Stock Market fears- ‘ Virus-repeat’. –takes a dip on Monday.
The Indian market is likely to open higher on Tuesday as the trend on SGX Nifty indicates a positive start for the broader index in India. The Nifty futures were trading 38.00 points or 0.26 percent higher at the 14,713.00 level on the Singaporean Exchange at 7:00 am.
The S&P 500 and Nasdaq closed lower on Monday as climbing Treasury yields and prospects of rising inflation triggered valuation concerns, hitting shares of high-flying growth companies. Unofficially, the Dow Jones Industrial Average rose 29.08 points, or 0.09 percent, to 31,523.4, the S&P 500 lost 30.2 points, or 0.77 percent, to 3,876.51 and the Nasdaq Composite dropped 341.42 points, or 2.46 percent, to 13,533.05. The S&P 500 declined for five straight sessions, its longest such streak in a year.
Asian stocks :
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 percent and South Korea’s Kospi declined 0.87 percent in early trading. Hong Kong’s Hang Seng index futures rose 0.54% percent. Japanese markets are closed for a public holiday on Tuesday.
Indian equity benchmark indices, Sensex and Nifty, ended over 2 percent lower on Monday dragged by heavy selling in banks, IT, and auto stocks. The Sensex plunged 1,145.44 points, or 2.25 percent, to 49,744.32, while the Nifty ended at 14,675.70, down 306.05 points, or 2.04 percent. Broader markets, Nifty Smallcap100 and Nifty Midcap100 indices fell over 1 percent each. Barring metals, all other sectoral indices ended with deep cuts.
Oil prices rose nearly 4 percent on Monday, boosted by the expected slow return of US crude output after last week’s deep freeze in Texas shut in production. Brent crude settled at $65.24 a barrel, rising $2.33, or 3.7 percent, while US oil settled at $61.49 a barrel, jumping $2.25, or 3.8 percent.
The rupee gained 16 paise to settle at 72.49 (provisional) against the US dollar on Monday supported by sustained foreign fund inflows and expectation of improved macroeconomic data. At the interbank forex market, the local unit opened at 72.58 against the greenback and witnessed an intraday high of 72.29 and a low of 72.58. It finally ended at 72.49 against the American currency, registering a rise of 16 paise from its previous close.
Gold prices in the national capital jumped Rs 278 to Rs 46,013 per 10 grams on Monday, supported by a recovery in international prices even as rupee appreciation capped the price of the precious metal, according to HDFC Securities.
Bitcoin fell on Monday after surging to record highs a day earlier as a sell-off in global equities curbed risk appetite, with traders citing the unwinding of highly leveraged long positions in the cryptocurrency. Bitcoin rallied to a peak of $58,354 on Sunday. The cryptocurrency fell more than 16 percent, below $50,000 in New York, giving up more than $8,000 early on February 22.
The World Health Organization has agreed on a no-fault compensation plan for claims of serious side effects in people in 92 poorer countries due to COVID-19 vaccines via the COVAX sharing scheme, resolving a big concern among recipient governments.
India Ratings has revised its outlook on the overall banking sector from negative to stable for FY22. According to the agency, substantial systemic measures have reduced COVID-linked stress below expected levels. It has also steeply upgraded its credit growth estimates for the current fiscal.
India’s leading automobile manufacturers have written to the government seeking urgent intervention to address the semi-conductor shortage. The industry has requested the government to direct embassies to help in restoring supplies of semiconductors.
The market may move sideways and hence investors are advised to be cautious while taking long positions.
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