SGX Nifty up 70 points; here’s what changed for the market while you were sleeping
Here is the breakdown of the pre-marketing actions.
STATE OF THE MARKETS
SGX Nifty reports a positive start
The crafty futures on the Singapore Stock Exchange traded 73.75 points, 0.71% higher at 10,470.30, a sign that Dalal Street was heading for a positive start on Thursday.
Technical view: Nifty forms a bullish candle
Analysts said the index has seen a break out of the consolidation range the past four sessions, but requires follow-up action to start the next leg of the rally. The sustainability of this rise remains somewhat questionable, but as long as Nifty is trading above the 10,299 level, there is hope that it is aiming for the 10,553 level, analysts say.
Asian stocks open higher
Japan’s Nikkei225 index rose 0.43% or 95.30 points to 22,217.03 at the start of trading. Hong Kong’s Hang Seng Index added 0.56%, or 136.38 points, to 24,563.57. China’s benchmark Shanghai Composite index fell 0.07%, or 2.26 points, to 3,223.72 while China’s second-largest stock exchange Shenzhen Composite index fell 0.08%, or 1, 69 point, at 1,989.42.
US equities ended mixed
US stocks ended mixed as investors digested a plethora of economic data. On Wednesday, the Dow Jones Industrial Average fell 77.91 points, or 0.30%, to 25,734.97. The S & P500 Index rose 15.57 points, or 0.50%, to 3,115.86. The Nasdaq Composite index rose 95.86 points, or 0.95%, to 10,154.63,
Oil prices slide on demand fears
Oil prices fell on Thursday after the United States recorded its biggest one-day peak in coronavirus cases and California reimposed some lockdown measures, fueling fears that a resurgence of Covid cases -19 does not block a resumption of fuel demand. Brent crude futures fell 6 cents, or 0.1%, to $ 41.97 a barrel, after rising 1.8% in the previous session.
Salt REITs Rs 1,696 cr of shares
Net-net, foreign portfolio investors (REITs) were sellers of domestic stocks to the tune of Rs 1,696.45 crore, according to data available from NSE. The DII were net buyers to the tune of Rs 1,377.13 crore, the data showed.
MSCI postpones increase in weight of India
Global index management firm MSCI has postponed increasing India’s weighting in global indices, theoretically delaying fund inflows from offshore fund managers who typically use gauges to allocate investment portfolios in several geographic areas. By some estimates, around Rs 10,000 crore of short-term passive inflow and Rs 40,000 crore of potential active inflow could be affected by the postponement.
Sebi probes a large gathering in Ruchi Soya, Alok Ind
Sebi is interested in the recent rise in the stock prices of Ruchi Soya Industries and Alok Industries. The capital market regulator has asked for details of the two stocks’ unusual trading on stock exchanges, two people familiar with the matter said. BSE and NSE declined to comment while Sebi did not respond to an email query.
Rupee: The rupee was down 9 peas to 75.60 against the US dollar on Wednesday amid purchases of dollars by oil importers and concerns over rising coronavirus cases.
10-year bonds: The 10-year Indian bond yield fell 0.85% to 5.83 after trading in a range of 5.82 to 5.90.
Call rates: The weighted average overnight call rate was 3.66%, according to RBI data. It evolved in a range of 1.80 to 4.10%.
DATA / EVENTS TO FOLLOW
Total vehicle sales in the United States in June (5:30 a.m.)
Australian May Trade Balance (7:00 a.m.)
Unemployment rate in the euro zone in May (2:30 p.m.)
United States May Trade Balance (6:00 p.m.)
Unemployment rate in the United States in June (6 p.m.)
BoE Financial Stability Report (9:30 p.m.)
