A win for Joe Biden in the US presidential race has lifted hope of the much-awaited stimulus package in the US, pushing Asian equities higher by 2 per cent in Monday’s trade. Domestic stocks are likely to follow suit.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals gap-up start
Nifty futures on the Singapore Exchange traded 62 points, or 0.50 per cent higher at 12,419.50, in signs that Dalal Street was headed for a gap-up start on Monday.


Tech View: Nifty50 may hit record highs soon


The bulls continued their march on Dalal Street and helped benchmark Nifty50 register positive close for the fifth session in a row on Friday. In the process, the index ended up forming a strong bullish candle with an intra-week range of over 700 points. Analysts said the index can now hit a new lifetime high over the next few sessions.

Asian markets surge after Biden win

Risky assets got a boost on Monday on expectations of fewer regulatory changes and more monetary stimulus under US president-elect Joe Biden. E-mini futures for the S&P500 jumped 0.6 per cent. MSCI’s broadest index of Asia Pacific shares outside of Japan inched up 0.1 per cent. Japan’s Nikkei gained 2 per cent. Korea’s Kospi was up 1.7 per cent. China’s Shanghai Composite was up 1 per cent.

Brent crude tops $40 a barrel level

Oil prices gained more than 2 per cent on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the US presidency and buoyed risk appetite. Brent crude futures for January climbed 82 cents, or 2.1 per cent, to $40.27 a barrel by 0101 GMT, while US WTI crude for December was at $37.98 a barrel, up 84 cents, or 2.3 per cent.

US stocks settled lower on Friday

The Dow Jones Industrial Average index closed 0.2 percent lower, while the Nasdaq was flat for the day as was the S&P500 index. But despite the lackluster Friday, the last week was the best since April with a gain of 7.3 percent for the S&P500 index.


Gland Pharma IPO opens today


Hyderabad-based Gland Pharma’s initial public offer (IPO) to raise up to Rs 6,480 crore is scheduled to open on Monday. While analysts are upbeat on the prospects of the company and recommend subscribing to the issue, a few believe the valuations are a bit on the expensive side.

Q2 results today

Delta Corp, IndiaMART InterMESH, Equitas SFB and Oil India are among companies that are scheduled to announce their quarterly earnings on Monday.

FPIs buy Rs 4870 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 4,869.87 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 2,938.66 crore, data suggests.

MONEY MARKETS

Rupee: The Indian rupee strengthened for the second straight day and settled 28 paise higher at 74.08 against the US dollar on Friday supported by gains in domestic equities and expectation of Joe Biden’s victory in the US presidential election.

10-year bonds: India 10-year bond yield rose 0.19 per cent to 5.87 after trading in 5.83-5.87 range.

Call rates: The overnight call money rate weighted average stood at 3.14 per cent, according to RBI data. It moved in a range of 1.8-3.45 per cent.

The DAY PLANNER

  • Q2 Earnings: Bayer Crops I DRL I Delta Corp I Equitas Bank I IndiaMart I JK Cement I OIL
  • BoJ Summary of Opinions (05:20 am)
  • ECB President Lagarde Speech (02.55 pm)
  • BoE Gov Bailey Speech (04.05 pm)
  • US Consumer Inflation Expectations Oct (09:30 PM)

MACROS

US stimulus unlikely before Jan… Joe Biden’s victory in the presidential election and the unresolved status of Senate control left slim prospects for a major fiscal-stimulus package before January. While President Donald Trump last month pledged a large postelection stimulus act, it was based on his assumption that he’d win reelection. He now has little political incentive — or capital — to drive a deal through a divided Congress in his remaining weeks in office. Democratic and Republican lawmakers were quick to restate their opposing positions on Friday as Biden closed in on his win. Biden, in his victory speech over the weekend, promised swift action against the pandemic and an orderly transfer of power.

Biden win may send rupee edging lower… The rupee is likely to edge lower against the US dollar as traders are likely to buy the latter after a clear mandate in the US presidential election eliminated political and fiscal uncertainty in that country. Last week’s volatile trade will give way to a more orderly market as traders will go back to the currency’s fundamental and price in expectations with the new US government. “I expect the dollar to gain in the short term because of the stability that Biden brings and also as markets are expecting him to step up spending,” said Ashish Vaidya, head of treasury at DBS Bank

Telecom industry seeks pricing revival… The telecom industry has termed the Supreme Court’s recent verdict allowing telcos to spread payment of adjusted gross revenue dues over 10 years as only a partial relief, and said that a ‘pricing revival’ would be critical for long-term growth of the sector. “The order came as a sort of conclusion and closure for an issue that was long pending, so the industry is relieved from the perspective of its legal closure. However, it can be termed as a partial relief only,” Cellular Operators Association of India director-general SP Kochhar said.

Retail holding of Indian stocks hits Rs 10 lakh cr… India’s robust growth is now anchored in democratic ownership — far more firmly than ever before. Retail savers now collectively own more than Rs 10 lakh crore of stocks, a seemingly daunting ownership threshold breached for the first time. Their conviction has also raised proportional retail ownership of total growth assets to an 11-year high — 7.01% as on September 30, 2020. By actual value terms, retail holding in NSE-listed companies reached an all-time high of Rs 10.58 lakh crore as on September 30, up from Rs 9.16 lakh crore on June 30

SBI chief says India will contract a lot less… Indian economy’s contraction could be a lot less than estimated earlier as business activity bounces back from abysmal levels driven by opening up of factories and structural shifts in consumer behaviour, though corporate investments may have to wait longer, said State Bank of India chairman Dinesh Kumar Khara. “The numbers which have been talked about on contraction are changing very fast,” Khara told ET in an interview. “As the economy opens up these numbers will change dramatically.”





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