Tag: Asian stocks

Global equity rally pauses as bonds hold surge, BFSI News, ET BFSI

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Asian stocks dipped Friday and US futures were steady as a global equity rally paused. Sovereign bonds held gains after investors scaled back expectations for monetary-policy tightening to quell inflation.

Shares fell in Japan and Hong Kong, where developer Kaisa Group Holdings Ltd. and its Hong Kong-listed units were suspended from trading in the latest sign of stress from China’s troubled property sector. S&P 500, Nasdaq 100 and European futures fluctuated after tech shares led Wall Street to a record high.

Treasuries and the dollar held a climb. A surprise Bank of England move to hold interest rates spurred a global surge in bonds as investors reviewed the outlook for borrowing costs. Interest-rate futures had priced in two quarter-point Federal Reserve increases in 2022 but shifted the second one toward 2023. Jerome Powell this week said the Fed can be patient on hikes.

Crude oil advanced. Saudi Arabia and its OPEC+ allies rebuffed US President Joe Biden’s pleas for a large production boost. That leaves Biden with the option of tapping the US strategic reserve.

The focus turns to the US jobs report due Friday since the level of progress on employment could shift views on monetary policy again, heralding further volatility in the bond market. Stocks are riding out such gyrations so far: solid US earnings appear to have reassured investors that the economic recovery can weather pandemic-related supply chain and labor disruptions.

“You have to stay away from bonds at the moment,” Nancy Tengler, chief investment officer at Laffer Tengler Investments, said on Bloomberg Television. While there is a “little bit of a rally going on” in fixed income, “it’s difficult to see a way clear to make a lot of money, especially when real rates are negative,” she said.

Elsewhere, Australia’s central bank in a quarterly update of forecasts dismissed the prospect of a rate increase in the next 12 months, further pushing back against market expectations of a tightening cycle starting next year.

Meanwhile, China’s government bonds were set for their biggest weekly advance since July after the nation’s central bank increased its injection of short-term cash.

The latest US data showed unemployment benefits fell to the lowest since March 2020. Friday’s employment report is forecast to show nonfarm payrolls rose by 450,000 in October. Traders are likely to watch out for wages growth.

“The narrative around wage growth and very strong job creation suggests to me we are nowhere out of the woods in seeing higher bond yields going into next year,” Sean Darby, chief global equity strategist at Jefferies, said on Bloomberg Television.



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SGX Nifty down 80 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic stocks look set to kick off the week on a negative note, tracking negative cues from other Asian markets. Dollar strengthened against major currencies while crude prices added to the recent gains. All eyes were on the domestic CPI inflation data scheduled for later in the day. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a negative start
Nifty futures on Singapore Exchange traded 83 points, or 0.48 per cent, lower at 17,357.50, signaling that Dalal Street was headed for a negative start on Monday.

  • Tech View: Nifty50 on Thursday formed a small bullish candle on the daily scale and an indecisive Doji on the weekly scale, suggesting a pause in the ongoing trend.
  • India VIX: The fear gauge eased over 3 per cent to 13.94 level on Thursday over its close at 14.41 on Wednesday.

Asian stocks drop in early trade
Asian markets opened mostly lower on Monday as investors sought to lock in profits following recent rallies, with losses on Wall Street also weighing on the market. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.977 per cent.

  • Japan’s Nikkei dropped 0.22%
  • Korea’s Kospi declined 0.19%
  • Australia’s ASX 200 gained 0.18%
  • China’s Shanghai added 0.20%
  • Hong Kong’s Hang Seng tanked 1.6%

US stocks settled lower on Friday
Wall Street ended sharply lower on Friday as investors weighed signs of higher inflation, while Apple Inc tumbled following an unfavorable court ruling related to its app store. US producer prices rose solidly in August.

  • Dow Jones tanked 0.78% to 34,607.72
  • S&P 500 declined 0.77% to 4,458.58
  • Nasdaq plunged 0.87% to 15,115.49

Dollar finds footing ahead of inflation data
The dollar began a week full of big economic data on a firm footing, with investors wary of the Federal Reserve beginning its exit from super-supportive policy even as cases of the coronavirus surge.

