The Indian market is likely to open higher on Wednesday as the SGX Nifty, an early indicator of the opening for the domestic Nifty, was trading 51.00 points or 0.37 percent higher at 13,984.00, indicating a positive start for the Sensex and Nifty50.
1. Wall Street | US stocks lost ground on Tuesday, retreating from intraday highs, while oil prices gained ground as investors looked to Washington for signs that an enhanced stimulus package would pass a US Senate vote. The Dow Jones Industrial Average fell 68.3 points, or 0.22 percent, to 30,335.67, the S&P 500 lost 8.32 points, or 0.22 percent, to 3,727.04 and the Nasdaq Composite dropped 49.20 points, or 0.38 percent, to 12,850.22.
2. Asian Stocks | Asian markets declined in Wednesday morning trade after major indexes on Wall Street snapped their multi-day winning streaks overnight. The Nikkei 225 in Japan slipped 0.35 percent in early trade on Wednesday, the Topix index dipped 0.7 percent. South Korea’s Kospi declined 0.13 percent. Shares in Australia also fell, with the S&P/ASX 200 down about 0.9 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.16 percent lower, CNBC reported.
3. Indian Market | Indian equity benchmark indices, Sensex and Nifty, ended higher Tuesday led by gains in banks, financial and IT stocks. The Sensex gained 0.55 percent or 259.33 points to end at 47,613.08, while the Nifty settled 59.40 points or 0.43 percent higher at 13,932.60. Broader markets underperformed the benchmarks with Nifty Midcap100 and Nifty Smallcap100 indices ending in the red. Among sectors, Nifty Private Bank gained the most followed by Nifty Financial Services, Nifty IT and Nifty PSU Banks.
4. Crude Oil | Oil prices climbed on Tuesday on hopes the United States will expand pandemic aid payments, a move that could spur fuel demand and stimulate economic growth. US West Texas Intermediate (WTI) crude futures settled 38 cents, or 0.8 percent, higher at $48.00 a barrel, while Brent crude futures settled up 23 cents, or 0.5 percent, at $51.09 a barrel. (Image: Reuters)
5. Rupee | The rupee appreciated by 7 paise to close at 73.42 against the US dollar on Tuesday, amid heavy buying in domestic equities and unabated foreign fund inflows. A weaker greenback in the overseas markets also supported the rupee, forex dealers said. At the interbank forex market, the domestic unit opened at 73.42 against the US dollar and witnessed an intra-day high of 73.34 and a low of 73.44. The local unit finally settled at 73.42 against the American currency, registering a rise of 7 paise over its previous close.
6. China-EU Deal | China and the European Union are likely to clinch a deal this week that would give EU firms better access to the Chinese market, improve competition conditions and protect EU investment in China, European officials said on Monday. Talks on the investment deal began in 2014, but were stuck for years as the EU said China was failing to make good on promises to lift curbs on EU investment despite a pledge to open up the world’s second largest economy, Reuters reported.
7. Reserve Bank of India | The RBI has warned cases of borrowers defaulting on their loans may rise sharply because of the impact that the COVID-19 pandemic has had on businesses. “Given the uncertainty induced by COVID-19 and its real economic impact, the asset quality of the banking system may deteriorate sharply, going forward,” the Reserve Bank warned in the Report on Trend and Progress of Banking in India 2019-20. RBI has warned that this downtrend in NPAs may not sustain. “The modest GNPA ratio of 7.5 percent at end-September 2020 veils the strong undercurrent of slippage,” the RBI
8. State Borrowings | At Rs 5,55,900 crore, the states whose finances have been ravaged by the pandemic, have snapped up as much as 43.5 percent more debt from the market during the first nine months of the current fiscal with the conclusion of the last auction on Tuesday when 13 of them borrowed Rs 18,900 crore, according to an analysis by rating agency ICRA.
9. Auto Parts Industry Revenue To Grow 16-18% in FY22 | Ratings agency ICRA on Tuesday said it has revised its outlook on the auto component industry from negative to stable, on the back of demand revival across original equipment manufacturers (OEMs), replacements and exports. ICRA expects the domestic auto component industry's revenue to grow 16-18 percent in the financial year starting April 2021, supported by factors such as increasing content per vehicle, low base effect, and higher realisations.
10. FII and DII | Foreign institutional investors (FIIs) net bought shares worth Rs 2,350 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,020 crore in the Indian equity market on December 29, as per provisional data available on the NSE.