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Market Movers: What changed for D-Street while you were sleeping

Equity indices from Sydney to Seoul and Hong Kong all advanced, while Japan remains shut until Monday.

ETMarkets.com|
Last Updated: Jan 03, 2020, 08.12 AM IST
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AP
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Oil prices jumped more than $1 on Friday after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating West Asia tensions may disrupt oil supplies.
NEW DELHI: Nifty futures on Singapore Exchange signalled positive trade ahead on Dalal Street. Global markets continued to rally following efforts by China’s central bank to support its slowing economy. Meanwhile, a US air strike on a Iranian commander pushed oil price higher, and that could cap gains in equities.

Here’s breaking down the pre-market actions.


TRADE SETUP
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 24 points, or 0.19 per cent, higher at 12,361, indicating a positive start for Dalal Street.

Tech view: Nifty support at 12,150
Nifty50 hit a record closing high on Thursday, but failed to take out its crucial resistance at 12,290 even on an intraday basis. Analysts said a decisive close above this level could trigger a move towards the 12,400 mark, but failure to generate follow-up buying may lead to an extension of the ongoing consolidation.

Asian shares gain
The risk-on sentiment that ushered in the New Year continued apace on Friday as stocks climbed following fresh all-time highs on Wall Street, though gains were trimmed as tensions flared in the West Asia. Equity indices from Sydney to Seoul and Hong Kong all advanced, while Japan remains shut until Monday. The advance eased and the yen gained after a US airstrike in Baghdad reportedly killed a top Iranian commander.

South Korean stocks added over 1%, recouping their losses in the previous session while Australian shares rose over 1%, tracking gains on Wall Street.

US stock markets rally
On Wall Street, the Dow Jones Industrial Average rose 330.36 points, or 1.16%, to 28,868.8. The S&P 500 gained 27.07 points, or 0.84%, to 3,257.85 and the Nasdaq Composite added 119.59 points, or 1.33%, to 9,092.19. Europe's main markets in London, Frankfurt and Paris jumped 0.82% to 1.06%, outpacing overnight gains in Asia and setting them on course for their best opening day of a year since 2013.

FIIs buy Rs 688 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 688.76 crore on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 63.95 crore, data suggests.

Crude oil jumps in West Asia tension
Oil prices jumped more than $1 on Friday after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating West Asia tensions may disrupt oil supplies. Brent crude futures rose $1.23 to $67.48 a barrel, while WTI crude futures gained $1.03 to $62.21

MONEY MARKETS

Rupee: The rupee lost 16 paise to close at 71.38 against the US dollar on Thursday as steady rise in crude oil prices and stronger dollar against key global currencies weighed on sentiment.

10-year bonds: India 10-year bond yields remained unchanged at 6.50% on Thursday, according to Bloomberg.

Call Rate: The overnight call money rate weighted average was 5.12% on Thursday, according to RBI data. It moved in a range of 3.60-5.25%.

Happening TODAY

  • India Deposit Growth YoY in Dec
  • India Forex Reserve in Dec
  • India YoY Bank Loan Growth in Dec
  • EIA US Crude Oil Stocks Change
  • UK Nov Consumer Credit Data
  • UK Nationwide Housing Prices Data

MACROS

Green shoots in consumer goods sales
Retailers and consumer goods companies said sales in the October-December festive quarter had been the best in past four years on account of ‘pent-up demand’, a buoyant stock market, wider availability of consumer credit at 0% interest, and the harsh winter in the North that triggered sales of heating products and winter wear. While industry executives said some ‘green shoots’ were visible, they added that they would observe sales over the next one-two quarters before announcing a revival in consumption.

Manufacturing rebounds in December
India’s manufacturing industry expanded at its fastest rate in ten months in December with a solid rise in factory orders boosting production growth at the end of 2019, a private survey showed on Thursday. The IHS Markit India Manufacturing PMI rose to 52.7 in December from 51.2 in November, remaining above the 50-mark threshold that separates contraction from expansion.

Bad loan pain to return for banks in Q3
Indian banks could be staring at bad-debt provisions of an estimated ?30,000 crore against loans to Dewan Housing Finance Corp (DHFL), the Anil Ambani-led Reliance Home Finance, KKR-backed Coffee Day Enterprises and CG Power. Resolution hasn’t been finalised in any of these accounts, which means the December quarter could possibly see a reversal in the brief fall in provisioning that occurred in the preceding three-month period. The bulk of the provisions will be on account of DHFL, which entered the bankruptcy process in December.

Non-telcos face bigger AGR pain
The Department of Telecommunications (DoT) has slapped a Rs 15,019-crore demand notice on Gujarat Narmada Valley Fertilizers & Chemicals Ltd, taking the total amount it has sought from non-telecom companies to Rs 3.13 lakh crore following a Supreme Court ruling. DoT had previously sought Rs 1.72 lakh crore from India's largest natural gas marketer, GAIL, and another Rs 1.25 lakh crore from PowerGrid, which had both national long distance as well as internet licence. DoT has sought Rs 1.47 lakh crore from Bharti Airtel, Vodafone Idea Ltd and other telecom companies after the Supreme Court's ruling on revenues that need to be taken into consideration for payment of government dues

Steel prices may rise 10%
Domestic prices of steel, of which India is among the three top global producers, are expected to climb 10-12% this year, with the government’s measures to revamp infrastructure and consumption likely reviving demand for the alloy from carmakers and construction companies. In anticipation of a turnaround, steel shares have climbed 32-79% from their October lows, in kilter with buoyant domestic and international prices of the commodity. The Centre’s decision to invest Rs 102 lakh crore in infrastructure projects over the next five years is expected to buoy steel demand, while a likely deal between the US and China on tariffs should ease global trade concerns on the primary infrastructure alloy.

Trump ready to sign trade deal; China yet to confirm
US President Donald Trump said he will sign the first phase of a trade deal with China on January 15, sealing an agreement that sees the Asian nation raising purchases of American farm goods in exchange for lower tariffs on some of its products. The date has yet to be confirmed by the Chinese side. “The ceremony will take place at the White House,” Trump said on his Twitter account on Tuesday, adding he will be going to Beijing, where talks will begin on the second phase of the deal. Chinese Ministry of Foreign Affairs spokesman Geng Shuang said on Thursday he has no new information on the trade deal, and didn’t comment on the signing.

Air India, BPCL, Concor divestments “unlikely” in FY20
A senior government official has said strategic divestments in Air India, BPCL and Container Corporation are "unlikely" to be completed in FY20, reports PTI. Work on all these companies is on and the process is facing delays due to "surprises" encountered once the wheels have begun moving, the official from the Department of Investment and Public Asset Management (Dipam) said. The ministry has budgeted to garner Rs 1.05 lakh crore from divestments during the fiscal. The government has already breached the budgeted fiscal deficit gap and the extent of the gap stands at 115 per cent with four months to go.
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