The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 43-points gain.
The BSE Sensex was down 524.96 points to close at 58,490.93, while the Nifty50 fell 188.30 points to 17,396.90 and formed a bearish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 17,298.2, followed by 17,199.5. If the index moves up, the key resistance levels to watch out for are 17,559.2 and 17,721.5.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
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%, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70%, to 4,357.73 and the Nasdaq Composite dropped 330.07 points, or 2.19%, to 14,713.90.
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.
Japan’s Nikkei fell 2.0%, resuming trade after a market holiday on Monday while MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2%. MSCI’s ACWI shed 0.13%, a day after the gauge of the world’s 50 stock markets lost 1.63%, its biggest decline in two months, and leaving it teetering at its lowest level in two months.
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.
Oil falls 2% on risk aversion, dollar strength
Oil prices fell 2% on Monday as investors grew more risk averse, which hurt stock markets and boosted the U.S. dollar, making oil more expensive for holders of other currencies
Brent crude fell $1.42, or 1.9%, to settle at $73.92 a barrel after sinking to a session low of $73.52. U.S. West Texas Intermediate (WTI) declined $1.68, or 2.3%, to end at $70.29 after falling to as low as $69.86.
RBI announces Rs 15,000 crore bond sale under G-SAP 2.0
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 fines 8 entities for fraudulent trade in Videocon shares
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.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 92.54 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 1,626.58 crore in the Indian equity market on September 20, as per provisional data available on the NSE.
US yields tumble as Evergrande fears boost safe-haven appeal
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% at one point, before shedding some price gains to trade at 1.3226%.
Another weak US jobs report may be ahead, JPM data suggests
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.
Stocks under F&O ban on NSE
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 for September 21. 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