NEW DELHI: S&P futures stabilized this morning after a 3% night dip in US equities. Shares in South Korea, which is under attack by coronavirus, also recovered, giving hope for a recovery in Indian stocks.
Here pre-market actions are being analyzed.
Singapore trading lays the foundation for a good start
Singapore’s swap futures futures traded 68 points, or 0.58 percent, up to 11,889, indicating a strong start for Dalal Street.
Technical view: elegant resistance at 11.900-11.920
Nifty50 battled during the global selloff on Monday and formed a Bearish Belt Hold pattern on the daily chart. The index had to deal with the selling pressure of the word before barely closing 11,800 brands on closing. Analysts said the 11,900-11,920 zone will act as immediate resistance. On the negative side, the index can potentially drop below the 11,700 level, they said.
It will likely test key support
Nifty could soon test the 200-day simple moving average of 11,682.8, with the greater support of 12,000 being breached on Monday by sales of FII on cash and derivatives markets. The FII reaction highlighted panic in global markets for the rapidly expanding corona virus from China to other parts of the world. Derivative analysts cited the overnight buildup in the interest opened for the February 27th 11,700 deadline set Thursday – close to the deadline – for their forecasts of the markets testing the 200-day SMA of 11,682.
Asian equities, recovery of S & P500 futures
E-Mini futures for the S&P 500 rebounded by 1% to compensate for a portion of the steep 3.35% loss that the cash index suffered overnight. South Korea’s hard-hit market rose 0.8 percent and helped MSCI’s broader index of Asia Pacific stocks outside of Japan counterattack. Japan’s Nikkei was still down 2.8 percent, but was only catching up on the global sell-off on Monday.
US equities plunged 3% overnight
The industrial average of Dow Jones fell by 1,031.61 points, or 3.56%, to 27,960.8, the S&P 500 lost 111.86 points, or 3.35%, to 3,225.89 and the Nasdaq Composite dropped to 355.31 points, or 3.71%, at 9,221.28. All 11 major S&P sectors closed in red, led by the 4.7% drop in the energy sector and followed by a 4.2% drop in technology stocks.
Rebound in crude oil prices after a 4% drop
Oil surged on Tuesday as investors did good business after crude oil benchmarks fell nearly 4% in the previous session, but fears that the widespread coronavirus could cause much more economic damage than limited gains were initially thought. . Brent crude rose 29 cents, or 0.5 percent, to $ 56.59 a barrel.
Yellow metal at the highest levels in 7 years
Gold rose to 2.8% on Monday at its highest level in seven years, while investors were worried about global economic growth in the face of sharply increasing coronavirus cases outside China. The turnaround in the yield curve between 3 and 10 year US Treasury yields has intensified, in what economists see as a sign of recession. The yield on the 10-year reference Treasury US10YT = RR has fallen to its lowest level since July 2016.
The IFIs sell shares for Rs 1,161 million
On Monday, net and net foreign portfolio investors (FPI) were sellers of national equities worth Rs 1,160.90 on Monday, suggested data available with NSE. The DIIs were net sellers for the sum of Rs 516 crore, the data suggest.
Rupee: Monday’s rupee dropped 34 paise, closing at a low of more than three months of 71.98 against the US dollar, monitoring strong sales of domestic equities and the strengthening of the US currency in the foreign market.
10-year bonds: the yield on 10-year bonds in India fell 1.53 percent to 6.33 after trading in the range 6.31-6.34.
Call Rates: The weighted average exchange rate of overnight calls was 4.93%, according to RBI data. It moved in the range of 3.70-5.25 percent. (Data not updated)
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Trump is passionate about defense sales in India
United States President Donald Trump promised Monday to strengthen trade ties between the United States and India and said that the United States is ready to provide India with defense equipment ranging from drones to helicopters and missile systems. . “We are looking forward to providing the best and most feared military equipment” in India, “Trump said, addressing a crowd of over 100,000 people at a stadium in Gujarat shortly after arriving on his first visit to the country.
South Korea reports 60 new virus cases
South Korea has reported 60 new coronavirus cases, increasing the total number of infected patients in the country to 893, Korea Centers for Disease Control and Prevention (KCDC) said Tuesday.
The Japanese FM market looks closely
Japanese finance minister Taro Aso said Friday that he was following the market’s moves closely, while Asian equities sank for fear that the coronavirus epidemic could cause much greater economic damage than previously thought. Aso said the government, however, was not considering taking further economic policy measures in response to the expansion of the coronavirus epidemic.
Adani thinks about Air India
With the government pushing for the divestment of Air India, the industrial conglomerate Adani Group could emerge as one of the bidders for the national carrier laden with debt. According to well positioned sources, the group held a series of internal discussions on whether or not to present a manifestation of interest and that the discussions are still in the preliminary stage.
Banks ask the DoT not to invoke the Voda guarantee
Vodafone Idea lenders met with DoT officials over the weekend, warning that invoking operator bank guarantees due to legal debts will lead to defaults as Telco is unable to repay the banks. They urged the DoT to find a solution to maintain a three player telecommunications market. The lenders reminded the DoT that a substantial part of the shares of Rs 57,000 is supported by guarantees and, if invoked, the banks will have to pay those to the government on behalf of the company
FATF Gray List haunts FIIs
Mauritius, the tax haven that has been used by foreign investors for three decades to bet on Indian equities, is now on the “gray list” of the Financial Action Task Force (FATF) – an intergovernmental political body that establishes money laundering AML) standards . The FATF announced its decision Friday. With jurisdiction subject to FATF’s close monitoring, India will close its doors to new FPIs that open a shop in Mauritius, but could allow existing FPIs registered with Sebi to trade until the market regulator makes a final decision. in the field.
Fear of the virus affects TVS Motor production
Scooter manufacturer TVS Motor said Monday it expected a 10% drop in February production as the supply of components used in vehicles was hit by the coronavirus epidemic. “The outbreak of the pandemic coronavirus (COVID-19) has led to an impact on the supply of certain components for the production of BS-VI vehicles,” said the company.