, to 3,824.68 and the Nasdaq Composite added 134.50 points, or 1.03%, to 13,201.98.
Asian Markets
Asian shares took a breather on Monday while Treasury yields were at 10-month highs as ”trillions” in new U.S. fiscal stimulus plans were set to be unveiled this week, stoking a global reflation trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, having surged 5% last week to record highs. Japan’s Nikkei was closed for a holiday after closing at a 30-year high on Friday.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the index in India with a 50 points gain. The Nifty futures were trading at 13,427 on the Singaporean Exchange around 07:30 hours IST.
US economy sheds jobs in December; unemployment rate at 6.7%
The US economy shed jobs for the first time in eight months in December as the country buckled under an onslaught of COVID-19 infections, suggesting a significant loss of momentum that could temporarily stall the recovery from the pandemic.
Nonfarm payrolls decreased by 140,000 jobs last month, the Labor Department said on Friday. Data for November was revised up to show 336,000 jobs added instead of 245,000 as previously reported. That was the first decline in payrolls since April. The economy has recovered just over half of the 22.2 million jobs lost in March and April.
Forex reserves swell by $4.483 billion to record $585.324 billion
The country's foreign exchange reserves surged by $4.483 billion to touch a record high of $585.324 billion in the week ended January 1, RBI data showed on Friday. In the previous week ended December 25, the reserves had declined by $290 million to $580.841 billion.
In the reporting week, the increase in reserves was on account of a rise in foreign currency assets (FCAs), a major component of the overall reserves.
Panel recommends changes to Insolvency and Bankruptcy Code through an ordinance: Report
A panel of experts has suggested changes to the Insolvency and Bankruptcy Code (IBC) through an ordinance, which would enable corporate turnaround plans to be negotiated outside tribunals.
"The code may be amended quickly, preferably by an ordinance, to provide for the formal part of pre-pack. The code may make a skeletal provision enabling pre-pack, while the informal part could be left to market practice or guided by self-regulation, guidelines and best practices," the newspaper quoted the panel's report as saying.
RBI raises concerns over zero-coupon bond for PSB recapitalisation
The Reserve Bank of India (RBI) has expressed some concerns over zero-coupon bonds for the recapitalisation of public sector banks (PSBs) and discussion is on between the central bank and Finance Ministry to find a solution, according to sources.
The government resorted to recapitalisation bonds with a coupon rate for capital infusion into PSBs during 2017-18 and interest payment to banks for holding such bonds started from the next financial year. To save interest burden and ease the fiscal pressure, the government has decided to issue zero-coupon bonds for meeting the capital needs of the banks.
India's fuel demand at 11-month high in December
India's fuel demand rose for the fourth straight month in December as the resumption of economic activity took consumption to 11-month high, but it was about 2 percent lower than pre-COVID levels.
The total demand for petroleum products in December 2020 fell to 18.59 million tonnes from 18.94 million tonnes a year back, according to provisional data published by the oil ministry's Petroleum Planning and Analysis Cell.
NHAI might target raising Rs 65,000 crore in 2021-22: Report
The National Highways Authority of India (NHAI) is planning to raise around Rs 65,000 crore in 2021-22, similar to the target set in the current fiscal year. The highways building authority might rely on models such as infrastructure investment trust (InvIT) and toll-operate-transfer, among others, to raise capital, The Economic Times reported.
"The NHAI board has approved the external funding plan; next year we will be looking to raise around Rs 65,000 crore from the markets," an official told the paper.
RBI to restore normal liquidity operations in phased manner
The Reserve Bank of India (RBI) on January 8 said it is restoring normal liquidity management operations in a phased manner on a review of the evolving liquidity conditions.
“On a review of evolving liquidity and financial conditions, it has been decided to restore normal liquidity management operations in a phased manner,” the RBI said in a release. Accordingly, the RBI will conduct a Variable Rate Reverse Repo auction on January 15 for a notified amount of Rs 2,00,000 crore, it said.
IMF lowers China growth forecast to 7.9% for 2021
The International Monetary Fund on Friday lowered its 2021 growth forecast for China to 7.9 percent, following a year of "significant human and economic costs" inflicted by the COVID-19 crisis.
The figure is slightly below the 8.2 percent the IMF earlier predicted, although China has been pegged as the only major economy likely to expand in the face of the coronavirus.
Gilt funds see record monthly outflows in December
Gilt funds, which are also known as g-sec funds as these invest in government securities, reported net outflows of Rs 1,802 crore in December, showed data released by the Association of Mutual Funds in India (AMFI). These are the highest monthly net outflows gilt funds have seen in more than a decade.
TCS Q3 profit rises 7.2% to Rs 8,701 crore
Tata Consultancy Services, the largest IT services exporter in India, reported a consolidated net profit of Rs 8,701 crore for the quarter ended December 2020, rising 7.2 percent sequentially, backed by strong demand-led revenue growth.
The dollar revenue for the December quarter at $5,702 million grew by 5.1 percent compared to previous quarter, and better than the street estimates of $5,600 million.
TCS said all verticals showed good sequential growth, led by Manufacturing (up 7.1 percent), BFSI (up 2 percent), Life Sciences and Healthcare (up 5.2 percent), Communications & Media (up 5.5 percent) and Retail & CPG (up 3.1 percent).
Results on January 11
Bheema Cements, Dolat Investments, GNA Axles, Netlink Solutions, Nidhi Granites, Venmax Drugs and Pharmaceuticals and Zicom Electronic Security Systems will announce their quarterly earnings on January 11.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 6,029.83 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,372.54 crore in the Indian equity market on January 8, as per the provisional data on the NSE.
1 stock under F&O ban on NSE
SAIL is under the F&O ban for January 11. 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.
With inputs from Reuters & other agencies