STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 28 points, or 0.16 per cent, higher at 17,857, signaling that Dalal Street was headed for a positive start on Friday.
- Tech View: Nifty on Thursday formed a bullish candle on the daily chart. Analysts said a breach of the 18,000 level in the coming days is a real possibility, as long as the index stays above the 17,650 level.
- India VIX: The fear gauge rose 0.66 per cent to 16.60 level on Thursday over its close of 16.49 on Wednesday.
Asian stocks fall in early trade
Asian stock markets were trading mostly lower on Friday, as investors nervously await developments on the fate of troubled Chinese property giant Evergande. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.16 per cent.
- Australia’s ASX 200 fell 0.34%
- New Zealand’s DJ shed 0.59%
- Japan’s Nikkei jumped 1.82%
- China’s Shanghai Comp declined 0.12%
- Hong Kong’s Hang Seng dropped 0.55%
US stocks settled higher
Stocks on Wall Street rallied for the second straight day. The rally put the major indices on pace for weekly gains just four days after a broad sell-off handed the S&P500 index its biggest skid since May and knocked the Dow more than 600 points lower.
- Dow Jones surged 1.48% to 34,764.82
- S&P500 climbed 1.21% to 4,448.98
- Nasdaq added 1.04% to 15,052.24
Dollar wallows near one-week low
The dollar wallowed near its lowest level in a week versus major peers on Friday, as improved risk sentiment wiped out recent gains amid easing concerns about contagion from a potential China Evergrande Group default.
- Dollar index fell to 93.068
- Euro gained 0.05% to $1.1743.
- Pound rose 0.07% to $1.3734
- Yen eased to 110.385 per dollar
- Yuan traded at 6.4607 against the greenback
Oil looks set to test 3-year high
Oil prices rose for a fourth day on Friday, taking Brent towards three-year highs, as investors focused on tighter supplies amid strong appetite for riskier assets like crude and high hopes for recovery from the pandemic. Brent crude was up 40 cents, or 0.5 per cent at $77.65 a barrel. US oil was up 27 cents, or 0.4 per cent, at 73.57 a barrel.
DIIs buy worth Rs 1,173 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 357.93 crore, data available with NSE suggested. DIIs were buyers to the tune of Rs 1,173.09 crore, data suggests.
MONEY MARKETS
Rupee: The rupee rebounded by 23 paise to close at 73.64 against the US dollar on Thursday following an improved risk appetite among investors triggered by positive global cues.
10-year bond: India 10-year bond rose 0.03 per cent to 6.140 after trading in 6.123-6.160 range.
Call rates: The overnight call money rate weighted average stood at 3.16 per cent on Thursday, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO
WATCH
- GB CBI Distributive Trades SEP (3:30 pm)
- IN Deposit Growth YoY SEP/10 (5 pm)
- IN Foreign Exchange Reserves 17/SEP (5 pm)
- IN Bank Loan Growth YoY SEP/10 (5 pm)
- GB BoE Tenreyro Speech (6:30 pm)
- US Fed Chair Powell Speech (7:30 pm)
- US Fed Clarida Speech (7:30 pm)
- US Fed Bowman Speech (7:30 pm)
- US New Home Sales AUG (7:30 pm)
MACROS
RBI may taper bond purchases
Traders are seeing hints that India’s central bank is seeking to drain record liquidity from the banking system, another sign that the global flood of pandemic-era easy money may begin to ease. The Reserve Bank of India is increasingly shifting its forex intervention to the forwards market to keep from injecting rupee liquidity, according to traders and economists, including Madhavi Arora of Emkay Global Financial Services Ltd. The monetary authority is also signaling a taper to its outright bond purchases, or even do away with them totally, from next quarter, some of them said.
Auto, gadgets to pinch pockets more
Brace yourself for another round of price hikes in cars, two-wheelers, smartphones, laptops, televisions, refrigerators and air-conditioners. Thanks to an unrelenting increase in input and freight costs, big-ticket consumption items are set for an unprecedented fourth to fifth round of price increases this year, ahead of peak sales time – the festive season. Consumer electronic prices may see a spike of up to 8%, whereas cars and two-wheelers may see a rise of 1-2% in the coming weeks. Cars and two-wheeler prices have seen hikes in instalments of 10-15% on several occasions in the past 12-18 months.
Auto debit rule: ICICI, Axis and HDFC assure continuity of services
Three of India’s largest private lenders – HDFC Bank, ICICI Bank NSE 1.94 % and Axis Bank – said they will meet the Reserve Bank of India’s mandate for recurring payments ahead of the October 1 deadline. The commitment was given by the respective bank spokespersons and communications sent by the lenders to customers.
Kiranas took to apps to shop products worth $4 billion in FY21
Kirana stores ordered nearly $4 billion worth of groceries and daily essentials either from organised cash and carry companies or directly from companies through online apps, circumventing traditional distributors after last-mile delivery was disrupted due to Covid-19 restrictions.
Bookings up in many hotels as India Inc gets moving again
Big-ticket business bookings, conferences and seminars are back at city hotels in India, pushing room rates higher. ITC Windsor in Bengaluru saw a surge in occupancy owing to the India International Jewellery Show organised by The Gem & Jewellery Export Promotion Council in the city last week, while the ITC Royal Bengal in Kolkata recently received delegations from pharmaceutical companies.
