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Last Updated : Jul 13, 2020 07:46 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a positive opening for the index in India with a 45-point gain.

The Indian stock market is expected to open in the green following positive global cues despite a continued surge in coronavirus cases. Trends on SGX Nifty indicate a positive opening for the index in India with 45 points gain.

Indian markets witnessed profit-booking at higher levels on July 10, tracking a muted trend in global markets. They recouped some of the intraday losses but the S&P BSE Sensex fell over 100 points while the Nifty closed below 10,800 towards the close of the trade. The S&P BSE Sensex ended 143 points lower at 36,594 while the Nifty50 slipped 45 points to 10,768.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms that could impact Indian as well as international markets:


US markets

US stocks rose on July 10 as a positive analysis on Gilead Sciences Inc’s antiviral drug to treat COVID-19 helped soothe investor worries over a record rise in coronavirus cases in the United States and as financial shares surged.

The Dow Jones Industrial Average rose 369.21 points, or 1.44 percent, to 26,075.3, the S&P 500 gained 32.99 points, or 1.05 percent, to 3,185.04 and the Nasdaq Composite added 69.69 points, or 0.66 percent, to 10,617.44.

Asian markets

Asian shares got off to a firm start on July 13 as investors wagered US earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15 percent, Japan’s Nikkei gained 1.3 percent and South Korea 0.9 percent. E-Mini futures for the S&P 500 rose 0.2 percent.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 45 points gain. The Nifty futures were trading at 10,823 on the Singaporean Exchange around 0730 hours.

Oil slips 

Oil slipped in early Asian trade on July 13 as traders would closely watch an OPEC technical meeting this week, which is expected to recommend an easing in supply cuts that have been propping up crude prices.

Brent crude fell 27 cents to $42.97 a barrel by 0114 GMT while U.S. West Texas Intermediate crude was at $40.27 a barrel, down 28 cents.

Top five private banks stare at NPA trouble

Top five private sector banks may see their slippages double to 5 percent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report. These five banks-- HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank--collectively control a quarter of the system and three-fourths of the private banking space, according to a report by India Ratings.

"We forecast FY21 slippages to nearly double to around 5 percent for these banks from 2.3 percent in FY19 and 2.7 percent in FY20, even though net slippages would be lower if refinancing remains a challenge, resulting in a 4 percent contraction in their net interest margin," says the report.

UK economy to slump over 10%, debts to surge: Moody's

Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody's has warned, and ramp up national debt as a share of GDP by nearly a quarter.

Moody's said the UK government's latest 30 billion pound ($37.9 billion) stimulus package, announced the previous week, would aid a gradual economic recovery but add further pressure to the fiscal position. "The UK's public debt ratio will likely rise by 24 percentage points of GDP or more relative to 2019 levels," a group of Moody's top analysts wrote in a note.

India's forex reserves at new high of $513.25 billion

The country's foreign exchange reserves surged by a massive $6.47 billion to touch an all-time high of $513.25 billion in the week ended July 3, the latest data from the Reserve Bank of India (RBI) showed. In the previous week ended Jun 26, the reserves had increased by $1.27 billion to $506.84 billion.

The reserves had crossed the half-a-trillion dollar mark for the first time in the week ended June 5 after it had increased $8.22 billion and reached $501.70 billion. In the week ended July 3, the reserves rose due to an increase in foreign currency assets (FCA), which is the major component of the overall reserves.

FICCI survey estimates FY21 GDP growth to be negative 

Industry body FICCI said its Economic Outlook Survey has projected the country's annual median GDP growth for 2020-21 at (-) 4.5 percent. With the rapid spread of COVID-19 pandemic manifesting into an economic and healthcare crisis globally, the latest forecast marks a sharp downward revision from the growth estimate of 5.5 percent reported in the January 2020 survey, it said.

RBI Governor Shaktikanta Das said the Indian economy has started showing signs of getting back to normalcy in response to a staggered easing of restrictions.

Life insurance sector witnesses 18.6% drop in first-year premium: CARE Ratings

Hit hard by the coronavirus pandemic, the life insurance sector witnessed an 18.6 percent drop in the first year premium to Rs 49,335 crore in the April-June quarter of the current financial year, according to a report by CARE Ratings. The overall sum assured also declined 12.9 percent to Rs 8.8 lakh crore in the June 2020 quarter, compared with Rs 10 lakh crore (which was an increase of 17.6 percent) in the corresponding period of the previous year.

"The life insurance sector continues to report a drop in their first-year premium collection as businesses have been severely impacted by the COVID-19 pandemic. The sector reported a decrease of 18.6 percent in the first-year premium to Rs 49,335 crore in Q1FY21 from Rs 60,637 crore in Q1FY20," it said.

FPIs pull out Rs 2,867 cr in July so far

Foreign portfolio investors (FPI) have pulled out Rs 2,867 crore from Indian markets in July, so far, mainly on account of profit-booking after a surge in Indian equities. The overseas investors pulled out a net Rs 2,210 crore from equities and Rs 657 crore from the debt segment, taking the total net outflow to Rs 2,867 crore between July 1-10, according to the depositories data.

Gland Pharma files IPO papers with Sebi

Hyderabad-based pharmaceutical company Gland Pharma has filed a draft red herring prospectus with capital market regulator Sebi for its proposed initial public offering on July 10. The IPO comprises a fresh issue of up to Rs 1,250 crore and an offer for sale of up to 3,48,63,635 equity shares by promoters.

The offer for sale consists of 1,93,68,686 equity shares by Fosun Pharma Industrial Pte Ltd, 1,00,47,435 equity shares by Gland Celsus Bio Chemicals, up to 35,73,014 equity shares by Empower Discretionary Trust, and 18,74,500 equity shares by Nilay Discretionary Trust.

Orderly unwinding of counter-cyclical after COVID-19: RBI Governor

RBI Governor Shaktikanta Das said that the central bank would undertake orderly unwinding of countercyclical regulatory measures after COVID-19 is contained.

“The RBI strives to maintain financial stability. Monetary, fiscal, regulatory response are enablers to growth. We are still uncertain when the supply chain will be restored fully. But, the Indian economy has started showing signs of getting back to normalcy,” he said.

Rossari Biotech's Rs 500 crore IPO opens today

Mumbai-based speciality chemicals firm Rossari Biotech will launch its initial public offer on July 13 ending the nearly four-month dry streak for IPOs in the domestic markets. SBI Cards was the last company that got listed in the market in mid-March.

The price band is of Rs 423-Rs 425/share. Each share will have a face value of Rs 2 with bid lots available in 35 shares and in multiples thereof. The issue size is pegged around Rs 494-Rs 496 crore. The IPO will consist of a fresh issue of equity shares aggregating up to Rs 50 crore and an offer for sale component of up to 10,500,000 equity shares. Axis Capital and ICICI Securities are the book running lead managers for the IPO and Axcelus Finserv Private Limited is the adviser to the offer.

FII and DII data

Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 1,031 crore and 431.21 crore, respectively, in the Indian equity market on July 10, provisional data available on the NSE showed.

6 stocks under F&O ban on NSE

Bharat Heavy Electricals, Glenmark Pharmaceuticals, Century Textiles & Industries, Vodafone Idea, Equitas Holdings and Punjab National Bank are under the F&O ban for July 13. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies
First Published on Jul 13, 2020 07:46 am