STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 79.5 points, or 0.43 per cent, higher at 18,565.50, signaling that Dalal Street was headed for a positive start on Tuesday.
- Tech View: Nifty50 on Monday saw a gap-up start. But unlike the recent bullish candles, the index ended up forming a Doji-like candle on the daily chart, suggesting traders have turned indecisive above the 18,500 level.
- India VIX: The fear gauge climbed 9 per cent to 17.18 level on Monday over its close at 16.10 level on Thursday.
Asian shares gain in early trade
Major Asian shares opened higher on Tuesday after Wall Street ended mostly up and with investors awaiting corporate earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.48 per cent.
- Japan’s Nikkei advanced 0.45%
- South Korea’s Kospi soared 0.51%
- Australia’s ASX 200 added 0.25%
- China’s Shanghai jumped 0.18%
- Hong Kong’s Hang Seng gained 0.20%
US stocks settled mixed
US stocks wobbled to a mixed finish on Wall Street as the market’s momentum slowed down following its best week since July. The S&P500 index and the Nasdaq Composite closed higher with boosts from the highest-profile technology and communications companies.
- Dow Jones shed 0.10% at 35,258.61
- S&P 500 gained 0.34% to 4,486.46
- Nasdaq jumped 0.84% to 15,021.81
Dollar softens, nears recent low
The dollar languished near the bottom of its recent range against major peers on Tuesday, knocked back by weak US factory data overnight and on market wagers of faster normalisation of monetary policy in other countries.
- Dollar Index declined to 93.894
- Euro advanced to $1.16205
- Pound edged up to $1.37455
- Yen was little changed at 114.275 per dollar
- Yuan appreciated to 6.4299 against the greenback
FPIs buy shares worth Rs 512 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 512.44 crore, data available with NSE suggested. DIIs were net sellers to the tune of 1703.87 crore, data suggests.
Q2 earnings today
Hindustan Unilever, Nestle India, ICICI Prudential Life Insurance, L&T Technology Services, ACC, ICICI Securities, Navin Fluorine International, DCM Shriram, Jubilant Ingrevia, Tata Steel BSL, Sonata Software and Network 18 Media & Investment are among the companies that will announce their September quarter results today.
MONEY MARKETS
Rupee: The rupee ended 9 paise lower at 75.35 against the US dollar on Monday, tracking a stronger greenback against key rivals overseas and rising global crude oil prices.
10-year bond: India 10-year bond rose 0.93 per cent to 6.38 after trading in 6.35 – 6.39 range.
DATA/EVENTS TO WATCH
- Q2 Results: HUL | Nestle | ACC | Mastek | L&T Tech
- AU RBA Meeting Minutes (7 am)
- EA Construction Output YoY AUG (2:30 pm)
- EA ECB Elderson Speech (4:40 pm)
- EA ECB Panetta Speech (5:30 pm)
- GB BoE Gov Bailey Speech (5:35 pm)
- US Housing Starts SEP (6 pm)
- US Building Permits SEP (6 pm)
- EA ECB Lane Speech (7:30 pm)
- US Fed Daly Speech (8:30 pm)
- US Fed Bowman Speech (10:45 pm)
MACROS
Economy coming out of Covid shadow: RBI paper
The Indian economy is picking up, leaving behind the shadow of the pandemic as consumer demand improves and supply constraints ease due to strong kharif agricultural production and revival in manufacturing and services. Also softer food prices are aligning headline inflation closer to the target of 5.3 per cent for FY’22.
FMCG sales set for double-digit rise in Q2
Sales at large fast-moving consumer goods (FMCG) companies such as Hindustan Unilever (HUL), Nestle, Marico, Tata Consumer, Dabur and Godrej Consumer are expected to have risen at double-digit pace in the September quarter due to recoveries in key segments like packaged foods and personal care as well as higher rural demand.
Tax deal to hurt Indians who moved trusts to UAE
Several rich Indians who moved family trusts and holding entities to Dubai and Abu Dhabi amid the Covid-19 pandemic are now reaching out to their advisers fearing additional taxes, following the new global tax deal of the Organisation for Economic Co-operation and Development (OECD) and UAE’s plans to introduce more taxes.
Chip woes slow carmakers in festive lap
Passenger vehicle makers could lose 250,000-450,000 units in sales, dragging down annual volumes in this calendar year, with the shortage of semiconductors severely disrupting production at leading manufacturers in the past few months.
Coal crisis is easing
The coal stock situation at thermal power projects seems to be inching towards normalcy as the number of non-pit head projects having less than four days of coal (supercritical stock) reduced to 61 on Sunday from 70 a week ago, government data showed.
