Markets

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

Despite an overnight selloff in US stocks, Nifty futures trading on Singapore Exchange are hinting at a positive start for domestic stocks on Tuesday. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 46 points, or 0.39 per cent, higher at 11,820, in signs that Dalal Street was headed for a positive start on Tuesday.

Tech View: Nifty forms bearish candle
Analysts said the odds are good that the index may test the 11,650-600 range in the coming days. The immediate support is placed at the 20-DMA i.e. 11,700. If the bulls manage to take the index above the 11,800 level, a short-covering rally may take it to the 11,900-11,950 range, analysts said.

Asian shares fall tracking US selloff
Australia’s ASX 200 opened 1.5 per cent lower, while Japan’s Nikkei225 fell 0.27 per cent. Hong Kong’s Hang Seng index dropped 0.64 per cent to 24,760. China’s Shanghai Composite index declined 0.22 per cent to 3,243.50. MSCI’s gauge of stocks across the globe was down 1.52 per cent.

Oil prices edge higher in early trade
Oil prices regained a semblance of stability on Tuesday after suffering sharp losses over the previous session and last week. In early Asia, Brent crude was up 12 cents, or 0.3 per cent, at $ 40.58 a barrel, having dropped more than 3 per cent overnight. US oil was up 13 cents, or 03 per cent, at $ 38.69 a barrel, after also declining more than 3 per cent on Monday.

US stocks settled 2% lower
On Tuesday, major US indices recovered from the low points of the day, but the Dow Jones Industrial Average still dropped 2.3 per cent to end at 27,685.38, a loss of 650 points. The broad-based S&P500 index fell 1.9 per cent to close the session at 3,400.97, while the tech-rich Nasdaq Composite index shed 1.6 per cent to 11,358.94.

Q2 earnings today
63 Moons, Amara Raja Batteries, Bharti Airtel, Ceat, Castrol India, ICICI Prudential Life Insurance, JM Financial, Tata Motors and VST Industries are slated to announce their financial results for September quarter on Tuesday.

DIIs sell Rs 979 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 119.42 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 979.16 crore, data suggests.

MONEY MARKETS
Rupee: The rupee depreciated by 23 paise to settle at around four-week low of 73.84 against the US dollar on Monday as muted domestic equities and strong American currency weighed on investor sentiment.

10-year bonds: India 10-year bond yield fell 0.17 per cent to 5.83 after trading in 5.79-5.84 range.

DATA/EVENTS TO WATCH

  • Q2 Earnings: Airtel I Tata Motors I Amara Raja Battery I CEAT I Castrol I ICICI Pru Life
  • China Industrial Profits (YTD) YoY Sept (07:00 am)
  • Euro Area Loans to Households YoY Sept (02:30 pm)
  • US Durable Goods Orders MoM Sept (06:00 pm)
  • US Redbook MoM 24/Oct (06:25 pm)
  • US S&P/Case-Shiller Home Price YoY Aug (06:30 pm)
  • US House Price Index YoY Aug (06:30 pm)
  • China Communist Party Annual Meeting

MACROS
Nomura index shows strong rebound… The Nomura India Business Resumption Index (NIBRI) hit another post-lockdown high of 83.5 for the week ended October 25, signalling a stronger recovery during the month compared with September. The weekly tracker of indicators of resumption in activity saw a gain over the 81.9% recorded a week earlier, which was downgraded from 82.2%, Nomura said in a note on Monday. The index had risen by seven percentage points on average in September over August.

ODI to come under RBI scrutiny.. The overseas direct investment applications of Indian entities could be subject to enhanced scrutiny as RBI is planning to set up a special committee to review them, said two people with knowledge of the development. This is part of the ongoing crackdown against round-tripping of money by Indian entities through the avenue.

Dipam to monetise assets… The Department of Investment and Public Asset Management will monetise assets of central public sector enterprises and public sector units with a minimum value of Rs 100 crore. Assets valued below this threshold will be monetised by the respective ministry or department of the CPSE or PSU, the department said in an office memorandum on Monday. The threshold will be applicable for non-core assets of CPSEs under strategic divestment, immovable enemy property and other CPSE assets under the competent authority.

Muthoot NCD looks attractive… Investors looking for higher returns compared to traditional bank deposits could consider the upcoming NCD issue from gold loan financer Muthoot Finance. The company’s NCDs rated ‘AA’ could fetch returns between 7.15% and 8% annually. The issue, which opens on Tuesday, will close on November 20.

Kotak Bank says keen on M&A...Kotak Mahindra Bank on Monday denied takeover talks with IndusInd Bank but said it was open to M&A opportunities. Bloomberg had reported that Kotak Mahindra Bank was exploring a takeover of smaller rival IndusInd Bank to create India’s eighthlargest financial firm by assets. Group CFO Jaimin Bhatt said, “We are not saying no to any of those growth avenues, but certainly not on this one. When we raised capital in the first quarter of this year, we did say we will look at acquisitions, whether companies or assets.”

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