Here’s a breakdown of the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals negative start
Ingenious futures on the Singapore Stock Exchange were trading 37.50 points, or 0.32 percent, lower at 11,850, in signs that Dalal Street was headed for a negative start on Wednesday.
Tech View: Ingenious Bullish Candle Shape
Nifty’s gains on Tuesday were seen even as Monday’s long bearish candle suggested selling pressure going forward. “In recent sessions, long bearish candle formation did not lead to a reasonable decline,” said Nagaraj Shetti, technical research analyst at HDFC Securities. Tuesday’s rise after Monday’s long negative candle signaled more gains in the market, Shetti said.
Asian stocks fall in early trading
Japan’s Nikkei 225 fell 0.47 percent, or 111.52 points, to 23,374.28. Hong Kong’s Hang Seng fell 0.06 percent, or 13.65 points, to 24,773.54. China’s benchmark Shanghai Composite was 0.06 percent, or 1.91 points, higher at 3,256.22. MSCI’s global stock indicator was down 0.27%.
Oil falls due to the accumulation of crude stocks in the US.
Oil prices fell more than 1 percent on Wednesday, reducing the previous day’s gains as a surge in U.S. crude inventories and rising COVID-19 cases increased fears of a glut. oil supply and weak fuel demand. In early Asia, Brent crude was down 61 cents, or 1.5%, to $ 40.59 a barrel, after rising nearly 2% the day before. US oil fell 66 cents, or 1.7%, to $ 38.91 a barrel, after gaining 2.6% on Tuesday.
US stocks closed lower
After falling hard Monday on coronavirus fears and a lack of new fiscal stimulus from Congress, US markets had a more eventful session on Tuesday. The Dow Jones Industrial Average Index lost 0.8 percent to 27,463.19. The broad-based S&P 500 was down 0.3 percent to 3,390.68, while the tech-rich Nasdaq Composite Index gained 0.6 percent to 11,431.35.
Today’s second quarter results
Axis Bank, Larsen & Toubro, Titan Company, Dr Reddy’s Labs, Hero MotoCorp, Marico, PI Industries, GSK Pharma and ICICI Securities are among the companies that will release their September quarter results today.
FPIs buy shares worth Rs 3,515 cr
Net Foreign Portfolio Investors (FPIs) were buyers of domestic equities to the tune of Rs 3,514.89 crore, data available from NSE suggested. The DIIs were net sellers to the tune of Rs 1,570.80 crore, the data suggests.
MONEY MARKETS
Rupee: The rupee rebounded from the day’s lowest level to 13 paise higher at 73.71 against the US dollar on Tuesday, fueled by upbeat domestic stocks and dollar sales from exporters.
10-year bonds: The yield on India’s 10-year bonds rose 0.21 percent to 5.84 after trading in the 5.83 to 5.86 range.
Call rates: The weighted average call-money rate overnight stood at 3.21%, according to RBI data. It moved in a range of 1.8-3.5 percent.
DATA / EVENTS TO SEE
Second Quarter Earnings: Axis Bank I DRL I ICICI Sec I Glaxo I Hero Moto I L&T I Marico I MCX I RBL Bank I Titan
Australian inflation rate, year vs. Q3 (06:00 am)
US Goods Trade Balance Advanced September (06:00 pm)
US Wholesale Inventories Monthly Adv Sept (06:00 pm)
US EIA Crude Oil Stock Changes Oct 23 (08:00 pm)
Annual meeting of the Communist Party of China
MACROS
FinMin seeks other opinions on Voda’s verdict … The Ministry of Finance will seek the views of other ministries, including foreign affairs ministries, on the opinion of the Ministry of Justice as to whether India should appeal against the arbitration award in the Vodafone tax case. These will be presented to the attorney general for his opinion on the matter, an official said. However, the call to appeal or not will be taken at the highest political level, he said.
Home and Auto Loan Recovery to Normal … Home, auto and rural loans are helping banks and non-bank lenders avoid their blush, even as they remain risk averse from unsecured and wholesale credit. Most banks and non-bank finance companies saw their home, vehicle and farm loans surpass pre-Covid levels in the quarter ending in September, while the overall loan portfolio shrank for some lenders.
FM Says India Will Experience Faster Growth In Fiscal Year 22 … The Indian economy may contract or stagnate this fiscal year, but it will rebound to be among the fastest growing in the world next year, Finance Minister Nirmala Sitharaman said. Revival of demand and the government’s focus on infrastructure, agriculture and related sectors, along with support for sovereign wealth funds and pension funds will boost economic growth, he said at the India Energy Forum by CERAweek. The highest level seen in the manufacturing PMI since 2012 marked a revival, he said.
HUL cautious of recovery … Hindustan Unilever Ltd (HUL) Chairman Sanjiv Mehta said the country’s largest consumer goods company cannot “be complacent” despite a strong recovery in the last quarter and has shifted focus to “profit absolute “and volume share rather than just increasing value and margins. “It could still be a marathon and there could be a lot of air pockets before we can say that the pandemic is over,” he said in an interview.
The future will not challenge SIAC’s decision … Future Group has decided not to legally challenge the interim resolution of the Singapore International Arbitration Center that has suspended the sale of its retail business to RIL, as it has been of the opinion that the verdict of the emergency arbitrator appointed by the SIAC cannot be enforced in India. This is in contrast to his previous position when he planned to move the Delhi High Court against the verdict.
Faster IED approvals soon … The Government of India, with a view to overseas investments, has started work to renew the Standard Operating Procedure (SOP) for processing Foreign Direct Investment (FDI) proposals to expedite approvals. The Department for the Promotion of Industry and Domestic Trade (DPIIT) is preparing a new set of guidelines to streamline the authorization process, including security, for investment proposals along the approval route.
GDP may have shrunk 10.4% in the second quarter … The Indian economy recovered in the second quarter, and gross domestic product is likely to have contracted 10.4% compared to a 23.9% contraction in the previous quarter, according to Nomura. The Japanese brokerage firm maintained its forecast of a 10.8% contraction in fiscal year 21. Nomura’s monthly activity indicator, which takes into account high-frequency indicators from all sectors, improved to -8.6 % year-on-year in September from -19.7% in August and a record low of -37.8% in June, “implying rapid GDP growth pickup growth,” the firm said in a report Tuesday.
Central sectors bouncing … India’s construction, auto and energy sectors have recovered and the government will soon address the recession in the commercial vehicle sector, Trade and Industry Minister Piyush Goyal said. He added that the hospitality, aviation and tourism sectors have returned to 50% – 60% of pre-Covid levels, and it will take another six to eight months for normal, but compared to Western economies, these sectors have a relatively small share of GDP.
The flow of FDI from India doubles … Global flows of foreign direct investment (FDI) fell 49% in the first half of 2020 compared to 2019 due to the impact of Covid-19, but the growth of investment from India in sales of mergers and acquisitions in the economy Digital doubled, the United Nations Conference on Trade and Development (UNCTAD) said on Tuesday. He expects flows to developing economies to stabilize and East Asia to show signs of an imminent recovery.
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