Here’s breaking down the pre-market actions:
STATE OF THE MARKETS
SGX Nifty signals positive start
Nifty futures on the Singapore Exchange traded 24 points, or 0.36 per cent higher at 11,931.50, in signs that Dalal Street was headed for a positive start on Wednesday.
Tech View: Nifty forms small bullish candle
The index formed a small bullish candle on the daily chart with a long upper wick, as it could not hold above the key resistance at 11,950. A breach of the 11,950-12,025 zone would be crucial for the index to see further upside, analysts said. Any strong downside looks unlikely for now, they added.
Asian shares gain in early trade
Asian stocks rose on Wednesday after renewed US stimulus hopes helped Wall Street higher, although wobbles in the tech sector could keep a lid on investor sentiment. Australian stocks opened slightly higher while MSCI’s gauge of stocks across the globe was roughly flat. Japan’s Nikkei 225 was up 0.25 per cent at 23,626.80. The Hang Seng index gained 0.51 per cent, or 126 points, to 24,695.54.
Oil falls on US inventory buildup
Oil prices fell on Wednesday after a surprise climb in US crude stockpiles added to concerns about a global supply glut as a spike in global COVID-19 cases fuels demand fears and production returns in Libya. Brent crude futures for December delivery were at $42.94 a barrel, down 22 cents, or 0.5%, as of 0035 GMT, while December US WTI crude futures slipped 23 cents, or 0.7 per cent, to $41.47 a barrel.
US stocks settled higher
Wall Street shares closed higher on Tuesday on growing optimism that US lawmakers are nearing a deal on a stimulus package aimed at cushioning the economic shock from the coronavirus pandemic. The S&P500 index rose 16.20 points, or 0.5 per cent, to 3,443.12. The Dow Jones Industrial Average index gained 113.37 points, or 0.4 per cent, to 28,308.79. The Nasdaq composite added 37.61 points, or 0.3 per cent, to 11,516.49.
Equitas SFB IPO subscribed 39% on Day 1
The initial public offer of Equitas Small Finance Bank was subscribed 39 per cent on the first day of bidding on Tuesday. The Rs 517-crore IPO received bids for 4,54,01,850 shares against 11,58,50,001 shares on offer, as per data available with the NSE. Non institutional investors category was subscribed 3 per cent and retail individual investors 85 per cent.
Q2 earnings today
Bajaj Finserv, Bajaj Finance, UltraTech Cement, Syngene , GMM Pfaudler, DB Corp and Colgate Palmolive are among companies that are slated to announce their September quarter earnings during the day.
DIIs sell Rs 1,633 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,585.07 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,633.23 crore, data suggests.
Rupee: The rupee on Tuesday depreciated by 12 paise to close at 73.49 against the US currency due to dollar buying by state-run banks amid increased forex inflows.
10-year bonds: India 10-year bond yield fell 0.15 per cent to 5.93 after trading in 5.92-5.95 range.
Call rates: The overnight call money rate weighted average stood at 3.36 per cent, according to RBI data. It moved in a range of 1.8-3.8 per cent.
DATA/EVENTS TO WATCH
Q2 Earnings: Bajaj Finserv I Bajaj Finance I DB Corp I JK Tyre I Ultratech
BoJ Sakurai Speech (07:00 am)
UK Inflation Rate YoY Sept (11:30 am)
UK PPI Core Output YoY Sept (11:30 am)
ECB President Lagarde Speech (01:00 pm)
US MBA Mortgage Applications 16/Oct (04:30 pm)
US EIA Crude Oil Stocks Change 16/Oct (08:00 pm)
E-commerce sales hit record… India’s biggest e-commerce players by market share, Amazon and Flipkart, have together raked in $3.5 billion (about Rs 26,000 crore) during the first four days of their flagship festive season sales events, multiple brands and industry analysts told ET, with both the online marketplaces on track to meet expectations for the entire seven-day period. Industry consultants Forrester Research and RedSeer Consulting are pegging cumulative sales by the two e-tailers from October 15 to October 22 at about $4.7 billion on average.
FDI flow best in April-Aug…India received $35.37 billion foreign direct investment during April-August 2020, the highest so far for the first five months of a financial year, the commerce and industry ministry said in a statement on Tuesday. The FDI flows, which include equity, reinvested earnings and other capital, for the period was 13% higher than $31.6 billion received in the first five months of 2019-20.
EPFO reports surge in enrolments… Retirement fund body EPFO has reported net new enrolments of about 1,005,000 in August, up from about 748,000 in July, indicating that more formal jobs are being added as economic recovery gathers momentum. The payroll data released on Tuesday revised downwards the numbers of net new enrolments for April and May when more people exited the scheme than those who joined or rejoined amid the nationwide lockdown
Bond buyers of last resort soon… A ‘Buyer of Last Resort’ entity for corporate bonds is in the offing. The government is said to have agreed to the proposal to set up a body that will provide liquidity and confidence to the bond market in the event of a crisis. The Sebi committee on mutual funds is working on the contours of the concept.
Outsiders allowed say in PE deals… Sebi has allowed outside experts, residents as well as NRIs and probably even foreigners, to have a say in investment decisions of local private equity, venture capital and angel funds. The move is in line with the demand from large offshore investors who want to play a more active role in funds which handle their money.
Puri says India can go back to 9% growth… India’s economic recovery has been swift since the unlock began — with cars, motorcycle, and television sets flying off the shelves — holding out promise of a return to 9% economic growth if the administration executes flawlessly on policy decisions, said Aditya Puri, the outgoing chief executive of HDFC Bank. Indian economy is rebounding with zooming sales in select sectors after shrinking 23.9% in the first quarter. While the rebound is patchy, it may still help the country to end the year with a 9.5% contraction, according to RBI’s projections.
Lenders stuck in Future-Amazon standoff…Lenders to the Future Group and its bond holders say they are facing the prospect of providing for thousands of crores in potential losses on the debt as the retailer’s legal battle with Amazon threatens to drag out the sale to Reliance Retail. Future has approached lenders for a restructuring plan as it races to prevent its loans from being declared non-performing assets. Bankers say restructuring is the only option as it does not have enough cash flow to service loans immediately.
Britannia sees demand slowdown… The country’s largest listed cookies maker, reported a slowdown in the sale of at-home items in the September quarter after stockpiling in the immediate aftermath of the lockdown drove sales in the previous three-month period. But the company witnessed a moderate increase in the sale of out-ofhome consumption items in the three months to September as the economy was unlocked in phases.
Amazon-Future verdict likely in Oct end… A Singapore arbitration court is expected to give its verdict on US ecommerce firm Amazon’s challenge to the sale of Future Group’s retail business to Reliance Retail by the end of this month, people aware of the development said. A single bench arbitrator court heard the matter last week where both the parties argued their cases for hours, they said. Former solicitor general Harish Salve represented Future Group while Gopal Subramanium, another former solicitor general, represented Amazon.