Stock Market Live: Sensex dips 400 points, Nifty below 14,950; banks, financials drag
EVENT HIGHLIGHTS
Stock Market Live: Indian indices started the week on a negative note as US bond yields continued to hover near their 13-month peak. Broader markets, however, outperformed benchmarks and were positive in early deals. Gains in IT, Energy stocks were capped by losses in banking and financial space.
“Market trends are unclear. While the dollar index cooling to 9.16 is a positive for capital inflows the 10-year bond yield hovering around 1.64 is a concern. Also the rise in core inflation, mainly pushed up by commodity price rise, is a concern. Looks like we are at the trough of the interest rate cycle. Recent Covid resurgence is another concern. An economy-facing stocks are set to benefit from the rebound in growth. Investors should always remember the fact that market valuations are high & therefore vulnerable to correction”
Opening Bell: Sensex starts the week on a negative note, Nifty around 15,000; banks, financials drag
Indian indices started the week on a negative note as US bond yields continued to hover near their 13-month peak. At 9:18 am, the Sensex was down 88 points at 50,704 while the Nifty lost 27 points to 15,004. Broader markets, however, outperformed benchmarks and were positive in early deals. Gains in IT, Energy stocks were capped by losses in banking and financial space. On the Nifty50 index, ONGC, Powergrid, IOC, Tech Mahindra and Coal India were the top gainers while Adani Ports, GAIL, HDFC, HDFC Bank and Bajaj Finance led the losses.
Bitcoin tops $60,000-mark, up by 6% in 24 hours
Bitcoin, the world’s top cryptocurrency, has picked up momentum yet again, hitting an all-time high on Saturday. According to Coin Desk, it rose to $60.065, a more than 2 percent rise from its previous high of $58,330 on February 21. In the last 24 hours alone, it went up by nearly 6 percent in 24 hours. After its February 21 high, Bitcoin had retreated to as low as $43,000 following uncertainty over stimulus expectations and their subsequent impact on US bond yields. Stocks and cryptocurrencies witnessed losses along with sideways trading for weeks together, before getting back on track in the past seven days. Saturday’s record comes after US President Joe Biden signed a massive $1.9-trillion stimulus bill on Thursday. The bill will dish out $1,400 cheque payments to most Americans, help the unemployed, expand public health care and garner funds for vaccination programmes.
Govt may announce special PLI benefits for sourcing for the auto sector
The government is likely to announce special Production-Linked Incentive (PLI) benefits for sourcing for the auto sector which will be called the ‘Sourcing Incentive Scheme’, sources informed CNBC-TV18. The scheme will be part of 4 sub-schemes under the umbrella PLI scheme for the auto sector. Global and Indian OEMs should set up a subsidiary in India exclusively for sourcing, sources said. Incentives will be applied to an increase in purchase value. The applicants need to meet the cumulative increase in eligible purchase value for each year YoY and a growth criterion of a minimum 8 percent has to be achieved. If the company fails to meet the cumulative growth threshold, it won’t get an incentive for that year, the sources added.
Riding high on blank-check listings boom, global IPO headed for its biggest first quarter
The party might be over for SPACs, but the global market for initial public offerings (IPO) is headed for its biggest first quarter. Over 600 issuers have raised a record $160 billion year-to-date, Bloomberg’s data showed, with SPACs accounting for half of the proceeds. In contrast, issuers had raised just $37 billion during the same period last year. There’s optimism in the market that vaccines will tame the COVID-19 pandemic, helping the economy to recover, even as skepticism grows about the US-led boom in blank-check listings that fuelled the frenzy. Both the traditional and SPAC listings have been fuelled by unprecedented monetary and fiscal stimulus, ultra-low interest rates and global markets at record levels, until recently at least. More Here
World stocks firm as stimulus fuels economic optimism
Global stock prices were off to a solid start while U.S. bond yields hovered near a 13-month peak on Monday as investors bet U.S. economic growth will accelerate after the passing of a massive stimulus package. U.S. S&P500 futures rose 0.25% in early Asian trade, trading just below a record high level touched last week, while Japan’s Nikkei ticked up 0.1%. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed. The U.S. House of Representatives gave final approval last week to the COVID-19 relief bill, giving President Joe Biden his first major victory in office. The 10-year U.S. Treasuries yield stood at 1.638% in early Monday trade, having risen to as high as 1.642% on Friday, a high last seen in February last year.
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