SGX Nifty up 70 points; here's what changed for market while you were sleeping

Domestic stocks looked headed for a positive start on Tuesday on fresh US stimulus and rising prospects of faster economic recovery globally. But concerns over inflation due to rising crude oil prices and spike in US bond yields may keep a cap on any such gains.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 73.50 points, or 0.49 per cent, higher at 15,055.50 in signs that Dalal Street was headed for a positive start on Tuesday.

Tech View: Nifty support at 14,860
Nifty on Monday formed a small bearish candle on the daily chart with a long upper wick, suggesting selling at higher levels. Analysts said relatively longer upper shadows in the last three sessions, with small and negligible candle bodies may be hinting at impending weakness, which may get confirmed with a close below the 14,862 level. On the upside, Monday's high of 15,111 would not pose a near-term hurdle for the index, they said.

Asian markets off to mixed start
Asian stocks were mostly mixed tracking a mixed Wall Street session after a big downturn in tech shares. Japan's Nikkei 225 added 0.32 per cent and Hong Kong's Hang Seng index fell 0.52 per cent. Korea's Kospi was down 1.1 per cent. Stocks fell despite prospects of global recovery and the passage of a $1.9 US trillion stimulus bill.

Oil rises on economic recovery prospects
Oil prices rose on Tuesday on expectations of a recovery in the global economy after US Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the US. Brent crude futures for May rose by 32 cents, or 0.5 per cent, to $68.56 a barrel, while US West Texas Intermediate (WTI) crude for April rose 19 cents, or 0.3 per cent, to $65.24.

US 10-year treasury yields hit 1.60% level
US treasury yields advanced as investors continued to price in higher inflation and more upbeat prospects for the US economy as it emerged from the coronavirus pandemic. The benchmark 10-year yield rose to 1.6029 per cent, from 1.594 per cent late on Monday.

US stocks settled mixed
The Dow Jones Industrial Average rose 306.14 points, or 0.97 per cent, to 31,802.44, the S&P500 index lost 20.59 points, or 0.54 per cent, to 3,821.35 and the Nasdaq Composite dropped 310.99 points, or 2.41 per cent, to 12,609.16.

FIIs sell Rs 1,494 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,494.49 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 483.62 crore, data suggests.

MONEY MARKETS
Rupee: The rupee on Monday declined by 23 paise to close at 73.25 against the US dollar, extending its losses for the third session in a row due to rising crude oil prices and strengthening of the American currency in the overseas market.

10-year bonds: India 10-year bond yield fell 0.14 per cent to 6.22 after trading in 6.20-6.24 range.

EVENTS/DATA TO WATCH

• Japan Household Spending YoY Jan (05:00 am)
• Japan GDP Growth Rate QoQ Final Q4 (05:20 am)
• Japan GDP Price Index YoY Final Q4 (05:20 am)
• Euro Area Employment Change QoQ Final Q4 (03:30 pm)
• Euro Area GDP Growth Rate YoY 3rd Est Q4 (03:30 pm)
• China National People's Congress

MACROS
Tata, Ajay Singh left in race for AI… The race for acquiring Air India is fast narrowing down, with the Tata Group and SpiceJet promoter Ajay Singh among the few left in the bid to take over the airline. A section of Air India employees led by the airline’s director (commercial) Meenakshi Mallik has not made it to the list of qualified bidders. “We were informed (by transaction adviser Ernst & Young) on Sunday that we did not make it," Mallik told TOI. AI founder Tatas are seen as most likely to re-acquire it, being the only financially strong player in the fray.

India growth to propel world economy… Strong economic growth in India has positive implications for the global economy and the country stands out for its vaccine policy, which is playing a key role in helping the world deal with the Covid-19 crisis, IMF chief economist Gita Gopinath said on Monday. “India makes up about 7% of world GDP based on purchasing power parity terms. So, when you are that large, what happens in India has implications for many other countries in the world, especially countries in the region,” Gopinath said.

Maharashtra cuts stamp duty for women…The Maharashtra government in the budget announced on Monday has proposed a provision of 1% concession over prevailing stamp duty for women homebuyers. The concession will be available exclusively to women buyers provided the transfer of house property or registration of sale deed is in a woman’s name. The move is expected to prompt women and families to buy properties in their name thus promoting more more home ownership amongst women, experts said.

5 global courts uphold Cairn award… Courts in five countries, including the US and the UK, have given recognition to an arbitration award that asked India to return $1.4 billion to Cairn Energy — a step that now opens the possibility of the British firm seizing Indian assets in those countries if New Delhi does not pay. Cairn Energy had moved courts in nine countries to enforce its arbitral award against India, which the company won after a dispute with the country’s revenue authority over a retroactively applied capital gains tax.

Loss of income hurts urban consumers… Over 60% of consumers in urban India have become “newly constrained” with lower household income or a worsening financial situation due to the pandemic, leading them to keep a close watch on spending, NielsenIQ said in a new report on Monday. The study, conducted in December, found that urban consumers were less confident about income prospects improving in the first half of this year. The caution expressed by Indian consumers was higher than the global average, according to the report, and factors influencing consumption were lowest prices, private labels and promotions.