STATE OF THE MARKETS
SGX Nifty signals a muted start
Nifty futures on Singapore Exchange traded 5.5 points, or 0.3 per cent, higher at 15,732.50, signaling that Dalal Street was headed for a muted start on Friday.
- Tech View: Nifty50 on Thursday fell for the fourth consecutive session. In the process, it breached its immediate support at the 15,700 level and ended up forming a bearish candle on the daily scale
- India VIX: The fear gauge eased 2 per cent to 12.84 level on Thursday over its close at 13.04 on Wednesday.
Asian markets mixed in early trade
Asian stocks were mixed in Friday’s trade as investors were awaiting the release of US jobs data later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.60 per cent.
- Japan’s Nikkei gained 0.31%
- Korea’s Kospi climbed 0.25%
- Australia’s ASX 200 rose 0.33%
- China’s Shanghai Composite tanked 1.32%
- Hong Kong’s Hang Seng declined 1.27%
S&P500 hits record high for 6th day
The S&P500 index ended at a record for the sixth straight session on Thursday as US stocks continued to rally as the reopening accelerates and economic data generally improves. The second half of the year began with upbeat economic data and a broad-based rally. Investors now eye Friday’s much-anticipated employment report.
- Dow Jones gained 0.38% to 34,633.53
- S&P 500 advanced 0.52% to 4,319.94
- Nasdaq added 0.13% to 14,522.38
Dollar gains further strength
The US dollar was perched at a 15-month high on the yen and at multi-month peaks against other majors on Friday, as traders wagered strong US labour data could lift it even further.
- Dollar index surged to 92.549
- Euro dipped to $1.1843
- Pound shed to $1.3761
- Yen shed to 111.65 per dollar
- Yuan appreciates to 6.474 against the greenback
FPIs sell shares worth Rs 1,245 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1,245.29 crore, data available with NSE suggested. DIIs, turned buyers to the tune of Rs 880.6 crore, data suggests.
MONEY MARKETS
Rupee: The Indian rupee plunged 23 paise to its lowest level at 74.55 against the dollar in over two months on Thursday amid a lackluster trend in domestic equity markets and a continuous rise in crude oil prices.
10-year bond: India 10-year bond yield shed 0.20 per cent to 6.04 after trading in 6.03 – 6.08 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent, according to RBI data. It moved in a range of 1.90-3.50 per cent.
DATA/EVENTS TO WATCH
- India Deposit Growth YoY June 18 (05:00 pm)
- India Foreign Exchange Reserves 25/June (05:00 pm)
- India Bank Loan Growth YoY June 18 (05:00 pm)
- India Balance of Trade Prel June (06:50 pm)
- India Exports/Imports Prel June (06:50 pm)
- Euro Area PPI MoM May (02:30 pm)
- US Balance of Trade May (06:00 pm)
- US Unemployment Rate June (06:00 pm)
- US Imports/Exports May (06:00 pm)
MACROS
Manufacturing shrinks after 11 months
Activity in the country’s manufacturing sector contracted for the first time in 11 months in June as the localised lockdowns against the backdrop of the second wave of Covid hurt demand, a survey showed on Thursday. Registering 48.1 in June, below May’s 50.8, the IHS Mar-kit India Manufacturing Purchasing Managers’ Index (PMI) was below the critical no-change mark of 50 for the first time since July 2020.
RBI says Big Tech threat to financial sector
Entry of the so-called ‘Big Tech’ companies in financial services in emerging markets such as India could present challenges to regulators towards maintaining adequate stability and governance of the ecosystem, the Reserve Bank of India said on Thursday. The central bank flagged monopolistic practices, antitrust issues, cybersecurity risks, and challenges around data privacy as key concerns that could emerge.
Economy rebounding from Covid 2.0 hit
The second wave of the Covid pandemic has dented recovery, but with cases abating rapidly, economic activity has improved since May-end, RBI governor Shaktikanta Das has said. In a foreword to the financial stability report (FSR) released on Thursday, Das said the hit on banks’ balance sheets and performance due to the pandemic has been much less than what was projected earlier.
Auto industry seeing traction again
With Covid cases coming down and lockdown getting lifted in many states, the auto industry started to get traction, with companies such as Maruti, Hyundai and Hero Moto regaining volumes. Maruti, the biggest car-maker, said its passenger vehicle sales in the domestic market stood at 1.24 lakh units in June, against 51,274 units in the same month last year. Just like the first quarter of 2020-21, the same period of this fiscal was also hit by lock-downs over safety precautions. Some of the restrictions were taken away in June as the country started re-opening.
Piramal begins DHFL merger
An executive team headed by Jairam Sridharan of Piramal Retail Finance has been set up on the directions of the NCLT to effect the transfer of Dewan Housing Finance to its acquirer, Piramal Capital and Housing Finance. Khushru Jijina, managing director at PCHFL who has rich experience in corporate finance, is on the committee. “His expertise could be instrumental in dealing in DHFL’s wholesale book,” said a person familiar with the matter.
Voda lenders writes to FinMin to seek relief
A consortium of lenders to Vodafone Idea (Vi) has sought the finance ministry’s intervention to provide some relief to the cashstrapped operator, raising concerns over the telco’s survival amid dwindling cash balances. The company’s shares plunged as much as 15% on the BSE Thursday, ending 8.8% down at Rs 9.07, after it announced a loss of Rs 7,000 crore in the March quarter on Wednesday.
Mittal says telcos should stop “killing each other”
Airtel chief Sunil Mittal said on Thursday that the telecom industry should stop “killing each other”, and consider raising tariffs immediately as they are all “gasping for breath”. Mittal, who is seen as the man who heralded the telecom revolution in the country, said that while the Indian market has seen data and voice usage shoot through the roof, tariffs are still to see any action, leaving the companies in a financial mess.