  • Dollar index gained to 92.662
  • Euro steady at $1.1810
  • Pound stands at $1.3834
  • Yen little changed to 109.91 per dollar
  • Yuan moved to 6.4424 against the greenback

Oil climbs to one-week high
Oil prices climbed on Monday to a one-week high as concerns over US supplies following damage from Hurricane Ida supported the market, with expectations for high demand. Brent crude rose 48 cents, or 0.7 per cent to $73.40 a barrel, and US West Texas Intermediate (WTI) crude added 49 cents, or 0.7 per cent, to $70.21 a barrel.FPIs sell shares worth Rs 423 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 423.44 crore, data available with NSE suggested. DIIs were buyers to the tune of 704.21 crore, data suggests. FPIs pumped in a net sum of Rs 7,605 crore in September so far.

MONEY MARKETS

Rupee: The rupee snapped its three-day losing streak to close 10 paise higher at 73.50 against the US dollar on Thursday following recovery in the domestic equities and losses in the dollar in overseas markets ahead of the European Central Bank’s policy meeting.

10-year bond: India 10-year bond yield eased 0.16 per cent to 6.17 after trading in 6.16 – 6.18 range.

Call rates: The overnight call money rate weighted average stood at 3.08 per cent on Thursday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • IN Inflation Rate YoY AUG (5:30 pm)
  • AU Consumer Inflation Expectations SEP (6:30 am)
  • US Consumer Inflation Expectations AUG (8:30 pm)
  • US 3-Month Bill Auction (9 pm)
  • US 6-Month Bill Auction (9 pm)
  • US Monthly Budget Statement AUG (11:30 pm)

MACROS

New RBI rules on foreign investment irks HNIs
Wealthy Indians will find it virtually impossible to bet on foreign startups, fintech firms, overseas venture capital funds and similar offshore unlisted entities once a new rule proposed by the Reserve Bank of India (RBI) comes into force. Since more than a decade, local high net worth individuals (HNIs) and ultra-HNIs have been buying properties, securities — listed as well as unlisted — and units of global funds by transferring funds under the central bank’s liberalised remittance scheme (LRS) which allows a person to invest a maximum of $250,000 a year.

Zomato scrapped grocery plans for 2nd time
Food delivery platform Zomato has scrapped its grocery delivery plans for the second time in two years, saying that it expects its investment in Grofers to generate better outcomes for shareholders than an inhouse grocery business. Zomato had launched a pilot in July for 45-minute grocery delivery service in a few markets, starting with the National Capital Region. It operated on a marketplace model, allowing users to order directly from local stores. The pilot will end on September 17.

Exchanges plan ad blitz for festival crypto gold rush
In this festive season, crypto exchanges will woo users to invest in bitcoin as an alternative to gold. To tap into the festive season that began with Ganesh Chaturthi on Friday, Indian crypto exchanges are ramping up hiring, and planning product launches and large-scale advertising campaigns to add new retail investors.

Retro tax settlement: Government may issue rules this week
The government is likely to issue rules on settling retrospective tax cases this week after evaluating feedback from companies on the draft norms, a senior official said. The Centre is hopeful of a quick settlement of cases as the companies have indicated a willingness to indemnify the government against any future claims.

India Inc doling out higher increments
India Inc employers who have their appraisal cycle payouts in the June-August period have given out significantly higher increments to employees in 2021, compared to what they did last year during the first Covid-19 wave.

Relief for account holders at banks under moratorium
About Rs 10,000 crore of depositors’ money in banks under Reserve Bank of India (RBI) moratorium — such as the Punjab and Maharashtra Cooperative (PMC) Bank and Guru Raghavendra Sahakara Bank — will be payable to eligible customers by November end, under the recently-notified Deposit Insurance and Credit Guarantee Corporation (Amendment) Act.



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SGX Nifty up 45 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic indices look set to open on a positive note on Wednesday. But indecisiveness among market participants at highs may keep any such gains capped. Asian markets are largely mixed as the dollar hovered near a week’s high level. US stocks closed mostly lower in overnight trade. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a positive start
Nifty futures on Singapore Exchange traded 46.5 points, or 0.27 per cent, higher at 17,425.50, signaling that Dalal Street was headed for a positive start on Wednesday.

  • Tech View: Nifty50 on Tuesday snapped a three-day winning run and formed an indecisive candle on the daily scale, the second time in a row, suggesting a halt in the positive momentum.
  • India VIX: The fear gauge gained eased over a per cent to 14.90 level on Tuesday over its close at 15.10 on Monday.

