Market Ahead, March 23: All you need to know before the Opening Bell

Wall Street indices closed higher in the overnight session as technology stocks rebounded from a recent selloff sparked by surging bond yields. The Dow Jones Industrial Average closed up 0.32%, the S&P 500 gained 0.70% and the Nasdaq Composite added 1.23%.

Asian stocks followed their US peers higher as bond yields maintained Monday’s decline ahead of a series of closely watched Treasury auctions. This week’s offerings include a seven-year note, a maturity that fared poorly in last month’s auction, sending benchmark yields sharply higher.

Besides, Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell will enter a heatedly partisan arena today to kick-off two days of congressional hearings assessing the economic policy response to the Covid-19 crisis which would also be closely tracked by the market.

Ahead of these two events, Japan’s Topix Index was trading 0.4% higher while Australia’s S&P/ASX 200 Index was up 0.3% and South Korea’s Kospi 0.2%.

Tracking a firm global setup, D-Street too looked set to bounceback from Monday’s bear hammering as SGX Nifty was ruling 0.41% higher at 14,775 around 7.30 am, indicating a firm start for benchmark indices.

Meanwhile, in other news, Sebi tightened norms for stock exchanges in case of disruptions, weeks after a top exchange was shut down during trading.

The market regulator said that when critical systems are disrupted, institutions must declare a “disaster” within 30 minutes and take steps – including going to a back up – within the next 45 minutes.

The rules apply to stock exchanges, clearing corporations and depositories.

Now, a look at the stock-specific triggers that are likely to guide the market today:

Maruti Suzuki India said it will “substantially” increase the prices of its entire product portfolio from next month in order to offset the impact of high input costs. The auto major said the exercise would cover its entire product range in the country.

Bank stocks will be in focus today as the Supreme Court will pronounce verdict on a batch of pleas by various trade associations, seeking extension of loan moratorium and other reliefs in view of the Covid-19 pandemic.

Investment firm PAG has invested Rs 2,366 crore in Edelweiss Wealth Management to acquire controlling stake in the company.

The board of privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Monday approved the merger of its gas subsidiary, BGRL with itself in a bid to streamline corporate structure.

Moody’s Investors Service revised upwards its outlook on IndusInd Bank to ‘stable’ from ‘negative’ while affirming its rating.

Varroc Engineering has approved the proposed fundraise by way of a qualified institutions placement of equity shares. The QIP issue opened on March 22.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link