STATE OF THE MARKETS
SGX Nifty signals a muted start
Nifty futures on Singapore Exchange-traded 25 points, or 0.15 per cent, lower at 16,247, signaling that Dalal Street was headed for a muted start on Tuesday.
- Tech View: Nifty50 on Monday formed an indecisive Doji-like candle on the daily chart, suggesting indecision in the market. Analysts advised buy on dips.
- India VIX: The fear gauge eased marginally to 12.60 level on Monday over its close at 12.61 on Friday.
Asian stocks mixed in early trade
Asian shares opened higher but were trading mixed on Tuesday amid mixed cues globally. Stocks in Japan opened higher after a day’s break. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.28 per cent.
- Japan’s Nikkei gained 0.73%
- Korea’s Kospi declined 0.62%
- Australia’s ASX 200 added 0.16%
- China’s Shanghai fell 0.19%
- Hong Kong’s Hang Seng shed 0.32%
US stocks ended mostly lower
US stocks ended a wobbly day mostly lower on Wall Street Monday, with energy companies logging some of the biggest losses as oil prices took another turn lower. S&P 500 dipped on Monday, as fuel demand worries during a resurgent pandemic.
- Dow Jones shed 0.30% to 35,101.85
- S&P 500 declined 0.09% to 4,432.35
- Nasdaq gained 0.16% to 14,860.18
Dollar rises in early trade
The dollar was buoyant in early Tuesday trade as a run of strong US job figures solidified expectations the US Federal Reserve could soon start tapering its massive coronavirus-driven stimulus.
- Dollar index rose to 92.963
- Euro slipped to $1.1732
- Pound fell to $1.3846
- Yen declined to 110.38 per dollar
- Yuan lowered to 6.4845 against the greenback
Oil recovers from 3-week low levels
Oil prices rose on Tuesday, edging up from a three-week low in the previous session, but gains are likely to be limited on worries that rising COVID-19 cases and restrictions in China will dent fuel demand. Brent crude was up by 30 cents, or 0.4%, at $69.34 a barrel, after falling 2.3% on Monday. US oil was up by 43 cents, or 0.7, at $66.91 a barrel.
FPIs buy shares worth Rs 212 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 211.91 crore, data available with NSE suggested. DIIs were sellers to the tune of Rs 716.15 crore, data suggests.
Q1 earnings today
Power
, Zomato, Coal India, Siemens, , Lupin, Jindal Steel & Power, Max Financial Services, Trent, Max Healthcare Institute, Whirlpool of India, , Computer Age Management Services are among the companies that will announce quarterly earnings today.
2 IPOs to kick off today
The specialty chemical producer Sanmar Chemplast and south-based home loan provider Aptus Value Housing Finance are all set to hit Indian primary markets today. The former will sell its shares in the fixed range of Rs 530-541 apiece to raise Rs 3,850 crore, whereas the latter will raise Rs 2,780 crore selling its shares in range of Rs 346-353 per shares. Both issues are open till Wednesday.
MONEY MARKETS
Rupee: Halting its five-session winning run, the rupee on Monday declined by 11 paise to close at 74.26 against the US dollar, tracking the firm American currency.
10-year bond: India 10-year bond yield declined 0.21 per cent to 6.22 after trading in 6.21 – 6.24 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: Zomato | Coal India | Power Grid | Motherson Sumi
- US Nonfarm Productivity QoQ Prel Q2 (6 pm)
- US Redbook (6:25 pm)
- US NY Fed Treasury Purchases (8 pm)
- US 52-Week Bill Auction (9 pm)
- US 3-Year Note Auction (9 pm)
- UK 10-Year Treasury Gilt Auction (3:15 pm)
- EA ZEW Economic Sentiment Index AUG (2:30 pm)
- JP Eco Watchers Survey JUL (10:30 am)
MACROS
SAT gives split verdict in PNBHF case
The Securities Appellate Tribunal on Monday gave a split verdict on PNB Housing Finance’s petition, which challenged the market regulator’s stay on the mortgage lender’s proposal for a preferential issue of shares to private equity funds. Since there is a difference of opinion within the two-member bench, the SAT said its interim order would continue to be in force till further orders. The tribunal in its June 21 interim ruling had asked PNB Housing to go ahead with its extraordinary general meeting to seek shareholder approval for the share issue to funds led by the Carlyle Group, but not release the voting results.
Voda open to settling retro tax row
Vodafone Group is planning to settle the dispute over retrospective application of tax on transfer of assets, following the Indian government moving to scrap the provision, four people close to the development told ET. This could end the decade old tax dispute between the British telecom company and the Indian government. Vodafone will apply to the Indian government after the framework for settling such disputes is announced in the coming weeks, according to the people cited above.
SC won’t quash CCI probe into Amazon
The Supreme Court on Monday refused to quash an investigation by India’s monopolies watchdog into alleged anti-competitive practices by ecommerce companies Amazon and Flipkart. On July 23, a division bench of the Karnataka High Court dismissed petitions by both etailers to quash the probe by the Competition Commission of India (CCI), whose director-general (DG) investigates such complaints.
Lenders hike rates IPO loan rates up to 9-10%
Rich investors looking to borrow and invest in the upcoming initial public offerings will have to shell out higher costs for such loans. With the spate of recent issues resulting in money getting locked up and funded bets made on the last two offerings resulting in losses, finance companies have increased rates by as much as 200 basis points or 2% for IPO loans.
5 lenders in race for Citi India’s retail biz
Four top local lenders, including HDFC Bank and Kotak Mahindra Bank, and the Singapore-based DBS Bank have emerged as the top five contenders to take over Citi India’s estimated $2-billion retail business, highlighting the competitive intensity for a portfolio built around credit cards, mortgages, wealth management and deposits. Two top banking sources told ET that Axis Bank and IndusInd Bank are also in contention, and the shortlist could soon be pruned to three from five
NFO rush makes July inflows in equity MFs highest
Equity mutual funds in July received the highest monthly flows in 27 months as continued strength in the market encouraged retail investors to pour more money into these products. Flows into equity schemes in July was ₹22,583 crore, nearly four times the inflows of ₹5,988 crore in June and the highest since April 2019 — when the industry body changed the reporting format. New fund offers contributed nearly half of the flows during the month.
