Listen In: What’s the co-relation between crude oil rates and smallcap stocks? | The Economic Times Podcast

– India abstains from UNSC vote to call for emergency session on Ukraine
– Amazon may move Delhi HC, NCLAT as Reliance takes over Future stores
– BP exiting stake in Rosneft
– Deadline for HLL Lifecare bid extended

Now lemme give you a quick glance on the state of the markets.

Asia-Pacific stocks were mostly higher in volatile trading, buoyed by Wall Street gains from Friday, when the S&P 500 closed up 2.51%. Japan’s Nikkei 225 rose 0.48%, recovering from an earlier loss. Australia’s benchmark added 0.64% after also being down at one point. Chinese blue chips, though, slipped 0.21%. MSCI’s index of regional stocks eked out a 0.09% gain.

Elsewhere, the yield on 10-year Treasuries fell five basis points to 1.91%. Safe-haven currencies including the U.S. dollar and yen were in demand after Russian President Vladimir Putin put nuclear-armed forces on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two. Bitcoin pared losses to climb past $38,000. Brent crude futures were up $5.46 or 5.6 per cent, at $103.39.

That said, here’s what is making news.

The pandemic has seen the benchmark Nifty50 Index get its first hospital company as a member. Apollo Hospitals Enterprises (AHEL) will be included in the Nifty-50 from March 31, replacing state-owned IOCL. AHEL’s inclusion in the Nifty-50 brings more defensiveness to the benchmark index which already has four pharma stocks and five FMCG stocks.

Indian equities could build on Friday’s relief rally across markets in the early part of the week if concerns ease over the possibility of the Ukraine invasion escalating into a conflict that draws in global powers. The mood is far from optimistic however with Russia continuing its attacks over the weekend, besides which elevated oil prices are expected to add to inflationary pressures that may leave central banks with a smaller window to tighten policy, said investors and traders.

Last week, brent crude price crossed $90 per barrel and touched a high of $105.8 before closing at $94.5. This may not be a good sign for small-cap investors. Historical data (since the start of 2004) show that every time brent oil crossed a certain level, there have been sustained corrections in small-cap indices. The corrections are even steeper when the indices were at higher levels.

NOW Before I go, here is a look at some of the stocks buzzing this morning…

Amazon is planning to approach the Delhi High Court and the National Company Law Appellate Tribunal (NCLAT), questioning the change in the lease structure of the stores of Future Retail Ltd (FRL) and the role of the company’s independent directors in it.

Bharti Airtel shareholders have cleared the issue of equity shares by the company to Google on “a preferential basis” following the US-based tech giant’s recent purchase of a 1.28% stake in the telco for $700 million.

Buyout group TPG has joined forces with Hinduja family-owned IndusInd Bank and a private promoter entity of the lender to form a consortium and make a firm bid for IDFC’s mutual fund business, ET reported.

Vedanta’s aluminium business, which has not been impacted majorly by COVID-19, would focus on backward integration in the next fiscal and would bring into production two of its mines in Odisha to provide raw material security for its plants.

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That’s it for now. Stay with us for all the market news through the day. Happy investing!