Morning Alert..
*Bonds strengthen and rupee flat after favourable US inflation data*
Indian government bond prices strengthened on Thursday, tracking the fall in US Treasury yields, which fell after US inflation data was lower than expected. The supportive domestic inflation data further aided the bond market. The yield on the benchmark 10-year government bond settled at 6.99 per cent on Thursday, against 7.01 per cent on Wednesday. Bond yields and bond prices are inversely correlated. “Our market is acting like a derivative to the US yields,” said a dealer at a state-owned bank. “The US Federal Reserve meeting outcome was hawkish, but the market is only focusing on the data,” he added. The 10-year US Treasury yield fell by 8 basis points to 4.32 per cent on Thursday. Meanwhile, the rupee remained steady throughout the day. The local currency settled at Rs 83.55 per dollar, flat versus Wednesday. “Even after volatility witnessed in the dollar index, due to CPI data and the Fed's policy decision, the rupee was seen as resilient against the dollar. Now the trend in the rupee will remain range-bound, but the undertone remains weak as rupee consolidation continues near an all-time low," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
*Global market action*
Dow Jones – Down by 0.09% or 42.55 points
FTSE – Down by 0.63% or 51.81 points
CAC – Down by 1.99% or 156.68 points
DAX – Down by 1.96% or 365.18 points
Gift Nifty – Up by 0.01% or 3.50 points
*FII/DII activities*
FII – Sold 3033 Cr worth of shares
DII – Sold 553.88 Cr worth of shares.
*Stocks with high delivery Percentage*
Metro Brands Ltd – 90.7%
ICICI Securities Ltd – 87.8%
Suven Pharma Ltd – 87.5%
SKF India Ltd – 85.7%
CCL Products India Ltd – 81.8%
*Primary market activities*
IPO opening today
GP Eco Solutions India Ltd (NSE SME) – Issue size 30.79Cr
*Commodities updates*
Gold – Rs 74350/10gm, Silver – Rs 87983/kg, Brcrude – Rs 6565/barrel, Copper – Rs 855.05/kg.
*Corporate News*
Adani Group's Ambuja Cements to buy Penna Cement for Rs 10,422 crore.
Vodafone Idea to offer Rs 2,458 crore stake to Nokia and Ericsson.
JSW Group to invest $70 billion in 6 years; plans to expand capacity.
*Bonds strengthen and rupee flat after favourable US inflation data*
Indian government bond prices strengthened on Thursday, tracking the fall in US Treasury yields, which fell after US inflation data was lower than expected. The supportive domestic inflation data further aided the bond market. The yield on the benchmark 10-year government bond settled at 6.99 per cent on Thursday, against 7.01 per cent on Wednesday. Bond yields and bond prices are inversely correlated. “Our market is acting like a derivative to the US yields,” said a dealer at a state-owned bank. “The US Federal Reserve meeting outcome was hawkish, but the market is only focusing on the data,” he added. The 10-year US Treasury yield fell by 8 basis points to 4.32 per cent on Thursday. Meanwhile, the rupee remained steady throughout the day. The local currency settled at Rs 83.55 per dollar, flat versus Wednesday. “Even after volatility witnessed in the dollar index, due to CPI data and the Fed's policy decision, the rupee was seen as resilient against the dollar. Now the trend in the rupee will remain range-bound, but the undertone remains weak as rupee consolidation continues near an all-time low," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
*Global market action*
Dow Jones – Down by 0.09% or 42.55 points
FTSE – Down by 0.63% or 51.81 points
CAC – Down by 1.99% or 156.68 points
DAX – Down by 1.96% or 365.18 points
Gift Nifty – Up by 0.01% or 3.50 points
*FII/DII activities*
FII – Sold 3033 Cr worth of shares
DII – Sold 553.88 Cr worth of shares.
*Stocks with high delivery Percentage*
Metro Brands Ltd – 90.7%
ICICI Securities Ltd – 87.8%
Suven Pharma Ltd – 87.5%
SKF India Ltd – 85.7%
CCL Products India Ltd – 81.8%
*Primary market activities*
IPO opening today
GP Eco Solutions India Ltd (NSE SME) – Issue size 30.79Cr
*Commodities updates*
Gold – Rs 74350/10gm, Silver – Rs 87983/kg, Brcrude – Rs 6565/barrel, Copper – Rs 855.05/kg.
*Corporate News*
Adani Group's Ambuja Cements to buy Penna Cement for Rs 10,422 crore.
Vodafone Idea to offer Rs 2,458 crore stake to Nokia and Ericsson.
JSW Group to invest $70 billion in 6 years; plans to expand capacity.