STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 39 points, or 0.22 per cent, higher at 17,398.50, signaling that Dalal Street was headed for a positive start on Monday.
- Tech View: Nifty50 on Friday index formed a bullish candle on the daily chart. Analysts said bulls have shown no sign of weakness and a higher targets of 17,500 and 17,700 are possible.
- India VIX: The fear gauge gained over 2 per cent to 14.54 level on Friday over its close at 14.24 on Thursday.
Asian stocks mixed in early trade
Asian markets opened mixed on Monday with investor focus shifting to Japanese politics after Prime Minister Yoshihide Suga said he would not stand for re-election. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.11 per cent.
- Japan’s Nikkei rallied 1.77%
- Korea’s Kospi added 0.03%
- Australia’s ASX 200 shed 0.62%
- China’s Shanghai gained 0.34%
- Hong Kong’s Hang Seng tanked 0.42%
US stocks closed mostly lower on Friday
The Nasdaq ended Friday at a new peak but the other main Wall Street indexes fell, reflecting the mixed sentiment stemming from a disappointing US jobs report which raised fears about the pace of economic recovery but weakened the argument for near-term tapering.
- 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 trades near one-month low
The dollar languished near a one-month low against major peers on Monday, as investors pushed back expectations for when the Federal Reserve will begin tapering its massive stimulus.
- Dollar index held at 92.155
- Euro little changed at $1.18775
- Pound gained to $1.3861
- Yen moved to 109.79 per dollar
- Yuan at 6.4587 against the greenback
Oil extends losses after Saudi price cut
Oil prices extended losses on Monday after the world’s top exporter Saudi Arabia slashed crude prices for Asia over the weekend, signalling that global markets are well supplied. Brent crude futures for November fell 57 cents, or 0.8 per cent, to $72.04 a barrel while US West Texas Intermediate crude for October was at $68.73 a barrel, down 56 cents, or 0.8 per cent.
FPIs buy shares worth Rs 769 crore
Net-net, foreign portfolio investors (FPIs) bought Rs 768.58 crore worth of equities on Friday, taking their total August inflows to Rs 16,459 crore. DIIs bought Rs 668.60 crore worth equities on Friday, data suggests.
MONEY MARKETS
Rupee: The Indian rupee settled with a marginal gain of 4 paise at 73.02 against the US dollar on Friday, even as the domestic equities continued their record-setting spree.
10-year bond: India 10-year bond yield declined 0.24 per cent to 6.16 after trading in 6.15 – 6.19 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
- GB BoE Saunders Speech (1 pm)
- GB New Car Sales YoY AUG (1:30 pm)
- GB Construction PMI AUG (2 pm)
- AU ANZ Job Advertisements MoM AUG (7 am)
- EA Construction PMI AUG (1 pm)
MACROS
Brookfield to sell toll road platform
Six years after setting up a platform for its toll road assets, Brookfield Asset Management is looking to cash out. The Canadian asset manager aims to sell Peak Infrastructure, valuing the vehicle at Rs 8,700 crore ($1.2 billion) inclusive of debt, to cash in on the prevailing valuation uptick of similar assets, said people aware of the development.
Delay in legislation on crypto boosts lobbying
The delay in the government finalising the legislation on cryptocurrency has prompted intense lobbying, with agencies worried over the risks emanating from an unregulated segment with extreme price volatility, posing a threat to investors, many of whom do not understand the instrument.
Textile exporters in a bind over Afghan crisis
Textile traders in Surat are worried over pending payments of about Rs 4,000 crore from Afghanistan which have got stuck with the Taliban taking control of the country. Afghanistan’s central bank has instructed the commercial banks not to allow corporate bank account holders to withdraw money for any purpose or to carry out any electronic transaction inside or outside of Afghanistan.
Emerging market currencies in a sweet spot
Central banks in developing nations will take center stage this week as assurances that the Federal Reserve is in no hurry to raise interest rates lay the groundwork for an extended rally in emerging market currencies.
Global banks want a bigger share of India’s ESG pie
Global banks are ramping up financing options for ESG (environmental, social and governance) compliant loans and bonds in India amid increasing environmental and social consciousness, a large pool of global funds waiting to invest in these securities and a big opportunity for such projects in the country.
