Markets in for a small correction mode: Under-current Bullish:
The Indian market opens on a tepid note on Tuesday following a mixed trend in Asian peers. At 7:50 am, the SGX Nifty was trading 12.50 points or 0.09 percent lower at 14,483.50, indicating a mildly negative start for the Sensex and Nifty50.
- Wall Street | Wall Street’s main indices closed lower on Monday as investors took some profits after last weeks’ records while they waited for earnings season to begin and eyed events in Washington with trepidation. The Dow Jones Industrial Average fell 89.28 points, or 0.29 percent, to 31,008.69, the S&P 500 lost 25.07 points, or 0.66 percent, to 3,799.61 and the Nasdaq Composite dropped 165.54 points, or 1.25 percent, to 13,036.43.
- Asian Stocks | Stocks in Asia-Pacific were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising corona virus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season. Japan’s Nikkei slipped 0.48 percent, South Korea’s KOSPI fell 0.91 percent and Hong Kong’s Hang Seng index futures lost 0.54 percent. Defying the broader selloff, Australia’s S&P/ASX 200 rose 0.24 percent.
3.Indian Market| Indian benchmark equity indices, Sensex and Nifty, ended at record high levels on Monday led by strong gains in IT and auto stocks. The Sensex ended 486.81 points, or 1.00 percent higher at 49,269.32, while the Nifty rose 137.50 points or 0.96 percent to its record close of 14,484.75. Broader markets under performed the benchmarks with Nifty Midcap100 and Nifty Small cap 100 ending lower. Among sectors, the Nifty IT surged over 3 percent while the auto index jumped 2.6 percent for the day. However, the Metal index shed 1 percent and the bank index lost 0.3 percent.
- Crude Oil | Oil prices steadied on Monday after strong gains last week, as tough coronavirus lockdowns around the world renewed concerns about global fuel demand, while a stronger U.S. dollar also weighed on prices. Brent fell 33 cents to settle at $55.66 a barrel, after bouncing off the session low of $54.99. US West Texas Intermediate (WTI) rose a cent to settle at $52.25 a barrel.
- Rupee | The rupee depreciated by 16 paise to close at 73.40 against the US dollar on Monday, tracking a rebound in the American currency overseas. At the inter bank forex market, the domestic unit opened at 73.47 against the greenback and witnessed an intra-day high of 73.37 and a low of 73.50. The local unit finally settled at 73.40, registering a fall of 16 paise over its previous close.
- RBI on Bank NPAs | The Indian banking system’s bad loans may rise to a two-decade high on the back of COVID-19 induced stress, the Reserve Bank of India (RBI) warned. In its latest Financial Stability Report (FSR), the RBI said Public Sector Banks (PSBs) may see gross NPAs rise from 9.7 percent in September 2020 to 16.2 percent by September 2021. Private Banks’ may see Gross NPAs rise from 4.6 percent in September 2020 to 7.9 percent by September 2021 and Foreign Banks from 2.5 percent to 5.4 percent, under the baseline scenario.
- Sebi | Sebi reviewed scan range on volatility for option contracts in commodity derivatives segment amid higher market volatility. This was done in the context of CPSS-IOSCO (the Committee on Payment and Settlement Systems and International Organization of Securities Commissions) prescription for margin models, which limits the need for destabilising and pro-cyclical changes. Now, Sebi, in consultation with clearing corporations, has decided to prescribe minimum VSR values for underlying commodities based on their volatility — high, medium and low, the circular noted.
- NSE Launches Derivatives on Nifty Financial Services Index | The National Stock Exchange (NSE) on Monday launched derivatives on the Nifty Financial Services Index, which will give more flexibility to institutional as well as retail investors to manage their hedge. The index consists of 20 stocks and is designed to reflect the behavior and performance of the Indian financial market, which includes banks, financial institutions, housing finance, insurance companies and other financial services companies.
- Global Investors’ Expectations from Union Budget | A friendlier tax regime, exorcism of the retro tax ghost and higher FDI limits for defense and insurance sector – these are some of the hopes that the global investors wish turn into reality when finance minister Nirmala Sitharaman presents the union budget in less than three weeks.
- COVID-19 Vaccine | Bharat Biotech inked a purchase agreement with the Government of India on January 11 to provide 55 lakh doses of COVID-19 vaccine Covaxin at Rs 295 per dose. The Indian pharma firm will be providing its coronavirus vaccine directly to 12 states, and the process will be completed in two days by January 14. Dispatches will begin from Hyderabad starting January 12. Bharat Biotech will be providing 38.5 lakh doses of the COVID-19 vaccine in stage 1 & 16.5 doses in stage 2.
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