Asian stocks mixed in early trade
Asian markets opened mixed on Wednesday as investors sought to lock in profits after recent rallies and US Stock settled mixed after an extended weekend. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.11 per cent.

  • Japan’s Nikkei gained 0.45%
  • Korea’s Kospi shed 0.17%
  • Australia’s ASX 200 tanked 0.31%
  • China’s Shanghai edged up 0.02%
  • Hong Kong’s Hang Seng added 0.29%

US stocks closed mostly lower
The S&P500 index closed lower while the Nasdaq Composite edged higher to a record high, as investors balanced worries about the slowing pace of economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy.

  • Dow Jones declined 0.76% to 35,100
  • S&P 500 shed 0.34% to 4,520.03
  • Nasdaq added 0.07% to 15,374.33

Dollar near one-week high
The dollar hovered near a one-week peak on Wednesday against major peers, buoyed by higher Treasury yields and a weaker euro amid caution before a European Central Bank policy decision.

  • Dollar index held at 92.553
  • Euro flat at $1.1843
  • Pound slipped to $1.3783
  • Yen declined to 110.28 per dollar
  • Yuan depreciated to 6.463 against the greenback

FPIs sell shares worth Rs 145 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 145.45 crore, data available with NSE suggested. DIIs were net sellers of Rs 136.57 crore worth equities, data suggests.

MONEY MARKETS
Rupee: The rupee plunged by 32 paise to close at a more than one-week low of 73.42 against the US currency on Tuesday due to dollar buying by corporates and importers and the greenback’s gain in overseas markets.

10-year bond: India 10-year bond yield jumped 0.36 per cent to 6.19 after trading in 6.17 – 6.20 range.

Call rates: The overnight call money rate weighted average stood at 3.15 per cent on Tuesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • JP Current Account JUL (5:20 am)
  • JP GDP Growth Rate QoQ Final Q2 (5:20 am)
  • JP GDP Price Index YoY Final Q2 (5:20 am)
  • AU RBA Chart Pack (7 am)
  • AU RBA Debelle Speech (1:40 pm)
  • US MBA 30-Year Mortgage Rate 03/SEP (4:30 pm)
  • US MBA Mortgage Applications 03/SEP (4:30 pm)
  • US Redbook YoY 04/SEP (6:25 pm)
  • US 10-Year Note Auction (10:30 pm)

MACROS

DoT moots 4-yr moratorium on AGR, spectrum payments
The telecom department (DoT) has proposed a four-year moratorium on adjusted gross revenue (AGR) and spectrum payments apart from a reduction in spectrum usage charge (SUC) prospectively, among measures to improve the health of the debt-laden sector and retain a three-private player market.

Sebi wants T+1 settlement for trades
The Securities and Exchange Board of India has proposed a ‘trade-plus-one’ (T+1) settlement cycle from January 1, where the trades will get settled the day after the transaction. Initially, exchanges can pick stocks where they want to offer the next-day settlement. Under T+1, the buyer would get shares in the demat account and the seller the sale proceeds the day after the trade.

Cheaper smartphones could fire up Jio ARPU
After a sluggish movement since March, the stock of Reliance Industries (RIL) has gained nearly 18% within a month ahead of the company’s launch of affordable smartphones on September 10. Nearly a quarter of the total smartphones are priced below Rs 7,500 per unit. This may help the company to reach the 500 million subscriber base by FY24 and improve ARPU by 10-15%. India’s largest company by revenue and market capitalisation is slated to launch an entry level smartphone priced between Rs 5,000 and Rs 7,500 in partnership with Google.

Probe into PSB frauds on hold
Investigations into alleged fraud caused to public sector banks totalling over Rs 50,000 crore have been put in abeyance by the Central Bureau of Investigation (CBI) for want of general consent from states. Of these, complaints over Rs 20,000 crore are from Maharashtra alone, ET reported. Claiming vendetta by the Centre, eight states ruled by non-NDA parties including Maharashtra, West Bengal, Chhattisgarh, Mizoram, Kerala, Rajasthan and Punjab in the last one year have withdrawn general consent accorded to the CBI under the Delhi Special Police Establishment Act to probe cases in their jurisdictions.

