The stock markets opened positive in line with mildly higher Asian markets on Tuesday (September 21). At 09:17 AM, the Sensex was up 278.98 points or 0.48 oercent at 58,769.91, and the Nifty was up 73.80 points or 0.42 percent at 17,470.70. About 1084 shares have advanced, 709 shares declined, and 95 shares are unchanged.
HCL Tech, Tech Mahindra, Tata Steel, TCS were among the major gainers while Nestle, Maruti, UltraCem, HDFC were among the major losers at the opening bell.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 92.54 crore on Monday, as per provisional exchange data.
"Domestic equities look to be soft as cascading impact of Evergrande defaults may turn investors risk averse in the near to medium term," said Binod Modi Head-Strategy at Reliance Securities, PTi report said.
However, considering increasing possibility of earnings downgrade in the US markets following sharp rise in coronavirus daily caseload and continued reform measures undertaken by the Indian government appear to have revived FIIs'' interest in the domestic market, he noted.
On the global front, equities witnessed heavy selling pressure on Monday as growing fears of China’s second largest real estate giant Evergrande''s possible default spooked markets. All three indices in the US recorded fall of around 2 per cent.
Further, investors turned to be cautious ahead of the Federal Open Market Committee (FOMC) meeting outcome on Wednesday, wherein many investors expect hawkish commentary from the US Federal Reserve, Modi added.
Wall Street down
Wall Street fell in a broad sell-off on Monday, with the S&P 500 and Nasdaq suffering their biggest daily percentage drops since May, as fear of contagion from potential collapse of China’s Evergrande drove investors out of equities in a flight for safety.
The Dow Jones Industrial Average fell 614.41 points, or 1.78 percent, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70 percent, to 4,357.73 and the Nasdaq Composite dropped 330.07 points, or 2.19 percent, to 14,713.90.
Global markets caught in fears over China Evergrande
Global stock markets on Tuesday were caught in the grip of contagion fears sparked by troubles at China Evergrande as growing risks the property giant could default on its massive debt prompted investors to flee riskier assets.
Asia-Pacific trade recovers
Shares in Asia-Pacific recovered from lows in Tuesday morning trade as investors continue to monitor the situation surrounding embattled developer China Evergrande Group.
Japan’s Nikkei fell 2.0 percent, resuming trade after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 percent. MSCI’s ACWI shed 0.13 percent, a day after the gauge of the world’s 50 stock markets lost 1.63 percent, its biggest decline in two months, and leaving it teetering at its lowest level in two months.
US Treasury yields fall
US Treasury yields fell on Monday as fears that property developer China Evergrande Group might default deepened a global equity sell-off and sent investors scurrying to shelter in safe-haven bonds.
Treasury prices rallied, pushing yields on the benchmark 10-year note down 6 basis points to 1.306 percent at one point, before shedding some price gains to trade at 1.3226 percent.
US employment report points to weak jobs number in September
A JP Morgan model that came closer than virtually all other forecasts in predicting last month's big US employment report shortfall is pointing to another weak jobs number for September as consumers appear to have dialed back their travel and leisure spending since Labor Day.
The jobs tracker created by the bank's quantitative research team, fed by a range of alternative data including Chase credit card usage and airport security check volumes, suggests that September job growth will come in at 333,000.
That would be far from the kind of rebound from August's disappointing job growth of just 235,000 - the lowest total since January - that policymakers at the Federal Reserve and elsewhere are hoping for.
Oil prices fall
Oil prices fell 2 percent on Monday as investors grew more risk averse, which hurt stock markets and boosted the US dollar, making oil more expensive for holders of other currencies
Brent crude fell $1.42, or 1.9 percent, to settle at $73.92 a barrel after sinking to a session low of $73.52. US West Texas Intermediate (WTI) declined $1.68, or 2.3 percent, to end at $70.29 after falling to as low as $69.86.
Fuel prices unchanged
Petrol and diesel prices in the country have maintained stability amid volatility in global oil prices with crude on the rise again. The oil marketing companies (OMCs) kept petrol and diesel prices unchanged for the 16th consecutive day on Monday.
Accordingly, the price of petrol and diesel remains unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi, as per Indian Oil Corporation, the country's largest fuel retailer.
Across the country as well petrol and diesel prices remained static on Monday but their retail rates varied depending on the level of local taxes in a particular state.
In Mumbai, the petrol price is stable at Rs 107.26 per litre on Monday, while diesel rates also remain unchanged at Rs 96.19 a litre. In Chennai, petrol is priced at Rs 98.96 a litre and in Kolkata Rs 101.62 a litre. Diesel is also priced at Rs 93.26 and Rs 91.71 per litre in both cities respectively.
G-sec acquisition program
The Reserve Bank of India (RBI) on September 20 announced the open market purchase of Government of India securities under the G-sec Acquisition Programme (G-SAP 2.0) and simultaneous sale of Government of India Securities.
Accordingly, the RBI will conduct the open market purchase of government securities under the G-sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 23, 2021, the central bank said in a release.
The central bank will purchase the following Government securities through a multi-security auction using the multiple price method, it said in a release.
Sebi penalises 8 entities
Markets regulator Sebi on Monday penalised eight entities for fraudulent trading in shares of Videocon Industries Ltd. The entities are Acuity Merchants Pvt Ltd, Godavari Commercial services Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt. Ltd, Coastal Fertilisers Ltd, Akansha Commodities Pvt Ltd, Messrs Agarwal Holdings and Superdeal Fincom Pvt Ltd.
These are facing a fine of Rs 16 lakh, payable jointly and severally, for violation of Prohibition of Fraudulent and Unfair Trade Practices norms.
8 stocks under F&O ban
Eight stocks - Exide Industries, Indiabulls Housing Finance, Vodafone Idea, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)