What changed for D-Street while you were sleeping

NEW DELHI: Money policy review by the monetary policy committee of RBI and a host of quarterly earnings will sway market sentiment all through Thursday.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for weak start
Nifty futures on the Singapore Exchange traded 25.50 points, or 0.21 per cent, lower at 12,074.50, indicating a weak start for Dalal Street.

Tech view: Nifty to see resistance at 12,120
Nifty50 climbed for the straight third day on Wednesday. In the process, it settled above its 50-day exponential moving average and formed a bullish candle on the daily chart. Analysts said the index needs to decisively break above the 12,120 level for further upside. The 12,050 level will offer strong support to the index, they said.

Asian markets rise in early trade
Asian stocks edged up on Thursday, a day after US S&P500 index hit a record peak following encouraging economic data, while investors keep a wary eye on the impact of the coronavirus outbreak. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.39 per cent while Japan's Nikkei rose 1.63 per cent.

US stocks end at record highs
In overnight trade, the S&P500 index gained 1.13 per cent to a record close of 3,334.69 while the Nasdaq Composite added 0.43 per cent to 9,508.68, also a record high. The ADP National Employment Report showed private payrolls jumped 291,000 jobs in January, the most since May 2015, while a separate report showed US services sector activity picked up last month, Reuters reported.

Oil prices climb for second day
Oil futures rose for a second day on Thursday as investors took optimism around unconfirmed reports of possible medical advances to combat the coronavirus outbreak in China as a sign fuel demand could rebound in the world’s biggest oil importer. Brent futures rose by 62 cents, or 1.1 per cent, to $55.90 a barrel, having risen 2.4 per cent in the last session.

Sun Pharma, Hero MotoCorp to report Q3 earnings today
Sun Pharma, Hero MotoCorp, Eicher Motors, Lupin, IDFC, IGL, Adani Power, Bata India, Aurobindo Pharma, NMDC, RITES and UCO Bank are some of the companies which will report their December quarter earnings today.

DIIs buy Rs 263 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 249 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 263 crore, data suggests.

MONEY MARKETS

Rupee: The rupee pared initial gains to settle nearly flat at 71.24 (provisional) against the US dollar on Wednesday, as market participants await fresh cues from the RBI''s monetary policy.

10-year bonds: India 10-year bond yield rose 0.05 per cent to 6.51 after trading in 6.50-6.52 range.

Call rates: The overnight call money rate weighted average stood at 4.98 per cent, according to RBI data. It moved in a range of 3.70-5.25 per cent.

HAPPENING TODAY

• Q3 Earnings: ACC | Corp Bank I India Cements | KEC | Max India | NCC | NHPC | NTPC | OBEROI REALTY | TATA STEEL
• RBI Money Policy
• ECB President Lagarde Speech
• ECB Economic Bulletin
• Fed Kaplan Speech
• US Feb Initial Jobless Claims

MACROS

RBI policy outcome today
Amid slowing GDP growth and rising inflation, the Reserve Bank of India (RBI) will unveil its last monetary policy for the current financial year on Thursday. The sixth bi-monthly monetary policy statement for 2019-20 would be the last one for the current financial year. RBI is likely to keep monetary policy accommodative without cutting interest rates at the policy meeting, says Reyters quoting economists, as inflation is above target and the economy has shown possible signs of recovery from its worst slowdown in more than a decade.

Tax settlement not open to launderers
The new direct tax dispute settlement scheme will not cover cases related to undisclosed overseas assets initiated on the basis of information from another country. Neither will it apply to prosecutions under the Prevention of Money Laundering Act (PMLA), the Benami Transactions (Prohibition) Act and the income tax Act. Those applying for the scheme can’t appeal against the decision of the tax authorities and liability computations will be final. Finance minister Nirmala Sitharaman introduced the Direct Tax Vivad Se Vishwas Bill, 2020, in the Lok Sabha on Wednesday, which she had announced during her February 1 budget speech.

India Inc jittery as lockdown in China continues
The coronavirus outbreak is giving industry the jitters, especially sectors heavily dependent on Chinese imports such as consumer electronics, auto and pharmaceuticals. Seafood and spices exports are also vulnerable as Beijing absorbs a big chunk of the $10-billion these shipments bring in every year. Industry officials say trade has already been affected and unless Chinese supplies bounce back quickly, it would lead to scarcity and higher prices in a few weeks. Looking for alternatives to China is time-consuming and costly.

Services activity at 7-year high in Jan
India’s service sector started the year with output growth hitting a seven-year high on the basis of strong domestic demand, showed a private survey released on Wednesday. According to the IHS Markit India Services PMI, the business activity index grew to 55.5 in January from 53.3 of the previous month. The upswing resulted from favourable market conditions and better underlying demand, survey participants said.

Kia may move $1.1 bn India plant to TN
South Korea’s Kia Motors is discussing with Tamil Nadu the possibility of moving a $1.1 billion plant out of neighbouring Andhra Pradesh only months after it fully opened, due to policy changes last year, sources close to the talks told Reuters. Kia inaugurated the Andhra plant, its first in the world’s fifth-largest car market, in December after two years of construction. It has an annual capacity of some 300,000 units and created 12,000 direct and indirect jobs.

US Senate acquits Trump in historic vote
President Donald Trump was acquitted on Wednesday in his U.S. Senate impeachment trial, saved by fellow Republicans who rallied to protect him nine months before he asks voters in a deeply divided America to give him a second White House term. The businessman-turned-politician, 73, survived only the third presidential impeachment trial in US history - just like the two other impeached presidents - in his turbulent presidency’s darkest chapter.

Govt to merge 3 PSU insurers by March
The government aims to complete merger of three state-owned general insurance companies -- National Insurance Co Ltd, United India Insurance Co Ltd, and Oriental Insurance Co Ltd -- by the end of March, Finance Secretary Rajiv Kumar said. Respective boards of the three companies have already given their in-principal approvals for the merger. Though the merger process was in the works, the government would take a call on listing the merged entity after the merger, he said.

Unemployment rate at 6.1% in 2017-18
Unemployment rate in the country as per a new survey was 6.1 per cent in 2017-18, the government informed Rajya Sabha on Wednesday. Minister of State for Labour Santosh Gangwar said the government is conducting a new Periodic Labour Force Survey (PLFS) with new parameters and bigger sample size, and its results cannot be compared with previous surveys in this regard.