Trends on SGX Nifty indicate a weak opening for the index in India with a 106-points loss. The Nifty futures were trading at 17,854 on the Singaporean Exchange around 07:25 AM.
Indian markets could open mildly lower, in line with mostly lower Asian markets today and negative US markets on Monday, said Deepak Jasani, Head-Retail, HDFC Securities.
Gaurav Udani, CEO & Founder, ThincRedBlu Securities, said, "The Nifty is expected to open negative at 17,870 , down by 100 points. Nifty has support in 17,650-17,700 and resistance in 17,950-18,000 range. Traders can consider buy on dips with strict stoploss for targets of 18050 for the next few trading sessions."
Nifty lost more than half of the intra day gains by the end of the session but still ended in the positive for the third consecutive session on Oct 11. At close Nifty was up 50.7 points or 0.28 percent at 17,946.
Expectedly Nifty reached 18,000 and corrected from there. The Nifty could meander around this level for a few more sessions before taking any one direction, most likely up. Advance decline ratio ended in the positive though weaker than that in the morning. Sector and stock specific rotation could be witnessed going ahead while the index could remain in a range
US markets close lower on Monday
US stocks ended a choppy session lower on Monday as investors grew nervous ahead of third-quarter earnings reporting season.
The Dow Jones Industrial Average fell 250.19 points, or 0.72 percent, to 34,496.06, the S&P 500 lost 30.15 points, or 0.69 percent, to 4,361.19 and the Nasdaq Composite dropped 93.34 points, or 0.64 percent, to 14,486.20.
All three major US stock indexes posted their largest one-day point drops in a week, as investors remained focused on the release of fresh inflation data and third-quarter earnings this week. Wednesday’s US consumer-price report for September is the next major data release in the week ahead. Higher commodity prices and bond yields in Europe also weighed on stocks. The US bond market was closed for Columbus day. Soaring oil prices that hit multi-year peaks stoked fears about rising prices and tighter monetary policy, lifting the dollar to a near-three-year high against the yen.
Analysts have expressed concern that supply-chain issues that have spread throughout the global economy will compress profit margins, and that rising inflation will limit consumer demand.
Asian stock decline in early trade
Asian stocks fell Tuesday on concerns about elevated inflation stoked by energy costs and the possibility of a widening Chinese crackdown on private industry clouding investor sentiment before the US corporate earnings season. A report suggesting Beijing is widening scrutiny of private industry by examining ties to state banks soured the mood.
Asian indices were trading weak with Hang Seng, Kospi and Taiwan Weighted down 1 percent each, while Nikkei and Straits Times fall 0.5 percent each.
RBI revises operational guidelines on SLTRO
The Reserve Bank of India (RBI) on Monday issued revised operational guidelines on the special long-term repo operations (SLTRO) scheme for small finance banks (SFBs). In the monetary policy announced last week, the RBI had extended the on-tap SLTRO for SFBs till December 31, 2021. This facility was earlier made available till October 31, 2021.
The RBI in a statement on Monday said all SFBs eligible under the liquidity adjustment facility (LAF) can participate in the scheme.
NSE introduces weekly futures contracts for USD-INR
The National Stock Exchange (NSE) on Monday introduced weekly futures contracts in the US Dollar-Indian Rupee (USD-INR) currency pair. The first day witnessed participation from 122 trading members, with volumes of 1.43 lakh contracts worth Rs 1,079.6 crore traded at the end of the day in the weekly futures contracts of USD-INR.
"The launch of weekly futures in the US Dollar Indian Rupee currency pair, will only complement the existing currency derivatives product suite and will further help in deepening the market," as per a release.
Quarterly earnings results today
Bhansali Engineering Polymers, GM Breweries, Indbank Merchant Banking Services, Ind Bank Housing, JTL Infra, and DRC Systems India will announce its quarterly earnings on October 12.
India Inc has raised $9.7 billion through their initial public offerings (IPOs), the highest amount in a nine-month period over the last 20 years. So far, 43 companies launched public issues in the mainboard and the same number of firms in the SME segment during January-September 2021. In rupee terms, the total fundraising via IPOs stood at Rs 78,520 crore in the mainboard segment and Rs 551 crore in the SME segment.
RBI likely to change stance on MPC in Q1 2022
The Reserve Bank is likely to change the stance of its monetary policy and hike rates from the first quarter of 2022, a Japanese brokerage said on Monday. The central bank will start with liquidity normalisation moves this month, narrowing the difference between the rate at which it funds the system and at which it absorbs excess liquidity in December, Nomura said.
The brokerage upped its consumer price index (CPI) inflation target for 2022 to 5.2 percent from 5 percent earlier.
Demand strong, supply-side headwinds a bother
Demand remains strong in India, but there are supply-side headwinds in areas like chips which is bothering the auto sector and coal shortages which threatens to put parts of the country into darkness, it said.
Oil was down Tuesday morning in Asia, falling for the first time in four days. The black liquid was taking a breather after weeks of gains fueled by a rebound in global demand, with the gains contributing to energy shortages in economies from Europe to Asia, according to some investors.
Brent oil futures edged down 0.12 percent to $83.55 by 10:56 PM ET (2:56 AM GMT) and WTI futuresedged down 0.16 percent to $80.39. Both Brent and WI futures stayed above the $80 mark, however.
Gold prices unchanged
Gold (24 carat) is selling at Rs 46,940 per 10 gram on Tuesday in India, unchanged from the previous trade.
Silver is selling at Rs 61,700 per kg, a sharp decline of Rs 4,200 from yesterday's trading price, according to Good Returns website.
9 stocks under F&O ban today
Nine stocks – Bank of Baroda, BHEL, Canara Bank, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network – are under the F&O ban today.
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