STATE OF THE MARKETS
SGX Nifty signals a flat start
Nifty futures on Singapore Exchange traded merely 4.5 points, or 0.03 per cent, higher at 17,423.50, signaling that Dalal Street was headed for a tepid start on Tuesday.
- Tech View: Nifty50 on Monday ended up forming a ‘Doji’ candle on the daily chart, suggesting indecisiveness among market participants at record highs.
- India VIX: The fear gauge gained over 4 per cent to 15.10 level on Monday over its close at 14.54 on Friday.
Asian stocks mixed in early trade
Asian markets opened mixed on Tuesday, with investors cheered by the prospect of possible new economic stimulus under a future Japanese prime minister. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.13 per cent.
- Japan’s Nikkei rallied 0.80%
- Korea’s Kospi tanked 0.67%
- Australia’s ASX 200 shed 0.39%
- China’s Shanghai gained 0.02%
- Hong Kong’s Hang Seng added 0.15%
US stocks shut on Monday
The US stock markets remained closed on Monday on the account of Labour day. On Friday, Wall Street ended mixed as the Nasdaq ended at a new peak but the other main Wall Street indices fell, reflecting the mixed sentiments.
- Dow Jones shed 0.21% to 35,369.09
- S&P 500 retreated 0.03% to 4,535.43
- Nasdaq added 0.21% to 15,363.52
Dollar nears recent lows
The dollar hovered near recent lows as traders braced for a slew of central bank meetings from Australia to Europe and Canada this week, looking for any signs that they are making progress towards policy normalisation.
- Dollar index slipped to 92.115
- Euro gained to $1.1881
- Pound steady at $1.3848
- Yen firmed to 109.76 per dollar
- Yuan appreciated to 6.4566 against the greenback
Oil wobbles on demand woes
Oil prices were wobbly on Monday as investors grappled with demand concerns after Saudi Arabia’s sharp cuts to crude contract prices for Asia. Brent crude futures for November rose 4 cents, or 0.1 per cent, to $72.26 a barrel. US West Texas Intermediate crude for October was at $68.88 a barrel, down 41 cents, or 0.6 per cent, from Friday’s close, with no settlement price for Monday.
FPIs buy shares worth Rs 589 crore
Net-net, foreign portfolio investors (FPIs) turned net sellers of domestic stocks to the tune of Rs 589.36 crore, data available with NSE suggested. DIIs were buyers of equities to the tune of 547.31 crore, data suggests.
MONEY MARKETS
Rupee: The rupee on Monday declined by 8 paise to close at 73.10 against the US currency mainly due to the dollar’s gains in the global markets.
10-year bond: India’s 10-year bond yield jumped 0.28 per cent to 6.17 after trading in the 6.13 – 6.18 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent on Friday, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO WATCH
- AU RBA Interest Rate Decision (10 am)
- GB Halifax House Price Index AUG (11:30 am)
- EA Employment Change Final Q2 (2:30 pm)
- EA GDP Growth Rate 3rd Est Q2 (2:30 pm)
- US 52-Week Bill Auction (9 pm)
- US 3-Year Note Auction (7:30 pm)
- US 6-Month Bill Auction (7:30 pm)
- JP Leading Economic Index Prel JUL (10:30 am)
- JP Coincident Index Prel JUL (10:30 am)
MACROS
Govt can bring Voda Idea $1b annual relief
A combination of reduced interest on deferred spectrum liability and an interest waiver on its adjusted gross revenue (AGR) dues can garner nearly $1 billion in annual relief for struggling Vodafone Idea (Vi) and boost its chances of survival, BNP Paribas said in a client note. It added that the loss-making telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group would be able to further cut its current Rs 1.9 lakh crore debt burden if the government allows it to surrender unused spectrum in non-priority markets, moves that would help the telco reduce the net present value (NPV) of its overall liabilities and improve future cash flows.
Third-party apps turn on UPI Autopay mode
The National Payments Corporation of India (NPCI) UPI Autopay service, which was launched last year, is gaining traction after a slow start with top merchants such as Netflix and Hotstar signing up. Unified Payments Interface (UPI) apps PhonePe and Google Pay are also in various stages of rollout and testing. The build-up in transaction momentum comes ahead of Reserve Bank of India (RBI) rules for card-based transactions through standing instructions that take effect next month.
Voda, Cairn flag terms for settling retro tax cases
Vodafone Group and Cairn Energy have raised concerns over proposed terms for settling retrospective tax cases that require them to provide declarations from stakeholders that they will not press any claims after the disputes are resolved. The two British companies raised these issues in feedback on draft rules issued by the Central Board of Direct Taxes (CBDT) last month.
India Inc talks to govt to gauge Afghan climate
The Indian industry has approached the government to assess its investments in Afghanistan and take a call on a plan of action — to continue, pull out or wait and watch. Industry groupings have also had talks internally on the matter and are awaiting political clarity.
Treating ESOPs as expense to erode earnings: Lenders
Bankers are either abandoning or cutting down on stock option plans and redrawing compensation for top executives as they shift to deferred bonus payments following the Reserve Bank of India’s diktat to add employee stock ownership plan (ESOP) as expenses in the profit and loss account.
