Nifty futures trading on Singapore Exchange is 19 points below 7 am (IST) on 7th Oct. Dalal Street was going for a flat start on Monday. The Nifty was closed on 11,416.95 on Thursday and closed on Friday due to Gandhi Jayanti.
Hopefully, the COVID-positive President Trump may soon be discharged from the hospital and the progress of US stimulus could have offset concerns over a slow-to-expected growth in US jobs, which could have given Dalal Street a positive start on Monday. Here’s how to break down pre-market action.
SGX NIFTY up 80 points
The Nifty futures on the Singapore Exchange-traded 80 points, or 0.70 percent to trade at 11,410. The Nifty closed at 11,416.95 on Thursday and closed on Friday due to Gandhi Jayanti.After two days of consolidation, the Nifty 50 pulled out a key resistance range of 11,300-350 to close above the 11,400-400 level on Thursday. The index formed a bullish candle on the daily chart and a Bullish bastard pattern on a weekly scale. Analysts said there is potential for further upside in the index.
Asian Stocks rise as Trump’s health improves
0.82 percent gained by US S&P 500 e-mini futures in Asian trade, while Nasdaq futures gained 1.11 percent. MSCI’s largest index among Asia-Pacific stocks outside Japan rose 0.63 percent. Australian stock jumped 2.37 percent for the largest daily gain in nearly two weeks. Japan’s Nikkei gained 1.39 percent. China’s financial markets are closed for public holidays.
OIL prices gain 1% in early trade
Doctors’ remarks to US President Donald Trump have raised oil prices by more than 1 percent on Monday, suggesting that he may be discharged from the hospital soon, some of his positive test for Covid-19 Days later, widespread alarm sparked. Brent up to $ 39.79 a barrel, receiving 52 cents or 1.3 percent. WTI crude was $ 37.64 a barrel, 59 cents, or 1.6 percent.
The US settled lower on Friday
On Friday Wall Street stock fell after a weak US jobs report and President Donald Trump’s shock announcement that he tested positive for coronavirus. The Dow Jones Industrial Average closed down 0.5 percent at 27,682.81. The broad-based S&P 500 index fell 1 percent to 3,348.44, while the tech-rich Nasdaq Composite Index fell 2.2 percent to 11,075.02.
Angel Broking made market debut
Angel Broking, whose IPO was sold from September 22 to September 24, is expected to make a first debut on Monday at an issue price of Rs 306 at a 6-7 percent discount. The stock will be listed at a time when another 20 percent lower circuit limit is reached after another 115 percent listing on another debuting Chemcon Specialty Chemicals on Thursday.
FIIs buy Rs 1,632 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks worth Rs 1,632.25 crore, which NSE suggested. DIIs were net buyers with earnings of Rs 259.46 crore.
0TCS may buy back shares
India’s largest IT services company said on Sunday that Tata Consultancy Services (TCS) would consider a buyback of shares on 7 October, when the company board meets second-quarter results.
MONEY MARKETS
Rupee: On Thursday against the US dollar amid positive macroeconomic data and a weak greenback overseas the rupee strengthened 63 paise to close at 73.13. 10-Year Bond: India 10-year bond yield fell from 0.32 percent to 5.99 after trading in the 5.96-6.00 range. Call rates: According to RBI data, the average weight of the overnight call money rate was 3.43 percent.
Stormy GST Council meets ahead… The GST Council meeting on Monday can be a stormy one as opposition-ruled states clash with BJP-ruled states over how they should be compensated for the reduction in collections and are likely to force a vote on the issue. Opposition-ruled Punjab, West Bengal, Kerala, Tamil Nadu, Telangana, Delhi, Chhattisgarh, Rajasthan, and Puducherry emphasized that the Center should borrow to compensate for the revenue loss due to the transition to the GST regime and is likely to invoke the Dispute Resolution Mechanism.
India Inc projects 51% capacity utilization…India Inc is forecasting growth of over 50% during the second half of the fiscal year, according to an industry survey released on Sunday. The percentage of 115 CEOs elected by the Confederation of Indian Industry (CII) is expected to improve. “The CEOs of polling have shown confidence in the coming days, indicating that the worst-case scenario may remain backward,” a CII statement said.
FinMin says demand surge palpable … India has crossed the Covid-19 peak and the positive rate of decline will help in economic recovery, with the Finance Ministry stating that it would “relieve the suffering of the people” There was no adversary to take any further measures”. The Ministry of Economic Affairs Department said in its monthly review for September, “the economy was” returning to normalcy, “with a palpable resurgence in demand across several sectors.
Karnataka wants to host Tesla… A state government official told ET that Karnataka has introduced Bengaluru as Tesla, the world’s most valuable carmaker, where it can manufacture electric cars and batteries. Tesla has already held preliminary talks with the state for a research and innovation unit in the city, for several of India’s electric vehicle (EV) startups such as Ola Mobility, Ather Energy, Mahindra Electric as well as Daimler and Bosch units.
Beijing drags Delhi to WTO…. Beijing has accused New Delhi of discriminatory and restrictive trade measures to ban Chinese apps and restrictions on foreign direct investment from neighbouring countries. During a recent meeting at the World Trade Organization (WTO), China alleged that the measures reduce transparency, stability, and predictability of the Indian market. India has banned the use of 234 mobile apps, most of which were developed and operated by Chinese Internet companies said by China.
Eating outside is making a comeback… Covid-19 is out too much, but eating out is making a comeback. After nearly six months of recession and closure, top restaurants are seeing a steady increase in dine-in numbers, with many reaching 30–50% of pre-COVID levels despite limited seating capacity. Officials said markets such as Delhi-NCR, Punjab, and Bengaluru have consistently seen, if not accelerated, recovery in dine-in footfalls, while Maharashtra has high hopes, which will reopen during the month.
US employment growth slows in sept US employment growth slowed more than expected in September and more than 300,000 Americans permanently lost their jobs, giving President Donald Trump a potential setback before the November 3 presidential election. Nonfarm payrolls increased 661,000 jobs last month, the smallest gain since the job’s recovery began in May.
India Inc’s equity raising hits record… Equity funding of Indian companies has broken a record this year, surpassing even the best years of 2017 and 2019, data collected by ET show. Falling capital markets, low-interest rates, adequate liquidity, and an urgent need to spruce up beef in a pandemic-hit economy, India Inc is raising record cash volumes. In the 12 months ended March 2020, Indian companies raised Rs 1.49 lakh crore in April-September.
Banks breathe easy on interest waivers … Government’s proposal for waiver of “interest on interest” on loans up to Rs 2 crore, clears uncertainty on bank’s income for the quarter, offering them liberal loans rejig terms for stressed borrowers. According to preliminary estimates by the Finance Ministry, the relief centre is expected to spend Rs 5,000-5,500 crore. Rating agency ICRA has estimated the cost at Rs 5,000–7,000 crore.
Telcos are likely to see a surge in revenue… Reliance Jio, Bharti Airtel, and Vodafone Idea are likely to report sequential gains in mobile revenue and operating income in the July-September period, after the increase in recharge by users COVID – 19 was relaxed as a lockdown. Analysts said. Jio is expected to get more growth and profit in average revenue per user (Arpu) from home broadband customers. These factors will help Jio to report strong profit growth.
