The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a gap-up opening for the index in India with a 219 points gain.
Sensex closed 1030 points, or 2.07 percent, higher at 50,781.69 while Nifty jumped 274 points or 1.86 percent to 14,982. BSE Midcap and Smallcap indices closed 0.77 percent and 1.08 percent higher, respectively.
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:
Shares on Wall Street ended higher on Wednesday, as a selloff in technology-related stocks eased and a rotation into cyclical shares continued after Federal Reserve Chair Jerome Powell’s comments calmed inflation worries.
The Dow Jones Industrial Average closed up 424.51 points, or 1.35%, to 31,961.86, the S&P 500 gained 44.06 points, or 1.14%, to 3,925.43 and the Nasdaq Composite added 132.77 points, or 0.99%, to 13,597.97.
Asian stocks perked up on Thursday after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.
Australia’s S&P/ASX 200 rose 0.90% in early trade while Japan’s Nikkei 225 added 1.37%. Hong Kong’s Hang Seng index futures rose 0.92%.
Trends on SGX Nifty indicate a gap-up opening for the index in India with a 219 points gain. The Nifty futures were trading at 15,025 on the Singaporean Exchange around 07:30 hours IST.
IRDAI gives approval for Axis Entities-Max Life Insurance deal
The Insurance Regulatory and Development Authority of India (IRDAI) has given its formal approval for the acquisition of up to 12 percent stake in Max Life Insurance by Axis Bank and its subsidiaries, Axis Capital & Axis Securities (together Axis Entities). The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020.
As per the proposed transaction, Axis Entities have the right to acquire up to 19 percent stake in Max Life, of which, Axis Bank proposes to acquire up to 9 percent and Axis Capital Limited and Axis Securities Limited together propose to acquire up to 3 percent of the share capital of Max Life in the first leg of the transaction.
Dollar languishes near 3-year lows as Fed's Powell stokes reflation bets
The safe-haven U.S. dollar languished near three-year lows versus riskier currencies on Thursday as continued dovish signals from the Federal Reserve stoked reflation bets.
Fed Chair Powell reiterated on Wednesday that the central bank wouldn’t adjust policy until the economy is clearly improving, and will look through any near-term spike in inflation. The remarks to the House of Representatives Committee on Financial Services mirrored his testimony before the Senate the day before.
Sebi moots introduction of accredited investor concept; floats consultation paper
Regulator Sebi on Wednesday sought comments on the proposal to introduce the concept of "accredited investors" in the Indian securities market. The comments can be sent to the regulator in a prescribed format latest by March 18, 2021, Sebi said in a consultation paper.
Sebi noted that accredited investors, also called qualified investors or professional investors, are those who have an understanding of various financial products and the risks and returns associated with them. They are able to take informed decisions regarding their investments and are recognised by many securities and financial market regulators around the globe.
For Indian individuals, Hindu Undivided Families (HUFs) and Family Trusts, Sebi proposed an annual income of over or equal to Rs 2 crore or net worth over or equal to Rs 7.5 crore with not less than Rs 3.75 crore of financial assets. Alternatively, such entities with an annual income above or over Rs 1 crore besides net worth higher or equal than Rs 5 crore with not less than Rs 2.5 crore of financial assets may also be eligible.
Oil rises after data shows slump in U.S. output amid Texas freeze
Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week.
Brent crude futures rose $1.67, or 2.6%, to settle at $67.04 a barrel. The global benchmark hit a session high of $67.30 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended $1.55, or 2.5%, higher at $63.22 a barrel.
RBI OMO: Central bank to conduct simultaneous sale, purchase of bonds on March 4
The Reserve Bank of India (RBI) has announced yet another round of Open Market Operations (OMO) or simultaneous purchase and sale of gilts on March 4. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities.
“On a review of current liquidity and financial conditions, the Reserve Bank has decided to conduct simultaneous purchase and sale of Government securities under OMO for an aggregate amount of Rs15,000 crore each on March 4, 2021,” the RBI said on February 24.
Indian corporate bond market can double to Rs 65-70 lakh crore by March 2025: CRISIL
The supply of corporate bonds in the domestic market is expected to double to Rs 65-70 lakh crore by fiscal 2025 with the financial sector contributing around 50 percent to this growth, rating agency CRISIL said. The demand for corporate bonds, however, is likely to be Rs 60-65 lakh crore by March 2025.
“Over the next five fiscals, corporate bond issuances outstanding could more than double from around Rs 33 lakh crore or 16 percent of gross domestic product (GDP) at the end of fiscal 2020 to Rs 65-70 lakh crore – tantamount to 22-24 percent of GDP – by the end of fiscal 2025,” the agency's Managing Director Gurpreet Chhatwal said during a webinar.
Airline industry expected to remain cash negative throughout 2021: IATA
Global airline industry body IATA warned that the outlook for airlines had weakened since its December forecasts, and due to tightening travel restrictions it now expected the sector to still be bleeding cash by the fourth quarter of this year. IATA raised its forecast for total airline cash burn for 2021 to between $75 billion and $95 billion, up from the $48 billion it had forecast in December.
IATA also said on Wednesday it planned to launch a COVID-19 travel pass at the end of March, bringing into use a digital system for test results and vaccine certificates which will help facilitate travel.With inputs from Reuters & other agencies