Markets

SGX Nifty up 75 points; here’s what changed for market while you were sleeping

NEW DELHI: Talks of fresh stimulus in the US have sent the dollar index soaring to two-year low and pushed emerging market stocks and gold prices higher. Here’s breaking down the pre-market trends.

STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 76.5 point, or 0.69 per cent higher at 11,195, in signs that Dalal Street was headed for a positive start on Tuesday.

Tech view: Nifty forms Bearish Belt Hold
Support for the index lies in the 11,100-11,050 zone, said analysts who expect the index to find resistance near the 11,300 level. It is crucial that the index does not breach 11,000 level on a closing basis. If it happens, the index may slide another 150-200 points, analysts said.

Asian stocks open higher
Hong Kong’s Hang Seng index climbed 1.38 per cent, or 339.48 points, to 24,942.74. Mainland China’s benchmark Shanghai Composite index added 0.65 per cent, or 20.91 points, to 3,226.13. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 4.64 points or 0.86 per cent, to 546.81. Nikkei225 index edged up 0.04 per cent or 9.53 points to 22,725.38 in early trade.

Oil prices rise on US stimulus hopes
Oil prices rose for a third straight day on Tuesday, buoyed by support for demand coming from efforts to stimulate the US economy’s recovery from the coronavirus crisis and a weakening of the dollar that makes crude cheaper for global buyers. Brent crude futures climbed 35 cents, or 0.8 per cent, to $ 43.76 a barrel, adding to a 0.2 per cent gain on Monday.

Gold nears $ 2,000 level on weak dollar
Gold rocketed to record peaks at $ 1,975 while the US dollar plumbed two-year lows as investors wagered the Federal Reserve would reaffirm its super-easy policy outlook this week, and a tolerance for higher inflation. The prospect of endless stimulus allowed Asian shares to shake off coronavirus concerns and Sino-U.S. tensions to make early gains.

US stocks settled higher
US stocks advanced on Monday, bolstered by solid gains in major tech shares.The Dow Jones Industrial Average index climbed 114.88 points, or 0.43 per cent, to 26,584.77. The S&P500 index rose 23.78 points, or 0.74 per cent, to 3,239.41. The Nasdaq Composite index jumped 173.09 points, or 1.67 per cent, to 10,536.27.

Mahindra Finance’s rights issue to open today
Non-banking financial company Mahindra Finance said its Rs 3,088.82 crore rights issue will open for subscription on July 28. The company will issue 61.78 crore equity shares of face value of Rs 2 each (equity shares) at a price of Rs 50 per equity share aggregating to Rs 3,088.82 crore on a rights basis, a company release said.

Mindspace IPO subscribed 38% on Day 1
The public issue of Mindspace Business Parks REIT, owned by K Raheja group and Blackstone, was subscribed 38 per cent on the first day of bidding on Monday. The company proposes to raise up to Rs 4,500 crore from the public issue, which will close on July 29. The issue received bids for 2,59,22,800 shares against the total issue size of 6,77,46,400 shares, according to data available with the NSE.

Q1 earnings today
Nestle India, UltraTech Cement, 3i Infotech, Hexaware, IDBI Bank, IDFC First Bank and Tata Coffee are among companies that are scheduled to announce their June quarter earnings on Tuesday.

Sebi extends buyback, open offer relaxations
Sebi has extended the relaxations on its regulations for buy back and open offers up to December 31. The market regulator in May granted one-time relaxations from strict enforcement of certain regulations of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and the SEBI (Buy back of Securities) Regulations, 2018 pertaining to open offers and buy-back through tender offers opening upto July 31.

DIIs sell Rs 978 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 453.31 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 977.88 crore, data suggests.

MONEY MARKETS
Rupee: The Indian rupee pared its initial gains and settled on a flat note at 74.83 to the US dollar on Monday, tracking subdued equity market and cautious global cues.

10-year bonds: India 10-year bond yield rose 0.72 per cent to 5.85 after trading in 5.81-5.86 range.

DATA/EVENTS TO WATCH

  • Earnings: Hexaware I IDBI Bank I IDFC First Bank I Muthoot Finance I Nestle I RBL Bank I UltraTech I Castrol India I
  • Fed Rate Review Meeting Begins
  • US July Redbook (06.25 pm)
  • S&P/Case-Shiller Home Price YoY May (06.30 pm)
  • US CB Consumer Confidence July (07.30 pm)

MACROS
Asia seeing Covid second wave…. Countries around Asia are confronting a second wave of coronavirus infections and are clamping down again to try to contain the disease, with Australia recording a record daily rise in cases and Vietnam locking down the city of Danang. Mainland China is battling the most aggressive return of Covid-19 in months, confirming 57 new locally transmitted cases on Sunday, the highest level since early March, driven by fresh infections in the far western region of Xinjiang. Australian authorities warned a six-week lockdown in parts of the southeastern Victoria state may last longer

Glut of liquidity making metals shine… Funds being infused by central banks, uncertainties caused by the pandemic and US-China tensions are sending metal prices soaring. While gold hit an all-time high, silver is at more than double its March rate. Copper too has risen by over 40%. According to MCX data, in India, gold is trading at over Rs 52,000 per 10gm, silver above Rs 65,000 a kg while copper costs Rs 506 a kg. Experts say an expected weakness of the dollar against some currencies is also driving investors towards the metals.

Markets glued to tomorrow’s Fed outcome … Fed policy makers go into a rate-setting huddle today and are widely expected to reinforce a dovish message on Wednesday. Investors are betting setbacks in the global fight against coronavirus will push Chairman Jerome Powell to signal that rates will stay near zero for longer. US lawmakers continued efforts toward the country’s next fiscal stimulus. Senate Republicans presented a $ 1 trillion proposal as a first step toward negotiating a compromise with Democrats, who’ve offered their own $ 3.5 trillion plan.

Finance Panel mulls PSU bank recap… The government is in discussions with the 15th Finance Commission on the issue of bank recapitalisation and will decide on the requirements of the sector for a five-year period, said the chairman of the commission NK Singh. He, however, said recapitalisation is not a panacea for the banking sector and much deeper reforms are needed. Singh said India will see a sharp V-shaped recovery in the third and fourth quarters of this financial year, but GDP growth for the fiscal will be in negative territory.

Indian job mart comes alive… For the first time in four months, the Indian job market has seen an increase in open positions with close to 150,000 listed in July, going by data from official company pages on LinkedIn and direct postings on top job boards. That’s a recovery from June, which saw a dip in jobs to 130,000 open positions from 200,000 in April and 167,000 in May

Chinese app clones banned… The government has banned 47 variants, or clones, of 59 Chinese mobile applications that it had banned last month, including Helo Lite, Bigo Lite and CamScanner Advanced, among others, a top government official told ET. Google and Apple Inc were directed last week to remove these apps from their app stores, and they are expected to comply with the order soon after “due process is followed”, the official added

Rush to withdraw EPFO money… As much as Rs 30,000 crore has been withdrawn in under four months starting April by 8 million subscribers of the Employee Provident Fund Organisation. EPFO manages a corpus of Rs 10 lakh crore built on mandatory contributions from nearly 60 million salaried people and their employers. The huge outgo is likely to impact the fund’s earnings in FY21, officials said.

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