The Indian stock market is expected to open in the red following weak global cues as trends on SGX Nifty indicate a negative opening for the index in India with an 80-point loss.
The S&P BSE Sensex plunged 937.66 points or 1.94 percent to 47,409.93 on January 27 while the Nifty50 fell 271.40 points or 1.91 percent to 13,967.50.
According to pivot charts, the key support levels for the Nifty are placed at 13,851.87, followed by 13,736.23. If the index moves up, the key resistance levels to watch out for are 14,160.57 and 14,353.63.
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:
US Markets
U.S. stocks suffered their biggest one-day percentage drop in three months on Wednesday, adding to losses after the latest Fed statement as major indexes were also pressured by a slump in Boeing and a selling of long positions by hedge funds.
The Dow Jones Industrial Average fell 633.87 points, or 2.05%, to 30,303.17, the S&P 500 lost 98.85 points, or 2.57%, to 3,750.77 and the Nasdaq Composite dropped 355.47 points, or 2.61%, to 13,270.60.
Asian Markets
Asian stocks skidded on Thursday following a sharp Wall Street decline amid deepening concerns about stretched valuations in equities markets, while the dollar and bonds strengthened.
In early Asian trade, Australia’s S&P/ASX 200 benchmark lost 1.99%, Japan’s Nikkei fell 2.28% and Hong Kong’s Hang Seng index futures lost 0.51%. S&P futures pulled back 1%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 80 points loss. The Nifty futures were trading at 13,900 on the Singaporean Exchange around 07:30 hours IST.
Fed still in crisis-fighting mode as recovery appears to moderate
The Federal Reserve on Wednesday left its key overnight interest rate near zero and made no change to its monthly bond purchases, pledging again to keep those economic pillars in place until there is a full rebound from the pandemic-triggered recession.
In a news conference after the meeting, Fed Chair Jerome Powell noted the economy’s resilience, with major industries like housing, financial services and others adapting to the coronavirus pandemic with new technologies and strategies.
Sebi in talks to cut down minimum application size to help retail investors
India’s capital and commodity markets regulator is in talks to cut down the minimum application size for IPOs from Rs 15,000 to Rs 7,500 in an attempt to provide higher subscriptions to retail investors.
“Sebi has received several complaints from retail investor associations that retail investors are unable to get IPO subscription in most of the good IPOs,” a source, who is close to the discussions being held by the Securities and Exchange Board of India, told Moneycontrol.
With infrastructure push, Railways to see highest-ever capex in 2021-22
With the country’s railways infrastructure set for a massive revamp, the Indian Railways is likely to see its highest ever capital expenditure (capex) for 2021-22 in the upcoming Budget 2021. During the current financial year, the capex by the Indian Railways was pegged at Rs 161,042 crore, which is likely to grow in double-digits in 2021-22, if the finance ministry meets the Railway Board’s expectation.
“A lot of infrastructure projects are lined up. This includes new lines, doubling, tripling and electrification, overhauling of the existing signalling and telecommunication system, freight corridors, station redevelopment and introduction of modernized rolling stock,” said R Sivadasan, former finance commissioner with the Railways. The railways is expected to raise its market share in overall freight, from around 30 per cent now to 45 per cent in 2030.
FDI inflows in April-November 2020 rise 22% to $58.37 billion
Foreign direct investment (FDI) inflows from April to November 2020 have increased by 22 percent (YoY) to $58.37 billion - the highest for the first 8 months of any fiscal, the Ministry of Commerce and Industry on January 27 said. FDI equity inflows in the first eight months of FY21 rose by 37 percent (YoY) to $43.85 billion, said the Union Ministry statement said.
"During April to November, 2020, total FDI inflow of US$ 58.37 billion has been received. It is the highest ever for first 8 months of a financial year and 22% higher as compared to first 8 months of 2019-20 (US$ 47.67 billion)," the Union Ministry said in its official statement.
SEBI moots proposal on appointment of managing director
Seeking to put in place stricter norms, SEBI on Wednesday proposed that a person rejected by a listed company's shareholders as a managing director or whole-time director can be appointed or re-appointed to the posts only after the company fulfils various conditions, including providing detailed justifications.
Under the proposal, if a person whose appointment or re-appointment as a managing director (MD) or whole-time director (WTD) has been rejected by the shareholders of a listed firm should not be appointed again on such post unless certain conditions are satisfied, SEBI said in a consultation paper.
Results on January 28
Maruti Suzuki India, Lupin, InterGlobe Aviation, Colgate-Palmolive, 3i Infotech, Aarti Industries, Angel Broking, AU Small Finance Bank, Bharat Electronics, CCL Products, Coforge, Cummins India, DB Corp, eClerx Services, Engineers India, Equitas Small Finance Bank, Granules India, HSIL, IDBI Bank, Indus Towers, IRCTC, KEC International, KPIT Technologies, Laurus Labs, Mahindra & Mahindra Financial Services, Motilal Oswal Financial Services, Persistent Systems, Pidilite Industries, RBL Bank, Route Mobile, Shriram Transport Finance, Suven Life Sciences, Tata Chemicals, TVS Motor Company and Welspun Corp are among 129 companies that are slated to announce their quarterly earnings on January 28.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,688.22 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 3.38 crore in the Indian equity market on January 27, as per provisional data available on the NSE.
1 stock under F&O ban on NSE
SAIL is under the F&O ban for January 28. 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
