Morning Update :– The Nifty saw big gains from Bajaj Auto, Adani Ports, Dr Reddy’s Labs, Adani Enterprises, and Coal India, while Wipro, TCS, L&T, HDFC Life, and LTIMindtree suffered losses.
Sensex – Rise +63 Points at 72,489
Nifty 50 – Rise +3 Points at 22,078
Indian Market
FII AND DII
| FII Bought | 253.28 Cr |
| DII Bought | 1,571 Cr |
Indian Market News
- Wall Street falls on scorching producer price data. Crimps rate decrease bets.
- Asian markets are divided, with the Nikkei and Hang Seng down and the Shanghai Composite up.
- Oil is down in thin trade as the US prepares for President’s Day.
- China’s central bank keeps key policy rates constant in the shadow of the Federal Reserve.
- Tolins Tyres submits draft documents for a Rs 230 crore IPO plan.
- Gala Precision Engineering files draft papers to launch IPO.
- The dollar remains steady as persistent inflation dampens hopes for rate cuts.
- LIC obtains a tax refund of Rs 21,741 crore from the IT department.
- Following months of tightening, the Russian central bank maintains interest rates at 16%.
- India’s foreign reserves fell from a one-month high.
Global Markets updates
GIFT Nifty
The GIFT Nifty, which gained 52.50 points, or 0.24 percent, suggests that the Indian index as a whole is off to a good start. The 22,165 mark was the focal point of the Nifty futures trade.
US Markets
Friday saw a sharp loss in US stocks, with the Nasdaq leading the way, as expectations for an impending interest rate decrease by the Federal Reserve were dashed by a hotter-than-expected producer prices report.
According to a Labour Department study, producer prices rose more than anticipated in January, stoking concerns that inflation was beginning to rise following several months of decline. All three indexes had a weekly decrease following five weeks of advances.
The Nasdaq Composite dropped 132.38 points, or 0.83 percent, to 15,775.65, while the S&P 500 lost 24.18 points, or 0.49 percent, to finish at 5,005.15 points. To reach 38,623.64, the Dow Jones Industrial Average dropped 149.48 points, or 0.39 percent.
Asian Markets
Although investors are anticipating China markets return from holiday with a bounce in their step, Asian equities started the day slowly on Monday as hopes for early rate cuts around the world faded.
The recent spike in IT stocks is expected to be put to the test on Wednesday when AI diva Nvidia releases its results. The US markets were closed on Wednesday.
After bouncing 2 percent last week, MSCI’s broadest index of Asia-Pacific equities outside of Japan increased by 0.2 percent.
After rising more than 4% the previous week to come up just short of its record high, Japan’s Nikkei was flat.
Dollar
Concerns about the health of the US economy prompted the dollar’s slide on Friday, as expectations that the Federal Reserve would hold off on raising interest rates until at least the middle of the year were heightened by higher-than-expected producer prices.
The dollar index, which measures the value of the US dollar relative to six major currencies, was headed for rises for a fifth consecutive week. It was up by 0.12 percent for the week, and it just increased by 0.01 percent to 104.26.
Crude
The International Energy Agency had predicted a slowdown in demand, but geopolitical concerns in the Middle East more than negated this estimate, driving up oil prices on Friday.
At $83.47 per barrel, Brent crude futures finished the day up 61 cents, or 0.74 percent. With the adjacent March contract expiring on Tuesday, US West Texas Intermediate crude finished $1.16, or 1.49 percent, higher at $79.19. At $78.46, the April contract increased by 87 cents.
Brent increased by more over 1% on the week, while the US benchmark increased by roughly 3%.
News Updates
Rates are held at 16% by the Russian central bank following months of tightening.
Still struggling with persistent inflation pressure, Russia’s central bank decided to leave borrowing prices constant on Friday, maintaining its key interest rate at 16 percent following five consecutive rate hikes since last summer.
With the rouble plunging below 100 to the dollar and the Kremlin demanding tighter monetary policy, the central bank has hiked rates by 850 basis points since July. However, it has recently suggested a more dovish stance.
The bank cautioned that despite their lowering from autumn peaks, inflationary pressures remained significant and stated that in order to bring inflation down to its 4 percent objective this year, “tight monetary conditions…for a long period” would be necessary.
US consumer confidence remained stable in February.
A study released on Friday revealed that while one-year inflation predictions increased, US consumer mood remained mostly unchanged in February.
This month’s preliminary estimate for the University of Michigan’s total consumer confidence index was 79.6, up from 79.0 in January. Reuters polled economists, who predicted a preliminary result of 80.0.
One-year inflation forecasts as measured by the survey increased slightly from 2.9 percent in January to 3.0% this month. Expectations for near-term inflation are in the range of 2.3–3.0 percent observed in the two years preceding the Covid-19 epidemic.
For the third consecutive month, the five-year inflation forecast from the survey remained at 2.9%.
Forex reserves in India drop from a one-month high
Data released by the central bank on Friday revealed that India’s foreign exchange reserves ended a two-week upward trend and were $617.23 billion as of February 9, down from a one-month peak.
After increasing by a total of $6.36 billion over the previous two weeks, the reserves saw their biggest decline in a month during the reporting week, falling by $5.27 billion.
Stocks in news
Life Insurance Corporation of India: Refund orders for Assessment Years 2012–13, 2013–14, 2014–15, 2016–17, 2017–18, 2018–19, and 2019–20 have been received by the Corporation. On February 15, the Income Tax Department made available Rs 21,740.77 crore.
GP Petroleums: The business and NOOR Trading, Bangladesh, have reached a distributorship agreement.
Omaxe: The Uttar Pradesh State Road Transport Corporation (UPSRTC) has announced that the company was the chosen bidder for the construction of two bus terminals, which will require an expenditure of Rs 385 crore.
Tata Power: REC Power Development and Consultancy has sent the Tata Group company a Letter of Intent (LOI) to purchase Jalpura Khurja Power Transmission, a project special purpose vehicle (SPV), for Rs 838 crore.
ITI: JandK Operations and the state-owned telecom manufacturing company have inked a Memorandum of Understanding (MoU) for the production and provision of digital products and services that are enabled by BharOS.
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