Morning Alert..
*Sensex navigates geopolitical gyrations to outshine global peers*
After a two-year liquidity-fuelled bull run, the BSE Sensex faced its moment of reckoning in 2022 as Russia marched into Ukraine, the US Federal Reserve came out all guns blazing in its war against inflation and a cataclysm engulfed global financial markets. The aftershocks of the COVID-19 pandemic combined with geopolitical upheavals, a supply shock in the energy markets and synchronised monetary policy tightening by central banks across the world meant the global economy was engulfed in a constant tangle of 'polycrisis'. But, the unwavering faith of domestic investors kept Dalal Street relatively unscathed and the Indian benchmarks shrugged off the gloomy cues with aplomb. After a lacklustre spell for most of the year, Sensex started picking up momentum as the festive season approached. It closed at its all-time high of 63,284.19 on December 1. However, hopes of a year-end Santa Claus rally were dashed as spiralling COVID cases in China sparked renewed fears of a global pandemic wave, sending bulls scurrying for cover.
*FPIs invest Rs 11,557 crore in equities during Dec; Covid to drive flows*
Foreign investors have infused a net Rs 11,557 crore in Indian equities in December so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world. Going ahead, macro data from the US and COVID news will drive FPI flows and the markets in the near term, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. According to data with the depositories, Foreign Portfolio Investors (FPIs) invested a net sum of Rs 11,557 crore in equities during December 1-23. This comes following a net investment of over Rs 36,200 crore in November primarily due to weakening of the US dollar index and positivity about overall macroeconomic trends.
*Sebi may prescribe higher net-worth needs for qualified stockbrokers*
The Securities and Exchange Board of India (Sebi) may prescribe higher net-worth requirements among other parameters for qualified stockbrokers (QSBs) who handle a substantial number of clients, funds, and trading volumes. The Sebi board has decided that QSBs will need to comply with enhanced risk management requirements and will be under enhanced monitoring by the regulator and market infrastructure institutions. According to Sebi, 16 brokers will fall under QSB parameters that will be issued separately. “If a broker is handling daily heavy volumes and a lot of client funds, he must also have capital in proportion to operate in it. A threshold net-worth requirement for QSB could help in mitigating risks,” said an official.
*Commodities play*
Gold – Rs 54110/10gm, Silver – Rs 67404/kg, Brcrude – Rs 6210/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 716/kg.
*Corporate News*
ONGC board rejig: Two director posts set to be merged.
Hind Zinc prepares Rs 10,000-cr blueprint for green energy, diversification.
Tata Power plans to raise up to Rs 2,000 cr via bonds to finance biz ops.
SGX Nifty indicates a Positive start to Indian markets trading at 17905 levels, up by 0.23% or 41 points.
Sector in focus – Banks, Metals, Telecommunications & Fertilizers.
