What changed for the market while you were sleeping? Top 10 things to know

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© Sunil Matkar What changed for the market while you were sleeping? Top 10 things to know

The Indian stock market is expected to open flat as trends on SGX Nifty indicate a flat to positive start for the index in India. On February 15, the BSE Sensex rose 609.83 points or 1.18 percent to 52,154.13, while the Nifty50 jumped 151.40 points or 1 percent to 15,314.70.

According to pivot charts, the key support levels for the Nifty are placed at 15,258.67, followed by 15,202.63. If the index moves up, the key resistance levels to watch out for are 15,355.47 and 15,396.23.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

World stocks look to extend bull run to 12th day on economic optimism

Global shares held firm on Tuesday, with a solid foundation in place to extend their bull run to a 12th consecutive session as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1% while Japan’s Nikkei rose 0.4% to a 30-year high.

The mainland Chinese markets will remain closed for Lunar New Year through Wednesday while Wall Street was also closed on Monday.

S&P500 futures traded 0.5% higher to a record level and MSCI’s all country world index (ACWI), which has risen every single day so far this month, ticked up slightly.

SGX Nifty

Trends on SGX Nifty indicate a flat to positive opening for the index in India. The Nifty futures were trading flat at around 15,347 on the Singaporean Exchange around 07:20 IST.

Oil hits 13-month high as market rebalances

Oil prices soared to their highest in about 13 months on Monday as vaccine rollouts promised to revive demand and producers kept supply reined in. Brent crude was up 93 cents, or 1.5%, at $63.36 a barrel by 1523 GMT after hitting a session peak of $63.76, its highest since Jan. 22 last year.

India on track for economic recovery in FY22: S&P

India is on track for economic recovery in FY22 and estimates recovery at 10% in FY22, said S&P Global Ratings.

The consistently good agriculture performance and flattening COVID infection curve supporting the economy. The pickup in government spending also supporting the economy, it added.

India needs many things to be right for its recovery to continue, while possibility of early withdrawal of global fiscal stimulus is a major risk to recovery. The near-term prospects are positive, it further said.

India’s exports up 6.16% in January, trade deficit narrows to $14.54 billion

The country’s exports grew by 6.16 percent to $27.45 billion in January, according to data by the commerce ministry. Imports too grew by 2 percent to about $42 billion, leaving a trade deficit of $14.54 billion during the month under review, the data showed.

Exports during April-January this fiscal dipped by 13.58 percent to $228.25 billion, while imports declined by 25.92 percent to $300.26 billion.

Sebi likely to ease IPO norms for large issue in February 17 meeting

The Securities and Exchange Board of India may make significant changes in the norms for Initial Public Offers (IPOs) to allow a smaller float for large issues, which will help large companies like state-run Life Insurance Corp and tech-based firms. The new norms, are expected to be discussed on Feb 17 in which Sebi is taking up several important issues including the gold spot exchange, investor charter and strict norms to make independent directors more accountable.

Under the prevailing IPO norms, if the post-issue capitalisation is more than Rs 4,000 crore, the dilution requirement is 10%. For Rs 1,600 crore to Rs 4,000 crore, it is Rs 400 crore, and for smaller IPOs, it is 25%.

Automakers plan another price hike in April-May to offset rising steel cost

To offset the impact of rising steel cost, leading automakers are reportedly planning to hike the prices again in the first quarter of next fiscal (FY22). A number of car manufacturers in India have already raised the prices twice in the post-lockdown period. The auto companies are considering an upward revision in vehicle rates by 1-3 percent in April-May, Times of India reported on February 15.

The planned move, though being described as essential by manufacturers, is expected to pose a fresh challenge to the automobile sector which is still recuperating from the COVID-19 jolt. “Raw material costs have been going up sharply and we will take a price increase in the first quarter of FY22,” Rajesh Jejurikar, ED (auto and farm sectors), Mahindra Group, told the newspaper.

Bank credit grows by 5.93%, deposits by 11.06%: RBI data

Bank credit grew 5.93 percent to Rs 107.05 lakh crore, while deposits rose 11.06 percent to Rs 147.98 lakh crore in the fortnight ended January 29, RBI data showed. In the fortnight ended January 31, 2020, bank credit stood at Rs 101.05 lakh crore and deposits at Rs 133.24 lakh crore.

In the previous fortnight ended January 15, 2021, growth in bank credit was 6.36 percent, while deposits rose 11.41 percent. During the first nine months of the current fiscal, bank credit rose by 3.2 percent and deposits by 8.5 percent.

Bank of Maharashtra, Bank of India, IOB & Central Bank of India: Government shortlists these 4 banks for potential privatisation: Report

India’s government has shortlisted four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, three government sources said. Privatisation of the banking sector, which is dominated by state-run behemoths with hundreds of thousands of employees, is politically risky because it could put jobs at risk but Prime Minister Narendra Modi’s administration aims to make a start with second-tier banks.

The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, two officials told Reuters on condition of anonymity as the matter is not yet public. Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April, the officials said. The shortlist has not previously been reported. Read more

WHO gives emergency use approval to AstraZeneca’s COVID-19 vaccines

The World Health Organization gave emergency use approval to AstraZeneca’s Covid-19 vaccines on Monday, allowing distribution to some of the world’s poorest countries to begin.

“The WHO today listed two versions of the AstraZeneca-Oxford Covid-19 vaccine for emergency use, giving the green light for these vaccines to be rolled out globally through Covax,” a WHO statement said, referring to the programme aimed at equitable distribution of doses.

Economic activity on verge of normality, GDP to grow 13.5% in FY22: Nomura

Economic activity is on the “verge of normality” after getting severely hit by COVID-19 and Indian GDP will grow at 13.5 percent in FY22, a Japanese brokerage said on Monday. The Nomura India Business Resumption Index (NIBRI) picked up to 98.1 (provisionally) for the week ending February 14, from 95.9 in the preceding week, Nomura said.

The economic impact of the pandemic is set to lead the country’s GDP to contract by 7.7 percent in FY21, and the RBI expects the GDP to jump by 10.5 percent in FY22. The brokerage said it expects the real GDP to contract by 6.7 percent in FY21, followed by a growth of 13.5 percent in FY22.

FinMin releases weekly instalment of Rs 6,000 crore to states to meet GST shortfall

The finance ministry on Monday released the 16th instalment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far to Rs 95,000 crore.

Till now, 86 percent of the total estimated GST compensation shortfall has been released to the states and Union Territories (UTs) with legislative assembly.

Out of this, an amount of Rs 86,729.93 crore has been released to the states and Rs 8,270.07 crore to the three UTs with legislative assembly (Delhi, Jammu and Kashmir, Puducherry).

Results on February 16

Nestle India, Varun Beverages, R Systems International, Schaeffler India, Advent Computer Services and GM Polyplast will announce their quarterly earnings on February 16.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,234.15 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 1,048.55 crore in the Indian equity market on February 15, as per provisional data available on the NSE.

2 stocks under F&O ban on NSE

BHEL and SAIL are under the F&O ban for February 16. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

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