Trends on SGX Nifty indicate a positive opening for the index in India with a 94-points gain. The Nifty futures were trading at 17,952 on the Singaporean Exchange around 07:30 hours IST.
The Dow and S&P 500 edged higher on September 24 and ended a turbulent week with slight increases, helped by gains in Tesla and Facebook that offset a tumble by Nike.
The Dow Jones Industrial Average rose 33.18 points, or 0.1 percent, to 34,798, the S&P 500 gained 6.5 points, or 0.15 percent, to 4,455.48 and the Nasdaq Composite dropped 4.55 points, or 0.03 percent, to 15,047.70.
Indian markets could open higher, in line with positive Asian markets today and despite flat US markets on Friday, said Deepak Jasani, Head-Retail, HDFC Securities
"The Nifty is expected to positive at 17,960, up by 100 points since Friday's close. Nifty is in a strong bullish trend , traders can use any correction to initiate buy positions with strict stoploss. Nifty may test 18,000 and 18,050 in the next few trading sessions. 17,780 - 17,820 is a strong support range," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Mohit Nigam, Head - PMS, Hem Securities said, the "Indian equity markets may open higher as trends on SGX Nifty suggests a gain of over 0.5 per cent this morning. Other Asian benchmarks edged up today as investors keep an eye on Evergrande’s debt crisis. Dow Futures signals positive momentum as they trade over 0.5 percent higher. Treasury yields have also soared after Fed’s hawkish stance during last week’s FOMC. Oil prices continues to climb amid supply concerns, WTI Futures crosses $75 mark. Indian markets shall remain in focus as it may continue its journey of aiming life time highs. However, investors shall also remain cautious of a profit booking which could be seen at such valuations."
On domestic front, stock specific news shall drive momentum on select counters, Nigam said, adding, "On technical front, 17,700 shall act as a crucial support while near term resistance could be seen around 18,000 levels."
Indian benchmark equity indices gave up some early gains but managed to end in the positive. The Sensex closed above 60,000 for the first time ever. At close the Nifty was up 0.17 pere or 30 points to 17,853.
Nifty closed higher for the fifth consecutive week, closing 1.52 percent higher for the week. Advance decline ratio for September 24, however, fell deeply into the negative, suggesting nervousness among the market participants about the broader market. Nifty is now close to 18,000 and once that round number is achieved we could see a broad based correction in the markets. 17,645-17792 band is the support for the Nifty, said Jasani.
Stocks to watch out for
NBCC (India) wins an EPC order worth $130 millions, Power Grid Corp plans to raise funds up to Rs 6,000 crores, Hindustan Copper to offer 32 lakh equity shares to its employees at a price of Rs 116 apiece, several marquee investors rush to grab stakes in Sansera Engineering after last week’s moderate listing, Orient Cement entered into a MoU with Adani Power for setting up a cement grinding unit in Maharashtra.
Asian stocks trade up in early trade
Asian shares got off to a cautious start on Monday as a jump in oil prices to three-year highs could inflame inflation fears and aggravate the recent hawkish turn by some major central banks.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat, after three consecutive weeks of loss. Japan's
Nikkei gained 0.4 percent on hopes for further fiscal stimulus once a new prime minister is chosen.Asian stocks were higher at the open Monday with traders keeping an eye on China Evergrande Group’s debt crisis and even as a jump in oil prices to three-year highs could inflame inflation fears and aggravate the recent hawkish turn by some major central banks.
US stocks end steady on Friday
US stocks ended steady Friday, after the indexes at times struggled for direction amid a sharp decline in blue-chip component Nike Inc., but the benchmarks booked gains for the week on the heels of two strong sessions for the broader equity market.
US stock indexes wobbled between gains and losses in mixed trading Friday, threatening to end the rally following the Federal Reserve’s policy meeting this week, as the market fell back under pressure amid concerns relating to China, COVID-19 and U.S. politics. For the week, the Dow rose 0.6% while the S&P 500 advanced 0.5 percent and the Nasdaq eked out a gain of less than 0.1 percent.
On the data front, US new-home sales increased 1.5 percent to an annual rate of 740,000 (vs 720000 expected). Compared with a year ago, sales were down 24 percent.
