Market

SGX Nifty sheds 100 points; here’s what changed for market while you were sleeping

Is it time to pay heed to the old adage: Sell in May & go away? Dalal Street looks forward to digesting a host of news developments, including a grim record of 4 lakh daily Covid cases, state election outcome that hinted at a backlash at the ruling BJP, tepid auto sales data and March quarter earnings of index heavyweight Reliance Industries. The fact that FPIs are dumping domestic equities and turned net sellers of Rs 9,659 in April could also weigh in on the domestic sentiment.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals negative start

Nifty futures on the Singapore Exchange traded over 100 points lower in signs that Dalal Street was headed for a negative start on Monday.

Tech View: Nifty loses support at 50-DMA

Nifty50 snapped a four-day winning streak on Friday and lost the crucial support of its 50-day simple moving average, forming a bearish candle on the daily chart for the second day in a row. Analysts said Nifty may trade in the 14,500-14,900 range in the coming days.

Asian markets mixed in early trade

Markets across Japan and China are closed for the day. Korea’s Kospi rose 0.6 per cent to 3,167.14 while Hong Kong’s Hang Seng fell 0.8 per cent to 28,445.12. Taiwan’s TWSE index declined 0.65 per cent to 17,452.26.

US stocks dropped on Friday

Stocks pulled back on Wall Street, easing the S&P 500 below the record high it set a day earlier, but still closed out their best month this year. On Friday, the S&P500 index fell 30.30 points, or 0.7 per cent, to 4,181.17. The Dow Jones Industrial Average index shed 185.51 points, or 0.5 per cent, to 33,874.85. The Nasdaq Composite index fell 119.86 points, or 0.9 per cent, to 13,962.68.

Q4 earnings today

Kotak Mahindra Bank, SBI Life Insurance, Godrej Properties, IDBI Bank, L&T Tech, Varun Beverages, Tata Chemicals, Home First Finance and Mahindra Holidays are among companies that will announce their March quarter results today.

FPIs sell Rs 3,465 crore worth stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,465.07 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,419.31 crore, data suggests.

MONEY MARKETS

Rupee: Snapping its four-day winning streak, the rupee settled with a marginal 2 paise loss at 74.09 against the US dollar amid concerns over economic recovery in view of mounting Covid-19 cases in the country.

10-year bonds: India 10-year bond yield fell 0.48 per cent to 6.03 after trading in 6.02-6.07 range.

Call rates: The overnight call money rate weighted average stood at 3.22 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.

MACROS

Automakers log tepid sales in April… Maruti Suzuki India reported a 4 per cent decline in total sales to 1,59,691 units in April; Hero MotoCorp said it has sold 3,72,285 units last month, down by 35 per cent. Tata Motors’ total domestic sales declined 41 per cent to 39,530 units. For Mahindra & Mahindra, total sales fell 10 per cent to 36,437 units.

TMC wins in WB, BJP retains Assam… Mamata Banerjee emerges as the tallest figure of elections, as her party TMC won more than 200 of West Bengal’s 294 seats. BJP retained Assam, lost the single seat it had in the Kerala assembly and came out on the losing side in Tamil Nadu. Its victory in Puducherry is neither here nor there. However, on balance, it is advantage BJP in this round of five state assembly elections, ET reported.

Q4 numbers signal robust show… The initial trend for the March 2021 quarter reflects a robust year-on-year performance by India Inc on anticipated lines aided by low base in the corresponding quarter of the previous year. Net sales of a sample of 191 companies that have declared results in each of the past 13 quarters increased to a seven-quarter high of 12.7 per cent after a drop in each of the previous four quarters. Net profit shot up by 50 per cent compared with a 23.1 per cent fall in the year-ago quarter. Operating margin improved by 160 basis points to 22.5 per cent in the March 2021 quarter.

Kotak suggests stricter Covid curbs… India’s wealthiest banker, Uday Kotak, has implored authorities to consider curbing economic activity in a bid to counter the coronavirus crisis. “At this critical juncture when toll of lives is rising, CII urges the strongest national steps, including curtailing economic activity to reduce suffering,” Kotak, president of CII and chief executive of India’s third-largest lender by market value Kotak Mahindra Bank, said in a tweet.

Banks fear lockdown hit on asset quality… Lenders are bracing for a further deterioration in asset quality metrics, cheque-bounce rates and collection ratios, anticipating a full month of strict lockdowns and curfews in May. While payment rejection rates were back to January levels, they are expected to rise further in May, lenders told ET. Collection ratios will be hit by another 5-10 per cent in the month as fresh Covid-19 infections continue to ravage the country.

ESG flavour of the season for MFs… Environment, social and governance, the flavour of the season among investors, has paid off for retail investors as well, with many schemes launched in the past few months outperforming the ESG Index. At least half a dozen asset management companies — Aditya Birla, ICICI Prudential, Kotak, Invesco India, Quantum India and Mirae Asset — have introduced ESG-based fund plans since October last year and have garnered about Rs 4,900 crore assets under management (AUM).

Q4 numbers signal robust show… The initial trend for the March 2021 quarter reflects a robust year-on-year performance by India Inc on anticipated lines aided by low base in the corresponding quarter of the previous year. Net sales of a sample of 191 companies that have declared results in each of the past 13 quarters increased to a seven-quarter high of 12.7 per cent after a drop in each of the previous four quarters. Net profit shot up by 50 per cent compared with a 23.1 per cent fall in the year-ago quarter. Operating margin improved by 160 basis points to 22.5 per cent in the March 2021 quarter.

Mumbai property registrations highest in 10 years… Property registrations in Mumbai were the best in 10 years for April with more than10,136 completed deals, due to a spillover effect from earlier months. The completed deals led to stamp duty revenue collection of ₹514 crore during the month, data from the Inspector General of Registration (IGR), Maharashtra, showed. Experts said a spillover effect from earlier months pushed up numbers as actual deals concluded in April were much lower

Record exports growth on a low base… India’s exports surged a record 197.03 per cent year-on-year to $30.21 billion in April, led by outbound shipments of gems & jewellery, engineering goods and petroleum products, due to the low base effect. Imports grew 165.99 per cent to $45.45 billion, widening the trade gap to $15.24 billion, as per preliminary estimates by the commerce & industry ministry.

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