Trends on SGX Nifty indicate a positive opening for the index in India with a 46-points gain. The Nifty futures were trading at 17,406 on the Singaporean Exchange around 07:30 AM.
The Nasdaq closed Friday at a fresh record but Wall Street's main indexes headed into the Labor Day weekend in mixed fashion, reacting to a disappointing U.S. jobs report which raised fears about the pace of economic recovery but weakened the argument for near-term tapering.
The Dow Jones Industrial Average fell 74.47 points, or 0.21percent, to 35,369.35, the S&P 500 lost 1.41 points, or 0.03 percent, to 4,535.54 and the Nasdaq Composite added 32.34 points, or 0.21 percent, to 15,363.52.
America’s employers added just 235,000 jobs in August, a surprisingly weak gain after two months of robust hiring at a time when the delta variant’s spread has discouraged some people from flying, shopping and eating out.
The unemployment rate dropped to 5.2 percent from 5.4 percent in July.
Nifty likely to open positive
Indian markets could open mildly higher, in line with largely positive Asian markets today and mixed US markets on Friday, said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Nifty is expected to open positive at 17390 , up by 30 points. Nifty may see some resistance in 17425 and 17450 range. Nifty has support in 17250 and 17300 range. Overall Nifty is very bullish and may see 17500 in the next few trading sessions," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities said, "benchmark Indices are expected to open on a slightly positive note as suggested by trends on SGX Nifty. Nifty and Sensex have been consistently hitting fresh highs. Some of India's largest companies have seen an exponential rise in the market lap in the last 1 month. Regular foreign capital inflows on the back of strong global cues and domestic economic activity are expected to further accelerate the rise of India's key stock indices in the coming future. On the technical front, 17400 may act as immediate resistance for Nifty 50 followed by 17,500 while 17,100 remains a crucial support for Nifty 50."
Asian shares get off to a mixed start
Asian shares got off to a mixed start on Monday as a disappointing U.S. payrolls report promised to keep policy there super-loose for longer, but also clouded the outlook for global growth and inflation.
Japan’s Nikkei added 1.7 percent, but South Korea eased 0.1 percent. Nasdaq futures were barely changed, while S&P 500 futures dipped 0.1 percent.
The ongoing rally in Japan sparked by the planned exit of the prime minister impacted share movement as traders assessed the challenges for reopening underscored by slower US hiring. A disappointing US payrolls report promised to keep policy there super-loose for longer, but also clouded the outlook for global growth and inflation.
In China, officials pledged to tighten supervision in the financial services industry, highlighting the risk of further turbulence from a regulatory onslaught on the private sector. China lifted its official yuan midpoint to an over 2-1/2-month high on Monday to reflect broad weakness in the dollar.
US markets are closed on Monday for the Labor Day holiday.
Oil extends losses
Oil extended losses at the open after Saudi Arabia slashed crude prices for Asian buyers by a larger-than-expected margin just days after OPEC+ agreed to continue raising production.
Futures in New York edged below $69 a barrel after falling 1percent on Friday. The October price for Saudi’s flagship crude was cut by $1.30, more than double the forecast reduction. Traders were surprised by the move, attributing it to factors including arbitrage inflows and competition to retain market share.
Forex soars to touch lifetime high
The country’s foreign exchange reserves soared by $16.663 billion to touch a lifetime high of $633.558 billion in the week ended August 27, mainly due to an increase in Special Drawing Rights (SDR) holdings, RBI data showed.
In the reporting week ended August 27, 2021, the country’s SDR holdings rose by $17.866 billion to $19.407 billion, as per weekly data released by the Reserve Bank of India (RBI) on Friday.
Excise on petroleum products jump 48%
The government's collections from levy of excise duty on petroleum products have jumped 48 percent in the first four months of the current fiscal year, with the incremental mop-up being 3-times of the repayment liability of legacy oil bonds in the full fiscal, official data showed.
Data available from the Controller General of Accounts in the Union Ministry of Finance showed excise duty collections during April-July 2021 surging to over Rs 1 lakh crore, from Rs 67,895 crore mop-up in the same period of the previous fiscal.
After the introduction of the Goods and Services Tax (GST) regime, excise duty is levied only on petrol, diesel, ATF and natural gas. Barring these products, all other goods and services are under the GST regime.
FPIs net buyers in August
Foreign portfolio investors (FPIs) were net buyers to the tune of Rs 16,459 crore in Indian markets in August, with majority of investment coming in the debt segment. In equities, they invested just Rs 2,082.94 crore while debt segment saw inflow of Rs 14,376.2 crore between August 2-31, depositories data showed.
Gold advances over 10%
Gold advanced more than 1 percent to its highest in 2-1/2 months on Friday, as a slower-than-expected USjobs growth in August drove the dollar lower, casting doubts on the Federal Reserve's tapering timeline.
ECB meeting this week
The European Central Bank meets this week amid calls from several hawkish members to slow its pandemic-era asset purchase program. A Reuters poll sees the bank announcing a cut to its asset purchases, given a recent spike in inflation.
Emerging market currencies hit 11-week highs on Friday after a sharp slowdown in US jobs growth signaled the Federal Reserve may not rush to taper stimulus
Indiabulls Housing Finance is under the F&O ban today.
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