Markets

SGX Nifty up 70 points; here’s what changed for market while you were sleeping

Optimism over a surprising resilience in manufacturing activity in large parts of the world has eased concerns over the global economic slowdown some bit, but equity investors will remain cautious as the US votes in the presidential election later in the day.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 70.50 points, or 0.60 per cent higher at 11,740, in signs that Dalal Street was headed for a positive start on Tuesday.

Tech View: Nifty50 hurdle at 11,750
Analysts said the 50-day simple moving average, whose value is placed at 11,555, is offering good support to the index. They believe the 11,750 level would pose an immediate hurdle for Nifty in the short term.

Asian stocks rally in early trade
Japan’s Nikkei index was up 1.39 per cent to 23,295.48. Hong Kong’s Hang Seng index rose 1.73 per cent to 24,882.12. China’s Shanghai Composite index added 0.88 per cent to 3,253.35. Australian shares were up 1.86 per cent to 6,061.90.

Oil prices slump as Covid cases soar
Oil prices slipped on Tuesday as worries about soaring Covid-19 cases, rapidly rising Libyan supply and US election jitters outweighed growing hopes that major producers would hold back on planned production increases. US WTI crude futures slipped 6 cents, or 0.2 per cent, to $ 36.75 a barrel, while Brent crude futures fell 15 cents, or 0.4 per cent, to $ 38.82.

US stocks settled higher
US stocks notched broad gains on Wall Street Monday as investors looked ahead to Election Day and the potential for a turbulent stretch for markets. The S&P 500 rose 40.28 to 3,310.24. The Dow Jones Industrial Average gained 423.45 points, or 1.6 per cent, to 26,925.05. The Nasdaq composite picked up 46.02 points, or 0.4 per cent, to 10,957.61. The index had been down 0.7 per cent.

Q2 earnings today
Sun Pharma, PVR, Adani Gas, Adani Ports, Muthoot Finance are among companies that are scheduled to announce their September quarter earnings on Tuesday.

FPIs buy Rs 741 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 740.61 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 533.97 crore, data suggests.

MONEY MARKETS
Rupee: The rupee depreciated 32 paise to close at more than two-month low of 74.42 against the US dollar on Monday tracking strong American currency amid global risk aversion.

10-year bonds: India 10-year bond yield rose 0.15 per cent to 5.89 after trading in 5.87-5.89 range.

DATA/EVENTS TO WATCH

  • Q2 earnings: Adani Ports I Dabur I EIH I Godrej Prop I IIFL I JSW Energy I Muthoot Fin I PVR I Sun Pharma
  • US Total Vehicle Sales Oct (05:30 am)
  • RBA Interest Rate Decision (09:00 am)
  • US Factory Orders MoM Sept (08:30 pm)
  • US Presidential Election
  • Eurogroup Video Conference

MACROS
US presidential vote today… President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states on Monday as their campaigns prepared for post-election disputes that could prolong a divisive presidential election. Trump, who is trailing in national opinion polls, has continued to lob unfounded attacks at mail-in ballots, suggesting he would deploy lawyers if states are still counting votes after Election Day on Tuesday. His deputy campaign manager, Justin Clark, said the campaign would fight any Democratic attempt to “subvert state deadlines for receiving and counting ballots.”

Major rebound in India’s factory output: India’s factory activity climbed to its most in a decade in October while overall economic recovery accelerated further toward the end of the month as the festive season delivered a much-needed boost, two separate reports released on Monday showed. The IHS Markit India Manufacturing PMI for October rose to 58.9 from 56.8 in September, the highest reading since May 2010. The Nomura India Business Resumption Index (NIBRI) rose to 84.4 from 83.3 in the week before, climbing well above 82.9 for the pre-lockdown week of March 25. The SBI yearly composite index improved to 53 (moderate growth) in October while the monthly index touched 59.3, indicating high growth.

Loans against shares boost credit growth… Loans to medium-sized industries and loans against shares recorded double-digit growth in the first half ended September when credit to most other segments contracted, thanks to government measures to help MSMEs overcome the impact of Covid-19 and a healthy stock market. Fresh loans to medium-sized enterprises went up ₹14,612 crore, or 13.6%, between April and September this year, according to latest data on sectoral deployment of bank credit released by RBI

Employers restoring pay cuts… The festival of lights has ushered joy into people’s lives with some companies doling out Diwali bonuses. Employers are also restoring salary levels wherever cuts were taken, and some others are advancing their appraisal cycles. Voltas and Vijay Sales have given Diwali bonuses to their employees, while Urban Company has advanced its appraisal cycle. Last week, in addition to reversing salary cuts taken in its hydrocarbon business with retrospective effect, RIL also paid the variable pay.

Homebuyers can approach consumer forum despite RERA….. In a significant verdict, the Supreme Court on Monday held that despite the enactment of a special 2016 law, RERA, to deal with real estate firms, homebuyers can still approach the consumer forum to seek remedies including refund and compensation from such companies for delay in handing over possession of their dream homes.

Dollar calm ahead of presidential vote… The US dollar hovered near a one-month high on Tuesday as investors opted for caution in the hours ahead of polls opening on election day in the United States. Traders are on edge over the result and rather than betting outright on a particular outcome, many have lately flocked to the safety of dollars so that they are well positioned to take advantage of volatility when results arrive. Against a basket of currencies, the dollar held at 94.050, just below a month-high hit on Monday. The safe-harbour yen has also ground higher in recent weeks and it was steady at 104.75 yen per dollar early in Asia trade

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