Lack of directional cues due to a market holiday across Asian markets may prompt domestic stocks to chart their own course on Friday. Here’s breaking down the pre-market actions.

STATE OF THE MARKETS

Tech View: Nifty shows signs of fatigue
Nifty50 on Thursday snapped a six-day winning streak, but continued to form higher highs and lows. The index formed an indecisive candle on the daily chart. During the day, Nifty faced resistance above its crucial hurdle at 14,000 level and analysts believe taking out this level decisively would be crucial for Nifty to continue the rally. For now, they expect consolidation in the coming days.

Global markets shut for public holiday
Financial markets across Australia, Brazil, Germany , Hong Kong, Japan, Singapore, France China, UK and the US are closed on Friday for a public holiday. Domestic equities market will, however, open on usual timing.

Oil prices settled higher

Global crude prices edged higher on Thursday but lost more than a fifth of their value in 2020, as lockdowns to combat the novel coronavirus depressed economic activity and sent oil markets reeling. On the last trading day of 2020, Brent rose 17 cents to settle at $51.80 a barrel. US West Texas Intermediate rose 12 cents to settle at $48.52 a barrel. Brent fell 21.5 per cent for the year, with WTI falling 20.5 per cent.

US stocks closed at record high

The S&P 500 and the Dow Jones Industrial Average ended 2020 at more record highs on Thursday, closing out one of the most tumultuous years in recent memory. The S&P500 index rose 24.03 points, or 0.6 per cent, to 3,756.07. The Dow Jones Industrial Average gained 196.92 points, or 0.7 per cent, to 30,606.48. The Nasdaq Composite picked up 18.28 points, or 0.1 per cent, to 12,888.28. US markets will be closed for New Years Day on Friday.

Antony Waste to make market debut today

The stock will make market debut on Friday. The company’s IPO was subscribed 15 times in total and joined the likes of Burger King India and Mrs Bectors Food Specialities whose offers were also oversubscribed within a few hours of opening.

FIIs buy Rs 1,136 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,135.59 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 257.64 crore, data suggests.

MONEY MARKETS

Rupee: Rising for the sixth straight session, the rupee spurted 24 paise to end at a nearly four-month high of 73.07 against the US dollar on the last day of the year on Thursday, supported by a weak American currency and rise in risk appetite.

10-year bonds: India 10-year bond yield fell 0.08 per cent to 5.89 after trading in 5.88-5.90 range.

Call rates: The overnight call money rate weighted average stood at 3.25 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.

DATA/EVENTS TO WATCH

  • India Deposit Growth YoY Dec/18 (05:00 pm)
  • India Foreign Exchange Reserves 25/Dec (05.00 pm)
  • India Bank Loan Growth YoY Dec/18 (05.00 pm)
  • India Dec auto sales numbers
  • Korea Balance of Trade Dec (05:30 am)

MACROS

India sees record FDI flow… India attracted a record $25 billion in net foreign direct investment (FDI) during the September quarter, as investors bet that the economy would fire on two fronts — government spending and revival in private capital expenditure. Adding to the strong capital inflows during July-September quarter, foreign investment — including direct investment and portfolio flows — were the only major heads to witness net inflows during the quarter, according to the latest balance of payments data.

Core sector shrinks again in Nov… India’s core sector shrank at a faster pace of 2.6% in November sharper than 0.9% contraction seen in October, pulled by natural gas, steel and cement and dimming hopes of a turnaround that was expected after the infra sector’s performance improved to -0.1% in September. This is the ninth straight month that the core sector, that has a 40% weight in the index of industrial production, witnessed a contraction.

Fiscal deficit 35% above estimate in Nov… India’s fiscal deficit stood at Rs 10.75 lakh crore at the end of November, 35% higher than the budget estimate for FY21, according to data from the Controller General of Accounts on Thursday. There was some ramping up of government spending, which had remained muted so far, with capital expenditure recording a 12.7% jump in November.

Mumbai realty on a high… A combination of all-time low housing loan rates, price discounts and most importantly, reduction in stamp duty charges has bolstered property registrations in Mumbai, the country’s commercial capital, to set a historic record conclusion in December. The unprecedented rush among homebuyers to register their transactions continued even on the last day of the year pushing the total number of deals up 204% from a year ago to 19,552 in December until 7pm on Thursday, showed the data from the office of the Inspector General of Registration Maharashtra.

LIC gets reporting actuary… Milliman Advisors LLP India has been selected as the reporting actuary to determine the embedded value of Life Insurance Corporation of India. EY Actuarial Services and Willis Towers Watson Actuarial Advisory were the others in the race for the contract. “Work will begin soon,” said Tuhin Kanta Pandey, secretary in the Department of Investment and Public Asset Management (DIPAM) on Thursday while announcing the selection.

ITAT lifts observations against Mistry… The Income Tax Appellate Tribunal (ITAT) has suo motu removed certain observations it had made against former Tata Sons chairman Cyrus Mistry on his access to information about Tata Trusts, and termed those as “inadvertent errors”. On Wednesday, Mumbai’s ITAT bench comprising Justice PP Bhatt and Pramod Kumar “modified” its order pronounced two days earlier in which it had made the observations. The tribunal had upheld the “taxexempt” status of the trusts and rejected the claims by the revenue department that they had violated the laws relating to charitable trusts by holding shares of Tata Sons.

Urban joblessness hits 9%…Unemployment in urban areas rose to 9.1% in January-March 2020 from 7.9% in the previous quarter, data from the Ministry of Statistics and Programme Implementation showed on Thursday. Urban unemployment was 9.3% in the March quarter of 2019. As per the latest quarterly bulletin of the Periodic Labour Force Survey (PLFS) from the ministry, urban unemployment in the age group of 15-29 years was 21.1%.

Modi says vaccine drive in the works… Prime Minister Narendra Modi said India was putting the finishing touches to what would be the world’s biggest vaccination programme, which was a symbol of hope for 2021. The Made-In-India vaccine will reach every section of society, including the neediest, he pledged. He nevertheless exhorted Indians to continue to maintain Covid-19 protocols on masks and distancing.





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