Rocky start for Bitcoin as legal tender
El Salvador faced a rocky transition in its adoption of Bitcoin as legal tender on Tuesday. The government’s app for facilitating transactions — its “digital wallet” — went offline temporarily, protesters took to the streets of the capital to denounce the move, and the price of Bitcoin dropped sharply, demonstrating the volatility of the cryptocurrency market. The country is the first to use Bitcoin as an official currency, encouraging businesses and citizens to use it in everyday transactions, and authorities struggled to smooth out glitches in the new system.



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SGX Nifty up 5 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic indices look set to take a breather on Tuesday after hitting record highs for three straight sessions. Technical charts are sending tepid signals while cues from Asian markets are also mixed as US markets were shut overnight on account of a public holiday. Dollar quoted near its recent lows while weak demand dragged crude prices lower. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on Singapore Exchange traded merely 4.5 points, or 0.03 per cent, higher at 17,423.50, signaling that Dalal Street was headed for a tepid start on Tuesday.

  • Tech View: Nifty50 on Monday ended up forming a ‘Doji’ candle on the daily chart, suggesting indecisiveness among market participants at record highs.
  • India VIX: The fear gauge gained over 4 per cent to 15.10 level on Monday over its close at 14.54 on Friday.

Asian stocks mixed in early trade
Asian markets opened mixed on Tuesday, with investors cheered by the prospect of possible new economic stimulus under a future Japanese prime minister. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.13 per cent.

  • Japan’s Nikkei rallied 0.80%
  • Korea’s Kospi tanked 0.67%
  • Australia’s ASX 200 shed 0.39%
  • China’s Shanghai gained 0.02%
  • Hong Kong’s Hang Seng added 0.15%

US stocks shut on Monday
The US stock markets remained closed on Monday on the account of Labour day. On Friday, Wall Street ended mixed as the Nasdaq ended at a new peak but the other main Wall Street indices fell, reflecting the mixed sentiments.

  • 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 nears recent lows
The dollar hovered near recent lows as traders braced for a slew of central bank meetings from Australia to Europe and Canada this week, looking for any signs that they are making progress towards policy normalisation.

  • Dollar index slipped to 92.115
  • Euro gained to $1.1881
  • Pound steady at $1.3848
  • Yen firmed to 109.76 per dollar
  • Yuan appreciated to 6.4566 against the greenback

Oil wobbles on demand woes
Oil prices were wobbly on Monday as investors grappled with demand concerns after Saudi Arabia’s sharp cuts to crude contract prices for Asia. Brent crude futures for November rose 4 cents, or 0.1 per cent, to $72.26 a barrel. US West Texas Intermediate crude for October was at $68.88 a barrel, down 41 cents, or 0.6 per cent, from Friday’s close, with no settlement price for Monday.FPIs buy shares worth Rs 589 crore
Net-net, foreign portfolio investors (FPIs) turned net sellers of domestic stocks to the tune of Rs 589.36 crore, data available with NSE suggested. DIIs were buyers of equities to the tune of 547.31 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Monday declined by 8 paise to close at 73.10 against the US currency mainly due to the dollar’s gains in the global markets.

10-year bond: India’s 10-year bond yield jumped 0.28 per cent to 6.17 after trading in the 6.13 – 6.18 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

  • AU RBA Interest Rate Decision (10 am)
  • GB Halifax House Price Index AUG (11:30 am)
  • EA Employment Change Final Q2 (2:30 pm)
  • EA GDP Growth Rate 3rd Est Q2 (2:30 pm)
  • US 52-Week Bill Auction (9 pm)
  • US 3-Year Note Auction (7:30 pm)
  • US 6-Month Bill Auction (7:30 pm)
  • JP Leading Economic Index Prel JUL (10:30 am)
  • JP Coincident Index Prel JUL (10:30 am)

MACROS

Govt can bring Voda Idea $1b annual relief
A combination of reduced interest on deferred spectrum liability and an interest waiver on its adjusted gross revenue (AGR) dues can garner nearly $1 billion in annual relief for struggling Vodafone Idea (Vi) and boost its chances of survival, BNP Paribas said in a client note. It added that the loss-making telecom JV between UK’s Vodafone Plc and India’s Aditya Birla Group would be able to further cut its current Rs 1.9 lakh crore debt burden if the government allows it to surrender unused spectrum in non-priority markets, moves that would help the telco reduce the net present value (NPV) of its overall liabilities and improve future cash flows.

