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 91 points gain.
The BSE Sensex declining 470.40 points or 0.96 percent to 48,564.27 on January 18 while the Nifty50 dipped 152.40 points or 1.06 percent to 14,281.30. According to pivot charts, the key support levels for the Nifty are placed at 14,183, followed by 14,084.7. If the index moves up, the key resistance levels to watch out for are 14,419.4 and 14,557.5.
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:
Asian share markets edged ahead on Tuesday as investors wagered China’s economic strength would help underpin growth in the region, even as pandemic lockdowns threatened to lengthen the road to recovery in the West.
MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.2%, to be a whisker from record highs. Japan’s Nikkei bounced 1%, recovering all the losses suffered on Monday when caution had dominated markets.
Trends on SGX Nifty indicate a positive opening for the index in India with a 91 points gain. The Nifty futures were trading at 13,367 on the Singaporean Exchange around 07:30 hours IST.
Forex intervention by RBI to touch $93 billion by March: Report
The Reserve Bank of India (RBI) is likely to spend at least $20 billion more to support the rupee and increase the forex kitty through the reminder of the financial year, taking its overall forex intervention to $93 billion, according to a report.
The report by the Wall Street brokerage Bank of America Securities also expects the central bank to raise banks’ HTM (held-to-maturity) limits of excess government securities by 2 per cent of their books to fund the fiscal deficit if high forex intervention limits its open market operations (OMOs).
Banks' low profitability, weak asset quality pose difficulty in boosting digitisation: S&P
S&P Global Ratings on January 18 said India's banking system's low profitability and weak asset quality present some difficulties in significantly boosting digitalisation for several state-owned and smaller private-sector banks. In its report titled 'Tech Disruption in retail banking: Top tier banks lead the change', S&P said India's digital disruption, however, poses a relatively low risk to its top-tier banks' longstanding market position.
"The banking system's low profitability and weak asset quality present some difficulties in significantly boosting digitalisation for several state-owned banks and smaller private-sector banks," S&P said. It said COVID-19 restrictions have been a boost for India's major digital payment system Unified Payment Interface (UPI).
Oil prices fell slightly on Monday as a stronger dollar, fears over soaring COVID-19 cases around the world and the slow pace of vaccination against the coronavirus outweighed a better-than-expected quarterly rebound for China’s economy.
Brent crude was down 23 cents, or 0.4%, at $54.87 per barrel at 1720 GMT, and West Texas Intermediate U.S. crude fell 19 cents, or 0.4%, to $52.17.
FinMin releases weekly instalment of Rs 6,000 crore to states to meet GST compensation shortfall
The Finance Ministry on Monday released the 12th instalment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 72,000 crore. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax (GST).
The ministry in a statement said it has released the 12th weekly instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall. Out of this, an amount of Rs 5,516.60 crore has been released to 23 states and Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry), who are members of the GST Council.
IMF chief sees 'high degree of uncertainty' in global outlook
The head of the International Monetary Fund said on Monday the global economic outlook remained highly uncertain given the coronavirus pandemic, and a growing divergence between rich and poor countries required the IMF to find more resources.
IMF Managing Director Kristalina Georgieva told reporters a new allocation of the IMF’s own currency, Special Drawing Rights, would give countries more fiscal space to address the health crisis and accelerate moves to a digital and green economy.
Results on January 19
ICICI Lombard General Insurance Company, Alembic Pharmaceuticals, Ceat, CSB Bank, DCM Shriram, L&T Infotech, Skipper, Tata Communications, Tata Metaliks, Tata Steel Bsl, Gateway Distriparks, Hatsun Agro Product, HT Media, JSW Ispat Special Products, Bank of Maharashtra, Mold-Tek Packaging, Network18 Media & Investments, Roselabs Finance, TV18 Broadcast, Vardhman Special Steels, Raghav Productivity Enhancers, Shree Ganesh Biotech, Wardwizard Innovations & Mobility, Add-Shop ERetail, AVI Polymers and Bigbloc Construction will announce their quarterly earnings on January 19.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 650.6 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 42.51 crore in the Indian equity market on January 18, as per provisional data available on the NSE.
3 stocks under F&O ban on NSE
BHEL, Vodafone Idea and SAIL are under the F&O ban for January 19. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies