The pre-market actions are broken down here:
STATE OF THE MARKETS
SGX Nifty marks a positive start
Ingenious futures on the Singapore Stock Exchange were trading 28.5 points, or 0.25 percent higher, at 11,483, signaling that Dalal Street was headed for a positive start on Monday.
Tech point of view: analysts say buy Nifty on dips
Nifty50 rose on Friday and formed a small bullish candle on the daily chart and a hammer-like candle on the weekly scale. The index remained above its 20-day exponential moving average (EMA) of 11,382, which analysts said is a positive sign. The index also formed a higher high and low for the second day, adding to the sentiment. As long as the index remains above the 11,200-11,300 range, the index may drift towards the 11,500-11,650 range, analysts say.
Asian stocks rise on vaccine hopes
Asian stocks started higher on Monday as hopes for a coronavirus vaccine were rekindled after AstraZeneca resumed its phase 3 testing, while sentiment remained cautious ahead of a big week of central bank meetings in the Kingdom. United States, Japan and the United States. MSCI’s broader Asia-Pacific stock index outside of Japan rose 0.5 percent, set for its second straight earnings session. Australian shares rose 0.2 percent, while Japan’s Nikkei added 0.3 percent.
Oil mixed as storm threatens US Gulf production
Oil prices mixed Monday and U.S. crude rose as a tropical storm in the Gulf of Mexico forced rigs to close, but earnings were held in check by broader concerns about oversupply and falling oil prices. the demand for fuels. West Texas Intermediate (WTI) crude futures rose 9 cents, or 0.2 percent, to $ 37.42 a barrel. Brent crude fell 3 cents to $ 39.80 a barrel.
US stocks closed mixed on Friday
US stocks closed mixed on Friday after choppy trading as the tech sector continued to struggle. The Dow Jones industrial average rose 131.06 points, or 0.48 percent, to 27,665.64. The S&P 500 was up 1.78 points, or 0.05 percent, to 3,340.97. The Nasdaq Composite Index was down 66.05 points, or 0.60 percent, to 10,853.55.
FIIs buy shares worth 1,176 cr Rs
Net Foreign Portfolio Investors (FPIs) were buyers of domestic equities to the tune of Rs 1,175.81, data available from NSE suggested. The DIIs were net sellers to the tune of Rs 724.31 crore, the data suggests.
MONEY MARKETS
Rupee: The rupee closed 7 paise lower at 73.53 against the US dollar on Friday as currency market sentiment turned lackluster on geopolitical developments and mixed global signals. However, the weaker US dollar and lower crude oil price lent some support to the rupee, helping it to restrain losses to some extent.
10-year bonds: The yield on India’s 10-year bonds fell 0.20% to 6.04 after trading in a range of 6.01 to 6.10
Call rates: The weighted average call money rate overnight stood at 3.42%, according to RBI data. It moved in a range of 1.80 to 4.05 percent.
EVENTS / DATA TO SEE
- August CPI inflation in India (12pm)
- China House Price Index YoY AUG (07.00 am)
- Final Monthly Japan Industrial Production JUL (10:00 am)
- Euro area industrial production YoY JUL (02:30 pm)
- Consumer inflation expectations AUG (08.30 pm)
- Liberal Democratic Party of Japan leadership vote
- OPEC monthly report
MACROS
August CPI inflation today … The August retail inflation figures forecast for Monday would likely kill hopes of rate cuts during the RBI’s review of monetary policy from September 29 to October 1 or December 2 to 4. About 50 economists in a Reuters poll projected consumer price inflation at 6.85 percent for August, which would be slightly lower than 6.9 percent in July but higher than 6.2 percent in June. However, there are economists who expect negative surprises, with inflation of more than 7 percent for the month.
The EU and China talk about trade despite divisions … EU leaders will speak to Chinese President Xi Jinping in pursuit of trade and investment on Monday, despite tensions over Hong Kong’s freedoms and Beijing’s treatment of its Uighur minority. Chinese officials, EU heads Charles Michel and Ursula von der Leyen and German Chancellor Angela Merkel will hold a video conference to replace a full summit with all 27 EU leaders canceled due to the coronavirus.
