Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
- Tech View: It was another day of flat close for Nifty50 thanks to profit booking at higher levels. Nifty failed to get a breakthrough in the strong resistance zones.
- India VIX: The fear gauge jumped marginally higher to 12.99 level on Monday over its close at 12.94 on Friday.
Most Asian markets opened higher
Asian share markets opened higher on Tuesday as part of a global rally on renewed economic optimism, despite worries over the lingering pandemic. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.52 per cent.
- Japan’s Nikkei jumped 0.80%
- Korea’s Kospi gained 0.59%
- Australia’s ASX 200 gained 0.47%
- China’s Shanghai Composite shed 0.10%
- Hong Kong’s Hang Seng climbed 0.65%
Wall Street stocks settled at record highs
Wall Street’s main indices closed at their highest levels ever on Monday, lifted by Tesla and bank stocks as investors eyed the start of the second-quarter earnings season and a batch of economic data.
- Dow Jones added 0.36% to 34,996.18
- S&P 500 gained 0.35% to 4,384.63
- Nasdaq climbed 0.21% to 14,733.24
Dollar tiptoes toward inflation
The dollar found support on Tuesday ahead of U.S. inflation data, with investors on edge over whether the figures may offer clues about the likely timing of tapering and interest rate hikes.
- Dollar index steady at 92.202
- Euro slipped to $1.1873
- Pound down to $1.3892
- Yen shed to 110.31 per dollar
- Yuan flat at 6.4756 against the greenback
Crude up on hopes of fall in US crude stocks
Oil rose on Tuesday, recovering from the previous day’s drop, as expectations of further declines in US crude inventories outweighed fears that spreading Covid-19 variants could derail a global economic recovery. Brent crude for September climbed 25 cents, or 0.3%, to $75.41 a barrel by 0036 GMT. U.S. West Texas Intermediate crude for August was at $74.33 a barrel, up 23 cents, or 0.3%.
FPIs sell shares worth Rs 746 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 745.97 crore, data available with NSE suggested. DIIs, turned buyers to the tune of Rs 447.42 crore, data suggests.
June quarter earnings
Mindtree, Tata Metaliks, Shree Ganesh Remedies, Deccan HealthCare, WS Industries (India) and Gagan Gases are among the companies that will announce quarterly earnings today.
Rupee: The rupee pared some of its initial gains and settled 6 paise higher at 74.58 (provisional) against the US dollar on Monday, ahead of the release of key inflation data.
10-year bond: India 10-year bond yield jumped 0.55 per cent to 6.22 after trading in 6.20 – 6.28 range.
Call rates: The overnight call money rate (weighted average) stood at 3.17 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.
DATA/EVENTS To WATCH
- Q1 Earnings: Mindtree | Tata Metalics | Shree Ganesh Remedies
- China Balance of Trade June (08:30 am)
- BoE Financial Stability Report (11:30 am)
- BoE FPC Meeting Minutes (11:30 am)
- US Inflation Rate YoY June (06:00 pm)
- US Monthly Budget Statement June (11:30 pm)
Retail inflation above 6%
Retail inflation held above 6% level in June as price pressures across food, fuel and some services remained firm, while industrial output growth soared on the back of a low base effect in May. Data released by the National Statistical Office (NSO) on Monday showed retail inflation as measured by the consumer price index rose an annual 6.3% in June, nearly similar to the previous month’s levels. Separate data showed industrial output growth grew an annual 29.3% in May compared with a 134.6% in April due to a low base last year.
Top banks take stakes in bad bank
Four of India’s top private-sector lenders, including HDFC Bank and ICICI Bank, have agreed to pick up 9.9% each in a company that will manage and eventually resolve stressed assets owned by a state-initiated bad bank, unveiling a mechanism that practically separates ownership and management of soured loans and gives government lenders controlling stakes in the asset reconstruction company. Axis Bank and IDBI Bank will join its more valuable peers in buying equity into the India Debt Management Company, which would assist the National Asset Reconstruction Company (NARCL).
All clear for LIC IPO
The stage is set for the country’s biggest IPO with the Union Cabinet approving the share sale of the state-run insurance behemoth LIC. Agency reports said the Cabinet Committee on Economic Affairs, which met last week, had cleared the IPO of LIC. While no official announcement has been made about the approval, sources said the issue was part of the agenda for the Cabinet meeting. The report said that a panel headed by finance minister Nirmala Sitharaman will decide on the exact amount of stake dilution.
Sebi questions PNB Housing directors’ role
Sebi has questioned the role played by the directors of PNB Housing Finance in the planned preferential allotment of shares to the Carlyle Group, in a letter sent late last month. “On the basis of material available on record, it is evident that the company has failed to comply with the principles governing disclosures and obligations of a listed entity,” Sebi said in a June 25 letter to the company
RBI allows retail direct gilt accounts
RBI has allowed retail investors to open accounts with the central bank through which they can purchase government bonds in auctions and maintain them in demat form. This was first announced by RBI governor Shaktikanta Das in February this year. He had pointed out that only a handful of other countries like the US and Brazil had this facility. Under the scheme announced by RBI on Monday, investors can open a ‘Retail Direct Gilt Account’ through an online portal.
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