STATE OF THE MARKETS
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 14.5 point, or 0.08 per cent, higher at 18,159, signaling that Dalal Street was headed for a muted start on Monday.
- Tech View: Nifty50 on Friday fell for the fourth straight session. The index formed a bearish candle on the daily and weekly charts. But while the index has been making lower high-low on the daily chart, it formed a higher high-low pattern on the weekly scale.
- India VIX: The fear gauge eased 3 per cent to 17.54 level on Friday over its close 18.04 on Thursday.
Asian shares trade mixed
Asian shares opened mostly lower before giving out mixed cues on Monday as investors await corporate earnings and Japan’s upcoming general election. MSCI’s index of Asia-Pacific shares outside Japan shed 0.13 per cent.
- Japan’s Nikkei declined 0.71%
- South Korea’s Kospi added 0.14%
- Australia’s ASX 200 gained 0.53%
- China’s Shanghai gave up 0.12%
- Hong Kong’s Hang Seng fell 0.35%
Stocks end mixed on Wall Street
Wall Street capped a choppy day of trading Friday with an uneven finish for the major stock indexes, as losses for several large technology companies weighed on the market. Investors turned skittish as Federal Reserve Chair Jerome Powell discussed stimulus tapering.
- Dow Jones added 0.21% at 35,677.02
- S&P 500 eased 0.11% to 4,544.90
- Nasdaq declined 0.82% to 15,090.20
Dollar steadies
The dollar steadied on Monday after its steepest weekly loss in more than a month, as traders weigh the effect of inflation on the relative pace of looming rate hikes – with a wary eye on U.S. growth data and a European Central Bank meeting.
- Dollar Index moved up to 93.625
- Euro inched lower to $1.1643
- Pound moved up to $1.3772
- Yen was holding at 113.54 per dollar
- Yuan was flat at 6.385 against the greenback
Oil prices rise in tight market
Oil prices rose on Monday, extending pre-weekend gains, with U.S. crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps. Brent crude futures climbed 26 cents, or 0.3%, to $85.79 a barrel at 0048 GMT U.S. West Texas Intermediate (WTI) crude futures rose 48 cents, or 0.6%, to $84.24 a barrel.
FPIs sell shares worth Rs 2,698 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 2,697.7 crore, data available with NSE suggested. DIIs turned net buyers to the tune of 1029.97 crore, data suggests. From equities, FPIs took out Rs 2,331 crore, thus far.
Q2 earnings
Tech Mahindra, Indus Towers, SRF, HDFC Asset Management Company, Coforge, Colgate Palmolive, Icra, Kansai Nerolac Paints, The Ramco Cements, Aditya Birla Sun Life AMC, Home First Finance Company India, CEAT and CSB Bank are among the companies that will announce their September quarter results today.
MONEY MARKETS
Rupee: The rupee edged marginally lower by 3 paise to settle at 74.90 against the US currency on Friday, weighed down by a muted trend in domestic equities and firm crude oil prices.
10-year bonds: India 10-year bond jumped 0.41 per cent to 6.36 after trading in 6.34 – 6.37 range on Friday.
Call rates: The overnight call money rate weighted average stood at 3.33 per cent on Friday, according to RBI data. It moved in a range of 2.00-3.45 per cent.
DATA/EVENTS TO WATCH
- Q2 Results: Tech Mahindra | Indus Towers | HDFC AMC
- JP Leading Economic Index Final AUG (10:30 am)
- JP Coincident Index Final AUG (10:30 am)
- US Chicago Fed National Activity Index SEP (6 pm)
- GB BoE Tenreyro Speech (6:30 pm)
- US Dallas Fed Manufacturing Index OCT (8 pm)
MACROS
Electronics, handsets short of Diwali demand
Demand has outstripped supply just before the crucial Diwali shopping period for premium consumer electronics and smartphones with several popular models vanishing from the market.
Panel for National Employment Policy soon
The government will soon set up a committee to frame India’s first National Employment Policy with an aim to significantly push up employment generation in the country.
IMD orange alert for four Kerala districts
The India Meteorological Department on Sunday issued an orange alert to four districts of Kerala for October 26 and a yellow alert to other districts for Monday. The orange alert denotes rainfall of 6-20 cm while a yellow alert means 6-11 cm of heavy rains.
China warns of further spread in Covid flare-up
China’s latest COVID-19 outbreak is increasingly likely to spread further, a health official said on Sunday, as authorities urged all regions to step up monitoring and called for a reduction in travel across provinces.
