• SENSEX
    NIFTY 50
Market

Trade Setup: 10 things you need to know before the opening bell on January 27

Updated : 2020-01-27 07:10:01

Indian market is set to open lower on Monday following SGX Nifty which was trading 0.81 percent lower, at 7 am. The broad sell-off is on the back of escalating concerns over the scope of coronavirus outbreak.

1. Asia: Markets in Australia, China, Hong Kong, Singapore, South Korea, and Taiwan are closed for public holidays. Japan’s Nikkei 225 fell 2.03 percent in early trade Monday. Trading volume is expected to be low as many Asian markets remain shut for the Lunar New Year holidays. The Topix index was down 1.79 percent.  (Image: Reuters)
1. Asia: Markets in Australia, China, Hong Kong, Singapore, South Korea, and Taiwan are closed for public holidays. Japan’s Nikkei 225 fell 2.03 percent in early trade Monday. Trading volume is expected to be low as many Asian markets remain shut for the Lunar New Year holidays. The Topix index was down 1.79 percent.  (Image: Reuters)
2. US: Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns over the scope of the coronavirus outbreak, capping the S&P 500's worst week in six months. The Dow Jones Industrial Average fell 170.36 points, or 0.58 percent, to 28,989.73, the S&P 500 lost 30.09 points, or 0.90 percent, to 3,295.45 and the Nasdaq Composite dropped 87.57 points, or 0.93 percent, to 9,314.91. (Image: AP)
2. US: Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns over the scope of the coronavirus outbreak, capping the S&P 500's worst week in six months. The Dow Jones Industrial Average fell 170.36 points, or 0.58 percent, to 28,989.73, the S&P 500 lost 30.09 points, or 0.90 percent, to 3,295.45 and the Nasdaq Composite dropped 87.57 points, or 0.93 percent, to 9,314.91. (Image: AP)
3. Markets At Close On Friday: Benchmark equity indices ended Friday's session on a positive note, as investors assessed a clutch of corporate earnings reports and awaited the release of the budget. The Sensex settled 226 points higher, or 0.55 percent, to close Friday's trade at 41,613 while the Nifty50 gained 68 points, or 0.56 percent, to settle at 12,248. Meanwhile, foreign institutional investors bought Rs 659 crore in the cash market while the domestic institutional investors bought Rs 418 crore. (Image: Reuters)
3. Markets At Close On Friday: Benchmark equity indices ended Friday's session on a positive note, as investors assessed a clutch of corporate earnings reports and awaited the release of the budget. The Sensex settled 226 points higher, or 0.55 percent, to close Friday's trade at 41,613 while the Nifty50 gained 68 points, or 0.56 percent, to settle at 12,248. Meanwhile, foreign institutional investors bought Rs 659 crore in the cash market while the domestic institutional investors bought Rs 418 crore. (Image: Reuters)
4. Crude Oil: A slowdown in China’s economy would impact demand because China is the world’s largest crude oil importer, after importing a record 10.12 million barrels per day in 2019, according to data from the General Administration of Customs. On Friday, U.S. West Texas Intermediate crude futures fell 2.5 percent, or $1.40, to settle at $54.19. International benchmark Brent crude dropped 2.2 percent to settle at $60.69, bringing its weekly loss to roughly 6.4 percent. (Image: Reuters)
4. Crude Oil: A slowdown in China’s economy would impact demand because China is the world’s largest crude oil importer, after importing a record 10.12 million barrels per day in 2019, according to data from the General Administration of Customs. On Friday, U.S. West Texas Intermediate crude futures fell 2.5 percent, or $1.40, to settle at $54.19. International benchmark Brent crude dropped 2.2 percent to settle at $60.69, bringing its weekly loss to roughly 6.4 percent. (Image: Reuters)
5. Rupee Close: The rupee depreciated by 7 paise to close at 71.33 against the US dollar on Friday due to dollar demand from importers amid a correction in crude oil prices following the outbreak of coronavirus in China. Gains in the US dollar against the world currencies also weighed on the rupee sentiment. At the Interbank foreign exchange market, the domestic currency opened weak at 71.34 against the previous close of 71.26. The unit recovered to a high of 71.22 later after a rally in domestic stocks, but it erased gains due to dollar demand from importers. (Image: Reuters)
5. Rupee Close: The rupee depreciated by 7 paise to close at 71.33 against the US dollar on Friday due to dollar demand from importers amid a correction in crude oil prices following the outbreak of coronavirus in China. Gains in the US dollar against the world currencies also weighed on the rupee sentiment. At the Interbank foreign exchange market, the domestic currency opened weak at 71.34 against the previous close of 71.26. The unit recovered to a high of 71.22 later after a rally in domestic stocks, but it erased gains due to dollar demand from importers. (Image: Reuters)
6. SEBI On Margin System In Derivatives: Markets regulator Sebi is planning to rationalise the margin system in the equity and commodity derivatives segments as part of its effort to boost liquidity and bring down the trading cost, industry officials said. The regulator is expected to come out with the new margining system this week, they added. The framework has been prepared on the basis of recommendations by the capital markets regulator's Risk Management Review Committee. Under the new framework, the Securities and Exchange Board of India (Sebi) is likely to lower margins for the hedged position, which will benefit market participants, especially hedgers, officials said. (Image: Reuters)