Third-party apps turn on UPI Autopay mode
The National Payments Corporation of India (NPCI) UPI Autopay service, which was launched last year, is gaining traction after a slow start with top merchants such as Netflix and Hotstar signing up. Unified Payments Interface (UPI) apps PhonePe and Google Pay are also in various stages of rollout and testing. The build-up in transaction momentum comes ahead of Reserve Bank of India (RBI) rules for card-based transactions through standing instructions that take effect next month.

Voda, Cairn flag terms for settling retro tax cases
Vodafone Group and Cairn Energy have raised concerns over proposed terms for settling retrospective tax cases that require them to provide declarations from stakeholders that they will not press any claims after the disputes are resolved. The two British companies raised these issues in feedback on draft rules issued by the Central Board of Direct Taxes (CBDT) last month.

India Inc talks to govt to gauge Afghan climate
The Indian industry has approached the government to assess its investments in Afghanistan and take a call on a plan of action — to continue, pull out or wait and watch. Industry groupings have also had talks internally on the matter and are awaiting political clarity.

Treating ESOPs as expense to erode earnings: Lenders
Bankers are either abandoning or cutting down on stock option plans and redrawing compensation for top executives as they shift to deferred bonus payments following the Reserve Bank of India’s diktat to add employee stock ownership plan (ESOP) as expenses in the profit and loss account.



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SGX Nifty up 40 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

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Domestic stocks are likely to kick off the new week on a flat note amid a lack of directional cues from peer markets. Asian stocks were largely mixed on Monday morning, tracking a flat close for Wall Street on Friday. Oil was trading lower whereas the dollar was quoting near a month’s low. Here’s breaking down the pre-market actions:

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.



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SGX Nifty up 5 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

Personal Finance

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Domestic stocks are likely to open on a muted note on Friday, ahead of a crucial US jobs data scheduled for later in the day. Asian stocks were trading mixed while US stocks closed marginally higher overnight. The dollar was trading near a one-month low level. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange traded 3.5 points, or 0.02 per cent, higher at 17,256, signaling that Dalal Street was headed for a muted start on Friday.

  • Tech View: Nifty50 on Thursday formed a bullish candle on the daily chart and made a higher high-low formation for the fourth successive day, suggesting more gains ahead for the index.
  • India VIX: The fear gauge gained marginally to 14.24 level on Thursday over its close at 14.18 on Wednesday.

Asian stocks mixed in early trade
Asian markets opened mixed on Friday as investors took heart from US rallies with investors looking ahead to US job data due later in the day. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.21 per cent.

  • Japan’s Nikkei gained 0.33%
  • Korea’s Kospi jumped 0.47%
  • Australia’s ASX 200 added 0.50%
  • China’s Shanghai dropped 0.22%
  • Hong Kong’s Hang Seng tanked 0.91%

US stocks ended higher
The S&P500 index and Nasdaq Composite squeaked to record highs as Wall Street’s main indices all ended Thursday in positive territory, with higher commodity prices helping energy names recover ground and the latest jobs data leaving investors unfazed from existing positions.

  • Dow Jones gained 0.37% to 35,443.82
  • S&P 500 jumped 0.28% to 4,536.95
  • Nasdaq added 0.14% to 15,331.18

Dollar nears one-month low level
The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus.

  • Dollar index slipped to 92.193
  • Euro edged up to $1.1878
  • Pound gained to $1.3844
  • Yen held at 109.915 per dollar
  • Yuan at to 6.4587 against the greenback

FPIs buy shares worth Rs 349 cr
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 348.52 crore, data available with NSE suggested. DIIs were buyers to the tune of Rs 381.7 crore, data suggests.

MONEY MARKETS
Rupee: The domestic currency settled with a marginal gain of 2 paise at 73.06 (provisional) against the US dollar on Thursday despite a sustained rally in domestic equities.

10-year bond: India’s 10-year bond yield declined 0.45 per cent to 6.17 after trading in 6.17 – 6.21 range.

