STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on Singapore Exchange traded 36 points, or 0.22 per cent, lower at 16,232.50, signaling that Dalal Street was headed for a negative start on Monday.
- Tech View: On Friday, Nifty50 formed an Inside Bar pattern on the daily chart after facing stiff resistance at 16,300 level, suggesting that the bulls are getting tired after the recent rally.
- India VIX: The fear gauge eased over 2 per cent to 12.61 level on Friday over its close at 12.87 on Thursday.
Asian stocks mixed in early trade
Asian shares wobbled on Monday amid sharp losses in gold and oil prices, while the dollar held near four-month highs. Holidays in Tokyo and Singapore made for thin trading conditions. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.36 per cent.
- New Zealand’s DJ inched up 0.05%
- Korea’s Kospi shed 0.08%
- Australia’s ASX 200 gained 0.10%
- China’s Shanghai declined 0.32%
- Hong Kong’s Hang Seng jumped 0.61%
US stocks ended mixed
US stocks ended mixed on Friday as a positive jobs report drove, but a parallel rise in Treasury yields signaled a downside. The good news could push the Federal Reserve to curtail its massive stimulus policies faster than expected.
- Dow Jones gained 0.41% to 35,208.51
- S&P 500 added 0.17% to 4,436.52
- Nasdaq shed 0.40% to 14,835.76
Dollar hits four-month high
The dollar climbed against major peers on Monday and hit a four-month high against the euro, as traders positioned for an earlier tapering of Federal Reserve stimulus.
- Dollar index rose to 92.915
- Euro slipped to $1.1742
- Pound fell to $1.3855
- Yen declined to 110.29 per dollar
- Yuan flat to 6.4819 against the greenback
Oil slumps on China travel curbs
Oil prices dropped 2 per cent on Monday, extending last week’s steep losses on the back of a rising US dollar and concerns over new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand. Brent crude futures slid $1.41, or 2 per cent, to $69.29 a barrel. US West Texas Intermediate (WTI) crude futures fell $1.32, or 1.9 per cent, to $66.96 a barrel,
DIIs buy shares worth Rs 631 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 69.37 crore, data available with NSE suggested. DIIs were buyers to the tune of Rs 631 crore, data suggests.
Q1 earnings today
Shree Cements, MRF, Gujarat State Petronet, Clean Science & Technology, Indian Hotels Company, Timken India, AstraZeneca Pharma India, Balrampur Chini Mills, Laxmi Organics Industries, Tata Investment Corporation and
are among the company that will announce quarterly earnings today.
Rolex Rings to list today
The auto parts manufacturer is likely to make its Dalal street debut today. The Rs 731 crore IPO saw a strong demand from investors, subscribed over 130 times during 28-30 July. The company sold its shares in the range of Rs 880-900. The company is expected to deliver strong listing gains, according to the grey market.
Nuvoco, CarTrade IPOs to kick off today
IPOs of online auto classified platform CarTrade Tech and cement maker Nuvoco Vistas are open today. The former will sell its shares in the range of Rs 1,585-1,618 apiece and will raise Rs 2,998.51 crore while the latter will raise Rs 5,000 crore selling its shares in a range of Rs 560-570 per share. Both issues are open till Wednesday.
SGB scheme’s 5th tranche to open today
The fifth tranche of sovereign gold bonds (SGB) scheme 2021-22 will open on Monday, with the issue price set at Rs 4,790 per gram of gold. For investors applying online and paying through digital mode, a discount of Rs 50 per gram (Rs 4,740 per gram) is announced. Gold prices have seen some correction and analysts said a fall below Rs 46,500 per 10 grams could lead to more weakness in the short term. But investors looking to buy SGBs for the long-term should not get concerned about it, they said.
MONEY MARKETS
Rupee: The Indian rupee on Friday secured its fifth gain in a row and settled at 74.15 against the US dollar after the Reserve Bank came out with policy rates in line with market expectations and focused on economic recovery.
10-year bond: India 10-year bond yield jumped 0.43 per cent to 6.23 after trading in 6.21 – 6.26 range.
Call rates: The overnight call money rate weighted average stood at 3.13 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.
DATA/EVENTS TO WATCH
- Q1 Earnings: MRF | Shree Cements | IHCL | Clean Science and Tech
- US JOLTs Job Openings JUN (7:30 pm)
- US NY Fed Treasury Purchases 10 to 22.5 yrs (8 pm)
- US Consumer Inflation Expectations JUL (8:30 pm)
- US 3-Month/6-Month Bill Auction (9 pm)
- DE Balance of Trade JUN (11:30 am)
- CN Inflation Rate YoY/MoM JUL (7 am)
MACROS
JSPL accepts revised offer for power arm
Naveen Jindal-led Jindal Steel and Power (JSPL) has accepted a revised binding offer of ₹7,401 crore from one of its promoter group companies, Worldone Private Limited, to divest its 96.42% stake in key subsidiary Jindal Power. “Jindal Steel & Power Limited’s board has accepted the revised binding offer from Worldone Private Limited (“Acquirer”), to divest its 96.42% stake in Jindal Power Limited,” the company said in a media statement.
Double taxation sword hangs over Big Tech
Big technology firms fear India’s equalisation levy, combined with similar digital tax regulations in countries such as the UK and France, will lead to double taxation, industry insiders said. Some of the Big Tech companies are working to create additional structures or tech infrastructure that can potentially block certain jurisdiction-based content or advertising to avoid tax complications, they said.
Amazon picks US model for grocery delivery
Amazon India is enabling pickups from More retail outlets for its online grocery orders. This comes at a time when the e-grocery space is witnessing intense competition among Tatas-owned BigBasket, Walmart-owned Flipkart, Grofers, and Reliance Industries’ JioMart battling for bigger chunks of the market. The US-based e-tailer is doing in India what it has done with Whole Foods in the United States, where a consumer can order on Amazon Fresh online and pick it up from the nearest Whole Foods store in select cities. In 2017, Amazon acquired Whole Foods for over $13 billion.
7 cos in race to advise on IDBI stake sale
Seven international firms, including some of the big four global consultancies, have been shortlisted for the appointment of transaction adviser in the IDBI Bank stake sale process. Deloitte Touche Tohmatsu India, EY, KPMG, JM Financial, ICICI Securities, RBSA Capital Advisors and SBI Capital Markets are in the fray, according to a notice issued by the department of investment and public asset management (DIPAM).
Adverse arbitral rulings spurred Retro Tax erasure
The adverse verdict in the international arbitration case on retrospective tax filed by Vodafone Group last year got policymakers thinking that India needed to bite the bullet and bury the controversial provision to send out a strong signal to global investors, said people aware of the matter. Another setback in the arbitration case filed by Cairn Energy in December 2020 gave further impetus to the idea, they said, adding that an hour-long presentation to Prime Minister Narendra Modi sometime in June clinched the matter.
Vi lenders say converting debt to equity an option
Converting the debt of cash-strapped Vodafone Idea (Vi) to equity is one option to get out of the precarious position banks are in, lenders led by State Bank of India (SBI) have said, concerned over their exposure to the telecom operator. At a meeting with the telecom department on Friday to discuss the stress in the sector, the lenders, however, said that since Vodafone Idea had not defaulted on its debts so far, they cannot take any action yet.
