The domestic stock market would likely open on a good note, bucking its Asian counterparts who gave up their initial gains to trade lower. US stocks closed negative on Friday after mixed employment data. Crude fell but the dollar strengthened. Back home, the third quarter results and the increase in Covid-19 cases are key things to watch. Here is the detail of the actions prior to marketing:

STATE OF THE MARKETS


SGX Nifty signs a positive start
Shrewd futures on the Singapore Stock Exchange traded 49.5 points, or 0.28%, up to 17,906.50, signaling that Dalal Street was heading for a positive start on Monday.

  • Technical view: Nifty50 formed an indecisive formation on the daily chart on Friday for the second consecutive session, but ended up candling the weekly chart higher. Analysts said the index is finding resistance at highs.

  • India VIX: The fear gauge fell more than 2% to 17.60 on Friday from its close at 17.98 on Thursday.

Asian stocks gave up early gains
Asian stocks rose in the first few minutes of trading on Monday morning, before trading in the red building on last week’s gains, following weak US employment data which could ease the pressure on the Federal Reserve to accelerate its pace of monetary tightening. The MSCI Asia-Pacific Ex-Japan Equity Index rose 0.21 percent.

  • South Korean Kospi tanked 1.03%
  • Australian ASX 200 loses 0.04%
  • Chinese Shanghai fell 0.26%
  • Hong Kong’s Hang Seng jumped 0.76%
  • New Zealand DJ fell 1.01%

US stocks retreated
Stocks closed lower and Treasury yields rose on Friday, with much of Wall Street anticipating that the Federal Reserve will raise interest rates as early as March despite a mixed report in the US jobs market.

  • The Dow Jones edged down 0.01% to 36,231.66
  • The S&P 500 fell 0.41% to 4,677.03
  • The Nasdaq dipped 0.96% to 14,935.90

Dollar closes as inflation test looms
The dollar started the week with support, with traders betting that US inflation data and appearances from several Federal Reserve officials would strengthen the case for a hike in interest rates.

  • The Dollar Index was pinned at 95,800
  • The euro stood at $ 1.1357
  • Book won at $ 1.3598
  • Yen rose to 115.65 per dollar
  • The yuan traded its hands at 6.3741 against the greenback

drops for the second session
Oil lost more ground on Monday as rapidly rising cases of the Omicron COVID-19 variant hit economic activity, although losses were limited by supply disruptions in Kazakhstan and Libya. Brent crude slipped 38 cents, or 0.46%, to $ 81.37 a barrel, while U.S. West Texas Intermediate crude fell 34 cents, or 0.43%, to $ 78.56 a barrel .

REITs sell shares worth Rs 496 cr
Net-net, foreign portfolio investors (REITs) turned sellers of domestic stocks to the tune of Rs 496.27 crore, according to data available from NSE. DIIs have become net sellers to the tune of Rs 115.66 crore, the data suggests. REITs injected a net sum of Rs 3,202 crore into Indian stocks from January 3-7.

Benefits of Q3
GNA Axles, 5Paisa Capital, Vikas Lifecare, Ganga papers India, Excel Realty & Infra and Add-Shop ERetail are among the companies that will report their December quarter results today.

MONETARY MARKETS

Rupee: The Indian rupee made 8 paise gains to close at 74.34 against the US dollar on Friday, helped by a weaker greenback against its main rivals and positive domestic actions.

10-year bonds: The 10-year Indian bond gained 0.26% to 6.54 after trading in a range of 6.51 to 6.55 on Friday.

Call rates: The weighted average overnight call rate stood at 3.21% on Friday, according to RBI data. It has moved in a range of 2.00 to 3.45 percent.