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Top 12 things to know before the market opens

Trends on SGX Nifty indicate a gap-down opening for the index in India with a 142 points loss.

March 05, 2021 / 08:08 AM IST
Standard Surfactants | Dhirendra Kumar Gupta has resigned from the position of Chief Financial Officer of the company.

Standard Surfactants | Dhirendra Kumar Gupta has resigned from the position of Chief Financial Officer of the company.

The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the index in India with a 142 points loss.

The BSE Sensex fell 598.57 points or 1.16 percent to 50,846.08 on March 4 while the Nifty50 shed 164.80 points or 1.08 percent to 15,080.80.

According to pivot charts, the key support levels for the Nifty are placed at 14,973.23, followed by 14,865.67. If the index moves up, the key resistance levels to watch out for are 15,195.33 and 15,309.87.

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

Wall Street ended sharply lower on Thursday, leaving the Nasdaq down nearly 10% from its February record high, after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term U.S. bond yields.

The Dow Jones Industrial Average fell 1.11% to end at 30,924.14 points, while the S&P 500 lost 1.34% to 3,768.47. The Nasdaq Composite dropped 2.11% to 12,723.47.

Asian Markets

Asian stocks skidded on Friday as rising U.S. Treasury yields again rattled equity investors while hoisting the dollar to a three-month high, which in turn dragged the Japanese yen to an eight-month trough.

In early Friday trade, Australian stocks shed 1%, Japan’s Nikkei share average lost 0.7%, shares in Seoul fell 0.24% and E-Mini S&P futures were a touch lower at 0.04%.

SGX Nifty

Trends on SGX Nifty indicate a gap-down opening for the index in India with a 142 points loss. The Nifty futures were trading at 14,928 on the Singaporean Exchange around 07:30 hours IST.

71% of India Inc optimistic about economic recovery in 2021, higher than global average

Around 71 percent of India Inc leaders are optimistic of an economic recovery in 2021, higher than the global average, said the report released by Grant Thornton International on March 4. Globally, around 57 percent of the top business leaders are expecting an economic recovery this year, the study claimed. On the higher rate of optimisim in India, Grant Thornton Bharat CEO Vishesh C Chandiok said this could be attributed to the government's focus on 'Make in India' campaign.

"The government’s consistent push for ‘Make in India’ and rising interest from companies and governments across the globe in meeting their sourcing requirements from India will pave the way for robust exports," he said.

Fed's Powell pledges patience, says easy policy appropriate

U.S. Federal Reserve Chair Jerome Powell on Thursday repeated his pledge to keep credit loose and flowing until Americans are back to work, rebutting investors who have openly doubted he can stick to that promise once the pandemic passes and the economy surges on its own.

With vaccines rolling out and the government fiscal taps open “there is good reason to think we will make more progress soon” toward the Fed’s goals of maximum employment and 2% sustained inflation, Powell said.

U.S. 10-year Treasuries borrowing rate in repo market goes negative, indicating stress

The cost of borrowing U.S. 10-year Treasuries in the overnight repurchase, or repo market, went deeply negative on Thursday, analysts said, as investors sought to short the notes, causing market stress.

The 10-year cost to borrow repo rate, which is typically positive, has been negative since Monday and hit as low as -4.25% on Thursday, analysts said. It was last at -0.50% as the Federal stepped in on Thursday to sell U.S. 10-year Treasuries in the market. The last time U.S. 10-year repo rates went negative before this week was June 2020 and before that in March of the same year, Skyrm said.

RBI announces simultaneous bond buy, sale on March 10

The Reserve Bank of India (RBI) on March 4 said it will conduct simultaneous purchase and sale of government bonds on March 10 under the so-called Open Market Operations (OMOs). OMOs refer to purchase or sale of government bonds by the central bank.

“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,” the RBI said in a release. This will be conducted for an aggregate amount of Rs20,000 crore under purchase and Rs 15,000 crore under sale on March 10, 2021, the RBI said.

China sets 2021 GDP growth target at more than 6%

The Chinese government has set its 2021 economic growth target at more than 6%, Premier Li Keqiang said in his annual work report on Friday at the opening of this year’s meeting of parliament.

China did not set a gross domestic product target last year due to uncertainties arising from the pandemic. The government has set its 2021 target for consumer price inflation at around 3% and its budget deficit goal of around 3.2% of GDP, Li said.

Oil scales 1-year peak as OPEC+ rolls over output for April

Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.

Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.

Sebi puts in place procedure for change incontrol of AMCs

Markets regulator Sebi has put in place a procedure for change in controlling interest of asset management companies and issued guidelines for new sponsors of mutual funds. This comes after Sebi, in February, relaxed profitability criteria for becoming a mutual fund sponsor with a view to facilitating innovation and expansion in the mutual funds sector.

In case the applicant proposing to take the control of an AMC is not an existing sponsor of a mutual fund registered with Sebi, it would have to apply to the regulator for approval of taking over control of an existing AMC.

Sebi said the new sponsor will have to give an undertaking to the regulator as well as unitholders taking full responsibility of the management and the administration of the schemes, including matters relating to the reconciliation of accounts.

US weekly jobless claims increase less than expected

The number of Americans filing new claims for unemployment benefits rose last week, likely boosted by brutal winter storms in the densely populated South in mid-February, though the labor market outlook is improving amid declining new COVID-19 cases.

Initial claims for state unemployment benefits totaled a seasonally adjusted 745,000 for the week ended Feb. 27, compared to 736,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 750,000 applications in the latest week.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 223.11 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 788.19 crore in the Indian equity market on March 4, as per provisional data available on the NSE.

With inputs from Reuters & other agencies

Sandip Das
first published: Mar 5, 2021 07:54 am