6. SEBI On Margin System In Derivatives: Markets regulator Sebi is planning to rationalise the margin system in the equity and commodity derivatives segments as part of its effort to boost liquidity and bring down the trading cost, industry officials said. The regulator is expected to come out with the new margining system this week, they added.
The framework has been prepared on the basis of recommendations by the capital markets regulator's Risk Management Review Committee. Under the new framework, the Securities and Exchange Board of India (Sebi) is likely to lower margins for the hedged position, which will benefit market participants, especially hedgers, officials said. (Image: Reuters)
7. Nitin Gadkari On Green Corridors: The government plans to complete three of the 22 expressways and green corridors in the next three years, including the flagship Delhi Mumbai Expressway being built at a new alignment, Union minister Nitin Gadkari has said. These 22 projects comprising 7,500 km of greenfield expressways and corridors are planned to be completed by FY25 at a cost of Rs 3.10 lakh crore.
7. Nitin Gadkari On Green Corridors: The government plans to complete three of the 22 expressways and green corridors in the next three years, including the flagship Delhi Mumbai Expressway being built at a new alignment, Union minister Nitin Gadkari has said.
These 22 projects comprising 7,500 km of greenfield expressways and corridors are planned to be completed by FY25 at a cost of Rs 3.10 lakh crore. "We will complete the flagship Delhi Mumbai Express Highway in the next three years. The work will be done in 51 packages and work has already been started on 18. This will be India's longest expressway at 1,320 km and will reduce travel time between Delhi and Mumbai from 24 hours to 13 hours," the road transport and highways minister said. Of the projects, six are 2,250 km expressways to be built at a cost of Rs 1.45 lakh crore. (Getty Image)
8. Indian Companies On Overseas Listing: The government is likely to soon decide on permitting Indian companies to list their equity shares overseas, according to an official. Apart from providing an additional fundraising avenue for the corporates looking to expand and boost their business activities, an overseas listing of shares would also help in bringing more capital into the country. The official said many companies are interested in listing their equity shares in foreign countries. Currently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs). (Image: Reuters)
8. Indian Companies On Overseas Listing: The government is likely to soon decide on permitting Indian companies to list their equity shares overseas, according to an official. Apart from providing an additional fundraising avenue for the corporates looking to expand and boost their business activities, an overseas listing of shares would also help in bringing more capital into the country. The official said many companies are interested in listing their equity shares in foreign countries. Currently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs). (Image: Reuters)
9. Import Duty Cut Consideration For Fertilisers: The government may consider cut in import duty on raw material used in the fertilizer industry in the forthcoming budget with a view to boost domestic manufacturing in the country, sources said. Lower import duty on raw material like rock phosphate and sulphur used for manufacturing of DAP (Di ammonium phosphate) would help boost domestic production and cut in import bill, according to sources. Currently, there is an import duty of 5 percent on such imports and the country imports about 95 percent of its DAP requirement from global markets. The country also imports about 30 percent of its urea requirements. (Image: Reuters)
9. Import Duty Cut Consideration For Fertilisers: The government may consider cut in import duty on raw material used in the fertilizer industry in the forthcoming budget with a view to boost domestic manufacturing in the country, sources said. Lower import duty on raw material like rock phosphate and sulphur used for manufacturing of DAP (Di ammonium phosphate) would help boost domestic production and cut in import bill, according to sources. Currently, there is an import duty of 5 percent on such imports and the country imports about 95 percent of its DAP requirement from global markets. The country also imports about 30 percent of its urea requirements. (Image: Reuters)
10. Analysts On Markets This Week: Earnings from major companies such as HDFC, US Fed's interest rate decision and hopes of positive measures from the Budget would drive sentiment in the equity markets this week which may also witness volatile sessions amid derivatives expiry, according to analysts. Participants would also keep an eye on the spread of the deadly coronavirus in China and other countries, they added.
10. Analysts On Markets This Week: Earnings from major companies such as HDFC, US Fed's interest rate decision and hopes of positive measures from the Budget would drive sentiment in the equity markets this week which may also witness volatile sessions amid derivatives expiry, according to analysts. Participants would also keep an eye on the spread of the deadly coronavirus in China and other countries, they added. "Going ahead, markets are likely to be volatile due to monthly F&O expiry just ahead of the Union Budget that would be presented towards the end of the elongated week. Also, stock-specific action is likely to continue with the ongoing results season which has been mixed so far. Apart from these, investors would also watch out for the US Fed and Bank of England's monetary policy," Motilal Oswal Financial Services, Head - Retail Research, Siddhartha Khemka said. (Image: Reuters)
Live TV
Advertisement