The stock markets started the September series on a mixed note . The Sensex was down 120 points to trade at 55,800 levels tracking losses in index majors HDFC twins, Infosys and ICICI Bank amid unabated foreign fund outflows. The broader Nifty was hovering around 16,600 levels, down 25 points.
M&M was the top loser in the Sensex pack, shedding over 1 per cent, followed by HDFC, Tech Mahindra, ICICI Bank, Infosys and IndusInd Bank. On the other hand, UltraTech Cement, Bajaj Finserv, L&T, Tata Steel, Bajaj Finance and Bharti Airtel were among the gainers.
In the previous session, the BSE index ended just 4.89 points or 0.01 per cent higher at 55,949.10. And the broader NSE Nifty advanced 2.25 points or 0.01 per cent to its fresh closing peak of 16,636.90.
Foreign institutional investors (FIIs) remained net sellers in the capital market as they offloaded shares worth Rs 1,974.48 crore on Thursday, as per provisional exchange data.
Wall Street fell on Thursday on fears of a faster tapering of the Federal Reserve's bond purchase program, although gains in banks and some strong earnings reports helped cap losses.
US stocks snap five-day winning streak
US stock indexes fell slightly on Thursday, snapping a five day win streak for the S&P 500 index, after investors weighed data on second quarter economic growth and weekly jobless benefit claims, a day ahead of a speech by Federal Reserve Chairman Jerome Powell.
The Dow Jones Industrial Average was down 53.39 points, or 0.15 percent, at 35,352.11 and the S&P 500 was down 10.14 points, or 0.23 percent, at 4,486.05. The Nasdaq Composite was down 22.96 points, or 0.15 percent at 15,018.90.
The pause comes after the S&P 500 index on Wednesday notched its 51st record high of 2021, matching the highest number of new records at this point in the year since 1995. A pair of deadly bombings outside of Afghanistan’s Kabul airport may have also affected risk tolerance and contributed to some selling pressure.
Asian markets tumble
Asia-Pacific markets tumbled in early trade on Friday as investors remained cautious ahead of the Federal Reserve’s annual Jackson Hole symposium where Fed Chair Jerome Powell is due to speak.
The Nikkei 225 in Japan declined 0.85 percent while the Topix index fell 0.74 percent. South Korea’s Kospi was down 0.33 percent.
Profit growth at China’s industrial firms in July grew at its slowest clip this year, as elevated raw material prices and supply chain constraints from extreme weather as well as sporadic coronavirus cases weighed on the manufacturing sector. Industrial firms’ profits increased 16.4 percent on an annual basis in July to 703.67 billion yuan ($108.51 billion), compared to a 20 percent gain in June.
US Fed to speak virtually today
US Fed Chair Powell will speak at 10 a.m. Eastern Friday at a Jackson Hole symposium of global central bankers that is being held virtually, and could provide some guideposts for the timing and pace of the Fed’s plans to scale back on crisis-era policy accommodations.
Dallas Fed President Robert Kaplan, who is not currently a voting member of the Federal Open Markets Committee, said he believes the progress of economic recovery warrants tapering of the Fed's asset purchases to commence in October or shortly thereafter.
India’s central bank is in no hurry to reverse course on record low interest rates despite mounting worries around inflation, Reserve Bank of India Governor Shaktikanta Das told CNBC.
US economy growth robust
The US economy grew at a robust 6.6 percent annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report that pointed to a sustained consumer-led rebound from the pandemic recession. But worries are growing that the delta variant of the coronavirus is beginning to cause a slowdown.
The government’s upgraded estimate for growth in the April-June quarter fell somewhat shy of expectations. Some economists had predicted a 7 percent annual rate or more. They based that view on a belief that consumer spending had accelerated even faster than the sizzling 11.8 percent rate first reported. Thursday’s revised estimate for consumer spending, which drives about 70 percent of economic activity, was upgraded by 0.1 percentage point to 11.9 percent.
Second wave raises asset risks for banks: Moody's
India's second coronavirus wave is increasing asset risks for banks, but the country's economic recovery, a tightening of loan underwriting criteria, and continued government support will prevent a sharp spike in problem loans, according to a Moody's Investors Service report.
"A severe deterioration of banks' asset quality is unlikely, despite an expected rise in new loan impairments, particularly among individuals and small businesses that were hit hardest by the virus outbreak. This is because government initiatives like the emergency credit linked guarantee scheme (ECLGS) have been effective in providing immediate liquidity for businesses," Moody's Vice President and Senior Credit Officer Alka Anbarasu said.
Dollar firm
The dollar held firm on Friday after the U.S. Federal Reserve’s hawkish wing called for tapering bond purchases as investors looked to a highly-anticipated speech by Fed Chair Jerome Powell later in the day.
Gold prices steady
Gold prices were steady on Friday, as investors awaited Fed chief Jerome Powell’s speech later in the day at the Jackson Hole symposium after some US central bank officials called for paring bond purchases.
Spot gold rose 0.1 percent to $1,793.68 per ounce. US gold futures rose 0.1 percent to $1,796.70.
Gold prices on August 26 fell for the second successive day, down by Rs 98 to Rs 47,350 per 10 gram in the Mumbai retail market on rupee strength and subdued global cues. The yellow metal traded lower as investors were cautious ahead of Jackson Hole Symposium that may provide insight about Fed’s bond tapering plan.
The price of 10 gram, 22-carat gold in Mumbai was Rs 43,373 plus 3 percent GST, while 24-carat 10 gram stood at Rs 47,350 plus GST. The 18-carat gold is quoted at Rs 35,513 plus GST in the retail market.
Sebi on implementation of accredited investors framework
Markets regulator Sebi on Thursday came out with detailed modalities for implementation of the accredited investors framework, a move expected to open up a new channel of raising funds from sophisticated investors.
The regulator has issued guidelines on eligibility criteria for accredited investors (AIs), procedure as well as validation for accreditation, procedure to avail benefits linked to accreditation and flexibility to investors to withdraw "consent", according to a circular.
Fuel prices unchanged
After price cuts, petrol and diesel prices in the country remained unchanged for the third consecutive day on Friday as oil marketing companies (OMC) decided to go on pause mode to see global developments in the oil markets before any further revision.
Accordingly, in Delhi, petrol continues to be sold for Rs 101.49 per litre and diesel at Rs 88.92 a litre.
Across the country as well, fuel prices remained unchanged on Friday. Petrol prices in Mumbai and Kolkata remained at Rs 107.52 and Rs 101.82 per litre respectively while in Chennai, petrol was priced at Rs 99.20. In Chennai, petrol prices fell by almost Rs 3 per litre on August 14 after the state government cut VAT on the fuel.
Similarly, diesel prices in Mumbai, Chennai and Kolkata remained at Rs 96.48, Rs 93.52 and Rs 91.98 per litre, respectively.
International oil benchmark Brent crude surged 1.03 per cent to $71.80 per barrel.
