PremiumIndian indices may witness a flat to positive start on Tuesday. The markets on Monday were severely hit by a triple blow of inflation concerns, foreign fund outflows, and fears of tightening of monetary policy. The initial euphoria of the Union Budget has evaporated in the last three trading sessions as most of the gains made in 2022 have been reversed. The rising crude oil price, Ukraine tensions, a better-than-expected US jobs data have only added to the chaos. The US market ended down in a choppy trading session on Monday as the Wall Street indices digested mixed quarterly results. In Asia, however, shares advanced in Japan, Australia and South Korea, while Shanghai saw a decline.
Here is the list of the top 10 stocks that are likely to be in focus on Tuesday
6 stocks to buy or sell today — 8th February
The global stockpile of negative-yielding bonds has dropped to the lowest level in more than six years -- with almost $3 trillion making the leap back into positive-yield territory in just two days last week -- in one of the most visible indications yet that the era of easy money is coming to an end.
Banks in Latin America and emerging Europe are most exposed to dollarization among developing economies, making them vulnerable to weaker local currencies and increasing withdrawals in the face of tighter U.S. monetary policy, Moody's said on Monday.
SoftBank Group Corp's sale of Arm Ltd to U.S. chipmaker Nvidia Corp has collapsed, a source familiar with the matter told Reuters on Monday, adding that Arm would plan for an IPO instead of the sale, which would have been worth as much as $80 billion.
The source also said that Arm chief executive Simon Segars has signaled he intends to resign, handing the job to president Rene Haas.
Wall Street shares finished broadly lower on Monday, while European stocks rose following five straight weeks of declines and European bond yields soared on speculation of monetary tightening.
Markets are on alert for rate rises in both the euro zone and the United States after the ECB last week was considered to have adopted a more hawkish tone. The United States reported stronger-than-expected jobs and earnings data.
European Central Bank President Christine Lagarde on Monday calmed some of those jitters, saying there were no signs that measurable monetary policy tightening would be required.
Major Wall Street stock indexes were mixed throughout the session on Monday before ending down as markets digested mixed quarterly results from megacaps Amazon.com Inc and Facebook owner Meta Platforms.
The Dow Jones Industrial Average remained unchanged to end at 35,091.13 points, while the S&P 500 lost 0.37% to 4,483.87. The Nasdaq Composite dropped 0.58% to 14,015.67.
Tokyo stocks opened higher on Tuesday despite falls on Wall Street over lingering uncertainties about the fast-spreading Omicron variant, with investors focused on corporate earnings reports.
The benchmark Nikkei 225 index was up 0.22 percent or 59.83 points at 27,308.70 in early trade, while the broader Topix index was up 0.25 percent or 4.84 points at 1,930.83.
Gold prices were steady on Tuesday as inflationary pressures kept the safe-haven metal supported near previous session's one-week high, while market participants awaited U.S. inflation data that is crucial for the Federal Reserve's tapering timeline.
Fundamentals
* Spot gold was steady at $1,821.26 per ounce, as of 0052 GMT, hovering close to Monday's high of 1,823.21. U.S. gold futures were flat at $1,821.30.
* The dollar was unchanged, while benchmark 10-year U.S. Treasuries were steady near their highest levels since December 2019 scaled in the previous session. [USD/][US/]
* U.S. inflation data for January is due on Thursday, with markets now pricing in a one-in-three chance the U.S. Fed might hike rates by a full 50 basis points in March.
* Gold is considered a hedge against inflation and geopolitical risks, yet rate hikes would raise the opportunity cost of holding non-yielding bullion.
Stocks were mixed Tuesday and bonds were again on the back foot as traders calibrated risks from a global wave of monetary tightening.
Shares rose in Japan but dipped in China and Hong Kong. S&P 500 and Nasdaq 100 futures were little changed. Wall Street on Monday ended a choppy session in the red, dragged down by technology stocks such as Meta Platforms Inc.
Yields on Treasuries as well as bonds from Australia and New Zealand pushed higher amid a global bond selloff on the prospect of interest-rate hikes to fight inflation. Japan’s government bond yields are in sight of the upper limit of the central bank’s tolerance level, setting the stage for a potential intervention.
A dollar gauge was stable. Oil’s scorching rally took a breather, with attention turning to Iran nuclear talks that could lead to a resumption of official crude exports from the Persian Gulf producer. Bitcoin held gains near $44,000.
Investors are awaiting data Thursday expected to show stubbornly high U.S. inflation, which could inject further volatility into financial markets bracing for an aggressive Federal Reserve monetary tightening cycle.
Indian stock markets on Monday finished sharply lower with BSE Sensex slumping over 1,000 points to finish at 57,621 while the broader Nifty fell 1.7% to 17,213. After Monday's selloff, the Sensex is down about 1950 points in just three days, with investor wealth worth ₹6 lakh crore wiped out during this period. Fear of aggressive interest rate hikes by US central bank, rising oil prices, heavy selling by FIIs and weak Asian markets amid surging US bond yields are some of the factors attributed by analysts for this leg of selloff in Indian equities.
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