Bullish bets on bitcoin are now the most crowded trade

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Atul PM, and here is what we have to start your day.

>> Bitcoin now a crowded trade
>> Sebi okays RIL-Future deal.
>> Voda eyes Indus stake sale
AND
>> Govt weighs g-sec product for retail investors

And there is more. But first, a quick glance at the state of the markets..

>> Nifty futures on the Singapore Exchange traded 30 points higher at 8 am (IST), signalling a positive start for Dalal Street.

ELSEWHERE
>> Asian shares rose for a third session this morning. Hong Kong’s Hang Seng index hit 30,000 points for the first time since May 2019. Japan’s Topix climbed 0.7%, South Korea’s Kospi 0.5% and Australia’s S&P/ASX 200 Index 0.6%.

>> US stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th US President. Dow rose 257.86 points, or 0.83%, to 31,188, while S&P 500 gained 52.94 points, or 1.39%, to 3,851 and the Nasdaq 260 points, or 1.97%, to 13,457.

IN CURRENCIES
>> Rising for the second session on the trot, the rupee finished 12 paise higher at 73.05 against the US dollar on Wednesday amid a rally in domestic equities and a weak greenback overseas.

>> The dollar gained mildly, while the euro slipped 0.17%. The yen traded at 103.55 to the dollar and the offshore yuan at 6.4600

>> Bitcoin tumbled below the key $34,000 level on Wednesday as selling continued to drag the largest cryptocurrency below key support levels

IN OIL MARKET
>> Oil prices rose on hopes that Biden’s proposed stimulus will lift economic output. Brent settled at $56.08 a barrel, up 0.3%, while US crude rose 0.5% to $53.24.

AND IN BULLION
>> Gold price rose for the third day on Wednesday rising Rs 347 to Rs 48,758 per 10 gm in Delhi in line with rally in global precious metal prices. Silver gained Rs 606 to Rs 65,814 a kg. In global markets, gold slipped 0.2% to $1,868.41 an ounce on Thursday.

All in all, the trade setup on Dalal Street looked positive. On Wednesday, Nifty50 jumped and formed a bullish candle on the daily chart for a second time in two days. Analysts said the fast retracement of the last leg of the fall is hinting that a short-term bottom is in place

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

... Bullish bets on bitcoin have emerged as the most crowded trade for the first time since October 2019, according to a survey of fund managers by Bank of America Securities. About 36% of the respondents identified ‘long bitcoin’ as the most crowded trade. A total of 217 fund managers with $596 billion worth of assets under management participated in the survey.

... Vodafone Group is considering selling a small portion of its 28.12% stake in Indus Towers to inject capital into its ailing Indian telecom joint venture, Vodafone Idea (Vi). This comes even as Vodafone Idea’s potential global lenders are pressing the telco's co-promoters — the UK telecom major and India’s Aditya Birla Group — for some capital infusion to improve their overall comfort levels, three people with direct knowledge said.

.... Market regulator Sebi has approved Reliance Retail’s acquisition of Future Group’s retail assets, which is being opposed by Amazon. The market regulator wrote to the BSE on Wednesday and based on Sebi’s observations, the stock exchange said it has no adverse observations on the listing or de-listing requirements and that the scheme can be filed with the NCLT.

.... The Centre is considering the launch of a Bharat Bond ETF product that would include central government securities to increase both safe investment options for retail investors and liquidity in sovereign papers. Finance ministry is in talks with the market regulator Sebi and they are exploring the broad contours of the proposed product.

... At least 60% of employers intend to give salary increments and 55% bonus payouts in 2021. Coming after a year that saw the economy slump and most businesses hit, the salary hike news is even better because 30% of companies are as yet deciding on whether to reward employees. So, the proportion of employers who bring cheer can only go up. Only some 10% employers are freezing salaries this year.

AND

... The Centre has proposed suspending the implementation of three contentious farm laws for up to a year and a half so that the government and protesting farmers can arrive at a consensus on them. The government said a joint committee will also be set up toward this end. The farmers’ unions said they will revert on Friday after discussing the proposal among themselves.

LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING

>> HUL will reskill or upskill all its employees for future-fit skillsets by 2025, increase inclusivity and raise living standards across the value chain as part of a global initiative of its parent Unilever.

>> Consumer lending company Bajaj Finance said its net profit declined 29% in the third quarter as loan growth remained weak and the firm had to also reverse some interest income.

>> The Competition Commission of India approved etailer Flipkart’s acquisition of 7.8% stake in Aditya Birla Fashion and Retail

>> Larsen & Toubro on Wednesday said its construction arm has bagged orders worth up to Rs 5,000 crore in Bangladesh

That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye