Domestic equity indices may see a positive start to Thursday’s session, with index heavyweight RIL likely to be in focus following the release of its annual report. Markets across Asia traded slightly higher this morning. Brent crude traded close to the $72 mark. At home, technical charts for major indices were hinting at sideways movement ahead. Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 86 points, or 0.55 per cent, higher at 15,716 signaling that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty on Wednesday formed a small bullish candle on the daily chart, with a long lower wick, suggesting the bulls were not ready to give in easily.
India VIX: The fear gauge eased 1 per cent to 17.21 level on Wednesday over its close at 17.39 on Tuesday.
Asian markets mostly higher
Asian shares were a touch below a recent three-month top on Thursday, with China a tad weaker as investors weighed inflation concerns ahead of key US economic data. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.32 per cent.
- Japan’s Nikkei gained 0.63%
- Australia’s ASX200 advanced 0.86%
- South Korea’s Kospi climbed 0.70%
- Hong Kong’s Hang Seng added 0.10%
- China’s Shanghai Composite fell 0.02%
US shares settled higher
Wall Street’s main indices posted slim gains on Wednesday ahead of key US economic data due later in the week as investors weighed inflation concerns and a fresh surge in so-called “meme stocks.”
- Dow Jones rose 0.07% to 34,600.38
- S&P500 added 0.14% to 4,208.12
- Nasdaq advanced 0.14% to 13,756.33
Dollar index flat, Euro edges higher
The dollar index, which measures the greenback against a basket of major currencies, was flat, not far from a five-month trough of 89.535 touched last week.
- Dollar index almost flat at 89.899
- Euro edged up to $1.2209
- Pound rose 0.15% to $1.4167
- Yen declined to 109.64 per dollar
- Yuan fell to 6.3807 against the greenback
Q4 earnings today
General Insurance Corporation of India, APL Apollo Tubes, Gujarat State Petronet, Quess Corp, Nilkamal, Arvind Fashions, Cupid and Roto Pumps are among companies that will announce their March quarter results today.
FPIs buy equities worth Rs 921 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 921.1 crore, data available with NSE suggested. DIIs, turned net buyers to the tune of Rs 241.76 crore, data suggests.
Crude prices hit multi-month highs
prices extended their rally Wednesday on growing expectations for demand as the global economy recovers, while equities rose in Europe and edged higher in the United States. Brent rose 24 cents to settle at $71.59 a barrel, its highest since January 2020. U.S. West Texas Intermediate (WTI) crude rose 25 cents to $69.08 a barrel, its highest since October 2018.
Rupee: Extending losses for the third straight session, the rupee on Wednesday fell by another 19 paise to end at 73.09 against the US currency due to a stronger dollar in the overseas markets and higher crude oil prices.
10-year bonds: India 10-year bond yield declined 0.33 per cent to 6.01 after trading in the 6.00 – 6.032 range.
Call rates: The overnight call money rate weighted average stood at 3.12 per cent, according to RBI data. It moved in a range of 1.90-3.45 per cent.
DATA/EVENTS TO WATCH
- India Markit Composite PMI May (10:30 am)
- India Markit Services PMI May (10:30 am)
- US Total Vehicle Sales May (04:30 am)
- Japan Jibun Bank Composite PMI Final May (06:00 am)
- China Caixin Services PMI May (07:15 am)
- Euro Area Markit Services PMI Final May (01:30 pm)
- UK Markit/CIPS Composite PMI Final May (02:00 pm)
- US Jobless Claims 4-week Average May/29 (06:00 pm)
- US Initial Jobless Claims 29/May (06:00 pm)
- BoE Gov Bailey Speech (09:30 pm)
Fed official says time to talk tapering
Philadelphia Fed President Patrick Harker on Wednesday said it may be time for Federal Reserve policymakers to start thinking about the best way to slow the pace of its asset purchases as the US economy continues to recover from the coronavirus crisis and the labor market rebounds. It’s appropriate “to slowly, carefully move back” on bond purchases at the appropriate time. Aaron Clark, portfolio manager at GW&K Investment Management, said: “It seems like they’re starting to lay the ground work for tapering.”
Crypto industry standardises own rules
India’s nascent cryptocurrency industry will overhaul and standardise its disclosure and compliance mechanisms in a bid to establish itself as a legitimate business in the eyes of legacy financial players. Leading cryptocurrency exchanges, including WazirX, CoinDCX and CoinSwitch Kuber, have partnered with the Internet and Mobile Association of India to set up an advisory board to implement a code of conduct for the industry, people aware of the matter told ET.
Banks can now sell Mallya assets
A SBI-led consortium can now move to sell certain real estate properties and securities that belonged to Vijay Mallya to recover unpaid loans, after a court lifted the claim of the Enforcement Directorate on the assets it had seized. The assets including several floors of the UB City commercial tower in Bengaluru’s central business district and shares in United Breweries and United Spirits that Mallya had controlled are estimated to be valued at ₹5,646.54 crore
Templeton pays more closed fund cash
Franklin Templeton Mutual Fund on Wednesday said its six shuttered debt schemes distributed Rs 14,572 crore to investors till May-end. Further, cash to the tune of Rs 2,642 crore was available for distribution as of May 31, Franklin Templeton MF said in a statement. The fund house shut its six debt mutual fund schemes in April 2020, citing redemption pressures and lack of liquidity in the bond market.
Desi IT firms double revenue market share
India-headquartered IT services companies have doubled revenue market share from 13.9% in 2010-2011 to 28% in the 2021 fiscal, while the share of foreign-headquartered companies (Accenture, IBM, DXC, Atos, Capgemini and Cognizant) shrunk from 86% to 72% during the same period. The cumulative revenue of the foreign-headquartered companies in the last decade grew to $151.6 billion from $148.8 billion, while revenues of India-headquartered firms rose to $59.3 billion from $24.1 billion.
Factor investing catches on in MF mart
As large-cap actively-managed funds are finding it difficult to outperform the benchmark, while a passive fund will not outperform due to the expense, AMCs are offering funds that focus on unique factors like quality, value, alpha and low volatility. As markets trade at elevated valuations and uncertainty on corporate earnings continue to linger, financial planners believe investors could use smart beta strategies.