Index Trend & Conditions – 08:00 a.m. I.S.T.
• For Friday, Feb. 12, Support area for Nifty 50 will be at 15,115 15,045 and 14,878
• Resistance zone for Bank Nifty is at 36,208 and 36,615 for Feb. 12
• The MSCI Asia Pacific ex-Japan is trading lower -0.09%, and the MSCI Emerging Market index is up 0.35%
• Trends on SGX Nifty look poised for a muted opening for Nifty 50 in India. The Nifty futures are trading 21 points, or -0.14% lower at 15,173 on the Singaporean Exchange at 08:00 a.m. I.S.T.
• U.S. equity futures dipped in early morning trade with S&P 500 and Dow Jones and Nasdaq futures trading in red; alongside a lower start to Asia-Pacific benchmarks gauges in early Friday trade amid lunar holidays in most benchmark indices; a negative MSCI Asia-Pacific ex-Japan index; U.S. Dollar edging higher to 90.51 with sliding 10-Yr Treasury Yields at 1.15% and Gold futures falling to $1,820 on the day indicate cautious outlook for Nifty 50 India
• A JP Morgan Asset Management fund is making the booming IPO market for Asia’s technology companies its top investment priority in 2021. The fund manager, Oliver Cox sees enterprise software, e-commerce, leading chipmakers and gaming stocks as the four “best themes” in the tech space over the next five to 10 years
India Markets
| NIFTY 50 | OPEN | HIGH | LOW | CLOSE |
|---|---|---|---|---|
| Thursday | 15,073 | 15,188 | 15,065 | 15,173 |
India’s equity benchmarks closed with slight gains on Thursday trade, supported by energy, telecom and FMCG stocks with small caps outperforming
The blue-chip NSE Nifty 50 index added 66 points or 0.44% at 15,106 and the benchmark S&P BSE Sensex added 222 points or 0.43% at 51,531
Most broader markets out-performed headline peers — Midcap 100 index added 0.18%; Smallcap 250 index added 1.39% and Nifty 500 added 0.50%
Nifty P/E for Feb 11 2021 decreased from 41.81 to 41.65, and Nifty P/B increased from 4.28 to 4.30, as recorded by NSE India
Bank Nifty continues to drop for four consecutive sessions after making a high of 36,615 on 05 Feb. The index has dropped 31 points, or -0.09%, to 35,752
India VIX or Fear gauge decreased -3.79% from 23.95 to 23.04 levels. It needs to cool down and hold below 21 level for a continuation in the ongoing momentum
Overnight Call Money rate weighted average stood at 3.25% as per RBI data. It moved in a range of 1.90 — 3.50% for Feb 10
Yield on the benchmark 10-year government bond dropped to 6.10%, while the rupee strengthened to 72.7090 per U.S. dollar
Among individual shares, MRF sank 7% as investors revolted against the paltry dividend of Rs 3 per share announced by the company
“In line with the interest rate scenario in the country, investors continue to focus on fixed income categories having short to medium duration profiles. Hence, categories such as Short Duration, Medium Duration, Corporate Bonds and Banking and PSU Funds continued to receive robust investments,” said Himanshu Srivastava, Associate Director for Manager Research at Morningstar India
America Markets
Wall Street’s main indexes fluctuated between small gains and losses on Thursday trade, with tech shares setting record on Nasdaq composite
The broad-based S&P 500 added 6.50 points, or 0.2%, to 3,916
The Dow Jones Industrial Average, composed mostly of cyclical stocks, closed down -7.10 points, or less than -0.1%, at 31,430
The tech-heavy Nasdaq Composite Index rose 53.24 points, or 0.4%, to 14025, also a record
U.S. equity futures pulled back in early Friday trade. S&P500 futures is down -0.21%; Dow Jones futures is down -0.15% and Nasdaq futures is down -0.14%
10-yr U.S. Treasury yields, which move inversely to the price, consolidated at 1.15% on the day, with dollar edging higher to 90.51
The Cboe Volatility Index, known as Wall Street’s “fear gauge,” fell -3.37% to 21.25 on Thursday
Federal Reserve Chairman Jerome Powell reassured investors on Wednesday that interest rates will remain low for some time to spur the economy and jobs growth, but provided no new insights on monetary policy
President Joe Biden is set to seek support for major spending to modernize an aging U.S. infrastructure
Joe Biden’s first discussion as U.S. president with China’s Xi Jinping showed a more respectful tone with the underlying tensions unchanged – concern over unfair economic practices, Hong Kong, Xinjiang and increasingly assertive actions in the region, including toward Taiwan
“While inflation is not showing up in the data right now, inflation is on its way thanks to fiscal and monetary stimulus and pent-up consumer demand that should intensify as the economy reopens,” Nancy Davis, founder of Quadratic Capital Management, said
Asia-Pacific Markets
Asian benchmark stocks hovered just below a record high in early Friday trade as mixed U.S. economic data caused some investors to show restraint after a global stock market rally pushed many bourses to dizzying heights
Japan’s Nikkei 225 dropped -0.28% to 29,479 and Topix 500 added 0.07% to 1,505
South Korea’s Kospi is closed for a holiday
In Hong Kong, Hang Seng and Hang Seng China Enterprises are closed for a holiday
In China, CSI 300 and Shanghai Composite are closed for a holiday
Australia’s S&P/ASX 200 dropped -0.50% to 6,815
EU Markets
