Trends on SGX Nifty indicate a negative opening for the index in India with a 47-points loss. The Nifty futures were trading at 17,660 on the Singaporean Exchange.
"Nifty is expected to open flat to negative at 17,660,down by 50 points. Nifty has support in 17,580-16,620 and resistance in 17,780-17,820 range. Today being the monthly expiry we may see some volatile markets. Buying on dips with strict stoploss is the suggested strategy for traders," said Gaurav Udani, CEO and Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities said the "Indian equity markets might face a muted start to Thursday’s trade. SGX Nifty is slightly lower this morning. Asian markets witness a mix performance whereas Dow Futures looks firm as it tries to recover from previous sessions’ selloff. Treasury yields are still rising however Jerome Powell indicates his optimism regarding inflation impact to be temporary.
"In China, the Central Bank is pumping funds consistently so as to maintain sufficient liquidity amid Evergrande’s situation. India will post-fiscal deficit and industrial data today which shall be watched closely. Time and again, Indian markets are buying the dips and investors could look for opportunities in specific sectors and stocks which are offering favourable valuations.
"On technical front, 17,600 could be seen as the nearest support for Nifty50 while near term resistance could be seen around 18,000 levels", Nigam added.
Dow, S&P 500 recover
Gains in defensive shares and Boeing helped the Dow and the S&P 500 index recover some lost ground on Wednesday after concerns over inflation and rising Treasury yields sparked one of Wall Street's worst selloffs this year.
The Dow Jones Industrial Average was up 102.30 points, or 0.30 percent, at 34,402.29, the S&P 500 was up 6.90 points, or 0.16 percent, at 4,359.53, and the Nasdaq Composite was down 37.51 points, or 0.26 percent, at 14,509.17.
Asia-Pacific trade mixed
Shares in Asia-Pacific traded mixed on Thursday morning as investors reacted to the release of Chinese factory activity data for September.
Nikkei 225 slipped 0.67 percent, while the Topix index declined 0.65 percent. South Korea’s Kospi dipped 0.17 percent.
China's factory activity better than expected in September
China’s factory activity fared better than expected in September, stabilising after a slump in August, a business survey showed on Thursday, with a smaller decline in production countering an uptick in demand.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.0 in September from 49.2 the month before, versus analyst expectations of 49.5 in a Reuters poll. The 50-mark separates growth from contraction on a monthly basis.
India's external debt up
India's external debt rose modestly by 2.1 percent year-on-year to $570 billion as of March-end 2021, notwithstanding the COVID-19 pandemic, according to the finance ministry. External debt-to-GDP ratio rose marginally to 21.1 percent from 20.6 percent as at end-March 2020.
Reserves to external debt ratio, however, increased to 101.2 percent from 85.6 percent during the same period, thereby consolidating the country's position as a net creditor to the world, as per the status report on India's external debt released by the ministry.
Swing pricing in bond funds
To protect the interests of debt fund investors from large redemptions by other investors, Securities Exchange Board of India (SEBI) has introduced swing pricing in bond funds. The regulator has announced the swing pricing framework for bond funds units except overnight funds, gilt funds and gilt funds with 10-year maturity schemes.
SEBI had floated a consultation paper on swing pricing in July 2021. After incorporating the feedback on the consultation paper and deliberations in the Mutual Fund Advisory Committee (MFAC) the regulator has decided to implement the swing pricing only on the redemptions of Rs 2 lakh and more from the scheme at a PAN level. The swing pricing – partial for normal times and full swing pricing for times of market dislocations- will be implemented from March 1, 2022.
Oil prices slip
Oil prices slipped on Wednesday after US crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.
US crude stockpiles unexpectedly rose last week following a strong start to the week in oil prices amid global energy crunch in natural gas.
Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. US oil prices ended down 46 cents, or 0.6 percent, to $74.83 a barrel.
India expects double-digit growth in current year
The Indian government plans to focus on fiscal consolidation while pushing up state capital spending to bolster growth prospects, a top government economic adviser said on Wednesday.
India expects to achieve double-digit growth in the current year and economic reforms are likely to push future growth prospects, Krishnamurthy Subramanian, chief economic adviser at the finance ministry, said at a virtual summit of US and Indian industry captains.
India is among key markets globally with cross border real estate investment projections of $2.5 billion in the year 2022, Knight Frank’s Active Capital report 2021 has said. US, UK, Germany, France, and the Netherlands are forecast to be top destinations for cross border real estate investment in 2022.
One stock – Sun TV Network – is under the F&O ban for September 30. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
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