Tuesday, November 30, 2021
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Listen In: Two factors that will drive markets this week | The Economic Times Podcast


Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let’s start with the headlines first.

– RBI may lay roadmap for raising reverse repo rate
– Many Indians named in Pandora Papers exposé
– Zydus gets nod for vaccine phase III trial
– Vedanta to invest $20bn, eyes PSUs on selloff list

Now lemme give you a quick glance on the state of the markets.

Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 33 points higher at 8:30 hours (IST). Asian shares dipped on Monday as concerns about China’s property sector and inflation worries offset upbeat US data and positive news on new drugs to fight the coronavirus. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3%.

Elsewhere, the yield on 10-year Treasuries was steady around 1.46%. The dollar eased from last week’s peaks on Monday as encouraging trial results for a COVID-19 pill supported risk appetite, but investors remained cautious ahead of central bank meetings in Australia and New Zealand as well as U.S. labour data this week. Oil fell on Monday ahead of an OPEC+ supply policy meeting that may decide whether a recent rally in prices can be sustained as the world fitfully recovers from the COVID-19 pandemic. Brent crude was down 24 cents or 0.3% at $79.04 per barrel.

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That said, here’s what is making news.

A flood of initial public offerings (IPOs) is set to hit the market between October and December. As many as 35 companies are planning to raise a record Rs 80,000 crore in the third quarter if the market remains stable, bankers said. In comparison, the previous record for a calendar year was in 2017 when 36 companies raised Rs 67,147 crore. Paytm, Aadhar Housing Finance, Star Health & Allied Insurance, Policybazaar, Emcure Pharma, Adani Wilmar, and Nykaa are among those planning to raise between Rs 4,000 crore and Rs 16,600 crore in IPOs.

Gross equity purchases by institutional funds — both domestic and foreign — remain unaffected by hawkish statements from global central bankers and elevated valuations. Six-month rolling averages of gross purchases by local funds in the secondary market rose to a record of Rs 83,968 crore in September 2021, Sebi data showed. Gross buying by local funds has been more than Rs 90,000 crore for two consecutive months for the first time. Consequently, the net six-month rolling average of investments by local funds rose to Rs 7,688 crore in September, a 22-month high. This includes all mutual funds ranging from equity funds, index funds, ETFs, and balanced funds for trades in the secondary market.

You can now use Bitcoin or other cryptocurrencies to buy goods like a rug or for services such as recharging Fastag in India. Cryptocurrency is increasingly gaining in prominence as a payment method among a small yet growing set of businesses in the formal and informal economy in India. They have started to accept Bitcoin, Ethereum, Solana, and other crypto tokens in exchange for goods and services amid the rising popularity of the digital asset in India. In the absence of any law specifying treatment of cryptocurrency, legal experts said the use of cryptocurrency for payments in India is neither legal, nor illegal. This has not deterred businesses or customers from opting for such transactions.

LASTLY,

The direction of US bonds may continue to drive sentiment in the stock market, which has been under pressure of late following the recent rise in yields. With the Nifty near the crucial support of 17,400, sentiment among traders is jittery as a lot of bullish bets are likely to be taken off if the index declines below this level. Analysts said expectations of Reserve Bank of India signalling the start of normalisation of its liquidity measures in the policy meeting on October 8 will also keep traders nervous.

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NOW Before I go, here is a look at some of the stocks buzzing this morning…

State-run power giant NTPC has drawn a Rs 15,000 crore divestment plan which includes listing of its arms NTPC Renewable Energy, North Eastern Electric Power Corporation and NTPC Vidyut Vyapar Nigam.

Grasim Industries said the income tax department has raised a demand of Rs 8,334 crore on the company as capital gains tax with regard to sale of shares in a group firm.

NIIT has acquired a 70 per cent stake in RPS Consulting Pvt Ltd for Rs 82.3 crore. The remaining 30 per cent shareholding will be acquired by NIIT from the promoters of RPS Consulting in subsequent tranches based on the achievement of certain financial milestones and closing adjustments in terms of the transaction documents within the next two and a half years, a regulatory filing said.

Avenue Supermarts Ltd, which owns and operates retail chain D-Mart, has reported a 46.6 per cent increase in its standalone revenue from operations at Rs 7,649.64 crore for the second quarter ended September 2021.

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Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s it for now. Stay with us for all the market news through the day. Happy investing!



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