Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 115.5 points, or 0.73 per cent, higher at 15,889.5, signaling that Dalal Street was headed for a positive start on Monday.
- Tech View: Nifty50 on Friday formed a smaller bearish candle on the daily chart with a long upper wick, suggesting selling pressure at higher levels.
- India VIX: The fear gauge eased over a per cent to 12.80 level on Friday over its close at 12.94 on Thursday.
Asian stocks trade mostly higher
Most of the Asian shares markets opened higher on Monday in cautious trade with investors eyeing corporate earnings due this week, amidst the rising threat of coronavirus. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.02 per cent.
- Japan’s Nikkei surged 1.67%
- Korea’s Kospi added 0.18%
- Australia’s ASX 200 retreated 0.18%
- China’s Shanghai shed 0.52%
- Hong Kong’s Hang Seng gained 0.14%
US stocks ended lower, S&P logged monthly gains
US stocks fell on Friday, giving up their gains for the week. Worries about the Delta variant of Covid-19 and profit taking offset another round of mostly strong corporate earnings, but the S&P 500 still posted a sixth straight month of gains.
- Dow Jones shed 0.42% to 34,935.47
- S&P 500 declined 0.54% to 4,395.26
- Nasdaq fell 0.71% to 14,672.68
Dollar holds steady in early trade
The dollar held just above a one-month low on Monday as traders held tight positions heading into a busy week that includes monthly U.S. jobs data and a key Australian central bank decision.
- Dollar index steady at 92.091
- Euro flat at $1.18685
- Pound declined up to $1.39005
- Yen slipped to 109.64 per dollar
- Yuan appreciated to 6.462 against the greenback
Oil prices slide below $75 a barrel level
Oil prices fell on Monday on worries over China’s economy after a survey showed factory activity growing at its slowest pace in 17 months in the world’s second-largest oil consumer, concern compounded by a rise in oil output from OPEC producers. Brent crude oil futures skidded 81 cents, or 1%, to $74.60 a barrel while US West Texas Intermediate (WTI) crude futures dropped 69 cents, or 0.9%, to $73.26 a barrel.
FPIs sell shares worth Rs 3848 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 3848.31 crore, data available with NSE suggested. DIIs, turned buyers to the tune of 2956.68 crore, data suggests. FPIs pulled out a net Rs 6,105 crore from the Indian capital markets so far in the ongoing financial year.
Q1 earnings today
HDFC, Punjab National Bank, Varun Beverages, Emami, Castrol India, Carborundum Universal, RBL Bank, CG Power and Industrial Solutions, Balaji Amines, Shree Renuka Sugars, Capri Global Capital, Orient Cement, Kalyani Steels and Nahar Spinning Mills are among the company that will announce quarterly earnings today.
MONEY MARKETS
Rupee: The Indian rupee weakened by 13 paise to close at 74.42 against the US currency on Friday, tracking muted domestic equities and unabated foreign fund outflows.
10-year bond: India’s 10-year bond yield gained 0.10 per cent to 6.2 after trading in 6.19 – 6.23 range.
Call rates: The overnight call money rate (weighted average) stood at 3.18 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.
DATA/EVENT TO WATCH
- Q1 Earnings: HDFC | PNB | Varun Beverages
- IN Balance of Trade Prel JUL (5:50 pm)
- IN Exports Prel JUL (5:50 pm)
- IN Imports Prel JUL (5:50 pm)
- US Markit Manufacturing PMI Final JUL (7:15 pm)
- US Construction Spending MoM JUN (7:30 pm)
- US ISM Manufacturing PMI JUL (7:30 pm)
- EA Markit Manufacturing PMI Final JUL (1:30 pm)
MACROS
GST kitty up by Rs 1.2L cr as eco activity picks up
GST collections rose to Rs 1.16 lakh crore in July as economic activity picked up after lockdown across several states due to the second wave of the pandemic. Latest data released by the finance ministry on Sunday showed that collections rose 33% over a year ago, with revenue from domestic transactions up 32% and from imports being 36% higher. Data for July collections are based on sales in June. Due to the lockdown, collections had dropped below the psychologically important Rs 1-lakh-crore mark.
FPIs pull out Rs 6,105 cr so far in FY22
Foreign portfolio investors (FPIs) pulled out a net Rs 6,105 crore from the Indian capital markets so far in the ongoing financial year amid the pandemic and resultant restrictions in many parts of the country. The equity benchmark BSE Sensex has jumped 3,077.69 points or 6.21% during April-July this fiscal. Reflecting an upbeat sentiment in the market, the benchmark had reached its all-time high of 53,290.81 on July 16, 2021. It closed at its lifetime high of 53,158.85 on July 15.
Car sales remain buoyant in July
As the festive season comes closer, auto companies started stocking up at dealerships and reported a healthy growth in wholesale numbers in July. Except for Hero Moto-Corp, all the other automakers reported strong numbers in July, as companies such as Maruti, Hyundai, Tata Motors and Toyota remain optimistic about demand over the coming months even as there still remains uncertainty over Covid and a possible third wave. Maruti Suzuki, the country’s biggest carmaker, reported a 37% growth in deliveries to dealerships at 1.3 lakh units against nearly 98,000 units in the same month last year
RBI unlikely to tinker with benchmark rates
Downside risks to the RBI’s 9.5% growth projection have ebbed. However, the central bank is expected to keep rates on hold and continue with its accommodative stance in its monetary policy committee (MPC) meeting, which concludes on August 6. According to analysts, the first sign of a decision by the RBI tapering off its accommodative policy would come from tolerance to higher yield in government bond auctions.
July petrol sales top pre-Covid level
India’s petrol consumption topped pre-Covid levels for the first time in 17 months and diesel sales, a key indicator for economic activities, standing just 11% short of the pandemic year in July as the country got back to business after a second wave. Market data for the month shows state-run fuel retailers, who control 90% of the market, sold 3.5% more petrol than the same period of 2019. Diesel consumption also rose to 89% of the pre-pandemic level. Compared to last year, petrol sales were 17% higher and diesel consumption 12%.
India’s Covid cases surge 7.5%
Fresh Covid-19 cases in India registered a week-onweek rise for the first time in 12 weeks since the peak of the second wave in early May, in what could be an early sign of another spike in the pandemic in the country. Currently, however, the surge is mainly restricted to Kerala and, to a much lesser degree, Karnataka and Tamil Nadu. India recorded just over 2.86 lakh new cases in the current week ended Sunday (July 26-August 1), a 7.5% rise from the previous week’s tally of 2.66 lakh. Weekly cases in the country have registered a rise for the first time since May 3-9, when the second wave peaked.
Assam, Mizoram bury hatchet on Shah prod
Six days after the flare-up on the Assam-Mizoram border, in which six Assam cops were killed in firing by Mizoram Police, CMs of the two states buried hostility on Sunday following Union home minister Amit Shah’s intervention and agreed to sit down for talks to resolve the border dispute once and for all. Shah had phone calls with Assam’s Himanta Biswa Sarma and Mizoram’s Zoramthanga separately. Subsequently, Zoramthanga, who is in quarantine, called up Sarma before they went public with their peace moves.
