Stock market news
Trends on the SGX Nifty indicate a negative opening for the index in India with an 64-point loss on Wednesday.
The BSE Sensex shot up by 672.71 points or 1.14 percent to 59,855.93, while the Nifty50 jumped 179.60 points or 1.02 percent to 17,805.30 at the close on Tuesday, and formed a bullish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 17,656.67, followed by 17,508.13. If the index moves up, the key resistance levels to watch out for are 17,890.67 and 17,976.13.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of developments from across news platforms that could impact the Indian as well as international markets.
US Markets
The Dow Jones Industrial Average scored a record closing high on Tuesday for the second straight day as financial and industrial shares rallied, while the Nasdaq fell.
The S&P 500 lost 3.17 points, or 0.07 percent, to end at 4,793.39 points, while the Nasdaq Composite lost 209.55 points, or 1.33 percent, to 15,623.25. The Dow Jones Industrial Average rose 213.47 points, or 0.58 percent, to 36,798.53.
Asian Markets
Shares in Asia-Pacific struggled for direction in Wednesday morning trade, as technology stocks in the region came under pressure from rising US bond yields.
The Nikkei 225 in Japan rose about 0.1 percent, while the Topix index climbed 0.39 percent. Over in South Korea, the Kospi dropped 1.08 percent.
SGX Nifty
Trends on the SGX Nifty indicate a negative opening for the index in India with a 64-point loss. The Nifty futures were trading at 17,811 on the Singaporean Exchange at 7:37am.
Record US quits, hiring slowdown may show Omicron’s impact on labour supply
Record numbers of US workers leaving their jobs and a slowdown in hiring at front-line businesses may show that the latest COVID-19 wave is denting the labour supply, possibly pushing the Federal Reserve further towards concluding that employment is nearing its practical limits.
Data from both firms showed larger seasonal dips this year than in 2020, with employment in Homebase’s sample of smaller businesses falling around 15 percent in the last days of 2021 compared to a roughly 10 percent drop last year.
Oil ends up at $80/bbl as OPEC+ sticks with February output hike
Global benchmark Brent crude jumped on Tuesday to $80 a barrel, its highest since November, as OPEC+ agreed to stick to its planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand.
Brent futures settled up $1.02, or 1.3 percent, at $80 a barrel, almost back to the level they were at on November 26 when reports of the new variant first appeared, sparking a more than 10 percent decline in prices on that day. US West Texas Intermediate (WTI) crude rose 91 cents, or 1.2 percent, to $76.99.
New auto sales up in 2021, but nowhere near before pandemic
US new vehicle sales rebounded slightly last year from 2020’s dismal numbers, but forecasters expect them to be more than two million below the years before the coronavirus pandemic. Analysts and industry executives expect chip supplies to slowly improve this year, with more available in the second half.
But it’s not certain when they will get back to the pre-pandemic levels. The average gas-powered vehicle has about 1,000 chips, and electric vehicles can have more than double that number.
Indian pharma industry estimated to grow 9-11% in 2021-22: ICRA
The Indian pharma industry is estimated to grow at 9-11 percent in 2021-22 and in the next few quarters, it will be driven by domestic and emerging markets, according to ratings agency ICRA. In a sample of 21 Indian pharmaceutical companies, ICRA said revenue growth was moderate at 6.4 per cent in the second quarter of FY22, down from 16 percent in the first quarter of 2021-22.
The normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy, ICRA said in a statement. “Revenue growth for ICRA sample set is estimated at 9-11 percent in FY2022 and in FY2023, supported by gradual recovery post the impact of COVID-19,” ICRA Assistant Vice-President and Sector Head Mythri Macherla said.
US manufacturing cools but globally factories take Omicron risks in their stride for now
Global manufacturing activity remained strong in December as factories took rising cases of the new Omicron coronavirus variant in their stride, although persistent supply constraints and rising costs clouded the outlook for some economies.
The Institute for Supply Management said on Tuesday that its index of US factory activity fell to a reading of 58.7 last month from 61.1 in November, the lowest tally since last January. However, supply constraints are starting to ease and a measure of prices paid for inputs by factories fell by the most since early 2020 when the pandemic disrupted economic activity. Manufacturing accounts about 12 percent of the US economy.
OPEC+ agrees oil output increase from February
OPEC+ agreed on Tuesday to stick to its planned increase in oil output for February because it expects the Omicron coronavirus variant to have a short-lived impact on global energy demand.
OPEC+ is unwinding record production cuts of 10 million bpd, which were imposed in 2020, as demand and prices recover from their pandemic-induced slump.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,273.86 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 532.97 crore in the Indian equity market on January 4, as per provisional data available on the NSE.
With inputs from Reuters & other agencies