Call rates: The overnight call money rate weighted average stood at 3.19 per cent on Wednesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • IN Markit Composite PMI AUG (10:30 am)
  • IN Markit Services PMI AUG (10:30 am)
  • IN Foreign Exchange Reserves 27/AUG (5 pm)
  • US Non Farm Payrolls AUG (6 pm)
  • US Unemployment Rate AUG (6 pm)
  • US Average Weekly Hours AUG (6 pm)
  • US Average Hourly Earnings YoY AUG (6 pm)
  • US Markit Services PMI Final AUG (7:15 pm)
  • US Markit Composite PMI Final AUG (7:15 pm)
  • EA Retail Sales MoM JUL (2:30 pm)
  • EA Retail Sales YoY JUL (2:30 pm)
  • EA Markit Services PMI Final AUG (1:30 pm)
  • EA Markit Composite PMI Final AUG (1:30 pm)

MACROS

FMCG, electronic sales down
Sales of groceries, essentials, smartphones and electronics in August fell sharply, especially in the second half of the month after pent-up demand fizzled out post the Independence weekend sale season.

Rupee regains 72 level on bond issues, inflows
Similar to the equities market, the gain in the rupee has been sharp and sudden with an appreciation of 1.5% in five trading sessions. Dealers said that the domestic currency was buoyed by positive sentiment in the equities market.

Crypto will be a commodity
The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalise virtual currencies on the basis of their use cases, ET reported. Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case — payments, investment or utility.

No immediate trigger for gold
An astounding bull run in local equity markets amid the Covid-19 pandemic has taken the shine off gold — historically, one of the most in-demand assets during a crisis. Portfolio managers say there is no immediate trigger for a spike in gold prices and the yellow metal should ideally be not more than 10% in one’s investment portfolio as the economy is showing signs of recovery.

ICRA revises steel sector outlook
Indian steel industry’s consolidated borrowings are at their lowest levels since March 2012, said ICRA. The rating company has also revised the steel sector’s outlook to ‘positive’ from stable on account of better-than-expected performance of India’s top steelmakers in the first quarter ending June.



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SGX Nifty up 10 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

Personal Finance

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Domestic stocks are likely to open on a tepid note on Thursday amid a lack of directional cues from global markets. Asian peers were trading mostly higher in morning trade. Wall Street stocks settled mixed. The dollar was trading around a multi-week low ahead of US jobs data while oil prices declined on concerns over rising supply. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on Singapore Exchange traded 10 points, or 0.06 per cent, higher at 17,109.50, signaling that Dalal Street was headed for a tepid start on Thursday.

  • Tech View: Nifty50 on Wednesday formed a bearish candle on the daily scale. Analysts said the index is likely to see short-term consolidation and advised traders to buy on dips.
  • India VIX: The fear gauge eased over 2 per cent to 14.18 level on Wednesday over its close at 14.52 on Tuesday.

Asian stocks gain in early trade
Asian markets opened mostly higher on Thursday in cautious trade after a mixed close on Wall Street, with investors looking ahead to US jobs data due this week. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.28 per cent.

  • Japan’s Nikkei added 0.05%
  • China’s Shanghai gained 0.15%
  • Hong Kong’s Hang Seng up 0.86%
  • Korea’s Kospi declined 0.52%
  • Australia’s ASX200 shed 1.06%

US stocks settled mixed
The Nasdaq closed Wednesday at a record high, with the S&P 500 ending near its previous peak, as September kicked off with renewed buying of technology stocks and private payrolls data, which supported the case for dovish monetary policy.

  • Dow Jones shed 0.14% to 35,312.53
  • S&P500 inched up 0.03% to 4,524.09
  • Nasdaq zoomed 0.33% to 15,309.38

Dollar hovers at multi-week low
The dollar loitered around multi-week lows on Thursday, pressured by softer-than-expected US labour data as traders awaited a fuller jobs readout, which is expected to guide the timing of Federal Reserve’s pullback in bond buying.

  • Dollar index fell to 92.497
  • Euro gained to $1.1857
  • Pound edged up to $1.3770
  • Yen rose to 109.97 per dollar
  • Yuan at 6.4613 against the greenback

Oil falls as OPEC+ sticks to raising supply
Oil prices fell on Thursday after OPEC+ agreed to keep its policy of gradually returning supply to the market at a time when coronavirus cases around the world are surging and many US refiners, a key source of crude demand, remained offline. Brent crude was down by 52 cents, or 0.7 per cent, at $71.07 a barrel. US oil fell 56 cents, or 0.8 per cent, to $68.03 a barrel.FPIs buy shares worth Rs 667 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 666.66 crore, data available with NSE suggested. DIIs were sellers to the tune of Rs 1,287.87 crore, data suggests.

