Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Nandini Sanyal, and here is what we have to start your day.
>> US Congress clinches deal on $ 900 billion Covid relief
>> 2020 best year for IPO listing gains in India
>> Crypto fever grips India, 1 million new investors flock to bitcoins
AND
>> Govt may extend suspension of IBC rules
And there is more. But first, a quick glance at the state of the markets…
>> Nifty futures on the Singapore Exchange traded 44.25 points lower at 8 am (IST), signalling possible weakness ahead on Dalal Street.
ELSEWHERE
>> Asian stocks edged lower as the worsening pandemic and lack of progress on Brexit talks sapped risk appetite despite news of a US stimulus deal. Japan’s Topix dropped 0.6%, South Korea’s Kospi 0.4% and Hong Kong’s Hang Seng 0.3%. Australia’s S&P/ASX 200 Index lost 0.5%.
>> US stocks ended lower on Friday. Dow fell 0.41%, the S&P500 lost 0.35%, and the Nasdaq 0.07%.
IN CURRENCIES
>> On Friday, the rupee appreciated by 3 paise to close at 73.56 against the US dollar amid sustained foreign fund inflows and positive domestic equities.
>> The US dollar climbed but the pound was under pressure as the government warned a new coronavirus strain was “out of control,†. The Australian dollar fell amid new restrictions in Sydney due to a growing virus cluster. The yen lost 0.1%, the euro fell 0.3% and the pound 0.9%. The offshore yuan slid 0.1%
IN OIL MARKET
>> Oil prices slid in early trade on Monday as a fast-spreading new Covid strain in the UK raised concerns that tighter restrictions. Brent crude fell 97 cents, or 1.9%, to $ 51.29 a barrel while WTI crude slid 83 cents, or 1.7%, to $ 48.27
AND IN BULLION
>> Gold and silver prices maintained their upward momentum on Friday on hope of a breakthrough in US stimulus talks. On MCX, February gold futures rose 1.65% to Rs 50,415 per 10 gm, while silver futures rose 2.8% to Rs 67,755 a kg. In international markets, gold gained 0.9% on Monday to hit $ 1,897.67 an ounce.
All in all, the trade setup on Dalal Street looked weak this morning. On Friday, Nifty formed an indecisive Dragonfly Doji candle. Analysts said the 13,650 level would be key for Nifty to sustain the ongoing rally
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… US Congressional leaders reached a deal on a roughly $ 900 billion spending package to bolster the US economy amid the continued coronavirus pandemic giving lawmakers a short timetable to review and pass the second largest economic-rescue measure in the nation’s history. However, the House was expected to vote on it Monday, followed by the Senate.
… The gush of cheap foreign money into Indian stocks has hit Rs 1.98 lakh crore in the fiscal year through December 15 — a level not seen in any fiscal year to date since FY93 — and could continue amid record low interest rates and easy liquidity in developed markets. The top 5 sectors which have accounted for a significant chunk of FII/FPI flows are banks, household and personal products, capital goods, oil and gas and other financial services, including NBFCs, HFCs, AMCs. In dollar terms too, the investments are at a record level.
… Public listings in the latter half of 2020 gave an average gain of 35% on the first day, besting previous records set in an era in which smartphones didn’t virtually exist, Facebook was still trying to edge out the now dead Orkut, and Whatsapp wasn’t yet born. So, the previous best year for listing day gains was 2007, when the average listing gains yielded 29%. Average returns of IPOs in 2020 were 61%, the best since 2007 when the average was 90%
… US-based GoldenTree Asset Management and Pacific Investment Management Co (PIMCO) have likely joined a consortium led by investment firm Oak Hill Advisors, which is in talks to provide a $ 2 billion credit line to Vodafone Idea
… The cryptocurrency frenzy worldwide has rubbed off on Indian investors too. With prices of bitcoin — the most popular cryptocurrency — soaring to a record high of $ 23,000 and bringing its returns so far in 2020 to over 200%, local retail and rich investors are flocking to this unregulated new-age asset despite expert warnings about abrupt price reversals. Over a million new investors have flocked to the bitcoin market in the six months taking the total investor base for this new-age asset in India to 5-6 million, according to various industry estimates
 
MEANWHILE
… The government is likely to extend the suspension of the bankruptcy code by another three months to prevent companies from being forced into insolvency proceedings due to debt defaults triggered by the Covid-19 crisis. The government had suspended fresh proceedings under the Insolvency and Bankruptcy Code for loan defaults on or after March 25, the day the country went into lockdown to contain the pandemic, for six months initially. It was extended on September 25 for another three months, which ends Friday.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
>> Bharat Forge has taken Canadian aircraft and train maker Bombardier’s Singapore unit to court over what it alleged serious technical glitches in a retrofitted component in its business jet
>> Kotak Special Situations Fund, Asset Reconstruction Company and Acre ARC are among six bidders that have expressed interest to buy the debt-laden Reliance Home Finance
>> Coal supply by state-run CIL to the power sector declined by 5.3 per cent to 277.46 million tonnes in the April-November period of the ongoing fiscal.
>> The government is likely to invite bids for privatising Shipping Corporation of India this week and buyers will have time till mid-February to submit EoIs
>> IDBI Bank has raised Rs 1,435 crore through an issue of equity shares to 44 qualified institutional investors, according to a regulatory filing.
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye.
