The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a gap-up opening for the index in India with a 142 points gain.
The BSE Sensex was down 440.76 points at 50,405.32 on March 5 while the Nifty50 fell 142.70 points to 14,938.10. According to pivot charts, the key support levels for the Nifty are placed at 14,836.03, followed by 14,733.97. If the index moves up, the key resistance levels to watch out for are 15,066.23 and 15,194.37.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Wall Street, and a gauge of global equity markets, on Friday recovered from earlier losses as investors took stock of a report that showed faster-than-expected U.S. jobs growth but which had previously stoked inflation concerns.
The Dow Jones Industrial Average rose 446.98 points, or 1.45%, to 31,371.12, the S&P 500 gained 59.5 points, or 1.58%, to 3,827.97 and the Nasdaq Composite added 147.19 points, or 1.16%, to 12,870.66.
Asian shares rallied on Monday while the dollar held near three-month peaks after the U.S. Senate passage of a $1.9 trillion stimulus bill and a surprisingly strong payrolls report augured well for a global economic rebound.
The prospect of yet faster growth helped MSCI’s broadest index of Asia-Pacific shares outside Japan firm 0.4%. Japan’s Nikkei gained 1.2%, while S&P 500 futures rose 0.3%, after a sharp turnaround on Friday.
Trends on SGX Nifty indicate a gap-up opening for the index in India with a 142 points gain. The Nifty futures were trading at 15,096 on the Singaporean Exchange around 07:30 hours IST.
Senate Democrats reach deal on jobless aid in Biden’s $1.9 trillion COVID-19 bill
Democrats in the U.S. Senate said Friday they had resolved their differences over unemployment aid in President Joe Biden’s $1.9 trillion COVID-19 aid bill, enabling them to move forward with the sweeping package after hours of delay.
“We have reached a compromise that enables the economy to rebound quickly while also protecting those receiving unemployment benefits from being hit with (an) unexpected tax bill next year,” said Democratic Senator Joe Manchin, a key centrist who had pushed to scale back the aid.
MFs selling spree continues; withdraw 16,306 crore from equities in February on profit booking
Mutual funds pulled out Rs 16,306 crore from equities in February, making it the ninth consecutive monthly outflow as small investors booked profit amid a rally in stock markets. Gopal Kavalireddi, head of research at FYERS, said this trend of redemptions could continue till the time stock market rally slows down and consolidates, giving investors the opportunity to deploy their profits into longer time frame instruments like mutual funds.
Overall, mutual funds withdrew a net amount of over Rs 56,400 crore in 2020, data available with Securities and Exchange Board of India (Sebi) showed.
China February exports post record surge from COVID-19-depressed 2020 levels
China’s February exports grew at a record pace from a year earlier when COVID-19 battered the world’s second-biggest economy, customs data showed on Sunday, while imports rose less sharply. Exports in dollar terms skyrocketed 154.9% in February compared with a year earlier, while imports gained 17.3%, the most since October 2018. The data did not include figures for January alone.
In the January-February period, exports jumped 60.6% from a year earlier, when lockdowns to contain the pandemic paralysed the country’s economic activity. That exceeded the forecast of analysts in a Reuters poll for a 38.9% surge.
FPIs turn net sellers; pull out Rs 5,156 crore in March so far
Reversing the two-month buying streak, foreign portfolio investors (FPIs) pulled out Rs 5,156 crore from Indian markets in the first week of March amid profit booking and rising bond yields in the US.
According to FPI statistics available with depositories, overseas investors pulled out a net Rs 881 crore from equities and Rs 4,275 crore from the debt segment between March 1-5, taking the total net withdrawals to Rs 5,156 crore.
Oil soars to near 14-month high as OPEC+ extends output cuts into April
Oil prices jumped more than $1 a barrel on Friday, hitting their highest levels in nearly 14 months, after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand amid the coronavirus pandemic.
Brent crude futures for May rose to as high as $68 a barrel on Friday, a level not seen since Jan. 8, 2020. The contract was up $1.09, or 1.6%, to $67.83 a barrel at 0730 GMT, and was on track for a near 3% gain in the week.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,014.16 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 1,191.19 crore in the Indian equity market on March 5, as per provisional data available on the NSE.
SEBI lays guidelines on votes cast by mutual funds
Markets regulator SEBI on Friday came out with guidelines on votes cast by mutual funds to further improve transparency and encourage such fund houses to diligently exercise their voting rights in best interest of the unit holders.
Mutual funds, including their passive investment schemes like index funds, exchange-traded funds (ETFs), will be required to cast votes compulsorily in respect of related party transactions of the investee companies and corporate governance matters, SEBI said in a circular.
In addition, mutual funds will have to cast votes on corporate governance matters, including changes in the state of incorporation, merger and other corporate restructuring, and anti-takeover provisions as well as capital structure, including increases and decreases of capital and preferred stock issuances.
India Inc’s overseas direct investment declines 31% to $1.85 billion in February
India Inc’s overseas direct investment fell by 31 percent to USD 1.85 billion in February this year, the RBI data showed. Domestic companies made investments of USD 2.66 billion in their overseas subsidiaries and joint-ventures in the year-ago month, February 2020.
Of the total investment made by Indian companies in foreign markets, USD 1.36 billion was in the form of loan; USD 297.37 million comprised as equity investment and the rest of USD 183.82 million was by way of issuance of guarantee, according to the RBI data on outward foreign direct investment (OFDI) - February 2021.
5 stocks under F&O ban on NSE
Bank of Baroda, BHEL, Punjab National Bank, SAIL and Sun TV Network are under the F&O ban for March 8. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies