Oil drops over 9% and Wall Street surges, while Asia splits
Brent fell 9.23% to 94.04 and the Dow gained 3.03% overnight. Hang Seng rose while Kospi fell sharply, so Asia is not moving as one.
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Where we stand
Overnight
The S&P 500 rose 1.58% to 7,688.62 and the Dow gained 3.03% to 53,356.12. A move of this size usually sets the tone for foreign-held large caps, and the Dow's breadth makes foreign flows worth watching. Asia is moving with conviction but in opposite directions: Hang Seng is up 2.90% at 24,613.44, while Kospi is down 3.64% at 5,476.97.
Brent crude fell 9.23% to 94.04. India imports most of its oil, so oil marketers, paints, aviation, tyres and the rupee all feel a move this large. Gold rose 1.52% to 4,134.80, which matters for gold financiers and jewellers. The rest was background: Nasdaq up 1.44%, Nikkei down 0.28%, the dollar index down 0.19%, USD/INR down 0.23% at 94.53, and the US 10-year yield down 6 basis points at 4.894%.
| Last | Change | For India today | |
|---|---|---|---|
| S&P 500 | 7,688.62 | +1.58% | matters a move this size usually sets the tone for foreign-held large caps |
| Dow Jones | 53,356.12 | +3.03% | matters a broad US move; watch foreign flows |
| Hang Seng | 24,613.44 | +2.90% | matters Asia is moving with conviction this morning |
| Kospi | 5,476.97 | −3.64% | matters Asia is moving with conviction this morning |
| Brent crude | 94.04 | −9.23% | matters India imports most of its oil: oil marketers, paints, aviation, tyres and the rupee feel this |
| Gold | 4,134.80 | +1.52% | matters gold financiers and jewellers |
| Nasdaq Composite | 25,736.51 | +1.44% | background |
| Nikkei 225 | 62,013.52 | −0.28% | background |
| US dollar index | 101.32 | −0.19% | background |
| USD/INR | 94.53 | −0.23% | background |
| US 10-year yield | 4.894 | −6 bp | background |
Last available quotes at build time; Asian markets may still be trading.
Today's agenda
Twenty-five companies hold results meetings today. They include Oil & Natural Gas Corporation, Titan Company, Aadhar Housing Finance, Abbott India, Astral, BEML, Berger Paints India, Bikaji Foods International, Britannia Industries and CESC.
Blue Jet Healthcare, Cemindia Projects, Fortis Healthcare, Glenmark Pharmaceuticals and Godfrey Phillips India are also on the list. ONGC and Berger Paints report on a day when Brent has moved sharply.
- 25 results board meetings: Oil & Natural Gas Corporation Ltd., Titan Company Ltd., Aadhar Housing Finance Ltd., Abbott India Ltd., Astral Ltd., BEML Ltd., Berger Paints India Ltd., Bikaji Foods International Ltd., Blue Jet Healthcare Ltd., Britannia Industries Ltd., CESC Ltd., Cemindia Projects Ltd., Fortis Healthcare Ltd., Glenmark Pharmaceuticals Ltd., Godfrey Phillips India Ltd. and more
What would change the read
If FIIs turn net buyers in the cash market, it would mean the rally is getting funded, not just priced; if not, the money still is not following prices. If more than half of the Nifty 500 closes higher, it would mean the move is broad, not carried by a few heavyweights; if not, gains, if any, would be narrow.
If India VIX closes lower than the day before, it would mean demand for protection is easing; if not, traders would still be paying up for protection.
- IfFIIs turn net buyers in the cash market: the rally would be getting funded, not just priced. If not: the money still is not following prices.
- Ifmore than half of the Nifty 500 closes higher: the move would be broad, not carried by a few heavyweights. If not: gains, if any, would be narrow.
- IfIndia VIX closes lower than the day before: demand for protection would be easing. If not: traders would still be paying up for protection.
Tonight's Close scores each of these.