As of Thursday, bondholders still hadn’t received any money from Evergrande which was due to make a $83.5 million interest payment on dollar bonds. The company has a 30-day grace period to make a payment, but barring that, Evergrande could trigger a default.
Direct tax collection jump 74%
Net direct tax collections in India stood at Rs 5.71 lakh crore, a jump of 74 percent over Rs 3.27 lakh crore for the same period in 2020-21. The collections from April 1-September 22 this year were 27 percent higher even compared to the same period of pre-pandemic 2019-20 when net direct tax collection was Rs 4.49 lakh crore. The cumulative advance tax collections for the first and second quarter of the FY 2021-22 stand at Rs 2.53 lakh crore as of 22.09.2021, against advance tax collections of Rs 1.62 lakh crore for the corresponding period last year.
Cryptocurrencies ban in China
The People’s Bank of China said services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal.
FTSE Russell will announce its annual review for equity and fixed-income markets on Thursday, with Indian debt already on a watchlist for potential upgrading. Officials from the central bank and finance ministry will decide the next borrowing plan on Monday.
India’s inclusion in the global bond indexes, expected by early 2022, may attract as much as $250 billion of inflows in the next decade, according to Morgan Stanley. Indian bonds are also under review for inclusion by JPMorgan Chase & Co., which typically assesses its index this month, while Bloomberg Index Services Ltd. last week said there is currently no estimated timeline in place for India’s inclusion in the Bloomberg Global Aggregate Index.
Oil gained at the start of the week’s trading on signs that the crude market is tightening because of the global energy crunch.
West Texas Intermediate closed in on $75 a barrel after a run of five weekly gains, while Brent hit the highest level since October 2018. Inventories have been drawing, with US. stockpiles near a three-year low. At the same time, a rally in natural gas looks set to drive demand for oil as users switch fuels.
Oil has surged more than 80 percent over the past year as worldwide demand recovers from the disruption caused by the pandemic. On the supply side, the Organization of Petroleum Exporting Countries and its allies including Russia have been easing output curbs only slowly, permitting markets to tighten. In addition, extreme weather in the US has crimped local production.
Need to scale up banking: Nirmala Sitharaman
The country's banking sector needs to be scaled up with four to five lenders of the size of State Bank of India (SBI), the country's largest state-run lender, Finance Minister Nirmala Sitharaman said on September 26.
"We need to scale up banking. The need is for at least four-five more SBI-sized banks," Sitharaman said.
Sitharaman said there was an urgent need to scale up banking to not only meet the growing needs of the industry, but also to ensure that all economic centres of the country are covered with at least one physical or digital banking presence.
Forex declines
The country's foreign exchange reserves declined by $1.47 billion to $639.642 billion in the week ended September 17, RBI data showed on Friday. In the previous week ended September 10, 2021, the reserves had dipped by $1.34 billion to $641.113 billion. The reserves had surged by $8.895 billion to a lifetime high of $642.453 billion in the week ended September 3, 2021.
The special drawing rights (SDRs) with the International Monetary Fund (IMF) declined by $4 million to $19.434 billion. The country's reserve position with the IMF also decreased by $8 million to $5.119 billion in the reporting week, the data showed.
Hectic fundraising through IPO expected in Oct-Nov
Hectic fundraising through initial public offerings (IPOs) is expected in October-November, with at least 30 companies are looking to collectively raise over Rs 45,000 crore through initial share-sales, merchant banking sources said. Of the total fundraising, a large chunk would be garnered by technology-driven companies.
The firms that are expected to raise funds through their IPOs during October-November include Policybazaar (Rs 6,017 crore), Emcure Pharmaceuticals (Rs 4,500 crore) Nykaa (Rs 4,000 crore), CMS Info Systems (Rs 2,000 crore), MobiKwik Systems (Rs 1,900 crore), the merchant banking sources said.
Eight stocks under F&O ban
Eight stocks - Canara Bank, Escorts, Indiabulls Housing Finance, Vodafone Idea, IRCTC, Punjab National Bank, SAIL and Zee Entertainment Enterprises - are under the F&O ban today.
