STATE OF THE MARKETS
SGX Nifty signals negative start
Ingenious futures on the Singapore Stock Exchange were trading 30 points, or 0.25 percent lower, at 11.938, in signs that Dalal Street was heading for a negative start on Tuesday.
Technical view: Doji candles in ingenious shapes
The Nifty50 rose on Monday for the eighth straight session, but that did not inspire confidence as the index gave up most of the day’s gains. It was all reflected in a Doji candle that formed on the daily chart, suggesting indecision among traders at higher levels. The weakness may appear now, analysts warned, who see support for Nifty at the 10,850-10,790 levels.
Asian markets mixed in the first trades
Japan’s Nikkei 225 Index rose 0.34 percent, or 81.01 points, to 23,639.70 in early trading, while the broader Topix Index rose 0.39 percent, or 6.49 points, at 1,649.84. China’s benchmark Composite Index fell 0.16 percent, or 5.34 points, to 3,353.12, while the Shenzhen Composite Index on China’s second stock was down 0.18 percent, or 4, 18 points, at 2,285.17. Hong Kong’s trade was canceled in the morning when a typhoon forced the city to close businesses.
Oil prices remain stable amid return in supply
Oil prices were flat in early trading on Tuesday, losing nearly 3 percent from the previous session after supplies began to resume in Norway and the US Gulf of Mexico and Libya. they resumed production at their largest oil field. US WTI crude futures rose 1 cent to $ 39.44 a barrel, while Brent crude futures rose 2 cents to $ 41.74 a barrel.
U.S. stocks end higher amid tech rally
US stocks closed higher, driven by strong gains in tech stocks. The Dow Jones industrial average rose 250.62 points, or 0.88 percent, to 28,837.52 on Monday. The S&P 500 rose 57.09 points, or 1.64 percent, to 3,534.22. The Nasdaq Composite Index rose 296.32 points, or 2.56 percent, to 11,876.26.
Today’s second quarter results
Wipro, Karnataka Bank, Tata Steel Long Products and Rudra Global Infra Products will announce their September quarter earnings on Tuesday. Wipro will also consider a buyback plan on October 13.
DIIs sell shares worth Rs 1,029 cr
Net Foreign Portfolio Investors (FPI) were sellers of domestic shares for the sum of Rs 615.17.
crore, suggested data available with NSE. The DIIs were net sellers to the tune of Rs 1,028.77 crore, the data suggests.
MONEY MARKETS
Rupee: The rupee snapped its three-session winning streak on Monday, falling 12 paise to close at 73.28 against the US dollar amid weakening of its Asian peers against the US dollar.
10-year bonds: The yield on India’s 10-year bonds fell 0.64 percent to 5.89 after trading in a range of 5.88 to 5.94.
DATA / EVENTS TO SEE
- China September Trade Balance (08:30 am)
- UK Claimant Count Change SEP (11:30 am)
- Job change in UK JUL (11.30am)
- UK Unemployment Rate AUG (11:30 am)
- US Core Inflation Rate SEP YoY (06:00 pm)
- US Consumer Inflation Expectations SEP (08:30 pm)
- Vehicle Sales in China, YoY SEP
- Meeting of the EU General Affairs Council
- OPEC monthly report
- IMF / World Bank Virtual Annual Meeting
MACROS
Deadlock on state loans … Monday’s GST Council meeting ended in a stalemate, but the Center said it would go ahead and facilitate the loan option of Rs 1.1 lakh crore for the 21 states that have expressed their preference for this plan. Some opposition-ruled states argued this would be “illegal” and will challenge it in the Supreme Court, saying that any decision on loan options must be endorsed by the council, setting up a possible showdown with the Center. “There was no consensus,” said Finance Minister and GST Council Chairman Nirmala Sitharaman after the meeting.
The contraction of the IIP slows down, inflation reaches an 8-month high … Industrial production contracted at a slower pace in August than in the previous month as the economic recovery accelerated. However, retail inflation rose to an eight-month high in September, driven by rising food prices, which could delay further monetary easing. Industrial production, measured by the industrial production index, contracted 8% in August and all its components contracted compared to a 1.4% drop in the same period last year.
Government personnel get cash to spend…. India unveiled a long-awaited stimulus program ahead of the holiday season that is expected to give the struggling economy a boost of up to Rs 1 lakh crore, the Finance Ministry said. The package aims to boost demand for consumer goods by offering festival loans to central government employees and promises additional capital expenditures and interest-free loans to states. Staff can also use their vacation travel allowance to pay for consumer goods.
September Retail Spending Up 12% MoM … India’s retail spending in September rose 12% from August, with a stronger rebound in rural areas, according to data compiled by CMS Info Systems, which handles the movement of cash and ATMs across the country. The largest increase was in spending related to e-commerce, consumer goods, consumer durables, insurance, utility payments, healthcare, logistics and transportation, which exceeded January levels.
Business travel begins to accelerate … Business travel has picked up in India for the first time since the shutdown, with CEOs, business heads and mid-level managers from many companies taking local and overseas travel. Maruti Suzuki, Hyundai, Mercedes-Benz, ITC, Parle Products, Vivo, Oppo, Lenovo, Mondelez and Panasonic have eased travel restrictions for critical jobs and for projects that cannot be completed via video conferencing.
Home prices fall in the Lutyens area … Covid-19 spares no one, not even the super-wealthy homeowners of New Delhi’s Lutyens Zone, the lush, meticulously maintained 28-square-kilometer area that is home to around 600 luxurious privately owned residences and 3,000 bungalows for the political elite. and administrative of India. Lutyens’ homeowners face a buyer market like their more humble counterparts elsewhere: Sales prices are down 10-15%, and in some cases as low as 25% or even 50%.
Airtel, Voda hesitate on raising rates … Indian telecom operators are stuck when it comes to price hikes. Despite asking for price increases due to an urgent need to improve average revenue per user (Arpu), both Bharti Airtel and Vodafone Idea (Vi) have been avoiding initiating a price increase because they are unsure whether their aggressive rival Reliance Jio will do the same.
The worst blackout stalled in Mumbai … India’s financial capital was engulfed in unprecedented turmoil Monday morning after power lines were disconnected, cutting off electricity to the rupee’s 1.84 million city dwellers for more than two hours. Equity volumes and trading were little affected, although bond market volumes fell and banks reported normal business. The ATMs also worked normally. Trains were shut down, mobile networks were bogged down, and the internet slowed down as the city struggled with an unprecedented power outage that everyone thought was impossible due to the city’s unique “island” system.
The school closure will cost $ 400 billion … The prolonged closure of schools due to the COVID-19 pandemic in India may cause a loss of more than $ 400 billion in the country’s future earnings, in addition to substantial learning losses, according to a World Bank report. The South Asia region could lose $ 622 billion from school closings in the current scenario or as much as $ 880 billion in a more pessimistic scenario, he said.
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