PremiumIndian indices are set for a lower start on Monday based on mixed ques from Asian peers. Volatility in digital currencies, together with inflation outlook were behind the mixed start.
The Sensex was at 50,637.01, up 96.53 or 0.19% from previous close, while the Nifty was at 15,175.30, up 269.25 points, or 1.81%, at market pre-opening on Monday.
China intensified its weeks-long campaign to cool a raw-materials boom, pledging severe punishment for violations ranging from excessive speculation to spreading fake news.
The government will show “zero tolerance" for monopolies in spot and futures markets, and for speculation and hoarding, the National Development and Reform Commission said in a statement after leaders of top metals producers were called to a meeting on Sunday. China’s strengthening push to rein in surging prices rippled across its markets, with aluminum falling, steel dropping more than 5% and iron ore almost tumbling by the daily limit. (Bloomberg)
Cryptocurrency mining operators, including a Huobi Mall and BTC.TOP, are suspending their China operations after Beijing stepped up its efforts to crack down on bitcoin mining and trading, sending the digital currency tumbling.
A State Council committee led by Vice Premier Liu He announced the crackdown late on Friday - the first time the council has targeted virtual currency mining, a big business in China that accounts for as much as 70% of the world's crypto supply. (Bloomberg)
Markets are likely to be volatile on Monday while trends in SGX Nifty suggest a weak opening. On Friday, the Sensex ended at 50,540.48, up 975.62 or 1.97%. The Nifty was at 15,175.30, up 269.25 points or 1.81%.
Asian shares got off to a cautious start on Monday as investors anxiously awaited a key read on US inflation this week for guidance on monetary policy.
MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed in slow trade. Japan's Nikkei added 0.1% and South Korea was flat. (Read here)
The stocks of Adani Green, Amara Raja, JSW Steel, and Jaypee Infratech, among other will be in the news today. (Read here)
Lockdown was extended on Sunday in Delhi, Haryana, Rajasthan and Puducherry, with many states already imposing covid-induced restrictions till May-end to rein in the spread of infection and the mounting deaths which crossed the three lakh mark.
Delhi chief minister Arvind Kejriwal announced that the ongoing lockdown in the national capital will continue for another week and said the process of "unlock" will start from May 31 in a phased manner if the number of COVID-19 cases continues to decline. (PTI)
Even as India is attracting all the global attention for the worst virus outbreak, the pandemic has done little to dent the confidence of overseas investors who are betting on a strong rebound.
BlackRock Inc. plans to use any weakness in the rupee to add to a modest long position while GW&K Investment Management LLC is boosting its stock holdings following a recent selloff. Invesco Hong Kong Ltd. and Lombard Odier favor debt linked to India’s sustainable investing and renewable energy sectors. (Bloomberg)
Gold prices edged up on Monday, hovering near their highest in more than four months, as a weaker dollar and pullback in US Treasury yields supported the safe-haven metal. Spot gold was up 0.1% at $1,882.10 per ounce by 0050 GMT. Last week, gold prices hit their highest level since Jan. 8 at $1,889.75. US gold futures rose 0.3% to $1,882.90 per ounce. The dollar stood near its lowest levels in three months against the resurgent euro and other European currencies, making gold cheaper for other currency holders. Benchmark 10-year Treasury yields were hovering near a week low. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold. (Reuters)
Asian stocks and U.S. equity futures made a steady start early Monday as traders weighed the volatile slump in cryptocurrencies and the inflation outlook.
Shares edged higher in Japan but fluctuated in Australia and South Korea. S&P 500 futures posted modest gains after U.S. stocks closed mixed Friday. Bitcoin advanced to about $35,500 following another weekend of big price swings.
S&P 500 futures added 0.2% as of 9:30 a.m. in Tokyo. The index dipped less than 0.1% Friday.
All eyes will be on U.S. personal consumption and inflation figures this week.
A high reading for the core inflation figures would ring alarms and could revive talk of an early tapering by the U.S. Federal Reserve.
The diary has a crowd of Fed speakers this week, including the influential Fed Board Governor Lael Brainard, and markets will be keen to hear if they stick to the script on being patient with policy.
Nasdaq 100 contracts were flat. The gauge fell 0.6% on Friday.
Japan’s Topix index rose 0.8%.
Australia’s S&P/ASX 200 Index was flat.
South Korea’s Kospi index fell 0.3%.
The SGX Nifty was down 22.00 points or 0.14% to 15,209.80 at 7:21 am.
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