Market may edge lower in early trade on weak global cues. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 95 points at the opening bell.
Overseas, Asian stocks edged lower following a sharp decline in US stocks. Data released today, 5 February 2018 showed that the Japan Nikkei Services PMI increased to 51.9 in January from 51.2 in December 2017.
US stocks fell sharply on Friday, 2 February 2018 on rising bond yields after a stronger-than-expected jobs report. Data released over the weekend showed that US job growth surged in January and wages increased further. Nonfarm payrolls jumped by 200,000 jobs last month after rising 160,000 in December, the Labor Department said on Friday, 2 February 2018. The Federal Reserve has earlier forecast three rate hikes for 2018.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 950 crore on Friday, 2 February 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 508.78 crore on Friday, 2 February 2018, as per provisional data.
Among corporate news, Bharti Airtel announced today, 5 February 2018 that Singapore Telecommunications (Singtel), Asia's leading communications and ICT solutions group and a long term partner of Airtel, will invest Rs 2649 crore in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares. The transaction is subject to the shareholders' approval of Bharti Telecom. The funds raised will be used towards debt reduction.
With this investment, Singtel's total stake (along with its affiliates) in Bharti Telecom will increase to 48.9%. Singtel currently holds 47.17% stake in Bharti Telecom. Bharti Enterprises continues to hold over 50% stake in Bharti Telecom. The announcement was made before market hours today, 5 February 2018.
Among prominent earnings, Bosch and Tata Motors are scheduled to announce October-December 2017 quarterly results today, 5 February 2018.
On the macro front, Markit Economics will unveil the result of a monthly survey on the performance of India's services sector in January 2018 at 10:30 IST today, 5 February 2018. The Nikkei Services PMI in India jumped to 50.9 in December of 2017 from 48.5 in the prior month.
Among other data, as per preliminary reports received from the states, the total area sown under Rabi crops as on 2 February 2018 stands at 632.34 lakh hectares as compared to 641.72 lakh hectare this time in 2017, as per the data released by the government after market hours on Friday, 2 February 2018.
Minister of Railways and Coal Piyush Goyal in a written reply to a question in Rajya Sabha on Friday, 2 February 2018 stated that the supply of coal to the power sector has risen to 210.3 million tonnes (MT) in the first six months of this fiscal against 195.2 MT during the corresponding period of 2016-17 thus recording growth of 7.74% (provisional).
Back to market, the stock market corrected sharply on Friday, 2 February 2018 as introduction of long-term capital gains tax (LTCG) in the Union Budget 2018-19 unveiled on 1 February 2018, disappointed investors. The Sensex had tanked 839.91 points or 2.34% to settle at 35,066.75, its lowest closing level since 16 January 2018.
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