Trends on SGX Nifty indicate a positive opening for the index in India with a 43-points gain. The Nifty futures were trading at 17,417 on the Singaporean Exchange around 07:30 hours IST.
Indian markets could open flat to mildly higher, in line with mildly higher Asian markets today and despite sharply negative US markets on Monday, said Deepak Jasani, Head-Retail, HDFC Securities.
"Nifty is expected to open flat to negative, down by 30 points since yesterday's close at 17,360. Yesterday, Nifty closed below its support zone, this is a sign to be cautious. Traders in long positions may consider booking profits on every rise. Nifty has support in 17,250-17,300 range and may have strong resistance in 17,450-17,500 range," said Gaurav Udani, CEO & Founder, ThincRedBlu Securities.
Nifty closed lower for the second consecutive session on September 20 due to concerns over troubles at Evergrande China likely to impact the global risk appetite. At close, the Nifty was down 1889 points or 1.07 percent to 17,397.
Nifty has fallen sharply on September 20, raising fears of the beginning of an intermediate correction. 17,303 is the next support for the Nifty, while the 17,444-17,533 band could provide resistance on upmoves.
Wall Street down
Wall Street fell in a broad sell-off on Monday, with the S&P 500 and Nasdaq suffering their biggest daily percentage drops since May, as fear of contagion from potential collapse of China’s Evergrande drove investors out of equities in a flight for safety.
The Dow Jones Industrial Average fell 614.41 points, or 1.78 percent, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70 percent, to 4,357.73 and the Nasdaq Composite dropped 330.07 points, or 2.19 percent, to 14,713.90.
Global markets caught in fears over China Evergrande
Global stock markets on Tuesday were caught in the grip of contagion fears sparked by troubles at China Evergrande as growing risks the property giant could default on its massive debt prompted investors to flee riskier assets.
Asia-Pacific trade recovers
Shares in Asia-Pacific recovered from lows in Tuesday morning trade as investors continue to monitor the situation surrounding embattled developer China Evergrande Group.
Japan’s Nikkei fell 2.0 percent, resuming trade after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 percent. MSCI’s ACWI shed 0.13 percent, a day after the gauge of the world’s 50 stock markets lost 1.63 percent, its biggest decline in two months, and leaving it teetering at its lowest level in two months.
US Treasury yields fall
US Treasury yields fell on Monday as fears that property developer China Evergrande Group might default deepened a global equity sell-off and sent investors scurrying to shelter in safe-haven bonds.
Treasury prices rallied, pushing yields on the benchmark 10-year note down 6 basis points to 1.306 percent at one point, before shedding some price gains to trade at 1.3226 percent.
US employment report points to weak jobs number in September
A JP Morgan model that came closer than virtually all other forecasts in predicting last month's big US employment report shortfall is pointing to another weak jobs number for September as consumers appear to have dialed back their travel and leisure spending since Labor Day.
The jobs tracker created by the bank's quantitative research team, fed by a range of alternative data including Chase credit card usage and airport security check volumes, suggests that September job growth will come in at 333,000.
That would be far from the kind of rebound from August's disappointing job growth of just 235,000 - the lowest total since January - that policymakers at the Federal Reserve and elsewhere are hoping for.
Oil prices fall
Oil prices fell 2 percent on Monday as investors grew more risk averse, which hurt stock markets and boosted the US dollar, making oil more expensive for holders of other currencies
Brent crude fell $1.42, or 1.9 percent, to settle at $73.92 a barrel after sinking to a session low of $73.52. US West Texas Intermediate (WTI) declined $1.68, or 2.3 percent, to end at $70.29 after falling to as low as $69.86.
G-sec acquisition program
The Reserve Bank of India (RBI) on September 20 announced the open market purchase of Government of India securities under the G-sec Acquisition Programme (G-SAP 2.0) and simultaneous sale of Government of India Securities.
Accordingly, the RBI will conduct the open market purchase of government securities under the G-sec Acquisition Programme (G-SAP 2.0) for an aggregate amount of Rs 15,000 crore on September 23, 2021, the central bank said in a release.
The central bank will purchase the following Government securities through a multi-security auction using the multiple price method, it said in a release.
Sebi penalises 8 entities
Markets regulator Sebi on Monday penalised eight entities for fraudulent trading in shares of Videocon Industries Ltd. The entities are Acuity Merchants Pvt Ltd, Godavari Commercial services Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt. Ltd, Coastal Fertilisers Ltd, Akansha Commodities Pvt Ltd, Messrs Agarwal Holdings and Superdeal Fincom Pvt Ltd.
These are facing a fine of Rs 16 lakh, payable jointly and severally, for violation of Prohibition of Fraudulent and Unfair Trade Practices norms.
8 stocks under F&O ban
Eight stocks - Exide Industries, Indiabulls Housing Finance, Vodafone Idea, IRCTC, NALCO, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban.
