Nifty Breaks Its Longest Losing Streak; Metal Stocks Shine

Highlights 

• Steel stocks surge after China announces plans to cut steel output
• BSE shares slump 3.5% after NSE shifts F&O expiry days to Monday
• Power Grid shares gain 4% after securing three inter-state transmission projects
• Jindal Drilling shares jump over 9% after firm acquires jackup rig 'Jindal Pioneer' for $75 million
• RBZ Jewellers shares crash 4% after reporting a ₹20 million fraud by employee
• US Commerce Secretary’s comments on likely tariff rollback aids global sentiment 

RELIEF FOR GLOBAL MARKETS 

Indices               1-Day Change

Thailand              2.8%      

Hang Seng           2.6%      

Taiwan                 1.2%

Kospi                    1.2%

Shanghai               0.5%      

Nikkei                   0.2%      

 

The Nifty 50 and Sensex witnessed a strong rebound from the oversold territory, with both benchmark indices closing with more than 1% gains. The Nifty 50 also snapped its longest ever, 10-day losing run.

The broader universe stocks led the charge today, with the Nifty Midcap and Nifty Smallcap indices climbing 2-3%. 

 

Sectoral Performance
The Nifty 50 and Sensex witnessed a strong rebound from the oversold territory, with both benchmark indices closing with more than 1% gains. The Nifty 50 also snapped its longest ever, 10-day losing run.
The broader universe stocks led the charge today, with the Nifty Midcap and Nifty Smallcap indices climbing 2-3%. 

SECTORAL PERFORMANCE

The yield on 10-year government bond fell 2 basis points as buying emerged above 6.75%, a level seen as attractive by a few PSU banks.  The benchmark 10-year yield moved between 6.72% and 6.76% as market participants awaited fresh triggers at a time when appetite for longer-duration debt is waning.

Demand for longer-duration gilts has eased amid uncertainty regarding open market bond purchases from the Reserve Bank of India, after the central bank infused around ₹870 billion into the banking system through a three-year dollar/rupee swap.

The Indian rupee rose nearly 30 paise or 0.3%, its highest single-day gain since February.  Broad weakness in the US dollar led to gains in most Asian currencies, including the Indian rupee, as investors grew concerned about a potential slowdown in the US economy due to trade tariffs.

During Donald Trump’s first address to the joint session of Congress since his return to office, the US President acknowledged the economic repercussions of his tariffs, and said Americans would have to “bear” with him through an “adjustment period.”

OUTLOOK
Indian equities may extend gains on Thursday, especially if global cues remain favourable.  However, analysts remain skeptical about the sustainability of equity market recovery amid lingering concerns over trade wars. 

The immediate focus will be on US labour market data this week, starting with ADP employment figures due today. Remarks from Federal Reserve policymakers will also be in focus to gauge the future path of policy rates. 

For tomorrow, rupee is expected to trade in a range of 86.60 to 87.25. Upticks are anticipated to be sold by mainly uncovered exporters, while IT companies may sell dollars after today’s fall in the dollar index to ensure that they are covered for year-end inflows.

Key Events and Data to Watch on Thursday
• European Central Bank interest rate announcement.
• EIA to release weekly natural gas storage report. 
• US weekly unemployment claims report 
• US January trade data 

Corporate Actions on Thursday
• Capacit'e Infraprojects board to discuss fundraising plans
• Hexaware Technologies Ltd to announce earnings.

Other Key Events

• European Commission President Ursula von der Leyen and World Bank President Ajay Banga participate in the pact for European Social Dialogue signing ceremony