Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 45 points, or 0.31 per cent, higher at 14,720 in signs that Dalal Street was headed for a positive start on Tuesday.
Tech View: Nifty looks headed for 14,350
Nifty50 formed a large bearish candle on the daily chart on Monday and continued to make lower highs and lows for the fourth straight session. The index has already slipped below its 20-day moving average and analysts said there is a good chance that Nifty may test its 50-day simple moving average at 14,345 in the coming
Asian stocks slip as global rally skids
Asian stocks dipped on Tuesday as rising US Treasury yields and inflation prospects led to a further rotation out of the big tech stocks responsible for a major Wall Street rally during the pandemic. The Australian S&P/ASX 200 fell 0.11 per cent and South Korea’s Kospi declined 0.87 per cent in early trading. Hong Kong’s Hang Seng index was flat. Japanese markets are closed for a public holiday on Tuesday.
Oil prices rise further on slow US output restart
Oil prices rose again on Tuesday after a jump in the previous session, holding near a more than 13-month high as U.S. output was slow to return after a deep freeze in Texas shut in crude production last week. Brent crude futures were up 28 cents, or 0.4 per cent, at $65.52 a barrel, while US crude oil rose 14 cents, or 0.2 per cent, to $61.84 a barrel. Both benchmarks rose nearly 4 per cent in the previous session.
US stocks mostly lower on interest rate concerns
Wall Street largely retreated on Monday, with tech stocks taking the biggest hit amid growing concerns that borrowing rates will creep higher as the US economy — and prices — recover. The benchmark Dow Jones Industrial Average reversed early losses to close with a gain of less than 0.1 percent at 31,521.69. But the broad-based S&P 500 fell about 0.8 per cent to finish at 3,876.5, while the tech-rich Nasdaq Composite Index was the big loser, dropping 2.5 per cent to 13,533.05.
Heranba IPO to kick off today
The Gujarat-based agrochemical company raised Rs 187.51 crore by allotting 29.91 lakh shares to 18 anchor investors on Monday, a day prior to its issue opening for public bidding. The shares were issued at Rs 627 apiece, which is the upper end of the price band. Government Pension Fund Global has been allotted a major chunk of 18.67% of the anchor allotment while HDFC Mutual Fund subscribed about 12%. Other anchor investors include Society Générale, Morgan Stanley, Jupiter India Fund, Max Life Insurance, IIFL Special Opportunity Fund, IDFC Mutual Fund, Dovetail India Fund among others.
FPIs sell Rs 893 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 893.25 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 919.88 crore, data suggests.
Rupee: The rupee gained 16 paise to settle at 72.49 against the US dollar on Monday supported by sustained foreign fund inflows and expectation of improved macro-economic data.
10-year bonds: India 10-year bond yield rose 1.14 per cent to 6.20 after trading in 6.02-6.13 range.
DATA/EVENTS TO WATCH
- UK Unemployment Rate Dec (12:30 pm)
- UK Employment Change Nov (12:30 pm)
- UK Labour Productivity QoQ Prel Q4 (03:00 pm)
- Euro Area Inflation Rate YoY Final Jan (03:30 pm)
- US Redbook YoY 20/Feb (07:25 pm)
- US House Price Index MoM Dec (07:30 pm)
- US Consumer Confidence Feb (08:30 pm)
- US Fed Chair Powell Testimony (08:30 pm)
MPC unanimous on accommodative stance… All six members of RBI Monetary Policy Committee were unanimous on the need to continue with an accommodative monetary policy well into the next fiscal year as recovery is still nascent and there’s little to show on the investment revival front despite easy money, the minutes of the latest meeting show. The MPC, at its February 3-5 meeting, voted unanimously to keep the repo rate — at which RBI lends to banks — at 4%, and maintain the accommodative monetary policy stance to help revive the economy in a durable manner.
RBI plays on front foot to tame yields… India late Monday tweaked the auction method for a series…