News and Impact · Expects market to open on a soft n | SKM INVESTMENT
News and Impact
· Expects market to open on a soft note on account of geo-political tension between Russia and Ukraine after the Russian President Vladimir Putin has ordered his country’s strategic nuclear forces to high alert, as the Ukraine crisis escalates. Both Dow and Nasdaq Future nosedived 1% and 2% respectively and Asian market pare gain from the intra-day high. Gold spiked nearly 2% to above $1900 and Brent Crude surged by 5% to above $102/bbl amid heightened market uncertainty after Western nation’s unveiled harsher sanctions on Russia for the invasion of Ukraine. Expects higher intra-day volatility in the market on account of rising oil price and continued FIIs selling (net sellers Rs20k this week, 50% of during the month of Feb.).On the other hand, market expectation that the US Fed may avoid aggressively hike interest rate in the current situation. Traders avoid bargain hunting and expectation of higher intra-day volatility in the next few days. SGX Nifty is trading flat.
· U.S. stock index futures slid in early Asian trading hours Monday, following a weekend of mounting moves by Western governments in response to Russia’s invasion of Ukraine. Asian markets are trading flat while Futures on the Nasdaq 100 were down 2.4%, after sliding as much as 3.5% and Dow Future decline over 1%.
· Wall Street looked to end a turbulent week on a high note Friday, with the Dow soaring more than 800 points in afternoon trading while investors monitored Russia's continued incursion into Ukraine and the
· responses from the United States and its allies. Both Dow and S&P 500 gained 2.5% each. Federal Reserve officials signaled they remain on track to raise interest rates next month. They stressed the need to confront the hottest U.S. inflation in 40 years, despite uncertainty posed to the global economy by the Russia-Ukraine conflict.
· European stocks jumped the most since November 2020 on Friday as investors returned to risky assets following yesterday’s sharp selloff sparked by Russia’s invasion of Ukraine. UK, Germany and France Index gained nearly 4% each.
· Oil futures surged 4% 2% to above $102/bbl , as investors continued to monitor Russia's invasion of Ukraine, a day after crude briefly topped the $100-a-barrel threshold for the first time in over seven years.
· Gold extended a by 2% to %1908 as investors remained on edge while assessing the impact of Russia’s invasion of Ukraine and Western sanctions. Gold fell 1% to $1889/ounce while touched weekly high of $1974/ounce.
· Actionable – ONGC, Coal India, Vodafone
· Brokers Radar
· Events – EID Parry board meeting for dividend , Vedanta Fashion results, EasyTrip Planner ex-bonus 1:1
· Market Summary - Dr Reddy’s acquisition of German medical cannabis Nimbus Health GmbH, Bharti Airtel to Buy 4.7% More in Indus Towers from Vodafone, Cabinet approves offering of coal via common e-auction window, LIC IPO, Union Cabinet allows 20% FDI in insurer under direct route, Adani Power Wins $405 Million in Power Tariffs From Rajasthan
· Bharti Airtel has agreed to buy the stake from Vodafone on condition that the deal proceeds will be injected in Vodafone Idea Ltd. and simultaneously remitted to clear outstanding dues of Indus Towers.- positive
· Coal India The government approved offering of dry-fuel by coal companies, including state-owned CIL, through a common e-auction window instead of sector-specific auctions. – positive
· LIC IPO - Ahead of the upcoming Life Insurance Company’s (LIC) initial public offering (IPO), the Union Cabinet has cleared up to 20 percent foreign direct investment (FDI) under the direct route in the public sector insurer.
· Muthoot Finance - Belstar Microfinance Limited ("Belstar"), a subsidiary of Muthoot Finance has obtained the approval from the Reserve Bank of India for a primary equity infusion of Rs. 275 Crores into Belstar. Belstar along with its Promoters, Arum Holdings – positive
