Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 21.5 points, or 0.19 per cent lower at 11,497.50, in signs that Dalal Street was headed for a negative start on Monday.
Tech View: Nifty rally losing steam
Nifty50 fell for the second straight session on Friday and barely held above the 11,500 level. The index formed a Bearish Belt Hold on the daily chart and an indecisive Doji-like candle on the weekly chart. Such formations after Nifty50 retraced 62 per cent of the fall from the highs of 11,794-11,185 hint that the recent rally is losing steam, said Mazhar Mohammad of Chartviewindia.in.
Asian shares edge lower in early trade
Asian shares held to tight ranges on Monday, as did currencies, as investors awaited developments on U.S. fiscal stimulus and coronavirus vaccines amid a resurgence of infections in Europe. MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade weaker, though it was not too far from a June 2018 peak at 568.84. Australian and New Zealand shares both opened in the red while South Korea’s KOSPI was 0.1% up.
US stocks settled lower on Friday
US stocks continued to drop as market sentiment was dampened by mixed economic data and geopolitical concerns.The Dow Jones Industrial Average on Friday fell 244.56 points, or 0.88 per cent, to 27,657.42. The S&P 500 dropped 37.54 points, or 1.12 per cent, to 3,319.47. The Nasdaq Composite Index decreased 116.99 points, or 1.07 per cent, to 10,793.28.
Route Mobile to make market debut today
Route Mobile will make market debut on Monday. The issue, which was sold in the price band of Rs 345-350 from September 9 to September 11, commanded a premium of Rs 310-312 in the grey market.
Chemcon IPO to open for subscription today
The Rs 318 crore IPO by Chemcon Speciality Chemicals, which serves pharma and oil well industries, will hit the Street on Monday. The Vadodara-based company is offering a fresh issue of equity shares, aggregating up to Rs 165 crore and offer for sale of up to 45,00,000 equity shares, to be sold in the price range of Rs 338-Rs 340.
CAMS’s Rs 2,242 crore IPO to kick off today
The Rs 2,242 crore IPO by Computer Age Management Services (CAMS) will open up for bidding on Monday. The price band for the issue has been fixed at Rs 1,229-1,230 and prospective retail investors need to bid for a minimum of one lot of 12 shares or in multiples thereof.
FPIs buy Rs 205.15 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 205.15 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 100.83 crore, data suggests.
Rupee: The rupee strengthened by 21 paise to close at more than one-week high of 73.45 against the US dollar on Friday as the greenback weakened in the global markets.
10-year bonds: India 10-year bond yield fell 0.31 per cent to 6.01 after trading in 5.99-6.02 range
Call rates: The overnight call money rate weighted average stood at 3.43 per cent, according to RBI data. It moved in a range of 1.80-4.05 per cent.
DATA/EVENTS TO WATCH
- India CAMS, Chemcon Speciality IPOs open
- China Loan Prime Rate (07:00 am)
- US Chicago Fed National Activity Index AUG (06:00 pm)
- Euro Area ECB President Lagarde Speech (06:15 pm)
- IPL: Sunrisers, Hyderabad vs RCB (07.30 pm)
Bank FDs may cease to be collateral… Brokers may cease to accept bank fixed deposits from clients as margins for stock market transactions. Clearing corporations — entities associated with stock exchanges to handle confirmation, settlement and delivery of all trades — are planning to remove FDs from the list of securities that can be put up as collaterals against trades, said people with direct knowledge of the development.
States told to decide borrowing option… Any state that does not choose one of the borrowing options offered by the Centre to compensate for the revenue loss on account of GST transition may have to wait till June 2022 to get compensation, a senior government official has said. As many as 21states have backed the first option, entailing Rs 97,000 crore borrowing, more than the requisite number needed to pass a resolution in the GST Council if it is put to vote.
Govt may sweeten Air India deal… The government has decided to go ahead with the process to divest stake in Air India and is discussing proposals to further sweeten the deal for prospective bidders by allowing some relaxations along the bidding process. However, any significant reduction in debt has been ruled out. Senior government officials said some options, including allowing interested parties to bid based on the enterprise value, are being considered.
Business sentiment bouncing back… Business sentiment has bounced back between July and September as India gradually lifted restrictions imposed due to the outbreak of Covid-19, a confederation of Indian industry (CII) survey has pointed out. Even though capacity utilisation has been improving, weak domestic demand still remains a concern, the industry body said in its recent Business Outlook Survey.
Malls seeing more footfall…. Footfalls in most malls have doubled since the reopening on June 8, with many of them reporting up to 60% of the footfalls in comparison with pre-Covid levels. Mall operators said they expect to reach 80% level by November, with the festive season round the corner, no weekend lockdown in states and expectation of opening of cinemas next month.
Amazon expects discretionary spends to rise… Amazon India is expecting discretionary spending by consumers to make a comeback during the festive season, a top executive told ET. While electronics will continue to dominate in terms of value of products sold during the festive season, Amazon expects to see a resurgence in demand for fashion, home and kitchen products and large appliances, Amazon India vice-president Manish Tiwary told ET in an interview.
Digital KYC for NBFCs likely… RBI and the government are working closely on a digital customer authentication facility for non-bank entities to help them reach out and cater to a wider section of the population, two people familiar with the matter said. This assumes significance amid the spread of Covid-19 when physical proximity is best avoidable.
Promoter buying lifts sentiment… Promoters have been mopping up shares of their firms in the secondary market of late, signalling optimism about their companies’ prospects amid challenging economic conditions. Since August 1, promoters of nearly 70 companies — mostly from mid- and small-cap segments — have increased their stakes. Some large companies, whose shares have been beaten down, too saw their promoters raising their holdings through open market purchases.
Independent directors ringfence assets… Several independent directors have begun ringfencing their assets by transferring titles to trusts or family members to safeguard their interests in case of any acts of financial mismanagement or fraud by the company promoter or management of boards they sit on. Some are doing this by way of creating a family trust where they can park their assets while others are simply transferring assets in the name of family members.
Paytm says all option open against Google… Paytm founder and CEO Vijay Shekhar Sharma says “all options are open,” to legal recourse against Google after the technology major temporarily removed the mobile payment platform’s app from its Play Store for running a scratch card-based cricket promotion, which breached its gambling policies. He said the company would also seek government and regulatory intervention. Sharma tore into Google’s practice of barring apps that were compliant with Indian laws, saying his ‘fight’ will be a long-drawn one.