The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 39 points gain.
The BSE Sensex climbed 247.79 points to 49,517.11 on January 12 while the Nifty50 finally crossed the 14,500-mark, up 78.70 points to 14,563.50. According to pivot charts, the key support levels for the Nifty are placed at 14,467.3, followed by 14,371.1. If the index moves up, the key resistance levels to watch out for are 14,625.2 and 14,686.9.
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:
The benchmark S&P 500 closed barely higher on Tuesday while shares in smaller companies soared to record highs as investors favored more economically sensitive market segments as they bet on a recovery in 2021.
The Dow Jones Industrial Average rose 60 points, or 0.19%, to 31,068.69, the S&P 500 gained 1.58 points, or 0.04%, to 3,801.19 and the Nasdaq Composite added 36.00 points, or 0.28%, to 13,072.43.
Asian stocks opened mostly higher on Wednesday, tracking modest Wall Street gains as prospects of an eventual victory against coronavirus shored up recovery hopes, while tight supply expectations pushed oil prices to their highest in a year.
Markets were mixed with Japan’s Nikkei 225 up 0.11%, Australia’s S&P/ASX 200 down 0.1% and South Korea’s KOSPI 0.64% higher.
Trends on SGX Nifty indicate a positive opening for the index in India with a 39 points gain. The Nifty futures were trading at 14,639 on the Singaporean Exchange around 07:30 hours IST.
India IIP contracts 1.9% in November 2020 versus 3.6% expansion in October
The Index of Industrial Production (IIP) contracted 1.9 percent for November 2020, showed the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on January 12. The factory output in the country had grown at 3.6 per cent in October.
The previous high recorded was in February 2020, when IIP rose 5.2 percent, while it plunged to 0.48 to percent in September 2020 following the dry months after the COVID-19 lockdown. On a year-on-year basis, the IIP for November in 2019 grew 2.1 percent.
For November 2020, the IIP with base 2011-12 stands at 126.3, showed the ministry's data. The MoSPI in its quick estimate of IIP for November data mentioned that the indices for industrial production for sectors like mining, manufacturing, and electricity stood at 104.5, 128.4 and 144.8, respectively.
Retail inflation in India eases to 4.59% in December
India's Consumer Price Index (CPI), which measures the country's retail inflation eased to 4.59 percent in December versus 6.93 percent in November. This month's CPI has fallen within the Reserve Bank of India’s (RBI) upper margin of 6.
The Consumer Food Price Index (CFPI) or the inflation in the food basket eased to 3.41 percent in the month of December, down from 9.50 per cent in November, as per the data. This data also showed that this decline in retail inflation was mainly due to easing food prices.
Domestic hospitality industry to contract by 65% in FY21: Report
The domestic hospitality industry, which has been severely affected by the COVID -19 related disruptions, is likely to witness a decline of over 65 percent in 2020-21, according to a report. However, there might be a recovery in demand in the later part of financial year 2021-22 as vaccine rollouts gains traction, it said.
In a report, rating agency ICRA said it expects the industry to contract 65 percent in the financial year 2021, with massive operating and net losses, wiping out the cumulative profits of the four past years.
Cabinet likely to approve mining reforms proposal tomorrow
The Union cabinet is most likely to consider the proposal of mining sector reform for enhancing private investment, in the meeting scheduled for January 13. Amendments in the Mines and Minerals (Development and Regulation) Act, 1957 have been proposed, sources said.
It also includes resolving legacy issues to move towards an auction only regime for allocation of mineral resources, removing the distinction between captive and non-captive mines and clarifying the definition of illegal mining. Once the cabinet approves the amendments, the government may bring the bill in parliament during upcoming budget session.
Approvals received for relevant downstream investments post FDI nod from DoT: Airtel
Bharti Airtel on Tuesday said pursuant to the FDI approval in January 2020 granted to it by the DoT, the company has received necessary approvals for its relevant downstream investments. Bharti Airtel further said it is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100 percent with immediate effect.
"Further to our intimation dated January 21, 2020, we wish to inform you that in compliance of the FDI approval dated January 20, 2020, granted to the company by the Department of Telecommunications, the company has received approvals for its relevant downstream investments.
RBI imposes Rs 2 crore monetary penalty on Deutsche Bank for lack of compliance
The Reserve Bank of India (RBI) on January 12 imposed a monetary penalty of Rs two crore on Deutsche Bank AG for non-compliance with certain provisions. The RBI didn’t elaborate the nature of compliance violations by the bank. The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949, the RBI said.
“The statutory inspection of the bank with reference to its financial position as on March 31, 2019, and the Risk Assessment Report pertaining thereto revealed, inter-alia, non-compliance with above-mentioned directions issued by RBI,” the RBI said.
Results on January 13
Infosys, Wipro, 5paisa Capital, Amtek Auto, Asian Tea & Exports, CESC, Capital Trade Links, GTPL Hathway, Mideast (India) and Rajoo Engineers will announce their quarterly earnings on January 13.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 571.47 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,334.5 crore in the Indian equity market on January 12, as per provisional data available on the NSE.With inputs from Reuters & other agencies