MONEY MARKETS

Rupee: The rupee snapped its four-session winning run to close 8 paise lower at 73.08 against the US dollar on Wednesday as muted domestic equities and a strengthening greenback overseas weighed on the market sentiment.

10-year bond: India 10-year bond yield eased 0.26 per cent to 6.20 after trading in 6.20 – 6.23 range.

Call rates: The overnight call money rate weighted average stood at 3.18 per cent on Wednesday, according to RBI data. It moved in a range of 2.00-3.40 per cent.

DATA/EVENTS TO WATCH

  • IN Balance of Trade Prel AUG (5:50 am)
  • IN Exports Prel AUG (5:50 am)
  • IN Imports Prel AUG (5:50 am)
  • AU Balance of Trade JUL (7 am)
  • AU Home Loans MoM JUL (7 am)
  • AU Imports MoM JUL (7 am)
  • US Balance of Trade JUL (6 pm)
  • US Nonfarm Productivity QoQ Final Q2 (6 pm)
  • US Initial Jobless Claims 28/AUG (6 pm)
  • US Jobless Claims 4-week Average AUG/28 (6 pm)
  • US Continuing Jobless Claims 21/AUG (6 pm)
  • US Factory Orders MoM JUL (7:30 pm)

MACROS

Economic recovery on track
India’s economic recovery remained on track in August with goods and services tax (GST) collections staying in excess of Rs 1 lakh crore while automakers sold more cars than in the year earlier despite a semiconductor and parts shortage. Petrol and diesel demand increased 14% and 16%, respectively, the railways carried 16.9% more freight and electricity demand rose 18.6%, suggesting greater movement of goods and people in the just concluded month.

Confusion over crypto tax
The tax department as well as investors are in a quandary over how to calculate gains on cryptocurrency for taxation purposes, especially since tax laws flounder and conflict against certain regulations and tax is calculated on the value declared by the assessee. The main problem for taxation is that there is no clarity on what cryptocurrencies are. That is, whether they are currency, asset, commodity or something else. Till that is articulated, investors and traders will be able to get around taxation. The other problem is that tax rates may also differ for someone who is an investor and someone who trades for a living.

Sebi plans norms for digital gold trades
The Securities and Exchange Board of India (Sebi) plans to regulate online trades in digital gold now sold by various fintech firms and brokerages, two people with direct knowledge of the matter told ET. The capital-markets watchdog is seeking to fill the regulatory vacuum in an asset class that’s becoming increasingly popular with new-age investors.

RBI to set up panel on NUE licences
The Reserve Bank of India (RBI) will set up a committee to scrutinise applications and give recommendations on new umbrella entity (NUE) licences, ET reported. NUEs will establish their own payment infrastructure to compete with National Payments Corp. of India (NPCI).



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SGX Nifty up 10 points; here’s what changed for market while you were sleeping, BFSI News, ET BFSI

Personal Finance

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After back-to-back record closings, domestic stocks may take a breather on Wednesday. Asian stocks were trading lower in early trade, tracking a fall in US stocks overnight. Dollar was hovering near a three-week low. At home, all eyes were on the two mainboard IPOs opening today. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a flat start
Nifty futures on the Singapore Exchange traded 12 points, or 0.07 per cent, higher at 17,137.50, signaling that Dalal Street was headed for a muted start on Wednesday.

  • Tech View: Nifty50 on Tuesday took out the 17,100 level in style but analysts said the index could take a breather near 17,000 level after seven days of relentless buying.
  • India VIX: The fear gauge jumped over 9 per cent to 14.52 level on Tuesday over its close at 13.32 on Monday.

Asian stocks mostly lower in early trade
Asian markets opened mostly lower Wednesday following falls on Wall Street overnight as investors shifted their focus to US employment data. Barring Japan, mostly Asian markets were trading in the red. MSCI’s broadest index of Asia-Pacific shares outside Japan was down by 0.39 per cent.

