STATE OF THE MARKETS
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 6 points, or 0.05 per cent at 11,253, in signs that Dalal Street was headed for a flat start on Tuesday.
Tech View: Nifty eyes further gains
The index broke above its 50 per cent Fibonacci retracement level of the previous decline, whose value is placed at 11,210. Nifty also settled above its 50-day EMA, indicating strengthening of the uptrend, said analysts, who believe a move above 11,250 level on Tuesday can push the index further higher.
Asian markets rise in early trade
Japan’s benchmark Nikkei225 index fell 0.44 per cent or 104.57 points at 23,407.05 in early trade. In Hong Kong, Hang Seng added 0.46 per cent, or 108.56 points, to 23,584.61. China’s Shanghai Composite index put on 0.45 per cent, or 14.32 points, to 3,231.86. Korea’s Kospi was up 0.66 per cent at 2,323.01.
Oil prices fall on demand concerns
Oil prices fell on Tuesday as demand concerns driven by COVID-19 outweighed hopes that US lawmakers and the White House were nearing an agreement on a new stimulus package to revive the world’s biggest economy. US WTI crude futures slipped 17 cents, or 0.4 per cent, to $40.43, while Brent crude futures also fell 17 cents, or 0.4 per cent, to $42.26 a barrel.
Dollar steadies ahead of Trump-Biden debate
The dollar was steady against a basket of currencies on Tuesday as traders looked out to the first US presidential debate and developments on the US stimulus bill. The dollar index stood unchanged at 94.150, drifting away from a two-month high of 94.745 reached last week.
US stocks settled higher
The Dow Jones Industrial Average index rose 410.1 points, or 1.51 per cent, to 27,584.06, the S&P500 index gained 53.14 points, or 1.61 per cent, to 3,351.6 and the Nasdaq Composite index added 203.96 points, or 1.87 per cent, to 11,117.53.
UTI AMC IPO to open today
UTI Asset Management Company (AMC), the second-largest asset management company in terms of total AUM and eighth-largest AMC in quarterly AUM, is set to hit the primary market on September 29. The company has fixed a price band of Rs 552-554 per share for its IPO, which will open for public subscription on September 29. The public offer will close on October 1.
Mazagon Dock IPO to open today
Mazagon Dock Shipbuilders, the only firm in India that makes destroyers and submarines for the Indian Navy, will hit the primary market on September 29. The government, which has 100 per cent ownership of the company, will offload 15.17 per cent to raise maximum Rs 444 crore.
DIIs buy Rs 542.34 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 26.98 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 542.34 crore, data suggests.
Rupee: The rupee pared initial gains to settle 18 paise lower at 73.79 against the US dollar on account of suspected oil related dollar buying.
10-year bonds: India 10-year bond yield rose 0.30 per cent to 6.05 after trading in 6.04-6.07 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 2-4 per cent.
Residential realty market picks up…. The Indian residential property market showed signs of picking up momentum in the quarter ending September compared to April-June that was largely marked by lockdowns after the outbreak of the Covid-19 pandemic. Housing sales in top seven markets including Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Pune and Kolkata rose to 14,415 apartments, up 34% from the previous quarter, JLL India data showed. Mumbai was the largest contributor to sales, accounting for 29% in the quarter, while 22% of sales were contributed by Delhi-NCR. Growth in sales activity was also driven by stronger demand in Chennai, Hyderabad and Pune.
Coal mining bids set to be opened … The government will open bids received for commercial coal mining blocks on Wednesday as the Supreme Court refused to stay the auctions. Vedanta Group, Adani Group, Jindal Steel & Power and JSW Steel are among the companies believed to be eyeing the coal blocks with which India will open up the coal sector for commercial mining to private players. People aware of the matter said the apex court refused the plea made by the Jharkhand government to stay the auction process.
Why RBI deferred policy review… RBI deferred this week’s scheduled Monetary Policy Committee meeting a day before it was to start with the government not having finalised the three independent members of the six-member panel that sets policy interest rates. That’s unlikely to disturb RBI’s market-related functioning, as investors weren’t expecting any interest rate action, as indicated in an ET poll of 20 market participants on the weekend.
US Democrats unveil $2.2 trillion relief bill… US Democrats unveiled a $2.2 trillion relief bill to help millions of Americans gutted by the coronavirus pandemic, trimming more than $1 trillion off their earlier version hoping to reach agreement with Republicans after months of stagnation. In a deeply polarized Congress, the chances of reaching an agreement ahead of the November 3 election have sharply diminished in the past several weeks.
I-T to seek AG view on Voda verdict… The income tax department will seek the attorney general’s opinion on what course it should take after having lost the retrospective tax arbitration case against British telecom company Vodafone Group last week. India has the option of appealing against the decision of The Hague-based Permanent Court of Arbitration at the Singapore-based appellate tribunal.
FY21 fiscal deficit may hit 13%… India’s combined fiscal deficit may climb to 13-13.4% of gross domestic product (GDP) in the current fiscal, more than double the government’s target of 6.4%, even if there is no further fiscal stimulus, CARE Ratings said in a report Monday. The report projects the Centre’s deficit to touch Rs 17.8 lakh crore against the target of Rs 8 lakh crore, while states are likely to record a deficit of Rs 7.73 lakh crore over the budgeted Rs 6.35 lakh crore.
Kirloskar fraud blocks Ind Director appointment…The Kirloskar family feud took a surprise twist when Kirloskar Industries Ltd (KIL), a promoter of Kirloskar Brothers Ltd (KBL), voted against the reappointment of an independent director to KBL’s board during its AGM on Friday citing mistrust of the director’s independence and impartiality. The resolution to re-appoint Kishor Chaukar on the board of Kirloskar Brothers was blocked with only 65.7% votes in his favour. Re-appointment of an independent director is a special resolution and needs 75% of shareholder votes to pass.
$2b AIF in the works for startups… Small and emerging startups looking for growth capital could soon have a domestic alternative to private equity and venture capital money. The central government is in discussions with a global pension fund and the insurance and capital market regulators about floating an alternative investment fund (AIF) that will pool domestic capital from insurance companies and some private equity funds to invest in growth-hungry startups that need funding. A foreign pension fund will also be an investor in the AIF and the corpus could be around $2 billion (Rs 14,766 crore).
Sebi orders action against defaulting brokers… Sebi has asked stock exchanges and clearing corporations to liquidate assets of defaulting brokers within six months of declaring them as defaulters. This move comes in the wake of defaults by Mumbai-based broker Anugrah Stock and Broking. Sebi said stock exchanges must try and recover assets not in their possession before the appropriate court of law. Sebi noted that in some of the recent cases where brokers defaulted, there was a shortfall of funds or securities with the brokers to meet the obligation of clients or stock exchanges.