Wall Street gyrated wildly on Thursday, the S&P 500 once again narrowly avoiding correction confirmation at the end of a session marked by a rally, selloff and recovery as investors juggled positive economic news with mixed corporate earnings, geopolitical unrest and the prospect of a more hawkish Federal Reserve.
All three major US stock indices ended lower, having been whipsawed by uncertainty in recent days, marked by wide fluctuations and heightened volatility.
The Dow Jones Industrial Average fell 7.31 points, or 0.02 percent, to 34,160.78, the S&P 500 lost 23.42 points, or 0.54 percent, to 4,326.51 and the Nasdaq Composite dropped 189.34 points, or 1.4 percent, to 13,352.78.
Asia-Pacific markets traded higher on Friday, following a volatile session on Wall Street overnight where investors reacted to comments from the Federal Reserve and US GDP data.
The Nikkei 225 in Japan gained 1.71 percent in early trade after falling nearly 3 percent on Thursday, while the Topix was up 1.58 percent. South Korea’s Kospi reversed losses to rise 0.62 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 42 points. The Nifty futures were trading around 17,125 levels on the Singaporean exchange.
Oil dips from seven-year high as Russia tensions offset Fed tightening
Oil prices eased on Thursday after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the US Federal Reserve will soon tighten monetary policy.
Benchmark Brent fell 15 cents to $89.81 a barrel, while US crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.
US economy grew 5.7% in 2021 in rebound from 2020 recession
The US economy grew last year at the fastest pace since Ronald Reagan’s presidency, bouncing back with resilience from 2020′s brief but devastating coronavirus recession. The nation’s gross domestic product — its total output of goods and services — expanded 5.7 percent in 2021. It was the strongest calendar-year growth since a 7.2 percent surge in 1984 after a previous recession. The economy ended the year by growing at an unexpectedly brisk 6.9 percent annual pace from October through December, the Commerce Department reported Thursday.
SEBI strengthens MF norms; winding up of schemes only after majority unitholders' consent
In a move aimed to further safeguard the interest of mutual fund investors, SEBI has made it mandatory for trustees of mutual funds to obtain the consent of unitholders when majority of trustees decide to wind up a scheme. Under the new norms, mutual fund trustees will be required to obtain the consent of the unitholders when the majority of the trustees decide to wind up a scheme or prematurely redeem the units of a close-ended scheme.
The trustees will have to obtain consent of unitholders by simple majority of the unitholders present and voting on the basis of one vote per unit held and publish the results of voting within 45 days of the publication of notice of circumstances leading to winding up, SEBI said in a notification issued on Tuesday.
Early signs of COVID cases plateauing reported but situation needs to be observed, says government
Early indications of COVID cases plateauing have been reported in some places but the trend needs to be observed, the Union government said on Thursday while noting that 400 districts have logged over 10 percent positivity rate in the week ending January 26.
Stressing the need to continue with precautions to curb the surge in infections, it noted that Karnataka, Kerala, Tamil Nadu, Gujarat, Andhra Pradesh, Rajasthan were recording a high number of COVID cases and positivity. Simultaneously, a decline in COVID cases and positivity rate have been observed in Maharashtra, Uttar Pradesh, Delhi, Odisha, Haryana and West Bengal, the government said.
A comparison of the key indices during the second and third surge of COVID infections in India showed that on May 7 last year, at the peak of the second wave, 4,14,188 new cases and 3,679 deaths were reported. As many as 17,40,446 tests were carried out on that day and the proportion of fully vaccinated people was approximately 3 percent.
Air India officially returns to Tata Sons after 69 years
Tata Group officially took over Air India on January 27. "The formalities have been completed. The Air India disinvestment process is closed. The shares have been transferred to Talace Pvt Ltd, which is the new owner of Air India," said Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM). This marks the return of Air India to the Tata fold after 67 years. The Tata Group had founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.
Larsen & Toubro, Dr Reddy’s Labs, Kotak Mahindra Bank, Britannia Industries, Vedanta, 3i Infotech, Aptus Value Housing Finance, Arvind SmartSpaces, Asahi India Glass, Atul, AU Small Finance Bank, Bajaj Healthcare, Bharat Electronics, Blue Dart Express, CARE Ratings, Central Bank of India, Chambal Fertilisers, Chemplast Sanmar, Crompton Greaves Consumer Electricals, Deepak Fertilisers, Dixon Technologies, Equitas Small Finance Bank, Happiest Minds Technologies, Karnataka Bank, Marico, Max Financial Services, Info Edge, Oberoi Realty, Suzlon Energy, Tata Coffee, United Breweries, UTI Asset Management Company, and Zenotech Laboratories.
Gold flat; set for biggest weekly dip in 10 after hawkish Fed
Gold was flat on Friday and set for its sharpest weekly decline since November, as markets digested the US Federal Reserve's policy tightening plans that propelled the dollar index to a multi-month peak.
Spot gold was unchanged at $1,796.41 per ounce by 0109 GMT. US gold futures was up 0.2 percent at $1,796.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 6,266.75 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 2,881.32 crore in the Indian equity market on January 27, as per provisional data available on the NSE.