Finace And Stock

SGX Nifty down 20 points; here’s what changed for market while you were sleeping

Domestic stocks may open lower on Wednesday after Moody’s maintained India’s sovereign credit rating at Baa3, the lowest investment grade, even as it upgraded the country’s outlook to stable from negative. US stocks settled higher overnight while Asian markets were trading higher in early trade. Crude prices moved up and the dollar was ruling higher, raising FPI outflow fears. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS


SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 16 points, or 0.09 per cent, lower at 17,803, signaling that Dalal Street was headed for a negative start on Wednesday.

  • Tech View: Nifty50 on Tuesday closed above the 17,800 level and formed a long bullish candle on the daily chart. Analysts said the index is in a recovery mode and can revisit its all-time high levels in the coming days.
  • India VIX: The fear gauge eased over 2 per cent to 16.40 level on Tuesday over its close at 16.74 on Monday.

Asian stocks traded mostly higher
Asian stock markets mostly opened higher Wednesday as investors rushed to buy back after a sell-off in the previous session and following a rebound on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat, down 0.02 per cent.

  • Japan’s Nikkei gained 0.19%
  • South Korea’s Kospi shed 0.12%
  • Australia’s ASX 200 declined 0.16%
  • New Zealand’s DJ advanced 0.33%
  • Taiwan Weighted jumped 0.48%

US stocks settled sharply higher
Wall Street ended sharply higher on Tuesday, as Microsoft and Apple spearheaded a strong rebound in growth stocks and investors awaited monthly payrolls data later this week that could influence the US Federal Reserve’s decision on when to scale back monetary stimulus.

  • Dow Jones gained 0.92% to 34,314.67
  • S&P 500 soared 1.05% to 4,345.72
  • Nasdaq advanced 1.25% to 14,433.83

Dollar firm ahead of payrolls
The dollar hovered close to its highs for the year in choppy trade on Wednesday as investors’ focus turned to US jobs data and to a likely rate hike in New Zealand.

  • Dollar Index moved up to 94.052
  • Euro declined to $1.1563
  • Pound steadied at $1.3628
  • Yen weakened to 111.50 per dollar

US oil rises to highest since 2014
US oil prices rose for a fifth day on Wednesday to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets. US WTI oil, which earlier rose to $79.18 a barrel — the highest since November 10, 2014, was trading at $79.05 a barrel, up 0.15 per cent, or 12 cents Brent crude added 0.15 per cent, or 12 cents $82.68 a barrel after rising to a three-year high in the previous session.

FPIs sell shares worth Rs 1,915 cr
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1,915.08 crore, data available with NSE suggested. DIIs were buyers to the tune of 1868.23 crore, data suggests.

MONEY MARKETS

  • Rupee: The rupee fell 13 paise to hit its weakest closing in nearly eight weeks at 74.44 against the US dollar on Tuesday, weighed down by the strengthening of the greenback in the overseas market and rising crude oil prices.
  • 10-year bond: India 10-year bond jumped 0.19 per cent to 6.26 after trading in 6.25 – 6.28 range.
  • Call rates: The overnight call money rate weighted average stood at 3.20 per cent on Monday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • EA ECB Non-Monetary Policy Meeting (1:30 pm)
  • GB Construction PMI SEP (2 pm)
  • EA Retail Sales AUG (2:30 pm)
  • US Fed Bostic Speech (6:30 pm)
  • US EIA Gasoline Stocks Change 01/OCT (8 pm)
  • US EIA Crude Oil Stocks Change 01/OCT (8 pm)
  • US Fed Bostic Speech (9 pm)

MACROS

Nabard, Sidbi, IFCI brace for a Srei hit
The National Bank for Agriculture & Rural Development (Nabard), Small Industries Development Bank of India (Sidbi) and IFCI are likely to take a hit as the three financial institutions together have about ₹2,000 crore of exposure to Srei Group, the Kolkata-based financier that has been put into administration on Monday by the central bank.

Pandemic fuels India’s premium drive
India has witnessed a record shift in purchasing habits toward the premium end for big-ticket items such as cars, two-wheelers, smartphones, televisions, refrigerators and laptops since the pandemic, according to market trackers. In several categories, the contribution of pricier, premium products to total sales has doubled or is growing at twice the pace of the mass segment.

WHO to decide next week on Covaxin approval
The World Health Organization said on Tuesday that it will make a decision on granting emergency use listing (EUL) to Bharat Biotech’s Covid-19 vaccine next week.

Moody’s upgrades India’s ratings outlook to Stable from Negative
International ratings agency Moody’s on Tuesday upgraded the outlook on India’s sovereign rating to ‘Stable’ from ‘Negative’ in a revision after nearly two years, taking off the table any risk of a downgrade in country’s rating to a junk status.

Banks, NBFCs report jump in advances
In a sign that bank credit growth may be on an uptrend, most bank and non-bank lenders reported a jump in disbursal of advances in the quarter ended September.


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