STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 46 points, or 0.26 per cent, higher at 17,421, signaling that Dalal Street was headed for a positive start on Tuesday.
- Tech View: Nifty50 formed a Doji candle on the daily chart, suggesting indecisiveness among market participants.
- India VIX: The fear gauge gained marginally to 14.02 level on Monday over its close at 13.94 on Thursday.
Asian stocks mixed in early trade
Asian markets opened higher but gave up early as investors awaited US inflation data later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.16 per cent.
- Japan’s Nikkei surged 0.81%
- Korea’s Kospi jumped 0.75%
- Australia’s ASX200 slipped 0.121%
- China’s Shanghai tanked 0.65%
- Hong Kong’s Hang Seng shed 0.41%
US stocks settled higher
US Stocks managed to end a wobbly day mostly higher on Wall Street Monday as the market regrouped after its biggest weekly drop since June as investors focused on potential corporate tax hikes and upcoming economic data.
- Dow Jones added 0.76% to 34,869.63
- S&P 500 gained 0.23% to 4,468.73
- Nasdaq slipped 0.07% to 15,105.58
Dollar flat against key currencies
The dollar was little changed against other major currencies on Tuesday as investors looked to US inflation data later in the session for clues on the timing of policy tightening by the Federal Reserve.
- Dollar index gained to 92.662
- Euro moved up to $1.18105
- Pound held stood at $1.3836
- Yen eased little to 110.005 per dollar
- Yuan flat at 6.4507 against the greenback
Oil climbs to six-week high
Oil prices extended gains on Tuesday, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the US industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast. Brent crude rose 15 cents, or 0.2 per cent to $73.66 a barrel. US West Texas Intermediate (WTI) crude also climbed 23 cents, or 0.3 per cent, to $70.68 a barrel, after rising 1.1 per cent on Monday.
FPIs buy shares worth Rs 1,419.31 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 1,419.31 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 559.59 crore, data suggests.
Ami Organics, Vijaya to make D-St debuts
Dalal Street will witness the listing of shares of Ami Organics and Vijaya Diagnostic Center today. The Rs 570-crore IPO of Ami Organics was subscribed by 64.54 times and the company sold its shares in the price band of Rs 603-610 per share. The Rs 1,895 crore IPO of Vijaya Diagnostic’s received 4.54 times subscription for a price band of Rs 522-531.
MONEY MARKETS
Rupee: The Indian rupee fell 18 paise to close at 73.68 (provisional) against the US dollar on Monday, tracking a strong American currency in the overseas market and muted trend in domestic equities.
10-year bond: India 10-year bond increased 0.23 per cent to 6.19 after trading in 6.18-6.20 range.
Call rates: The overnight call money rate weighted average stood at 3.08 per cent, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO WATCH
- IN WPI Fuel YoY AUG (12 pm)
- IN WPI Manufacturing YoY AUG (12 pm)
- IN WPI Food YoY AUG (12 pm)
- IN WPI Inflation YoY AUG (12 pm)
- US Inflation Rate YoY AUG (6 pm)
- US Core Inflation Rate AUG (6 pm)
- US Inflation Rate MoM AUG (6 pm)
- US Redbook YoY 11/SEP (6:25 pm)
- EA ECB McCaul Speech (11:15 pm)
- EA ECB Fernandez-Bollo Speech (3 pm)
- GB Claimant Count Change AUG (11:30 am)
- GB Average Earnings incl. Bonus JUL (11:30 am)
- GN Unemployment Rate JUL (11:30 am)
- AU NAB Business Confidence AUG (7 am)
MACROS
Recovery picks up pace again
Retail inflation cooled more than expected to a four-month low in August, data released on Monday showed, while a private tracker indicated economic recovery picked up pace in September after a brief dip. Retail inflation, as measured by the consumer price index (CPI), eased to 5.3% in August from 5.59% in July, helped by a decline in food inflation to 3.11% from 3.96%. Retail inflation was 6.69% in August last year.
Hiring outlook at 7-yr peak
Job creation is likely to see a strong recovery in the upcoming December quarter, with employers reporting the most optimistic hiring outlook in seven years, expecting pandemic restrictions to ease and demand for products and services to rise, according to a survey.
SIP account additions hit a record
Investors continued to increase exposure through the systematic investment planning (SIP) route in August amid the sustained momentum in the stock market. New SIP account registration hit a record 24.9 lakh in the month, showed the data from the Association of Mutual Funds in India (AMFI).
Benchmark bonds see pick-up in trading
Benchmark 10-year government bonds yet again became the most traded fixed income security on Monday for the first time this fiscal after the central bank appeared to be giving up its resistance for higher yields. Bonds worth Rs 6,630 crore changed hands through 731 trades. The move should help streamline both federal and corporate borrowings.
