Wednesday, October 20, 2021
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SGX Nifty down 145 points; here’s what changed for market while you were sleeping


Domestic stocks are set to see a gap-down start on Monday amid concerns over China’s economy, ahead of the US Fed’s two-day policy meeting starting Tuesday. Most of the Asian markets were shut on account of public holidays. Hong Kong’s Hang Seng index plunged 2.5 per cent; the dollar index gained while crude oil fell in early trade. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS


SGX Nifty signals a gap-down start
Nifty futures on the Singapore Exchange traded 147.5 points, or 0.84 per cent, lower at 17,454, signaling that Dalal Street was headed for a negative start on Monday.

  • Tech View: Nifty50 on Friday closed below the 17,600 level and formed a Dark Cloud Cover-like pattern on the daily chart, suggesting weakness ahead.
  • India VIX: The fear gauge spiked 6 per cent to 15.23 level on Friday over its close at 14.41 on Thursday.

Key Asian markets shut today
Majority of Asian stock markets including Japan, China and Korea remained closed on Monday due to public holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.19 per cent.

  • Hong Kong’s Hang Seng tanked 2.45%
  • Australia’s ASX 200 shed 1.48%
  • New Zealand’s DJ declined 1.16%
  • Philipine’s PSEi Composited fell 0.06%

US stocks settled lower on Friday
US stocks ended sharply lower in a broad sell-off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, the Delta Covid variant, and possible shifts in the US Federal Reserve’s timeline for tapering asset purchases.

  • Dow Jones slipped 0.48% to 34,584.88
  • S&P500 declined 0.91% to 4,432.99
  • Nasdaq dropped 0.91% to 15,043.97

Dollar creeps higher as Fed taper looms
The dollar began the week firmly on Monday with investors in a cautious mood ahead of several central bank meetings, headlined by the Federal Reserve, while looming catastrophe at indebted developer China Evergrande added to markets’ fragility.

  • Dollar Index jumped to 93.263
  • Euro declined to $1.1721
  • Pound eased to $1.3722
  • Yen weakened to 110.01 per dollar
  • Yuan depreciated to 6.4770 against the greenback

Oil extends losses on firm dollar
Oil prices fell on Monday, extending losses from Friday after the US dollar jumped to a three-week high and the US rig count rose. US West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.4%, to $71.67 a barrel at 0059 GMT Brent crude futures fell 27 cents, or 0.4%, to $75.07 a barrel.

FPIs buy shares worth Rs 1,553 crore
Net-net, foreign portfolio investors (FPIs) turned buyers of domestic stocks to the tune of Rs 1552.59 crore, data available with NSE suggested. DIIs turned net sellers to the tune of 1398.55 crore, data suggests. FPIs remained net buyers in Indian markets so far in September by investing Rs 16,305 crore.

MONEY MARKETS


Rupee: The rupee closed 4 paise higher at 73.48 against the US dollar on Friday, tracking a broad weakness in the American currency overseas.

10-year bond: India 10-year bond marignally eased 0.03 per cent to 6.17 after trading in 6.16 – 6.19 range.

Call rates: The overnight call money rate weighted average stood at 3.15 per cent on Friday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • US NAHB Housing Market Index SEP (7:30 pm)
  • US NY Fed Treasury Purchases 7 to 10 yrs (8 pm)
  • US 3-Month Bill Auction (9 pm)
  • US 6-Month Bill Auction (9 pm)

MACROS


Govt may further sweeten PLI scheme
India could further sweeten the deal for air conditioner and LED manufacturers chosen for the Production Linked Incentive (PLI) scheme for white goods, allowing investments made after April 1 this year to be eligible for benefits under the programme. The scheme offers incentives of 4-6% on incremental sales of goods made in India until FY29.

Advent to buy Eureka Forbes for Rs 4,400 crore
Private equity group Advent International has agreed to buy Eureka Forbes, the consumer durables flagship of the diversified Shapoorji Pallonji (SP) Group, for an enterprise value of Rs 4,400 crore. The sale will further help the leveraged 154-year-old construction and real estate conglomerate pare debt and focus on core operations. The loss-making business, currently, a subsidiary of listed Forbes & Co. will be spun out through a National Company Law Tribunal (NCLT) approved demerger process and then be listed on the BSE Limited.

iPhone makers on track to achieve PLI targets
Smartphone major Apple’s manufacturing partners Foxconn (HonHai) and Wistron are set to achieve targets by end of this fiscal year under the production-linked incentive (PLI) scheme, having raised manufacturing of iPhones for India and exports in the past few quarters, ET reported.

E-commerce brands biggest spenders during 1st leg of IPL 2021
E-commerce brands were the biggest spenders before and during the 14th edition of the Indian Premier League, the second leg of which resumed on Sunday. Vivo and Amazon Prime led the list in terms of recall given their high media spends on the tournament, said HI-CRICKET, a proprietary IP report by Havas Media Group India.

SBI wants fresh bids for Videocon
In yet another twist to the tortuous debt resolution at Videocon Group lead consortium lender State Bank of India has approached an appeals court to direct the Committee of Creditors (CoC) to reconsider its decision to accept a 95% collective haircut on the exposure. State Bank of India (SBI) is now seeking directions from the National Company Law Appellate Tribunal (NCLAT) to allow the resolution professional (RP) to invite a fresh expression of interest and a revised resolution plan.



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