RBI to use more ammo to cool yields … The stage appears set for the central bank to search its arsenal for more powerful measures to cool bond yields after it persistently rejected demands for higher yields from would-be investors in sovereign debt for the third time in a month. The tug of war between markets and the North Block investment banker should intensify amid growing concerns about the fiscal deficit and the trajectory of inflation, which has violated the upper end of Mint Road’s tenure.
Automotive companies increase production for festivals … Car and tractor manufacturers are ramping up production as they accumulate inventory ahead of major festivals, hoping that the momentum in demand seen from last month will pick up before Diwali. Companies like Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, and Toyota Kirloskar are making full steam ahead in the building market. Current inventory with distributors is lower than last year, so they are also increasing capacity utilization to have adequate stock during the holiday season.
The issue date can spoil the debt correction …Even when bankers draw up a restructuring plan based on the Kamath Committee’s recommendations, crucial differences over the start date of financial milestones and pacts with creditors prescribed by the regulator and the panel could influence the number of potential beneficiaries. of the proposed loan restructuring. In its notification, the RBI has asked banks to guarantee the fulfillment of total external liabilities to the adjusted tangible net value at the time of implementation, almost two years before the fiscal year 23 cutoff date proposed by the Kamath panel. .
Switch from credit cards to debit cards … There has been a shift in spending from credit cards to debit cards during the first quarter of the current fiscal year as Indians refrained from making discretionary purchases and went digital while paying for utilities and groceries. According to the data released by RBI, credit card spending in June 2020 was Rs 42,818 crore, which was 36% lower than Rs 67,000 crore in January 2020. On the other hand, debit card spending was It stood at Rs 47,252 crore, which was only 24% lower than Rs 62,153 crore pre-Covid.
Loan restructuring to end exclusive offers from banks … The smartest banks fear that the straitjacket’s one-time loan restructuring framework will destroy the exclusive deals they have with borrowers. Shortly after the release of the KV Kamath committee report and the RBI statement that followed, two major private banks have raised their concerns with regulatory officials. They have intuited that their superior rights to the securities pledged by a borrowing company and the right to the company’s cash flow will have to cede in favor of the majority group of lenders who come together to revive a company affected by Covid.
Smallcaps, midcaps await more inputs … Sebi’s order for multi-cap schemes to hold a minimum of 25% of each of the funds in his portfolio in large-cap, mid-cap, and small-cap stocks could result in better entries into small caps. Currently, 35 multicap funds manage assets worth nearly Rs 1.5 lakh crore. Of the total assets, about 65% is invested in large-cap stocks, 16-18% in midcaps, 8-9% in smallcaps and the remainder in cash. So in about four and a half months to implement Sebi’s new rule for multicap funds, around Rs 12,000 crore should be switched from largecaps to midcaps and around Rs 24,000 crore from largecaps to smallcaps. This translates to around Rs 300 crore in daily transfers, from large caps to mid caps and small caps combined. Sebi clarified on Sunday night that mutual funds are free to choose how they want to comply with the revised rules.
Tatas seeks the invalidation of the promise of shares of SP…. Tata Sons has petitioned the Supreme Court to invalidate the Shapoorji Pallonji Group’s pledge of Tata Sons shares in favor of Axis Trustee Services and IDBI Trusteeship Services, according to court documents filed. On September 5, Tata Sons moved the Supreme Court challenging these promises, which were created in December 2019 and April of this year, as well as a new move by the SP Group, owned by the Mistry family, to pledge shares in favor of Canadian PE firm Brookfield Asset Management. .
Oracle outperforms US TikTok business … Oracle Corp is the winning bidder for a deal with TikTok’s US operations, people familiar with the talks said, after main rival Microsoft Corp. said its bid for the video app was rejected. ByteDance, the parent company of TikTok, rejected Microsoft’s previous offer to buy the US assets of TikTok. An agreement with Oracle is tighter and looks more like a corporate restructuring than a direct sale, one of the people said.
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