STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 82 points, or 0.49 per cent, higher at 16,807, signaling that Dalal Street was headed for a positive start on Monday.
- Tech View: Nifty50 on Friday climbed for the fifth straight session. In the process, it topped the 16,700 mark, but formed a ‘Hanging Man’ candle on both daily and weekly charts.
- India VIX: The fear gauge eased up to a per cent to 13.40 level on Friday over its close at 13.54 on Thursday.
Asian stocks mostly higher in early trade
Asian markets mostly were trading higher on Monday, extending rallies on Wall Street after cautious comments from Federal Reserve chief Jerome Powell on a potential withdrawal of its massive easing this year. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.19 per cent.
- Japan’s Nikkei inched up 0.04%
- Korea’s Kospi edged up 0.01%
- Australia’s ASX 200 shed 0.16%
- China’s Shanghai gained 0.10%
- Hong Kong’s Hang Seng taked 0.88%
Wall Street surges after Powell’s speech
Wall Street stocks soared while US Treasury yields fell on Friday after Federal Reserve Chair Jerome Powell indicated the US central bank could begin scaling back its bond buying program by year-end but did not give a firm timeline.
- Dow Jones gained 0.69% to 35,455.80
- S&P 500 added 0.88% to 4,509.37
- Nasdaq soared 1.01% to 15,432.95
Dollar pinned at multi week low
The dollar was nursing losses on Monday and kept near multi-week lows after Federal Reserve Chair Jerome Powell laid out a slower-than-expected path to rate hikes, while a storm lashing oilfields in the Gulf of Mexico lifted oil-exposed currencies.
- Dollar index declined to 92.670
- Euro held moved above $1.1800
- Pound rose over to $1.3764
- Yen crept at 109.78 per dollar
- Yuan gained to 6.4665 against the greenback
Oil rises as Hurricane hits US
Oil prices rose around 1% on Monday after a powerful hurricane ploughed through the Gulf of Mexico. Brent crude was up by 84 cents or 1.2% at $73.54 a barrel by 0001 GMT after gaining more than 11% last week . US oil gained 53 cents or 0.8% at $69.27 a barrel, having jumped a little over 10% over last week.
FPIs sell shares worth Rs 779 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 778.75 crore, data available with NSE suggested. DIIs, also turned buyers to the tune of 1646.19 crore, data suggests. FPIs pumped in a net of just Rs 986 crore in Indian equities during August.
MONEY MARKETS
Rupee: The Indian rupee on Friday rose to a level not seen in over 10 weeks, surging 53 paise to close at 73.69 against the US dollar taking cues from bullish equities ahead of the key speech from US Federal Reserve Chair Jerome Powell.
10-year bonds: India 10-year bond yield marginally 0.05 per cent to 6.25 after trading in 6.24 – 6.28 range.
Call rates: The overnight call money rate weighted average stood at 3.23 per cent on Friday, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO WATCH
- JP Retail Sales JUL (5:20 am)
- EA Economic Sentiment AUG (2:30 pm)
- EA Consumer Confidence Final AUG (2:30 pm)
- EA Consumer Inflation Expectations AUG (2:30 pm)
- US Pending Home Sales JUL (7:30 pm)
- US Dallas Fed Manufacturing Index AUG (8 pm)
- US 3-Month Bill Auction (9 pm)
- US 6-Month Bill Auction (9 pm)
MACROS
Airtel to raise up to Rs 21,000 crore
Bharti Airtel plans to raise up to Rs 21,000 crore by selling shares to existing investors, as India’s No. 2 telecom operator seeks to bolster cash reserves to pay statutory dues, expand and deepen its network and prepare for the auction of 5G airwaves and roll out of the technology. Under the rights offer, shareholders will receive one new share for every 14 shares held at Rs 535 each, the Sunil Mittal-led telecom company said in a note to stock exchanges on Sunday.
Maruti output may fall further
Maruti Suzuki is expected to slash its production plans for September, as lockdowns in Malaysia aggravate the global shortage of semiconductors. The production cut will affect supply of cars to dealerships ahead of the festive season, and customers may have to wait longer to get delivery of the Vitara Brezza, Swift and other models from the company that makes every second passenger vehicle sold in the Indian market.
Container crunch hits exporters
Indian exporters across products — from apparel and agricultural commodities to consumer electronics and furniture — are staring at a slump in exports due to a global shortage of containers, and a resultant jump in freight rates, prompting many to seek government intervention.
High business costs hurting India Inc
Cumbersome procedures at grassroots level and high cost of doing business were key factors suppressing the animal spirits of the private sector in the country, according to a survey among chief executives conducted by industry body Confederation of Indian Industries (CII).
India seeks to double UAE exports
India is looking to double its goods exports to the UAE this fiscal and substantially increase its outbound shipments to the US, the UK, Singapore and Hong Kong as part of its plan to achieve a record $400 billion in merchandise exports this year.
Prices of CNG, PNG hiked
Indraprastha Gas (IGL) has raised the prices of compressed natural gas (CNG) by 90 paise per kg and those of piped natural gas (PNG) used for cooking by Rs 1.25 per standard cubic metre.
