Nifty today: SGX Nifty up 65 points; here’s what changed for market while you were sleeping


Buoyancy in Asian markets on the hope of a US stimulus package before the elections and reports of rising prospects of a Covid vaccine by year-end may lift domestic market sentiment today. All eyes would also be on the Chinese GDP numbers due for release later in the day.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start

Nifty futures on the Singapore Exchange traded 66.5 points, or 0.56 per cent higher at 11,838.50, in signs that Dalal Street was headed for a positive start on Monday.

Tech View: Nifty shows signs of recovery

Nifty50 closed above the 11,750 level on Friday and showed initial signs of a recovery after Thursday’s selloff. Analysts said the occurrence of an ‘Inside Bar’ pattern on the daily chart a day after the formation of a long bearish candle was a sign of resilience.

Asian markets off to a positive start

Asian markets started higher on Monday, buoyed by hopes of a US fiscal package before the US elections and expectations of a coronavirus vaccine by the end of this year. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.26 per cent. Japan’s Nikkei climbed 1 per cent while South Korea’s KOSPI and Australian shares were up 0.7 per cent each.

Oil rises ahead of China GDP data

Oil prices edged up in early Asian trade on Monday ahead of China’s economic growth data, which is expected to show recovery in the top oil importer. Brent crude for December inched up 4 cents to $42.97 a barrel and U.S. West Texas Intermediate crude was at $40.90 a barrel, up 2 cents, a day before the November contracts expire.

US stocks ended mixed on Friday

US stocks closed mixed as investors pored through the nation’s monthly retail sales data. On Friday, the Dow Jones Industrial Average increased 112.11 points, or 0.39 per cent, to 28,606.31. The S&P 500 was up 0.47 points, or 0.01 per cent, to 3,483.81. The Nasdaq Composite Index decreased 42.32 points, or 0.36 per cent, to 11,671.56.

Q2 earnings today

HDFC Life Insurance Company, Britannia Industries, ACC L&T Technologies, Bank of Maharashtra, Rallis India and CSB Bank are slated to announce their financial results for the September quarter on Monday.

FIIs sell Rs 480 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 479.59 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 429.81 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Friday settled almost flat at 73.35 against the US dollar in the absence of any fresh trigger.

10-year bonds: India 10-year bond yield rose 0.63 per cent to 5.93 after trading in 5.91-5.94 range.

Call rates: The overnight call money rate weighted average stood at 3.40 per cent, according to RBI data. It moved in a range of 1.8-3.85 per cent.

DATA/EVENTS TO WATCH

Q2 Earnings: ACC I Britannia I Century Textiles I HDFC Life I L&T Tech

Japan Balance of Trade Sept (05:20 am)

Australia RBA Meeting Minutes (06.00 am)

China GDP Growth Rate YoY Q3 (07:30 am)

China Industrial Production YoY Sept (07:30 am)

China Unemployment Rate Sept (07:30 am)

China GDP Growth Rate QoQ Q3 (07:30 am)

US Fed Chair Powell Speech (05:30 pm)

ECB President Lagarde Speech (06:10 pm)

MACROS

Covid-19 peaking in India… India’s Covid-19 epidemic peaked in September and all activities can resume in the country provided safety measures like wearing masks, avoiding crowded places and physical distancing are followed, an expert committee set up by the department of science and technology said. The committee said with active cases touching 1 million in September and deaths 100,000, the epidemic had peaked in the country.

48-hour deadline to approve relief package

US House Speaker Nancy Pelosi said that White House and congressional lawmakers must reach an agreement in 48 hours if they want to pass a new Covid-19 relief package before the presidential election in November. “The 48 only relates to if we want to get it done before the election, which we do,” Pelosi said in an interview with ABC News.

All eyes on China GDP data today

Investors were awaiting China’s third-quarter gross domestic product (GDP), monthly production and retail sales due later in the Asia morning, Reuters reported. “Chinese growth has bounced back well from its early Covid-19 losses and this data will be key to identify how the economy has progressed,” Steven Dooley, chief strategist at Western Union Business Solutions told Reuters.

Sunset date on import tariffs on the cards… India is likely to introduce a sunset date for higher import tariffs imposed on goods such as mobile phones and televisions to boost local manufacturing. Policymakers are of the view that an end date to tariff measures announced to give a boost to the Make in India programme is necessary. This will push local manufacturing to become globally competitive within the given concession period, a top government official aware of deliberations said

Auto plants running overtime… As the auto industry approaches peak festive season, factories are running overtime to churn out more cars and bikes than they did in about two years. About 330,000-340,000 cars are expected to be produced in October, the highest monthly output since January 2019, when the industry recorded output of 364,000 units, according to people with knowledge of the matter. As for two-wheelers, cumulative production is expected to be around 2.37-2.4 million vehicles, the highest in two years.

e-commerce festive sales a big hit… Large appliances, smartphones and consumer electronics have dominated the first leg of festive sales on Amazon and Flipkart, boosted by card discounts, exchange schemes and zero-interest instalment offers, top brands and company executives said. Brick-and-mortar retailers have also reported an uptick as brands have sought to keep prices similar on all channels. The first 48 hours of Amazon’s ongoing Great Indian Festival sale have seen the heaviest sales in seven years of operations in the country, a top executive said. Flipkart said that in two days sellers notched up as much business as they did in six days of the year-earlier sale.

Data analystics use swells tax notices … The data analytics tax demands are here — indirect tax authorities have issued notices to companies and individuals based on data collected from income-tax filings. Tax notices have been issued to several companies after correlating income and service tax data. Essentially, if data from 2014-15 onward showed a company or an individual employed by a company paid substantial income-tax but no service tax, authorities have raised questions on how a business earning large incomes escaped the service tax net.

Surge in CP fund raise in Sept… The value of Commercial Papers sold in September surged nearly 50% compared with August, latest RBI data showed, reflecting demand for short-term money amid signs of economic revival. CPs are short-term debt instruments with maturities of up to 12 months generally. Besides nonbanking finance companies, manufacturing and services companies are permitted to sell CPs. RIL, Aditya Birla Finance, Bajaj Finance, Larsen and Toubro, Godrej group, HDFC and SAILwere among those that raised Rs 1.94 lakh crore in cheaper short-term funds, either to repay high-cost bank debt or meet rising working capital requirements, data showed.

Auditors’ resignations raise worry… There has been a spate of resignations by company auditors recently for reasons ranging from disputes with India Inc over fees to non-cooperation by companies as well as the cryptically termed ‘other grounds’, leading market participants to think that the stated reasons may not reflect the true picture. Since April 1, auditors at more than 30 NSE-listed companies have resigned abruptly mid-way through their term, with more than half citing commercial reasons for the decision, data from
primeinfobase.com showed.

Govt to push IPOs, buybacks… The government will push forth with initial public offers and share buybacks in key public sector enterprises in the remaining months of this financial year, a top official said, following the successful public listing of Mazagon Dock Shipbuilders and other offers for sale. Public offers will be one of the “very big priorities” as they will generate future value for the government, Pandey said. He added that buybacks will be another high priority area.





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