Home Stock Market SGX Nifty down 40 points; here’s what changed for market while you...

SGX Nifty down 40 points; here’s what changed for market while you were sleeping

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Domestic stocks might take a breather on Thursday after eight days of consecutive rise, but hope of a fresh stimulus by the government may keep any downside limited.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals negative start

Nifty futures on the Singapore Exchange traded 36 points, or 0.28 per cent lower at 12,759, in signs that Dalal Street was headed for a negative start on Thursday.

Tech View: Nifty forms Hanging Man candle

Nifty50 climbed for the eighth straight session on Wednesday, but in the process formed a ‘Hanging Man’ candle on the daily chart. This was the second straight session, when the index formed such a pattern that has the connotation of the trend reversal if confirmed by selling pressure in the next session. Already, the index is in the overbought territory, which has made analysts turn cautious on the ongoing rally.

Asian markets edge higher

Stocks in Asia rose on Thursday, buoyed by continued global stimulus efforts and hopes of a coronavirus vaccine. Australian S&P/ASX 200 shares rose 0.29 per cent in early trading, while Japan’s Nikkei 225 rose 0.86 per cent and Hong Kong’s Hang Seng index rose 0.32 per cent. China’s Shanghai Composite index was flat.

Oil rises on hopes OPEC+ will hold back supply

Oil prices rose in early trade on Thursday, taking the week’s gains to more than 12 per cent on growing hopes that the world’s major producers will hold off on a planned supply increase as soaring cases of COVID-19 dent fuel demand. US WTI crude futures climbed 35 cents, or 0.8 per cent, to $41.80 a barrel, while Brent crude futures rose 31 cents, or 0.7 per cent, to $44.11 a barrel.

US stocks settled mixed

On Wednesday, the Dow Jones Industrial Average fell 23.29 points, or 0.08 per cent, to 29,397.63, the S&P500 index gained 27.13 points, or 0.77 per cent, to 3,572.66 and the Nasdaq Composite index added 232.58 points, or 2.01 per cent, to 11,786.43.

Q2 earnings today

Amrutanjan Healthcare, Andhra Cements, Apollo Microsystems, Bajaj Hindusthan Sugar, Centrum Capital, Cochin Shipyard, Eicher Motors, Fortis Healthcare, HEG, Infibeam Avenues, Noida Toll Bridge and Page Industries, among others are slated to announce their Q2 results on Thursday.

Gland Pharma IPO subscribed 2 times

Gland Pharma’s initial public offer was subscribed two times on the last day of subscription on Wednesday. The company’s Rs 6,479.5-crore initial share-sale received bids for 6,21,55,670 shares as against 3,02,37,879 shares on offer, translating into 2.06 times subscription, according to data available with NSE.

FPIs buy Rs 6,207 cr worth of stocks

Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 6,207.19 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 3,463.86 crore, data suggests.

MONEY MARKETS

Rupee: The rupee declined by 18 paise to close at 74.36 against the US dollar on Wednesday, tracking a strengthening American currency in the overseas market and higher crude prices.

10-year bonds: India 10-year bond yield fell 0.22 per cent to 5.90 after trading in 5.90-5.93 range.

Call rates: The overnight call money rate weighted average stood at 3.13 per cent, according to RBI data. It moved in a range of 1.8-3.5 per cent.


DATA/EVENTS TO WATCH

  • Eicher Motors I Engineers India I Fortis Healthcare I Grasim I IRCTC I IRB Infra I Jubilant Foodworks
  • India Industrial Production YoY Sept (05:30 pm)
  • India Inflation Rate YoY Oct (05.30 pm)
  • India Manufacturing Production YoY Sept (05.30 pm)
  • UK Balance of Trade Sept (12:30 pm)
  • UK GDP Growth Rate YoY Prel Q3 (12:30 pm)
  • UK Industrial Production YoY Sept (12:30 pm)
  • BoE Gov Bailey Speech (01:30 pm)
  • ECB Economic Bulletin (02:30 pm)
  • US Inflation Rate YoY Oct (07:00 pm)
  • US Initial Jobless Claims 07 Nov (07:00 pm)
  • ECB President Lagarde Speech (10:15 pm)
  • US Fed Chair Powell Speech (10:15 pm)

MACROS

Cabinet nod to PLIs for 10 sectors… The Cabinet gave in-principle approval to Production-Linked Incentives (PLIs) worth Rs 1.45 lakh crore for 10 sectors including white goods, automobiles, pharmaceuticals and textiles, seeking to attract big-ticket investment. Of this, the most is for automobiles and auto components at Rs 57,042 crore, followed by battery manufacturing at Rs 18,100 crore, in order to boost electric vehicle manufacturing. The incentives are in the form of a percentage of incremental sales linked to certain minimum investment and incremental sales milestones.

Govt weighs wage subsidy in stimulus... The government is discussing a fiscal stimulus that would include a wage subsidy programme spread over two years as well as a further boost to infrastructure spending. The entire package could be as high as 3.5% of GDP, or about Rs 7 lakh crore. A final decision on the stimulus and its financing is yet to be taken. The wage subsidy benefit is expected to be made available to firms that have GST registration, people familiar with the deliberations said.

Viability gap funding plan okayed… In a move to ramp up social infrastructure of the country and to continue support to the core sector infrastructure, the Cabinet Committee on Economic Affairs approved the continuation and revamping of the Viability Gap Funding (VGF) scheme under the public-private partnership model till 2024-25 with a total outlay of Rs 8,100 crore.

Home mortgages surge in 2 months… Fresh home mortgages surged in India over the past two months, in line with the phased unshackling of the economy, indicating that demand remains robust despite the Covid-induced disruptions and income shrinkages. Leading home loan providers, such as State Bank of India, ICICI Bank and Housing Development Finance Corporation said that demand for home loans surged. All these lenders have witnessed double-digit growth in home loan advances, despite a lull between April and August.

Big pay hike cleared for bank employees… Over 8.5 lakh employees, majorly from PSU banks, will get a 15% pay hike, with the conclusion of the 11th Bipartite Wage Negotiations on Wednesday. After three years of intense negotiations, the UFBU, which represents four bank officer associations and five workman unions, and the IBA on July 22 entered into an MoU for an annual wage hike of 15%. The wage hike would be for five years starting November 1, 2017.

ICRA sees major capex cuts by states… Ratings firm ICRA has cautioned that a dozen major state governments, which account for three-fourths of India’s GDP, may have to cut an aggregate Rs 2.5-2.7 lakh crore in their budgeted capital spending this fiscal year due to the pandemic-induced strain to their revenue.The aggregate debt of these states is set to expand to 28.9% of gross state domestic product (GSDP) in 2021 from 21.9% in FY19 and an estimated 22.3% in FY20, while revenue receipts are set to shrink by a significant 19.3% against the 14.3% growth budgeted for this fiscal year.

RBI expects positive growth in the economy in Q3… RBI says the economy may return to positive growth during the October-December quarter itself, ahead by a quarter of the forecast provided in the monetary policy resolution last month, as the growth momentum in September has sustained in October as well. But it has also warned that sustained inflation, the risk of the second wave of the virus and stress in the household and corporate sectors could play spoilsport.