STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 33 points, or 0.18 per cent, higher at 18,459.50, signaling that Dalal Street was headed for a positive start on Wednesday.
- Tech View: Nifty50 on Tuesday snapped a seven-day winning streak and formed a bearish candle on the daily chart, with no upper wick, sending signs of weakness.
- India VIX: The fear gauge spiked over a per cent to 17.38 level on Tuesday over its close at 17.18 on Monday.
Asian shares mixed in early trade
Mostly Asian shares were trading mixed on Wednesday, even as US stocks rallied overnight buoyant by corporate earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.52 per cent.
- Japan’s Nikkei advanced 0.58%
- South Korea’s Kospi shed 0.33%
- Australia’s ASX 200 added 0.92%
- China’s Shanghai declined 0.50%
- Hong Kong’s Hang Seng gained 0.40%
Wall Street ended higher
US stock indices closed higher on Tuesday with the biggest boost coming from the technology and healthcare sectors, as investors appeared to bet on solid quarterly reports even as some worried that it was too early to celebrate.
- Dow Jones surged 0.56% at 35,457.31
- S&P 500 gained 0.74% to 4,519.63
- Nasdaq jumped 0.71% to 15,129.09
Dollar index flat, Yen skids to 4-year low
US bonds drove currencies down on Wednesday, with a rise in long-term rates pushing the dollar to an almost four-year high on the yen, but a decline in shorter-dated yields putting it on the back foot against most other major peers.
- Dollar Index flat at 93.822
- Euro hovered near $1.16335
- Pound little changed at $1.3793
- Yen declined to 114.585 per dollar
- Yuan appreciated to 6.3826 against the greenback
FPIs sell shares worth Rs 506 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 505.79 crore, data available with NSE suggested. DIIs were sellers to the tune of Rs 2,578.22 crore, data suggests.
Q2 earnings today
Havells India, Jubilant Foodworks, Tata Communications, Syngene International, L&T Holding Finance, Angel Broking, Just Dial, Supreme Petrochem, Tejas Networks, Hathway Cable & Datacom and Shoppers Stop are among companies that will announce their September quarter results today.
Rupee: The currency market was closed on Tuesday on account of Id-E-Milad. On Monday, the rupee ended 9 paise lower at 75.35 against the dollar, tracking a stronger greenback against key rivals overseas and rising global crude oil prices.
10-year bond: India 10-year bond rose 0.93 per cent to 6.38 after trading in 6.35 – 6.39 range on Monday.
DATA/EVENTS TO WATCH
- Q2 Results: Havells | Jubilant Foodworks | Tata Communications
- CN Loan Prime Rate (7 am)
- CN House Price Index YoY SEP (7 am)
- GB Inflation Rate SEP (11:30 am)
- GB Core Inflation Rate YoY SEP (11:30 am)
- EA ECB Elderson Speech (12:50 pm)
- EA Current Account AUG (1:30 pm)
- EA Core Inflation Rate YoY Final SEP (2:30 pm)
- EA Inflation Rate Final SEP (2:30 pm)
- US EIA Crude Oil Stocks Change 15/OCT (8 pm)
- US Fed Quarles Speech (10:30 pm)
Gita Gopinath to leave IMF job
IMF’s Chief Economist Gita Gopinath will leave her job in January next year and return to the prestigious Harvard University, according to the global financial institution.
Banks flag concerns over US data rules
India’s banks have approached the government with their concerns over the mandatory sharing of customer details with US authorities under that country’s expanded National Defense Authorization Act (NDAA), which took effect on January 1.
Gold demand to stay low, rebound next year
Gold demand is likely to be more subdued than expected in 2021, following India’s prolonged battle with Covid-19, said the World Gold Council (WGC). There is a possibility of a rebound in gold demand next year, it said, although any future outbreaks could create further uncertainties.
IMF cuts Asia’s growth forecast
The International Monetary Fund on Tuesday slashed this year’s economic growth forecast for Asia and warned that a fresh wave of COVID-19 infections, supply chain disruptions and inflation pressures pose downside risks to the outlook.
IT firms may take a 1-3% hit on margins as travel resumes
The cost benefits that accrued to software services providers till now due to Covid-19 related travel restrictions may be coming to an end. Executives at top IT companies signalled a return to pre-Covid-19 margins and revenue while announcing results for the September quarter.