  • Japan’s Nikkei jumped 0.83%
  • Korea’s Kospi declined 0.20%
  • Australia’s ASX 200 shed 0.60%
  • China’s Shanghai slipped 0.03%
  • Hong Kong’s Hang Seng fell 0.32%

US stocks ended lower after choppy trade
Wall Street finished marginally lower on Tuesday, although the slightly subdued ending to August failed to detract from a strong monthly performance by its three main indexes, in what is traditionally regarded as a quiet period for equities.

  • Dow Jones shed 0.11% to 35,360.73
  • S&P 500 declined 0.13% to 4,522.68
  • Nasdaq retreated 0.04% to 15,259.24

Dollar nears three weeks low
The dollar traded near its lowest point in nearly three weeks versus major peers on Wednesday, with investors focused on a key US jobs report due on Friday for clues on when the Federal Reserve might begin paring stimulus.

  • Dollar index steady at 92.751
  • Euro gained to $1.18015
  • Pound edged up to $1.3756
  • Yen slipped to 110.18 per dollar
  • Yuan gained to 6.4626 against the greenback

FPIs buy shares worth Rs 3881 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 3881.16 crore, data available with NSE suggested. DIIs, turned sellers to the tune of 1872.4 crore, data suggests.

Two IPOs to open today
The Rs 1,895.04 crore IPO by diagnostics chain Vijaya Diagnostic Centre will be sold in Rs 522-531 price band while the Rs 570 crore IPO by speciality chemical maker Ami Organics will be sold in Rs 603-610 band. Both the issues will close on Friday, September 3.

MONEY MARKETS

Rupee: The rupee strengthened further by 29 paise to close at a nearly 12-week high of 73.00 against the US dollar on Tuesday, marking its fourth straight session of gain following a firm trend in domestic equities and foreign fund inflows.

10-year bond: India 10-year bond yield eased 0.16 per cent to 6.22 after trading in 6.21 – 6.23 range.

Call rates: The overnight call money rate weighted average stood at 3.21 per cent on Tuesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • IN Markit Manufacturing PMI AUG (10:30 am)
  • US Markit Manufacturing PMI Final AUG (7:15 am)
  • US Construction Spending MoM JUL (7:30 am)
  • EA Unemployment Rate JUL (2:30 pm)
  • EA Markit Manufacturing PMI Final AUG (1:30 pm)
  • GB Markit/CIPS Manufacturing PMI Final AUG (2 pm)
  • GB Nationwide Housing Prices AUG (11:30 am)
  • CN Caixin Manufacturing PMI AUG (7:15 am)
  • AU GDP Growth Rate QoQ Q2 (7 am)
  • AU GDP Capital Expenditure QoQ Q2 (7 am)

MACROS

Q1 GDP grows 20.1% on low base effect
India’s economy expanded at its fastest ever in the June quarter, helped by the low base of the year-earlier record contraction and a strong rebound in manufacturing and construction, data released on Tuesday showed.

Fiscal deficit at 9-year low
Fiscal deficit narrowed to a nine-year low of 21.3% of annual budget estimate as of July end at Rs 3.21 lakh crore, helped by a rise in revenues and decline in non-interest revenue expenditure, official data showed on Tuesday.

13 million plus jabs given in a day
India administered a record 13.1 million Covid vaccines on Tuesday with Bihar alone inoculating over 2.3 million. This is the second instance of daily jabs crossing 10 million in August.

India’s valuation premium at decade-high
The valuation premium of Indian equities compared with emerging market counterparts has risen to a decade high. According to Bloomberg data, the MSCI India index, a measure used by global fund managers to gauge the performance of Indian equities denominated in dollar terms, trades at 80% premium to the MSCI EM index, which represents the emerging market (EM) equities.

Supply chains under stress
Discounts and consumer promotion offers on cars, smartphones, televisions, laptops and refrigerators will be among the lowest ever in the upcoming festive season. Manufacturers expect demand to outstrip supply as they scramble to improve inventory levels amid component shortages and skyrocketing freight rates. Executives of several leading brands said discounts have moderated since July-August and were low even during the Independence Day sales.

Maruti likely to make 60% fewer cars this month
The country’s largest carmaker Maruti Suzuki on Tuesday said production across the company’s facilities in Haryana and at contract manufacturing unit Suzuki Motor Gujarat (SMG) is likely to be 40% of normal levels in September due to chip shortage. Owing to a supply constraint of electronic components due to the shortage of semiconductors, the company expects an adverse impact on vehicle production in September, the company told the bourses.



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