Markets

SGX Nifty down 50 points; here’s what changed for market while you were sleeping

NEW DELHI: A host of Nifty50 earnings may keep investors busy on Friday amid weakness seen across Asian markets after a rise in US jobless claims spooked Wall Street overnight. Here’s breaking down the pre-market actions.

STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 50.50 points, or 0.45 per cent lower at 11,177.50, in signs that Dalal Street was headed for a negative start on Friday.

Tech view: Nifty faces hurdles at higher levels
The 50-pack index made a higher highs and lows, even though Thursday’s intraday high of 11,238 was just a fraction higher than Wednesday’s high of 11,238. The consolidation range of 10,900-11,250 for the index has remained intact. Analysts said supports are moving higher gradually, but Nifty is facing hurdles at higher levels.

Asian stocks open lower
Financial markets in Japan are closed on Friday for a public holiday.Hong Kong’s Hang Seng fell 0.88 per cent, or 222.24 points, to 25,040.76. China’s Shanghai Composite index shed 0.62 per cent, or 20.75 points, to 3,304.36, while the Shenzhen Composite index on China’s second exchange eased 0.81 per cent, or 18.33 points, to 2,232.59.

US stocks drop as tech shares lag
US stocks fell as a decline in major tech shares weighed on the market.On Thursday, the Dow Jones Industrial Average decreased 353.51 points, or 1.31 per cent, to close at 26,652.33. The S&P 500 was down 40.36 points, or 1.23 per cent, to 3,235.66. The Nasdaq Composite Index shed 244.71 points, or 2.29 per cent, to 10,461.42.

Oil rises on weaker dollar
Oil edged up on Friday as the dollar fell to an almost two-year low, although demand concerns stemming from rising coronavirus cases and US-China tensions kept a lid on prices.The dollar slid to 22-month lows against a basket of currencies. A weaker dollar usually spurs buying of commodities priced in the greenback, like oil, because they become cheaper for holders of other currencies. Brent crude rose 15 cents, or 0.4 per cent, to $ 43.46 a barrel.

Q1 earnings today
Asian Paints, Zee Entertainment, ITC, JSW Steel, Ambuja Cements, Coromandel International and Crompton Greaves Consumer Electricals are among companies scheduled to announce their June quarter earnings on Friday.

Gold heads for best week in 3 months
Gold held steady on Friday en route to its best week in more than three months, driven by an escalation in US-China tensions, with investors also looking for a hedge against possible inflation as hopes for more stimulus measures grow. Spot gold was little changed at $ 1,885.62 per ounce, after hitting its highest since September 2011 at $ 1,897.16 on Thursday. US gold futures eased 0.3 per cent to $ 1,884.60.

FIIs buy Rs 1,741 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,740.50
crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 931.91 crore, data suggests.

MONEY MARKETS
Rupee: The rupee gave up day’s gains to settle on a flat note at 74.75 against the US dollar on Thursday amid concerns over growing tensions between the US and China.

10-year bonds: India 10-year bond yield fell 0.15 per cent to 5.80 after trading in 5.80-5.82 range.

Call rates: The overnight call money rate weighted average stood at 3.48 per cent, according to RBI data. It moved in a range of 1.80-4.10 per cent.

DATA/EVENTS TO WATCH

  • Ambuja Cement I Asian Paint I Atul I ITC I ZEE
  • Britain June Retail Sales (11.30 am)
  • EU Markit Manufacturing PMI Flash July (01.30 pm)
  • RBI Forex Reserves as of July 17 (05.00 pm)
  • US Markit Services PMI Flash July (07.15 pm)
  • US June New Home Sales (07.30 pm)

MACROS
India to see V-shaped rebound… India’s economy will spring back to normal sooner than expected and may even make a sharp V-shaped recovery next financial year, two top finance ministry officials said, dismissing forecasts of a sharp contraction in GDP this year. Monetising of the fiscal deficit by RBI was not currently on the table, one of them said. Direct and indirect tax collections in June quarter were encouraging and daily e-way bill data was also showing a positive trend, finance secretary Ajay Bhushan Pandey said.

Urban employment picks up… Despite intermittent lockdown in most towns, urban employment for the week ended July 19 shot up to 35.1% after its great fall in April. The overall employment rate jumped, suggesting that an equilibrium is setting in the labour market, the Centre for Monitoring Indian Economy said. The marginal dip in overall employment rate in July, after sharp pickup in June, has reversed with employment rate at 38.41% for the week ended July 19, almost at par with June 21 level of 38.42 per cent, it said.

FM pushes for PSU capex… Finance minister Nirmala Sitharaman pushed Central Public Sector Enterprises to perform better to achieve their capital expenditure targets for the financial year as this would provide a substantial impetus to economic recovery. Sitharaman reviewed the performance of CPSEs in a virtual meeting with the secretaries of the ministries of civil aviation, steel and the chairman of the railway board along with the heads of seven CPSEs and asked the secretaries and the CRB to closely monitor the CPSEs’ performance.

US Jobless claims rise… More than 1.4 million people applied for jobless benefits last week, the Labor Department said Thursday, up from 1.3 million the previous week. That is the first increase since March and 18th straight week that it has topped 1 million, AP reported. Before the pandemic, applications had never exceeded 700,000. An additional 975,000 people applied for aid under a separate program that has made self-employed and gig workers eligible for the first time.

Home loan rates at decadal lows… A clutch of public sector banks and lending institutions has slashed home loan rates to multi-decadal lows raising the prospect of a full-blown rate war when other banks jump into the fray. LIC Housing Finance on Thursday marginally pipped SBI by pegging its home loan rate at a record low of 6.90%. SBI is offering home loans starting from 6.95%. The rates offered by some large PSBs are now close to multi-decade lows of 6.7% to 7.10%.

Curbs on Chinese bidders… In a significant escalation of tension with China, the Centre late Thursday changed rules to enable curbs on bidders from countries that share a land border with India “on the grounds of defence and national security”. Though the order does not name any country , it is clearly aimed at scrutinising and imposing curbs on Chinese investments and partnerships in Indian projects. The new rules seek to block supply of stationery, turbines and telecom equipment and award of road and power contracts to companies that have a link with China.

Central aid to held-up housing projects… The special financing window for held-up housing projects has provided assistance of nearly Rs 8,800 crore to 81 projects — with 27 in Mumbai and 26 in Delhi NCR — and another 353 stressed facilities in the line. Under the scheme, the government is hoping that around 60,000 residential units will be completed across the country, including in cities such as Bengaluru, Chennai, Pune, Chandigarh, Jaipur and Vizag.

Banks push for one-time loan recast… Banks and corporates are coming together to make a last-ditch effort to convince the government and RBI to allow a one-time restructuring of loans to tide over the stress caused by Covid-19 pandemic. In the past few days, banks and industry bodies have explored ways to strike a balance between New Delhi’s fear that it could let undeserving companies have a free ride and the actual ability of most borrowers to service and repay loans amid diminished cash flow and demand.

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