The rebound of the economy is accelerating … India’s economy gained momentum in June, with goods movements rebounding near pre-lockdown levels and GST collections rising sharply from May. Electricity consumption has increased and demand for employment under the MNREGA program has declined, suggesting better industrial demand for labor. Bank credit increased by Rs 32,022 crore during the fortnight ended June 5. GST collections recovered to ₹ 90,917 crore in June, from ₹ 62,009 crore in May and ₹ 32,294 crore in April, reflecting increased consumption. The manufacturing PMI recovered to 47.2 in June from 30.8 in May. A reading above 50 on this survey-based index reflects the expansion
Car manufacturers are seeing a sharp increase in demand … Auto and two-wheeler companies saw a strong month-over-month sales increase in June as pent-up demand and an upturn in economic activity led to purchases of sedans, SUVs and cars. motorcycles across the country. Three big companies, Hero MotoCorp, Mahindra & Mahindra and TVS Motor almost reached 100% of pre-Covid-19 sales figures in February. Industry leader Maruti Suzuki saw an almost four-fold increase in June, with sales down 53% year-over-year.
No breakthrough in Galwan standoff talks … India and China have broadly agreed to resume the gradual and verifiable disengagement of troops from “friction points” in the Galwan Valley and Gogra-Hot Springs areas of eastern Ladakh, which last derailed. times after Chinese soldiers reneged on the withdrawal agreement, leading to bloody clashes on June 15. However, there has not yet been a breakthrough to defuse the main troop confrontation at Pangong Tso, where PLA soldiers have built a large number of fortifications and taken the dominant heights.
GST Levies Can Be Streamlined … The GST Council could consider streamlining the tax, including reducing the number of slabs and improving computer systems, Finance Secretary Ajay Bhushan Pandey told ET, adding that the issue of compensation for states was actively discussed. Among several suggestions for improving state incomes and purchasing power is the option for the board to borrow in the market to compensate states.
The price of gold exceeds 50,000 rupees in India … Strong global demand for gold, along with a depreciating rupee, helped the yellow metal cross the 50,000 rupees per 10g mark in the Mumbai retail market on Wednesday. It is the first time that the price of the precious metal, with which Indians associate sentimentally, has crossed the psychologically important threshold. At the same time, on the major commodities exchange MCX, the price was hovering just below the 49,000 rupee mark for contracts that will expire in the first week of August.
Small savings rates remain unchanged … The government left the rates on small savings plans like the Public Provident Fund and the National Savings Certificate (NSC) unchanged for the second quarter of the fiscal year, a senior government official said. “There is no change in interest rates,” the official said. By the start of the first quarter of FY21, the government had cut rates for various plans by about 1.4 percentage points.
$ 750 million in World Bank assistance to Indian MSMEs … The World Bank has announced a $ 750 million package for medium and small Indian businesses, which have been severely affected by the Covid-19 pandemic and the lockdown imposed to contain it. The latest package brings the multilateral lender’s commitment to India in its fight against Covid-19 to $ 2.75 billion, the total loans in fiscal year 2020 (July 2019-June 2020) to 5 , $ 13 billion, the highest in a decade.
The standards of REIT investment funds relaxed … India has relaxed the eligibility criteria for investment funds set up by Category I REITs, such as sovereign wealth funds, pension funds and regulated entities, including offshore banks, to qualify for tax benefits retrospectively from September 23, 2019. These funds registered by Sebi do not need to join under certain conditions – have at least 25 members, none with more than 10% participation and a total participation of 10 members does not not exceeding 50% – to benefit from India’s special tax regime.
Close vigilance on the call for tenders … The government is closely monitoring the tender for emission control equipment of Rs 55,000 crore by the thermal energy sector which has placed large orders with Chinese companies in the past. Most private and various state-owned power companies are in talks with Chinese companies for emission control equipment. Electric utilities from states such as Uttar Pradesh, Punjab, Haryana, Tamil Nadu, Karnataka and Maharashtra have sought global bidders for contracts that meet the Centre’s public procurement standards.
Chinese banks slow down Indian loans … The major Chinese banks in India, the Industrial and Commercial Bank of China (ICBC) and the Development Bank of China (CDB), have significantly slowed their advances of large term loans in the country after bad loans increased in their portfolios which included advances to subsequently distressed companies such as IL&FS Transportation and Aircel. Prosecution files with the Ministry of Commercial Affairs, compiled by data intelligence provider Propstack, show that ICBC and CBD have not disbursed any significant term loans in India since 2018.