Here’s breaking down the pre-market action:
STATE OF THE MARKETS
SGX Nifty signals gap-up start
Nifty futures on the Singapore Exchange traded 115 points, or 0.82 per cent, higher at 14,194.50 in signs that Dalal Street was headed for a positive start on Thursday.
Tech View: Analysts see weakness ahead
The Nifty bulls on Tuesday struggled at 14,500 level, even as they defended the crucial support of 14,200 well. The face saving-act, however, did not impress analysts, who believe the index could soon breach the 14,200 level and trigger more weakness.
Asian markets rise in early trade
Asian markets were training mostly higher in Thursday’s trade. Japan’s Nikkei surged 1.83 per cent at 29,041, Hong Kong’s Hang Seng advanced 0.32 per cent; Korea’s Kospi was up 0.58 per cent while China’s Shanghai Composite index was flat.
Wall Street rebounds after two-day decline
Wall Street rebounded on Wednesday after a two-day decline in a broad rally as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc’s sell-off after its disappointing results a day earlier. The Nasdaq Composite added 1.19 per cent to 13,950.22. The Dow Jones Industrial Average rose 0.93 per cent to 34,137.31, while the S&P500 index gained 0.93 per cent at 4,173.42.
Q4 earnings today
Tata Elxsi, Cyient, Rallis India, Indus Towers, Sasken Technologies and Fineotex Chemical are among the companies scheduled to announce March quarter earnings today.
Nestle numbers get mixed views
Brokerages have a mixed view on Nestle India even as the company reported a 14.6% growth in net profit for the March quarter from the year-ago level, beating estimates. Nomura, Edelweiss and HSBC have retained ‘buy’ but Investec, Emkay Global and IDBI Capital have retained ‘hold’. CLSA has retained ‘outperform’ and Ambit has retained a ‘sell’ rating on the stock. The maker of Maggi noodles and KitKat chocolate reported a profit after tax of Rs 602 crore for the quarter. Revenues in the quarter rose 8.9% from year ago level to Rs 3,600 crore.
DIIs buy Rs 1,323 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1082.33 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,323.01 crore, data suggests.
Rupee: The rupee pared its initial gains to close marginally down by 1 paisa at 74.88 against the US dollar due to worries that the alarming surge in Covid-19 cases could derail the economic recovery in the country. An increase in crude
prices and losses in the domestic equity markets also weighed on the local unit.
10-year bonds: India 10-year bond yield fell 0.12 per cent to 6.07 after trading in 6.07-6.10 range.
Call rates: The overnight call money rate weighted average stood at 3.23 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
DATA/EVENTS TO WATCH
- Euro Area Govt Budget to GDP 2020 (02:30 pm)
- Euro Area Govt Debt to GDP 2020 (02:30 pm)
- UK CBI Industrial Trends Orders April (03:30 pm)
- UK CBI Business Optimism Index Q2 (03:30 pm)
- Euro Area Deposit Facility Rate (05:15 pm)
- ECB Interest Rate Decision (05:15 pm)
- Euro Area Marginal Lending Rate (05:15 pm)
- US Jobless Claims 4-week Average April 17 (06:00 pm)
- US Initial Jobless Claims 17/April (06:00 pm)
- US Existing Home Sales MoM March (07:30 pm)
Govt may fast-forward bank recap… The government may frontload its bank recapitalisation plan this year to strengthen weaker lenders and further support its privatisation strategy. “While most lenders are adequately capitalised, we may take a call after the first quarter results to see if some growth capital can be provided to further strengthen the banks,” said an official aware of the deliberations. The government allocated Rs 20,000 crore towards bank recapitalisation in FY22 and such capital is traditionally infused at the end of the financial year
share deal raises eyebrows… Proxy advisory firm InGovern Research Services said NBI Industrial Finance, a listed entity controlled by BG…