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 119-point gain.
The Sensex closed 536 points, or 1.13 percent, lower at 46,874.36 on January 28 and the Nifty settled 150 points, or 1.07 percent, down at 13,817.55.
According to pivot charts, the key support level for the Nifty is placed at 13,721.07, followed by 13,624.63. If the index moves up, the key resistance levels to watch out for are 13,906.07 and 13,994.63.
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:
U.S. stocks closed higher on Thursday, bouncing from sharp losses in the prior session, thanks to a broad rally as earnings season got off to a strong start and fears lessened around hedge funds selling long positions to cover shorts.
The Dow Jones Industrial Average rose 300.19 points, or 0.99%, to 30,603.36, the S&P 500 gained 36.61 points, or 0.98%, to 3,787.38 and the Nasdaq Composite added 66.56 points, or 0.5%, to 13,337.16.
Asian stocks were set to rise on Friday after U.S. shares rallied and the dollar eased overnight, as fears of social-media driven hedge fund selling abated and the U.S. earnings season got off to a strong start.
In early Asian trade, Australia’s S&P/ASX 200 benchmark was up 1.15%, Japan’s Nikkei futures rose 1.39% and Hong Kong’s Hang Seng index futures gained 1.47%.
Trends on SGX Nifty indicate a positive opening for the index in India with a 119 points gain. The Nifty futures were trading at 13,962 on the Singaporean Exchange around 07:30 hours IST.
Japan's December factory output extends declines as recovery stalls
Japan’s industrial output extended declines in December as factories struggled with a hit to demand from expanded COVID-19 lockdown measures globally, suggesting the economic recovery was teetering.
Official data released on Friday showed factory output declined 1.6% in December, as falling production of general machinery and cars offset strength in inorganic and organic chemicals manufacturing.
Economic Survey 2020-21 to be tabled today
Finance minister Nirmala Sitharaman will table the annual Economic Survey in Parliament for the growth projections for 2021-22. The Survey’s gross domestic product (GDP) growth projections for 2021-22 and estimates for the current year (2020-21) will be among the most tracked pieces of statistics as it would offer cues on how quickly the government expects the economy to accelerate to a faster lane.
The Central Statistics Office’s (CSO’s) first advance estimates, released earlier this month, projected that India will decelerate at (-) 7.7 percent in 2020-21.
"GameStop effect" could ripple further as Wall Street eyes short squeeze candidates
The clash between retail traders and Wall Street professionals that sparked roller coaster rides in the shares of GameStop Corp may pose a risk to dozens of other stocks and potentially create a headache for the broader market, analysts said.
Market watchers identified dozens of stocks potentially vulnerable to extreme volatility after a buying spree from an army of retail traders in recent days prompted hedge funds to unwind their bets against GameStop and other companies, fueling surges in their share prices in a phenomenon known as a “short squeeze.”
US economy contracts in 2020; worst performance since 1946
The US economy contracted at its sharpest pace since World War Two in 2020 as COVID-19 ravaged services businesses like restaurants and airlines, throwing millions of Americans out of work and into poverty.
The economy contracted 3.5 percent in 2020, the worst performance since 1946. That followed 2.2 percent growth in 2019 and was the first annual decline in GDP since the 2007-09 Great Recession. The economy plunged into recession last February.
US jobless claims drop; still at 847,000 as pandemic rages
The number of Americans applying for unemployment benefits fell but remained at a historically high 847,000 last week, a sign that layoffs keep coming as the coronavirus pandemic continues to rage. Last week’s claims fell by 67,000, from 914,000 the week before, the Labor Department said Thursday. Before the virus hit the United States hard last March, weekly applications for jobless aid had never topped 700,000.
Overall, nearly 4.8 million Americans are continuing to receive traditional state unemployment benefits. That is down from a staggering peak of nearly 25 million in May when the virus — and lockdowns and other measures to contain it — brought economic activity to a near halt. The drop suggests that some of the unemployed are finding new jobs and that others have exhausted state benefits.
DGCA extends suspension of international passenger flights, visas until February 28
The Directorate General of Civil Aviation on January 28 extended the ongoing travel and visa restrictions for international commercial passenger services till February 28, 2021, citing the COVID-19 pandemic. However, the DGCA had maintained that cargo flights and limited international flights under bubble arrangement will continue.
India had banned international travel in end-March, coinciding with a similar restriction on domestic operations, and the national lockdown. Though it resumed domestic flights in May, international travel remained suspended as COVID-19 cases remained at high levels.
German inflation roars back and hits 11-month high in January
German annual consumer prices turned positive and rose by far more than expected in January, the Federal Statistics Office said on Thursday, attributing a rise in sales tax and the minimum wage as factors behind the increase. Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 1.6% year-on-year after declining by 0.7% in December.
IMF says fiscal support needed until recovery takes hold
Global debt likely reached 98% of economic output at the end of 2020 as governments poured in nearly $14 trillion in fiscal support to battle the coronavirus pandemic, the International Monetary Fund said on Thursday, while urging that fiscal support stay in place until recovery is firmly underway.
The IMF, in an update of its Fiscal Monitor, said that the fiscal support included $7.8 trillion in additional direct spending or foregone revenue and $6 trillion in guarantees, loans and equity injections. Total support is up about $2.2 trillion since the last Fiscal Monitor update in October.
SEBI bans three cos for providing unauthorised investment advisory services
SEBI has barred Vishwas Stocks Research, Dalal Stocks Advisory and Devki Stocks as well as their directors from the capital markets for providing unauthorised investment advisory services to investors. Besides, they have been prohibited from acting as investment advisors till further directions, the regulator said in an interim order.
SEBI found that the three companies held themselves as investment advisors and collected subscription fees from investors for providing stock recommendations without obtaining a registration in their own names as required under the Investment Advisers (IA) norms.
Results on January 29
Bajaj Healthcare, Cholamandalam Investment and Finance, Cipla, Dabur, Dish TV India, DLF, Dr. Reddy's Labs, Exide Industries, Grindwell Norton, Heritage Foods, IndusInd Bank, Indian Oil Corporation, JSW Energy, Just Dial, Dr. Lal PathLabs, LIC Housing Finance, Manappuram Finance, Shankara Building Products, Sun Pharma, Tata Motors, Tech Mahindra, Union Bank of India, UPL, Vaibhav Global, UTI Asset Management Company, Vedanta and Wockhardt.
FII & DII data
Foreign institutional investors (FIIs) sold shares worth Rs 3,712.51 crore while domestic institutional investors (DIIs) bought shares worth Rs 1,736.92 crore in the Indian equity market on January 28, as per provisional data available on the NSE.With inputs from Reuters & other agencies