The benchmark indices opened sharply lower in keeping with Asian markets and US markets (on Friday). At 9.16 AM, the Sensex was 359.77 points down or 0.61 percent at 58,656.12 in early trade on Monday, tracking losses in index majors Tata Steel, HDFC twins and ICICI Bank amid thin trade in global markets. The Nifty was down 113 points or 0.64 percent at 17,472.15.
Tata Steel was the top loser in the Sensex pack, sinking nearly 6 per cent, followed by Bajaj Auto, M&M, HDFC, PowerGrid and Maruti.
On the other hand, Tech Mahindra, HUL, HCL Tech and TCS were among the gainers.
In the previous session, the 30-share index settled 125.27 points or 0.21 per cent lower at 59,015.89, and Nifty slipped 44.35 points or 0.25 per cent to close at 17,585.15.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 1,552.59 crore on Friday, as per provisional exchange data.
US stocks end sharply lower
US stocks ended sharply lower in a broad sell-off on Friday, ending a week buffeted by strong economic data, corporate tax hike worries, the Delta COVID variant, and possible shifts in the US Federal Reserve's timeline for tapering asset purchases.
The Dow Jones Industrial Average fell 166.44 points, or 0.48 percent, to 34,584.88; the S&P 500 lost 40.76 points, or 0.91 percent, at 4,432.99; and the Nasdaq Composite dropped 137.96 points, or 0.91 percent to 15,043.97.
Stocks fell as bearish momentum gathered steam after a reading on consumer sentiment held close to a roughly 10-year low. Investors also were dealing with volatility Friday from simultaneous options expiries, known colloquially on Wall Street as quadruple witching.
For the week, the Dow lost about 0.1 percent in its third straight weekly decline, booking its longest weekly losing streak since the four weeks ending September 25, 2020.
The University of Michigan’s gauge of consumer sentiment, rebounded slightly to a preliminary September reading of 71 from a final August reading of 70.3, above consensus estimates for 72. However, the reading remains close to the roughly 10-year low seen in August, with consumers feeling worse about the economy today than at any point during the COVID-19 pandemic.
US Fed meet
The US Fed’s meeting in the coming week may not be as eventful as investors once expected. The central bank’s move away from its bond-buying program has been expected by some strategists to cause turbulence for stocks. But the Fed is likely to only discuss tapering at the upcoming meeting and, at most, signal it could slow the bond purchases later in the year.
Asian shares ease
Asian shares eased and the dollar held firm on Monday ahead of a week graced with no less than a dozen central bank meetings, highlighted by the Federal Reserve which is likely to take another step toward tapering.
Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan dipped another 0.2 percent, after shedding 2.5 percent last week. Japan’s Nikkei was shut and could do with consolidating after surging to 30-year highs on hopes a new Prime Minister will bring more stimulus and policy change.
The fate of Chinese property giant Evergrande, and its $300 billion in liabilities, is also in the balance with a bond interest payment due on Thursday. Evergrande, a Chinese property giant nursing more than $300 billion in debt, is seen as likely to default next week. Global investors don’t seem too worried, but the looming crunch still has potential to shake up financial markets. The lack of concern reflects expectations that, ultimately, “the Chinese government will end up paying for it
Oil prices fall
Oil prices fell on Monday, extending losses from Friday after the US dollar jumped to a three-week high and the US rig count rose, although nearly a quarter of US Gulf of Mexico output remained offline in the wake of two hurricanes.
US West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.4 percent, to $71.67 a barrel at 0059 GMT, after declining by 64 cents on Friday. Brent crude futures fell 27 cents, or 0.4 percent, to $75.07 a barrel after losing 33 cents on Friday.
Domestic carriers can now operate at 85%
Domestic carriers can now operate flights at 85 percent of pre-COVID levels, up from 72.5 percent at present, the Ministry of Civil Aviation said in a circular issued on September 18.
The flight capacity, which was curtailed following the onset of coronavirus pandemic, was increased to 80 percent in December last year. However, it was reduced again, and brought down to 50 percent on June 1, due to the second wave of COVID-19.
Festival season expected to buoy realty
India's residential property market is expected to witness a strong consumer demand during the festival season with various banks, including SBI, providing concessional interest rates on home loans, according to real estate developers and consultants.
They also hoped that other public and private banks would soon announce their festival offers on interest rates on home loans and processing fees.
On Thursday, the country's largest lender State Bank of India announced various festive offers for prospective home loan customers, including a credit score-linked home loan starting at 6.70 percent, irrespective of the loan amount. Earlier, a borrower availing a home loan above Rs 75 lakh had to pay an interest rate of 7.15 percent.
Forex decline
After reaching a record high in the previous week, the country's foreign exchange reserves declined by $1.34 billion to $641.113 billion in the week ended September 10, 2021, according to RBI data. In the previous week ended September 3, the reserves had surged by $8.895 billion to a life time high of $642.453 billion.
During the reporting week ended September 10, the fall in the reserves was on account of a decline in Foreign Currency Assets (FCAs), a major component of the overall reserves, Reserve Bank of India's (RBI) weekly data released on Friday showed.
Foreign portfolio investors (FPIs) remained net buyers in Indian markets so far in September by investing a net sum of Rs 16,305 crore. As per depositories data, overseas investors invested Rs 11,287 crore into equities and Rs 5,018 crore in debt segment on a net basis between September 1-17. During this period, the total net investment stood at Rs 16,305 crore.
8 stocks under F&O ban
Eight stocks - Escorts, Exide Industries, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban
