Updated : 2021-03-05 07:50:35
The Indian market is likely to open lower on Friday following losses in global peers as rising bond yields continue to spook investors. At 7:00 am, the SGX Nifty was trading 249.50 points or 1.66 percent lower at 14,821.50, indicating a weak start for the Sensex and Nifty50.
1. Wall Street: Stocks turned lower on Wall Street as bond yields made another upward spike, renewing pressure on high-flying technology companies. The S&P 500 fell 1.3 percent, DJIA lost 1.1 percent, and the Nasdaq fell 2.1 percent.
2. Asian stocks: Shares in Asia-Pacific declined in Friday morning trade as investors watch bond yields as well as technology stocks in the region. In Japan, the Nikkei 225 slipped 0.92 percent in early trading. The Topix index shed 0.62 percent. South Korea’s Kospi fell 1.25 percent. Meanwhile, stocks in Australia also declined, with the S&P/ASX 200 down 1.07 percent. MSCI’s broadest index of Asia-Pacific shares traded 0.55 percent lower.
3. Dalal Street: Indian indices snapped three sessions of gains as Nifty ended below 15,100, dragged by losses in metal, financial stocks amid weak global cues as bond yields rose again. The Sensex closed 1.16 percent lower at 50,846.08 while Nifty fell 1.08 percent to settle at 15,080.25. Broader market indices outperformed the benchmarks as both midcaps and smallcaps traded at 0.49 and 1.17 percent, respectively.
4. Oil: Oil rallied more than 4 percent 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 percent, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020. US crude futures ended $2.55, or 4.2 percent, higher at $63.83, having also scaled a January 2020 peak, at $64.86.
5. Gold: Gold prices on Thursday fell by Rs 217 to Rs 44,372 per 10 gm in the national capital, as vaccine rollout has boosted risk on sentiments lowering safe haven demand for precious metals, according to HDFC Securities. The precious metal had closed at Rs 44,589 per 10 gm in the previous trading session. In tandem, silver prices eased by Rs 1,217 to Rs 66,598 per kg as compared with the previous close of Rs 67,815 per kg.
6. Rupee: The rupee on Thursday declined by 11 paise to close at 72.83 against the US dollar due to a rebound in the greenback in overseas markets and muted domestic equities. At the interbank forex market, the local unit opened at 72.99 against the greenback and witnessed an intra-day high of 72.62 and a low of 72.99. It finally ended at 72.83 against the American currency, registering a fall of 11 paise over its previous closing.
7. SEBI: 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.
8. US Fed: Powell notably offered little push back on the latest move in yields. Alternatively, Powell continued to emphasize that the Fed remains outcome-dependent. When asked if ‘significant further progress’ (the term the Fed keeps using to reach eco outcomes sufficient for tapering) could be met this year – Powell did not outright dismiss the possibility but emphasized that ‘substantial further progress will take some time’. For the hawks, the lack of pushback has kept alive the possibility that policy adjustments remain on the table for this year (specifically tapering).
9. OPEC Decision: Brent prices surged 4.7 percent higher to $67+. OPEC+ delegates announced the following: The committee will keep oil output unchanged throughout April. Russia & Kazakhstan have secured an exemption to the deal, meaning output will inch up a bit. News reports suggest that Russia will up production 130k bpd in April. Saudi Arabia will also maintain its voluntary 1mn bpd cut throughout April.
10. EPFO rate: The Central Board of Trustees (CBT) Employees Provident Fund Organisation (EPFO) has recommended 8.5 percent annual rate of interest to member accounts for 2020-21.