SGX Nifty up 80 points; here's what changed for market while you were sleeping


An overnight rise in US stocks and a positive start to other Asian markets may help soothe nerves of domestic investors on Friday after six days of relentless selling in stocks. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals positive start

Nifty futures on the Singapore Exchange traded 79.50 points, or 0.73 per cent higher at 10,924.50, in signs that Dalal Street was headed for a positive start on Friday.

Tech view: Nifty to find support at 11,760

Analysts said a retest of the 10,600 level is likely if the index falls below its 200-day moving average at 10,760. A few others do not rule out Nifty50 falling to 10,175 level, which at Thursday’s close would suggest a further 6 per cent potential downside. A few others do not rule out Nifty50 falling to 10,175 level, which at Thursday’s close would suggest a further 6 per cent potential downside.

Asian stocks rise at open

Hong Kong’s Hang Seng edged up 0.49 per cent, or 114.68 points, to 23,425.75. China’s Shanghai Composite added 0.35 per cent, or 11.20 points, to 3,234.37. In Japan, Tokyo stocks also opened higher. The benchmark Nikkei 225 index was up 0.58 per cent or 133.49 points to 23,221.31 in early trade.

Oil prices little changed in early trade

Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply. Brent crude was down 2 cents at $41.92 a barrel, while US West Texas Intermediate (WTI) crude was 3 cents firmer at $40.34.

US stocks settled higher

US stocks managed to realise marginal growth amid positive signals about additional fiscal stimulus.On Thursday, the Dow Jones Industrial Average index rose 52.31 points, or 0.20 per cent, to 26,815.44. The S&P500 index picked up 9.67 points, or 0.30 per cent, to 3,246.59. The Nasdaq Composite Index gained 39.28 points, or 0.37 per cent, to 10,672.27.

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Angel Broking IPO subscribed 4x, closes

The initial public offer of Angel Broking was subscribed nearly 4 times on the last day of bidding on Thursday. The Rs 600-crore public offer received bids for 5,42,64,854 shares against 1,37,70,491 shares on offer, translating into 3.94 times subscription, according to data available with the NSE.

FPIs sell Rs 1,886 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,885.69 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 188.64 crore, data suggests.

MONEY MARKETS

Rupee: The rupee dived 32 paise to touch a near one-month low of 73.89 against the US dollar on Thursday, following massive sell-offs in equities and concerns over continuous surge in COVID-19 cases.

10-year bonds: India 10-year bond yield rose 0.03 per cent to 5.99 after trading in 5.98-6.02 range.

Call rates: The overnight call money rate weighted average stood at 3.42 per cent, according to RBI data. It moved in a range of 1.80-4.00 per cent.

DATA/EVENTS TO WATCH

  • UK Gfk Consumer Confidence SEP (04:31 am)
  • UK Car Production YoY AUG ( 01:30 pm)
  • India Deposit Growth YoY SEP/11 (05:00 pm)
  • India RBI Forex Reserves SEP/18 (05:00 pm)
  • India Bank Loan Growth YoY SEP/11 ((05:00 pm)
  • US Durable Goods Orders MoM AUG (06:00 pm)
  • US Baker Hughes Oil Rig Count 25/SEP (10:30 pm)
  • European Council Special Meeting

MACROS

Another Op Twist to cap bond yields… RBI will aim to buy long-term bonds worth Rs 10,000 crore and sell an equivalent amount of shorter-duration papers in what is known as Operation Twist (OT). This should help cap rising benchmark yields, which have remained elevated on oversupply concerns. The central bank will conduct the latest OT auction on October 1 by buying three sets of securities maturing between 2025 and 2029.

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RBI debt rejig plan may turn half-baked… Keeping out bond investors can upend banks’ plan to revive a company with one-time loan restructuring. Even if most lending banks agree to a loan rejig plan — as laid out by RBI and KV Kamath committee — it can be derailed by bondholders in the absence of clear rules to bind them to such a scheme. It’s a lurking fear among bankers who have to soften loan terms to help hundreds of companies tide over the stress caused by Covid-19 and associated lockdown.

Temporary IBC suspension extended… The government on Thursday extended temporary suspension of certain sections of the Insolvency and Bankruptcy Code till December 25. Suspension of Sections 7, 9 and 10 of IBC for six months from March 25 — aimed at protecting stressed companies from being taken to insolvency court — was ending on Friday

Covid relief likely for road sector… The government is “actively” considering extending Covid-19 relief measures — due to end on September 30 — for the road sector by another six months. A ministry of road transport and highways official said the measures likely to be extended include monthly payment for work done and contract period.

Gold loans seeing a surge… Covid-19 has forced a large number of people in India to take loans against their household gold more than once since May, according to gold loan non-banking finance companies, as the ongoing pandemic has brought in its wake severe financial distress. As many as 80% of customers have taken loans against gold more than once in the past four months, said executives of gold loan NBFCs.

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Telcos split over 4G auction… Telcos are split over when 4G spectrum auctions should be held. While Reliance Jio is pushing hard for the bidding to take place at the earliest, Bharti Airtel and Vodafone Idea (Vi) are in no hurry and would like the sale process to take place in 2021. Jio, the only profit-making operator, whose parent Jio Platforms recently raised over Rs 1.52 lakh crore, has a large chunk of airwaves permits expiring in its key 800 MHz band in 2021.

Harley-Davidson exits India… US motorcycle manufacturer Harley-Davidson announced it will stop making and selling its bikes in India as part of a global restructuring plan. The company had been cited several times by US President Donald Trump in his complaints about India’s high tariffs, which succeeded in persuading the government to change its tax policy in favour of the bike maker.

SA unease over Tata bid for IA… Singapore Airlines (SIA), Tata group’s joint venture partner in Vistara, and Temasek, the Singaporean carrier’s majority shareholder, are believed to have voiced their misgivings to Tata Sons about its proposed bid for struggling national carrier Air India. Top officials close to the development said concerns have been personally conveyed to Tata Sons chairman N Chandrasekaran by SIA and Temasek representatives. SIA declined to comment on the issue. Vistara and Tata Sons, too, did not comment.





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