STATE OF THE MARKETS
SGX Nifty signals a positive start
Nifty futures on the Singapore Exchange traded 31.5 points, or 0.18 per cent, higher at 17,847, signaling that Dalal Street was headed for a positive start on Friday.
- Tech View: Nifty50 on Thursday closed near the 17,800 level and formed an indecisive candle on the daily chart. Analysts believe the NSE barometer may consolidate with a likely negative bias.
- India VIX: The fear gauge sharply plunged 7 per cent to 16.16 level on Thursday over its close at 17.33 on Wednesday.
Asian shares rise; Chinese markets return from break
Asian shares rose on Friday as Chinese shares returned from a one week holiday upbeat, tracking a global rally, while investors also eyed key US jobs data for any fresh insight into the timing of Federal Reserve tapering. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.31 per cent.
- Japan’s Nikkei zoomed 2.28%
- South Korea’s Kospi added 0.18%
- Australia’s ASX 200 jumped 0.78%
- China’s Shanghani advanced 0.66%
- Hong Kong’s Hang Seng gained 0.14%
Wall Street ends with solid gains
Wall Street ended sharply higher on Thursday in a broad-based rally led by Big Tech, as a truce in the debt-ceiling standoff in the US Congress relieved concerns of a possible government debt default this month.
- Dow Jones gained 0.98% to 34,754.94
- S&P 500 added 0.83% to 4,399.76
- Nasdaq rallied 1.05% to 14,654.02
Dollar steady ahead of US jobs data
The safe-haven dollar hovered below a one-year high to major peers on Friday amid improved risk sentiment, while traders awaited clues on the pace of Federal Reserve policy normalization from closely watched monthly payrolls reports.
- Dollar index steady at 94.233
- Euro consolidated at $1.1555
- Pound gained to $1.3617
- Yen edged up to 111.69 per dollar
- Yuan appreciated to 6.4472 against the greenback
Oil climbs on switch from gas
Oil prices rose on Friday, tracking towards a 4.2 per cent gain for the week on signs some industries have begun switching fuel from high priced gas to oil and on doubts the US government would release oil from its strategic reserves. US West Texas Intermediate (WTI) crude futures climbed by 84 cents, or 1.1 per cent, to $79.14 a barrel. Brent crude futures jumped 80 cents, or 1 per cent, to $82.75 a barrel.
FPIs sell shares worth Rs 1,764 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1764.25 crore, data available with NSE suggested. DIIs were net buyers to the tune of 2528.64 crore, data suggests.
Rupee: The rupee snapped its three-session losing streak to settle 19 paise higher at 74.79 against the US currency on Thursday as crude oil prices cooled off and the dollar softened in the global markets.
10-year bond: India 10-year bond eased 0.14 per cent to 6.26 after trading in 6.25 – 6.28 range.
Call rates: The overnight call money rate weighted average stood at 3.19 per cent on Thursday, according to RBI data. It moved in a range of 1.95-3.40 per cent.
DATA/EVENTS TO WATCH:
- Q2 Results: TCS
- IN RBI Interest Rate Decision (10 am)
- IN Deposit Growth YoY SEP/24 (5 pm)
- IN Foreign Exchange Reserves 01/OCT (5 pm)
- IN Bank Loan Growth YoY SEP/24 (5 pm)
- US Non Farm Payrolls SEP (6 pm)
- US Unemployment Rate SEP (6 pm)
- US Wholesale Inventories MoM AUG (7:30 pm)
India raises concerns over new trade barriers
India has raised concerns over new trade barriers such as vaccine discrimination and Covid passports being imposed by some developed countries, saying they were impacting movement of persons and services exports.
Foreign tourists to be allowed from Nov 15
The home ministry announced on Thursday that it will begin granting tourist visas to foreigners wanting to come to India on chartered flights with effect from October 15. Those travelling to India on flights other than chartered aircraft would be able to do so from November 15.
UK scraps quarantine for vaccinated Indians
In a big respite for Indian travellers flying to England, the UK has announced that they will abolish the mandatory quarantine period for Indians starting October 11, 2021. The UK had earlier allowed Covishield – the Indian version of the AstraZeneca vaccine – but kept a mandatory 10-day quarantine for Indians flying in to the UK.
Fitch cuts India’s FY22 growth forecast to 8.7%
Global rating agency Fitch has slashed India’s growth forecast for FY22 to 8.7% from 10% projected earlier, but said high frequency indicators pointed to a strong rebound in the second quarter, as business activity returned to pre-pandemic levels.
Consumer spending inches towards pre-pandemic levels
Consumer spending is inching towards the pre-pandemic level according to the second quarter business updates by companies including Marico, Godrej Consumer Products, Titan Company and HDFC Bank. The demand revival is driven by falling Covid caseload and rising vaccination in the country.