The pre-marketing actions are broken down here: –
STATE OF THE MARKETS
SGX Nifty signals negative start
Ingenious futures on the Singapore Stock Exchange traded 43 points, or 0.36 percent lower, at 11,866, signaling that Dalal Street was headed for a negative start on Tuesday.
Technical view: Doji candles in ingenious shapes
Analysts said the index did not register a drop after Thursday’s selloff, which is a sign of relief. But they feel the index is still vulnerable to selling pressure. The 11,900-926 range could represent immediate resistance for the index, they said.
Asian stocks fall following US markets
Asian stocks came under pressure Tuesday as the deadline for US lawmakers to pass an economic stimulus bill approached. In early Asia trading, Australian stocks fell at the open, while MSCI’s indicator of stocks worldwide lost 0.06%. Japan’s Nikkei 225 Index was down 0.23 percent or 55.30 points to 23,615.83. Hong Kong’s Hang Seng, meanwhile, was up 0.12 percent, or 29.38 points, to 24,571.64.
Oil prices drop for the fourth day
Oil prices fell for the fourth day in a row on Tuesday on concerns about a resurgence of coronavirus cases that smother a promising recovery in fuel demand globally, while rising production from Libya adds to abundant supply in the market. Brent crude futures fell 30 cents, or 0.7 percent, to $ 42.32 a barrel, after falling 31 cents on Monday. US WTI crude futures fell 26 cents, or 0.6 percent, to $ 40.57 a barrel.
US stocks closed lower
US stocks tumbled as investors reacted negatively to news that Congress and the White House have steered clear of a new aid package to help Americans financially distressed by the new coronavirus measures. The Dow Jones Industrial Average closed at 28,195, down 1.4 percent. The S & P500 index closed at 3,426, down 1.6 percent. The Nasdaq Composite Index closed at 11,479, down 1.7 percent.
Today’s second quarter results
Hindustan Unilever, Crisil, L&T Infotech, Hindustan Zinc, DCM Shriram, Granules India, Indian Energy Exchange (IEX) are among the companies that are scheduled to announce their September quarter earnings during the day.
FIIs buy shares worth Rs 1,657 cr
Net Foreign Portfolio Investors (FPIs) were buyers of domestic equities amounting to Rs 1,656.78 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,621.73 crore, the data suggests.
MONEY MARKETS
Rupee: The rupee fell 2 paise to close at 73.37 against the greenback on Monday due to some demand for dollars and uncertainty related to fiscal stimulus and the US presidential elections.
10-year bonds: The yield on India’s 10-year bonds rose 0.08% to 5.94 after trading in a range of 5.92 to 5.94.
DATA / EVENTS TO SEE
- Second Quarter Earnings: HUL I Hind Zinc I Bombay Dyeing I Crisil
- Prime rate of loans in China 1 year (07:00 am)
- China House Price Index, Year Over Year, September (07:00 am)
- Euro Area Current Account Aug (1:30 PM)
- Start of housing in the US in September (06:00 pm)
- US Building Permits September (06:00 pm)
MACROS
Deadline is approaching, but US Covid relief is still far off. House Speaker Nancy Pelosi reported some progress ahead of Tuesday’s deadline to reach a pre-election deal with President Donald Trump on a new coronavirus aid package, but the same core issues that plague the effort. they remain in place despite the optimistic speech of the president and his team.
India’s economic activity is back in shape … Economic activity in India has returned almost to pre-Covid levels, suggests an index that tracks the economy’s recovery from the impact of the pandemic, generating a sharp increase in mobility as the festival season progressed. The Nomura India Business Resumption Index, a weekly monitoring of the pace of normalization of economic activity, rebounded to a post-close high of 82.2 for the week ending October 18 from 80.8 the week before.
NCR ownership records close to pre-Covid levels … Across most of the NCR, property registrations have crossed or are close to September 2019 levels, raising hopes for a further rebound in the ongoing holiday season for a sector struggling to recover for years. The exception is Gurgaon, where the main problem is not demand, but a failure in the tax server. The revenue collection from the property registration remained at Rs 284.59 crore for the month, higher than the Rs 277.41 crore reported for September 2019.
FM says there are more stimulus options open … Finance Minister Nirmala Sitharaman is open to considering new measures to stimulate the economy, following several booster programs that have been announced since March. The finance ministry may also issue an assessment of the economic situation along the lines of the Reserve Bank of India (RBI), he said. “I have not closed the option to go out with one more stimulus,” Sitharaman said, having announced a series of steps to stimulate consumer demand last week on the eve of the holiday season.
Tax Concerns Haunt the Unlisted Stock Market … A recent government clarification on tax collection at source (TCS) may end up increasing costs for private equity funds and owners of unlisted shares. The government had introduced a 0.1% TCS on the sale of goods worth Rs 50 lakh and more with effect from 1 October. However, through a circular dated September 29, the Finance Ministry clarified that listed shares are exempt from the scope of this tax. This has raised fears that TCS will continue to apply to unlisted stocks and pre-IPO allotments.
Strict contractual clause for China, Pakistani companies … From the names of the directors and their nationalities to a graph depicting the ownership structure, the Center wants companies based in China and Pakistan to strip everything down to be eligible to bid for PSU and government contracts. In addition, the details of all entities with a stake greater than 10% must be disclosed. The move comes almost three months after the government decided to impose security checks on companies from countries that share a land border with India, with the aim of carrying out a security check on suppliers from China and Pakistan.
China’s rebound continues … China’s recovery from the coronavirus pandemic continued into the third quarter and showed signs of scaling up in September as consumer spending accelerated, keeping the economy on track to be the only major in the world to grow this year. . GDP expanded 4.9% in the third quarter from a year earlier, below economists’ forecast for a 5.5% expansion. Both retail sales and industrial production gained momentum in September, reassuring markets that the recovery is on the right track.
RBI completes first OMO change … In its first Enhanced Open Market Operation (OMO) under the foreign exchange method, the RBI repurchased government securities (G-Secs) worth Rs 14,553 crore from the market. At the same time, the central bank issued long-standing banknotes worth 15,277 million rupees. Previously, RBI had said that it would carry out an OMO exchange worth up to Rs 20,000 crore on Monday. Switch OMOs are market operations under which RBI buys G-Secs of short duration and, at the same time, sells of medium and long duration. These operations are carried out to manage performance in the market.
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