10 things you need to know before the opening bell on January 5

SUMMARY

The Indian market is likely to open lower on Tuesday following losses in Asian markets on weak global cues. At 8:00 am, the SGX Nifty was trading 88.50 points or 0.62 percent lower at 14,088.50, indicating a negative start for the Sensex and Nifty50.

By CNBC-TV18Jan 5, 2021 8:05:38 AM IST (Published)

1. US Stocks | Shares on Wall Street fell sharply from all-time peaks on the first trading day of the year on Monday, as risk appetite ebbed amid upcoming runoff elections in Georgia and the persistent surge in coronavirus cases. The Dow Jones Industrial Average fell 382.59 points, or 1.3 percent, to 30,223.89, the S&P 500 lost 55.42 points, or 1.5 percent, to end at 3,700.65, and the Nasdaq Composite lost 189.84 points, or 1.5 percent, to 12,698.45.

2. Asian Stocks | Asian shares edged lower on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming US President Joe Biden's economic policies. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.12 percent pulling back from a record high hit in the previous session. Australian stocks fell 0.16 percent. Japanese shares lost 0.47 percent after a media report that the government will curb business hours in Tokyo and surrounding cities from Thursday.

3. Indian Market | The Indian benchmark indices, Sensex and Nifty, ended at record levels on Monday led by robust buying in metal and IT stocks. The Sensex ended 307.82 points or 0.64 percent higher at 48,176.80, while the Nifty gained 114.40 points or 0.82 percent to close at 14,132.90. Broader markets outperformed the benchmarks with Nifty Smallcap100 and Nifty Midcap100 ending over 1 percent higher each. Barring Nifty Private Bank, all the sectoral indices ended in the green with the Nifty Metal index rallying the most over 5 percent.

4. Crude Oil | Oil prices slipped from multi-month highs to end more than 1 percent lower on the first trading day of the year after OPEC+ failed to decide on Monday whether to increase output in February and agreed to meet again on Tuesday. Brent futures settled 71 cents, or 1.4 percent, lower at $51.09 a barrel, while US West Texas Intermediate (WTI) crude fell 90 cents, or 1.9 percent, to settle at $47.62.

5. Rupee | The rupee appreciated by 9 paise to close at a four-month high of 73.02 against the US dollar on Monday, supported by sustained foreign fund inflows and weakness of the American currency overseas. At the interbank forex market, the domestic unit opened at 72.93 against the US dollar and witnessed an intra-day high of 72.90 and a low of 73.03. The local unit finally settled at 73.02, registering a rise of 9 paise over its previous close. This is the rupee's highest level since September 1, 2020, when it had closed at 72.87.

6. US PMI |US manufacturing activity picked up at its briskest pace in more than six years in December, extending a recovery in the factory sector that has spurred the strongest pricing environment for goods producers since 2011 as the coronavirus pandemic upends supply chain networks. IHS Markit said its manufacturing PMI climbed to 57.1 in December from 56.7 in November.

7. US Federal Reserve | US economic growth could surge later this year if most Americans are vaccinated against the coronavirus, but the gains would unlikely be enough for the Federal Reserve to withdraw its support, Cleveland Fed President Loretta Mester said on Monday. The economy is likely to struggle in the near term after a rise in coronavirus infections led to more restrictions, both voluntary and mandated, Mester said.

8. GST Compensation | The Finance Ministry on Monday released the tenth instalment of Rs 6,000 crore to the states to meet the GST compensation shortfall, taking the total amount provided so far under this window to Rs 60,000 crore. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST.

9. Aviation sector may see 57% revenue growth in FY22 | With around 57 percent growth expected in revenue in FY22 on the back of a likely higher passenger traffic, the domestic aviation industry's net losses may reduce to Rs 14,600 crore from an estimated a net loss of Rs 21,000 crore this fiscal, ratings agency Icra said on Monday. However, the ratings agency has maintained its 'negative' credit outlook on the Indian aviation industry.

10. COVID-19 Vaccine | Bharat Biotech Chairman and Managing Director MD Dr Krishna Ella defended the COVID-19 vaccine developed by his company, which is on a proven vaccine platform. Ella slammed critics and said, "It hurts", and added that his company does not deserve this. He was responding to criticism on Covaxin, Bharat Biotech's COVID-19 vaccine that has received restricted emergency use approval even as phase 3 clinical trials are underway.