STATE OF THE MARKETS
SGX Nifty signals a flat start
Nifty futures on Singapore Exchange traded 4.5 points, or 0.03 per cent, lower at 15,869.50, signaling that Dalal Street was headed for a flat start on Tuesday.
- Tech View: Nifty50 on Monday faced selling pressure from the word go, as it ended up forming a Bearish Belt Hold candle on the daily chart.
- India VIX: The fear gauge inched up marginally to 13.40 level on Monday over its close at 13.37 on Friday.
Asian markets lower in early trade
Asian stocks opened lower in subdued trade after a mixed close on Wall Street, with an increasing threat of delta variant and eyes shifting to key US economic indicators due later this week. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.20 per cent.
- Japan’s Nikkei shed 0.86%
- Korea’s Kospi declined 0.35%
- Australia’s ASX 200 tanked 0.81%
- China’s Shanghai Composite slipped 0.27%
- Hong Kong’s Hang Seng retreated 0.19%
US shares ended mixed
The Nasdaq and S&P 500 each finished at records Monday on the continued resurgence of technology shares as investors expect a robust earnings season, while weakness in financial and industrial equities left the Dow lower.
- Dow Jones shed 0.44% to 34,283.27
- S&P 500 gained 0.23% to 4,290.61
- Nasdaq soared 0.98% to 14,500.51
Dollar little changed
The US dollar was little changed to slightly higher on Monday, with investors mostly cautious ahead of Friday’s US non-farm payrolls report that could dictate the direction of the Federal Reserve’s monetary policy.
- Dollar index inched up to 91.828
- Euro slipped to $1.1929
- Pound gained to $1.3915
- Yen stands to 110.705 per dollar
- Yuan at 6.4603 against the greenback
Crude oil prices fall for 2nd day
Oil prices slipped for a second day on Tuesday on worries about slower fuel demand growth as outbreaks of the highly contagious COVID-19 variant Delta sparked new mobility restrictions around the world. U.S. West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.2%, to $72.77 a barrel, extending a 1.5% loss. Brent crude futures dipped 10 cents, or 0.1%, to $74.58 a barrel, after sliding 2%.
Q4 earnings today
General Insurance Corporation of India, Indian Railway Catering and Tourism Corporation, Indian Railway Finance Corporation, Ruchi Soya Industries, NBCC (India), EID Parry, Finolex Cables, Suzlon Energy, KRBL, Angel Broking and Rail Vikas Nigam are among the companies that will announce their March quarter results today.
FPIs sell shares worth Rs 1,659 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1,658.72 crore, data available with NSE suggested. DIIs, turned buyers to the tune of Rs 1,277.08 crore, data suggests.
MONEY MARKETS
Rupee: The rupee inched up 1 paisa to settle at 74.19 against the US dollar on Monday amid firm crude oil prices and a lacklustre trend in domestic equities.
10-year bond: India 10-year bond yield jumped 0.46 per cent to 6.6 after trading in 6.03 – 6.09 range.
DATA/EVENTS TO WATCH
- UK Nationwide Housing Prices YoY June (11:30 am)
- UK Nationwide Housing Prices MoM June (11.30 am)
- UK Car Production YoY May (01:30 pm)
- UK Mortgage Approvals May (02:00 pm)
- UK BoE Consumer Credit May (02:00 pm)
- Euro Area Consumer Confidence Final June (02:30 pm)
- Euro Area Economic Sentiment June (02:30 pm)
- US House Price Index YoY April (06:30 pm)
- ECB President Lagarde Speech (07:10 pm)
MACROS
FM unveils fresh stimulus for Covid-hit sectors
Finance minister Nirmala Sitharaman on Monday announced a fresh set of measures to provide relief to a string of Covid-hit sectors, such as tourism and small businesses, apart from steps to boost health infrastructure, both in the private and public sector. Her announcements were a mix of expansion of existing steps, such as increasing the size of the Emergency Credit Line Guarantee Scheme from Rs 3 lakh crore to Rs 4.5 lakh crore as the limit was being reached, and fresh measures.
Fiscal impact of new relief measures less than 1%
The fiscal impact of the relief measures announced by finance minister Nirmala Sitharaman was likely to be less than1% of gross domestic product (GDP), experts have said. Sitharaman announced a host of relief measures on Monday, targeting various sectors of the economy, some of which included fresh public spending while others were measures that were either previously announced or budgeted for.
Activity in stock futures gains traction
With Indian stock market hovering around record highs, activity in the stock futures segment is also gaining momentum. Traders are piling on positions in futures contracts on insurers, metals, capital goods and oil & gas shares. Reliance Industries could see further correction in share price while Apollo Hospitals Enterprise is expected to surge 8-10% more in the near-term.
MSCI warns India over FPI curbs
Global index provider MSCI, whose indices are tracked by $1.2 trillion worth of exchangetraded funds(ETF) worldwide, has warned five countries including India, China and Brazil against restricting the “availability of investment instruments” to foreign investors. This could potentially lead to a downgrade in market classification, it said in the MSCI Global Market Accessibility Review 2021 released last week.
SAT stays Sebi order on Templeton
The Securities Appellate Tribunal (SAT) on Monday stayed a Sebi order that had barred Franklin Templeton Mutual Fund (FT MF) from launching any new debt scheme for two years, a decision that is related to the fund house’s April 2020 decision to close down six debt schemes. Sebi had also asked FT MF to refund investment management and advisory fees of about two years prior to closure decision, aggregating Rs 512 crore. Relating to this order of Sebi, SAT asked the fund house to deposit Rs 250 crore in an escrow account.
RIL cooking up a deal with Adnoc
RIL and Abu Dhabi National Oil Co (Adnoc), state-run oil company of the UAE, have finalised an agreement for a petrochemical joint venture one and a half years after signing a broad framework agreement. Mukesh Ambani’s flagship RIL will be investing $1.2-1.5 billion in a factory to produce ethylene dichloride, located next to Adnoc’s integrated refining and petrochemicals site in Ruwais — the biggest such complex in West Asia. Adnoc is expected to make a similar investment.
