The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a cautious opening for the index in India with a 19 points gain.
The BSE Sensex was down 24.79 points at 49,492.32 on January 13 while the Nifty50 rose 1.40 points to 14,564.90. According to pivot charts, the key support levels for the Nifty are placed at 14,449.23, followed by 14,333.67. If the index moves up, the key resistance levels to watch out for are 14,666.83 and 14,768.87.
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’s benchmark S&P 500 index closed slightly higher on Wednesday with defensive sectors leading gains as investors waited for details of the next U.S. fiscal stimulus plan and Congress began President Donald Trump’s impeachment hearings.
The Dow Jones Industrial Average fell 8.22 points, or 0.03 percent, to 31,060.47, the S&P 500 gained 8.65 points, or 0.23 percent, to 3,809.84 and the Nasdaq Composite added 56.52 points, or 0.43 percent, to 13,128.95.
Asian Markets
Asian equities made early trading gains on Thursday after a mixed session Wall Street buoyed by expectations of a U.S. stimulus package even as political events in Washington culminated in the impeachment of President Donald Trump.
Australian S&P/ASX 200 futures rose 0.21 percent in early trading, while Hong Kong’s Hang Seng index futures rose 0.23 percent.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 19 points gain. The Nifty futures were trading at 14,592 on the Singaporean Exchange around 07:30 hours IST.
Trump bolsters ban on U.S. investments in China
President Donald Trump has signed an order strengthening a November ban on U.S. investments in alleged Chinese military companies, the White House said on January 13, curbing Chinese access to U.S. capital markets days before he leaves office.
Under the amended directive, by Nov. 11, 2021, U.S. investors will be required to have completely divested their holdings of securities of companies designated by the Defense Department as owned or controlled by the Chinese military.
Need to increase capital outlay in road sector by at least 15 percent, speed up asset monetisation process: ICRA
Rating agency ICRA on Wednesday said there is a need to increase capital outlay in the road sector by at least 15 per cent besides expediting asset monetisation programmes. It also said that hybrid annuity mode of highways building presents huge refinancing opportunities and 70 such projects involving Rs 35,800 crore of debt are expected to become operational in the next two years.
"FY2022 remains a crucial year for two reasons: a) Importance of government spending to revive the economy and b) Significant catch up to do in the ongoing Bharatmala and allied programmes. As a result, the capital outlay is required to be increased by at least 15 per cent,” ICRA said in a statement.
SEBI reduces registration fee for investment advisors
Markets regulator SEBI has cut down application and registration fees for individuals and corporates seeking a registered investment advisor status. Now, individuals and firms (partnership) will have to pay Rs 2,000 while applying for an investment advisor certificate.
The application fee for corporates including Limited Liability Partnerships (LLPs) has been brought down to Rs 10,000 from Rs 25,000.
Infosys beats estimates with Q3 profit growth at 7.3 percent
Infosys has delivered a strong beat on all parameters in the December quarter earnings on January 13 with upward revision in full-year constant currency revenue growth as well as margin guidance following a record deal win. The company has raised its FY21 revenue growth guidance to 4.5-5 percent in constant currency, as well as operating margin guidance to 24.0-24.5 percent on the back of continued strong performance, which was much better than the CNBC-TV18 poll estimates of 2-3 percent and 23-24 percent, respectively.
Its dollar revenue grew by 6.2 percent sequentially to $3,516 million and rupee revenue increased by 5.5 percent QoQ to Rs 25,927 crore for the quarter ended December 2020, backed by ramp up of large deals and acquisitions. Dollar revenue growth was estimated at 3.6 percent and constant currency revenue growth at 3.1 percent for the quarter, as per the CNBC-TV18 poll estimates.
U.S. consumer prices increase in December
U.S. consumer prices increased in December, with households paying more for gasoline, though underlying inflation remained tame as the economy battled a raging COVID-19 pandemic, which has weighed on the labor market and the services industry.
The Labor Department said on Wednesday its consumer price index increased 0.4 percent last month after gaining 0.2 percent in November. In the 12 months through December the CPI rose 1.4 percent after increasing 1.2 percent in November. Economists polled by Reuters had forecast the CPI shooting up 0.4 percent and rising 1.3 percent year-on-year.
Results on January 14
Den Networks, HFCL, Reliance Industrial Infrastructure, Tata Steel Long Products, Websol Energy System and Digicontent will announce their quarterly earnings on January 14.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,879.06 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,370.17 crore in the Indian equity market on January 13, as per provisional data available on the NSE.
2 stocks under F&O ban on NSE
BHEL and SAIL are under the F&O ban for January 14. 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