STATE OF THE MARKETS
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 167.5 points, or 0.95 per cent, lower at 17,434.50, signaling that Dalal Street was headed for a negative start on Friday.
- Tech View: Nifty50 on Thursday formed a bearish candle on the daily chart and continued with its lower high-low formation for the third session.
- India VIX: The fear gauge eased over 2 per cent to 18.40 level on Thursday over its close at 18.84 on Wednesday.
Asian stocks trading in deep red
Asian stock markets opened lower with sharp fall on Friday, extending falls on Wall Street with investors weighing events this week. China and Hong Kong markets are shut today. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.78 per cent.
- Japan’s Nikkei tanked 1.96%
- Australia’s ASX 200 shed 2.12%
- Korea’s Kospi plunged 1.56%
- New Zealand’s DJ declined 0.39%
Wall Street settles lower, posts monthly loss
All three Wall Street major indexes ended lower on Thursday and posted their worst quarters in at least 12 months, following a tumultuous month and period wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington.
- Dow Jones shed 1.59% to 33,843.92
- S&P 500 tanked 1.19% to 4,307.54
- Nasdaq declined 0.44% to 14,448.58
Dollar heads for best week in months
The dollar began the last quarter of 2021 near its highest levels of the year and headed for its best week since June, as currency markets braced for U.S. interest rates to rise before those of major peers.
- Dollar Index held steady at 94.327
- Euro held slipped to $1.1572
- Pound fell to 9-month low at $1.3445
- Yen weakened to 112.08 per dollar
- Yuan depreciated to 6.4467 against the greenback
Oil extends overnight gains
Oil prices dropped on Friday on the prospect that the OPEC+ supplier alliance might step up a planned increase in output to ease supply concerns, with soaring gas prices spurring power producers to switch from gas to oil.
U.S. West Texas Intermediate (WTI) crude futures slipped 5 cents to $74.98 a barrel at 0153 GMT, though the contract remained on track to post its sixth consecutive week of gains. Brent crude futures fell 7 cents, or 0.1%, to $78.24 a barrel, but was still heading for a small rise on the week, marking a fourth straight week of gains.
FPIs sell shares worth Rs 2,226 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 2,225.6 crore, data available with NSE suggested. DIIs turned net buyers to the tune of 97.18 crore, data suggests.
Strong listing gains
Paras Defence and Space Technologies will be listed on the bourses today. The IPO of the manufacturer of defence and space engineering products was subscribed 304 times. The company is expected to make a solid debut as it was commanding a grey market premium of Rs 220-230 over its issue price of Rs 175.
Rupee: The Indian rupee on Thursday dropped another 9 paise to mark its lowest closing level in over five weeks at 74.23 against the US currency, amid risk averse sentiments and foreign fund outflows.
10-year bonds: India 10-year bond jumped 0.27 per cent to 6.22 after trading in 6.19 – 6.23 range.
Call rates: The overnight call money rate weighted average stood at 3.25 per cent on Thursday, according to RBI data. It moved in a range of 1.95-3.45 per cent.
DATA/EVENTS TO WATCH
AU Home Loans MoM AUG (6 am)
AU Investment Lending for Homes AUG (6 am)
IN Markit Manufacturing PMI SEP (10:30 am)
EA Markit Manufacturing PMI Final SEP (1:30 pm)
GB Markit/CIPS Manufacturing PMI Final SEP (2 pm)
EA Inflation Rate Flash SEP (2:30 pm)
EA Core Inflation Rate YoY Flash SEP (2:30 pm)
IN Foreign Exchange Reserves 24/SEP (5 pm)
US Personal Spending MoM AUG (6 pm)
US Personal Income MoM AUG (6 pm)
US PCE Price Index AUG (6 pm)
US ISM Manufacturing PMI SEP (7:30 pm)
US Fed Harker Speech (10:30 pm)
Telecom dept asks Vi, Airtel to pay ₹3,050 crore in penalties
The Department of Telecommunications (DoT) has issued notices to Vodafone Idea and Bharti Airtel to pay ₹3,050 crore in cumulative penalties within three weeks for flouting licence conditions by denying Reliance Jio Infocomm adequate points of interconnection (PoIs) in 2016, which affected the quality of services.
Maruti flags concerns over chip shortage
India’s top carmaker Maruti Suzuki said on Thursday it was expecting total vehicle production in October at two of its plants to be around 60% of normal levels due to a global chip shortage. Maruti’s Haryana plant and its contract manufacturing company, Suzuki Motor Gujarat Private, will see production curbs in October, the company said in a regulatory filing on Thursday.
Gas prices hiked 62% in first increase since 2019
The government on Thursday hiked by 62 per cent the price of natural gas that is used to produce electricity, make fertilisers and turned into CNG to use as fuel in automobiles and cooking gas for household kitchens.
Tata may have emerged as the top bidder for Air India
The committee of ministers on Air India’s privatisation led by home minister Amit Shah will meet in the next few days to consider and approve the winning bid for the national carrier. According to people with knowledge of the matter, the Tata Group has emerged as the top bidder, but a formal announcement will only be made after the panel’s okay.
Rs 30,000 crore Srei loans turn NPA
A consortium of lenders led by UCO Bank has sought central bank directions on pursuing recovery of dues from the Srei Group after loans worth about ₹30,000 crore to the Kolkata-based financier officially qualified to be moved to the list of non-performing assets (NPA) this quarter, ET reported.