European equities edged higher on Thursday trade, on track to end the week flat, as investors kept close watch on a barrage of earnings reports from companies for clues on the pace of business recovery
The pan-European Stoxx Europe 600 added 0.51% to 410 and Stoxx 50 added 0.51% to close at 3,667
The banks sector dropped -0.5% as Germany’s Commerzbank tumbled -5.3% after the lender said its loss deepened in Q4
Germany’s DAX30 added 0.80% to 14,044
London’s blue-chip FTSE 100 added 0.04% to 6,526
France’s CAC40 dropped -0.10% to 5,664
Denmark’s OMX Copenhagen 20 added 2.74% to 1,476
Spain’s IBEX 35 dropped -0.49% to 8,025
Italy’s FTSE MIB added 0.17% to 23,305
France’s second-biggest listed bank Credit Agricole jumped 5% after posting better-than-expected Q4 results
Schneider Electric rose 1.8% as the French company said encouraging trends in data centers and connected living should help boost its core profit margin and sales this year
Clariant dropped -2.6% after the Swiss specialty chemicals maker said full-year 2020 sales slipped -5% in local currencies, as demand was hurt by the Covid-19 pandemic
Swedish defence company Saab fell -6% after posting Q4 profits below market forecasts
Sweden’s Riksbank sticks with 0% rate as part of its monetary policy and urges there’s “no hurry” to adjust the Riksbank’s guidance, which shows a key interest rate of 0 into 2024, as inflation remains stubbornly below the 2% target for years to come
German Chancellor Angela Merkel said coronavirus mutations will likely become dominant across the country, threatening to derail progress made in containing the pandemic
“There is this view that Europe is getting a bump in business investment which I think is right, because when that consumer spending is unleashed, it will lift corporate profits, which have so far been the field indicators of business investments,” said Mike Bell, global market strategist at J.P. Morgan Asset Management
Oil & Natural Gas Markets
Crude-oil prices fell in early Friday trade
OPEC cut its demand forecast and the International Energy Agency said the market was still oversupplied, which cast a gloom over energy markets
WTI Crude is trading lower at $57.73 per barrel
Brent Crude, the international benchmark for oil, is trading lower at $60.68 per barrel
Natural Gas futures is trading lower at $2.852/MMBtu
“If there was one thing to be concerned about, it was that gasoline inventories built,” said Brian Kessens, a portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets.
Commodities Markets
Gold futures dipped in early Friday trade, as the dollar continued to strengthen
A pick-up in risk appetite may dent gold’s appeal, the threats posed by record-high debt levels should drive prices higher in the long-run
U.S. Gold futures (Comex) is trading lower at $1,820 an ounce
Silver futures (Comex) is trading higher at $26.97 an ounce
Copper futures (Comex) is trading higher at $3.7620 per pound, a level not seen since Feb 2013
SGX Iron-Ore futures is trading higher at $161.20 per tonne
In India, Spot Gold is trading at INR 47,341 per 10 grams
Currency Markets
U.S. dollar index, DXY increased to 90.51 in early Friday trade, which had been weighed down by slightly weaker-than-expected U.S. jobless claims data that followed tepid inflation numbers and a dovish message from the Federal Reserve the previous session
Dollar’s weakness is likely to continue well into 2021 amidst prospects of a strong recovery in the global economy and ultra-easy monetary policy
INR strengthened with USD / INR at 72.7090
JPY weakened with USD / JPY at 104.7000
CNY weakened with USD / CNY at 6.4582
EUR strengthened with EUR / USD at 1.2138
GBP weakened with EUR / GBP at 0.8779
GBP weakened with GBP / USD at 1.3827
| 3-Month LIBOR Rate | As on 11 Feb 2021 |
| US DOLLAR | 0.20 per cent |
| Euro | – 0.54 per cent |
| British Pound | 0.05 per cent |
| Swiss Franc | – 0.75 per cent |
| Japanese Yen | – 0.09 per cent |
Bitcoin
Bitcoin / U.S. Dollar dropped -0.24% in early Friday trade to $47,883 as of 08:00 a.m. I.S.T.
Bitcoin jumped to a record high after Mastercard and Bank of New York Mellon moved to make it easier for customers to use cryptocurrencies
Bitcoin rose as much as 7.4% to $48,364 after the news
“Mastercard’s plans to integrate crypto payments represents another indicator of the deep structural shifts taking place in our financial infrastructure,” said John Wu, president of Ava Labs. “Incumbent payment platforms are embracing digital currency solutions that are more equipped for the borderless, internet-enabled economy.”
Bond Markets
Americas : 10 – Year Govt Bond Yields
United States : 1.15%
Canada : 0.98%
Europe, Middle East & Africa : 10 – Year Govt Bond Yields
Germany : -0.47%
United Kingdom : 0.46%
France : -0.24%
Italy : 0.46%
Netherlands : -0.34%
Asia Pacific : 10 – Year Govt Bond Yields
India : 6.10%
Japan : 0.07%
Australia : 1.18%
Hong Kong : 0.70%
Singapore : 1.00%
South Korea : 1.83%
Fund Flows on NSE, BSE and MSEI — 11 Feb 2021
FII/FPI Net Buy Rs 944.36 Crore in Capital Market
DII Net Sell Rs (707.68) Crore in Capital Market
Where We’ve Been Reading —
- Bloomberg
- The Wall Street Journal
- Reuters
- Trading Economics
- Axios
- Tech Crunch
- NSE Indices India
- Morningstar India
- The Star
- The Washington Post
- Harvard Business Review
- Business Standard
- The Economic Times
