With US President Donald Trump clearing the $2.3 trillion pandemic aid and spending package, equity markets, including Indian market, should get a lift amid the year-end holiday mood.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 31 points, or 0.23 per cent, higher at 13,784.50, in signs that Dalal Street was headed for a positive start on Monday.

Tech View: Nifty50 forms long-legged Doji
A long-legged Doji is a candlestick pattern that comprises long upper and lower shadows and has approximately the same opening and closing prices. The candlestick pattern signals indecision about the future direction of the underlying security. A sustained trade above 13,780 level may extend the gains to 13,950-14,100 levels.

Asian markets rise on $2.3t Covid package
Global shares ticked up on Monday on reports US President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package he had until now refused to sign. US S&P futures last traded up 0.4 per cent. Japan’s Nikkei inched up 0.4 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent.

Oil prices edge lower in early trade
Oil prices edged down a tad, with US crude futures down 0.8 per cent at $47.85 per barrel.

US stocks ended higher on Thursday

Wall Street stocks finished a holiday-shortened session higher. The Dow Jones Industrial Average rose 70.04 points, or 0.23 per cent, to 30,199.87, the S&P500 index gained 13.05 points, or 0.35 per cent, to 3,703.06 and the Nasdaq Composite added 33.62 points, or 0.26 per cent, to 12,804.73. The US market was shut on Friday on account of Christmas.

FIIs buy Rs 1,226 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,225.69 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,897.92 crore, data suggests.

Stocks rally getting broadbased
The concentration risk — reflecting stellar returns of just a handful of stocks — is easing for Indian equities. This is reflected in the change in the structure of the market rally — from narrow to broad — resulting in a greater number of stocks outperforming benchmark indices. The broadbased rally augurs well not only for providing a strong base for sustainability of the current momentum, but it helps increase market depth and invites higher institutional interest in the market. The number of stocks contributing at least 75% of index performance reached 24 for the BSE 100 index, a multi-year high, according to data compiled by ICICI Securities

Analysts say Nifty may top 14,000 in Dec
Technical analysts expect the Nifty to cross 14,000 mark this week if it sustains above the 13,600-13,800 range. The index had last touched a lifetime high of 13,777.50 on December 21. It closed up 1.1% at 13,749.25 on Thursday and is only a few points away from setting a new high. The index fell by 0.1% during the holiday-truncated week, and outperformed all regional peers except South Korea and Taiwan.

MONEY MARKETS

Rupee: Climbing for the second straight session, the rupee darted up 21 paise to end at 73.55 against the US dollar on Thursday amid sustained foreign fund inflows and positive domestic equities.

10-year bonds: India 10-year bond yield fell 0.35 per cent higher at 5.92 after trading in 5.92-5.98 range.

Call rates: The overnight call money rate weighted average stood at 3.24 per cent, according to RBI data. It moved in a range of 1.9-3.5 per cent.

DATA/EVENTS TO WATCH

  • BoJ Summary of Opinions (05:20 am)
  • Industrial Production MoM Prel Nov ((05:20 am)
  • US Dallas Fed Manufacturing Index Dec (09:00 pm)



MACROS

Trump clears $2.3 trillion Covid stimulus… US President Donald Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, officials said, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown. Trump, who leaves office on January 20 after losing November’s election, backed down from his threat to block the bill, which was approved Congress last week, after he came under intense pressure from lawmakers on both sides.

Who’s who lapping up Mumbai realty… Captains of industry, corporate bosses, cricketers and actors are among those setting Mumbai’s luxury real estate abuzz again. Thanks to the pandemic-led price correction and stamp duty reduction, the last couple of months have seen closure of several big-ticket realty deals. Buyers include HDFC’s Keki Mistry, actors Hrithik Roshan, Alia Bhatt and Amrita Puri (daughter of HDFC Bank exchief Aditya Puri), stockbroker Motilal Oswal, cricketer Shreyas Iyer, Jatia Hotels’ Vinod Kumar Jatia, Modison Metals’ Kumar Jay Modi and Harpreet Singh Minhas of Harman Finochem.

Promoter holdings rise in midcaps, smallcaps… If a promoter raising stake in his companies is a strong signal for investors to consider betting on it, several mid- and small-cap stocks might be flashing the buy indicator. Promoters of nearly 80 mid and small-cap firms have increased their stakes through market purchases in the last two months amid the broader market rebound. BSE data showed companies such as Tata Chemicals, Welspun Corp, Hatsun Agro, Just Dial, Mukand, SMS Life and Vardhman Textiles among others have seen promoters purchases recently.

FPI-Sebi row brewing?… Global private banks, dealing with the rich and ultra-rich, have told managers of foreign portfolio investors (FPIs) to refrain from selling off investments by their NRI and overseas citizens of Indian clients to meet the rules laid down by Sebi. FPIs have to bring down the aggregate contribution of NRIs and OCIs (along with resident Indians) in a fund to below 50% by December 31, 2020. Also, contribution by an NRI/OCI cannot exceed 25%. Funds which fail to do this will have to wind up in six months.

DHFL suitors at war… Ahead of the three-week long voting starting Monday to decide on the new owner of DHFL, Oaktree Capital Management fired yet another salvo by attacking the bid of its nearest competitor, Piramal Enterprises. In a letter sent on Sunday evening to members of the committee of creditors, the RBI-appointed administrator, Oaktree said it was concerned that despite its bid offering maximum value for all stakeholders, it appeared there was “a consistent campaign to misrepresent information” on its bid.

Bank credit growth drops 200 bps… India’s bank credit growth was 200 basis points lower in 2020 from the year-ago period despite record low interest rates. The average growth in the last two fortnights to December 6 this year was 5.7% compared with 7.9% in the same period last year. Even this slow growth was more due to the Emergency Credit Line Guarantee Scheme and not backed by demand from industry. Besides the 115-basis points reduction in the benchmark repo rate, the rate at which the Reserve Bank of India lends to banks, the central bank has infused liquidity into the system through unconventional tools such as LTRO/TLTRO operations to make loans cheaper.

RCom IBC resolution hits hurdle… The bankruptcy resolution process for Reliance Communications may hit another hurdle with State Bank of India, Union Bank of India and Indian Overseas Bank classifying the accounts of the telco and its units — Reliance Telecom and Reliance Infratel — as fraudulent last week, said people with the knowledge of the matter. The lenders are now looking to initiate a deeper probe, said one of the persons. Resolution applicants Reliance Jio Infocomm and UV Asset Reconstruction may want to seek indemnity from any investigative proceedings into these companies

AMC soon to handle bad loans… The government may set up an asset management firm to assist state-run lenders in disposing of their bad loans, leaving them to focus on core banking. The proposed firm will not be a full-fledged bad bank, an idea that the Reserve Bank of India (RBI) is not in favour of. Instead, it will act as a conduit between distressed funds, asset reconstruction firms and lenders.





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