Top 10 things to know before the market opens

The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a gap-up opening for the index in India with a 172 points gain.

On August 20, the BSE Sensex was down 300.17 points at 55,329.32, while the Nifty50 corrected 118.30 points to 16,450.50 and formed bullish candle on the daily charts as the closing was higher than the opening level. The index formed small bearish candle on the weekly scale as it fell half a percent.

According to pivot charts, the key support levels for the Nifty are placed at 16,381.13, followed by 16,311.77. If the index moves up, the key resistance levels to watch out for are 16,514.73 and 16,578.97.

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:

US Markets

Wall Street rallied to close sharply higher at the close of a tumultuous week on waning concerns over whether the US Federal Reserve could begin tightening its dovish monetary policy sooner than expected.

The Dow Jones Industrial Average rose 222.15 points, or 0.64%, to 35,116.27, the S&P 500 gained 35.79 points, or 0.81%, to 4,441.59 and the Nasdaq Composite added 169.95 points, or 1.17%, to 14,711.73.

Asian Markets

Asian share markets were trying to pick up the pieces on Monday following last week's thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy.

SGX Nifty

Trends on SGX Nifty indicate a gap-up opening for the index in India with a 172 points gain. The Nifty futures were trading at 15,577 on the Singaporean Exchange around 07:30 hours IST.

MPC minutes: RBI Guv pitches for continued policy support to revive growth

Given the uncertainties on account of the COVID-19 pandemic, Reserve Bank Governor Shaktikanta Das opined that continued policy support with a focus on revival and sustenance of growth was the most desirable and judicious policy option at the moment.

Das, according to the minutes of the MPC meeting released on Friday, also underlined the need for closely monitoring the price situation with a view to anchoring inflation expectations.

IBA moves RBI seeking licence to set up Rs 6,000-crore NARCL; approval likely in next few weeks

The Indian Banks' Association (IBA) has moved an application to the Reserve Bank of India (RBI) seeking licence to set up a Rs 6,000-crore National Asset Reconstruction Company Ltd (NARCL) or bad bank, according to sources. NARCL was incorporated last month in Mumbai following the registration with Registrar of Companies (RoC).

According to sources, the company after mobilising an initial capital of Rs 100 crore and fulfilling other legal formalities has approached the RBI seeking licence to undertake asset reconstruction business. The RBI in 2017, raised the capital requirement to Rs 100 crore from the earlier level of Rs 2 crore, keeping in mind the higher amount of cash required to buy bad loans.

Three insurance-related firms to raise Rs 10,000 crore through IPOs

Adding more fire to the already-frenzied IPO market, three insurance sector companies are entering the primary market with initial public offerings in coming months to mop up over Rs 10,000 crore.

These companies are — PB Fintech, which runs the insurance brokerage Policybazaar; standalone health insurer Star Health & Allied Insurance Company; and third-party administrator Medi Assist Healthcare Service. They have already filed their draft prospectus with markets regulator Sebi.

Investment via P-notes continues to climb; hits 40-month high in July

Investments in the Indian capital markets through participatory notes (P-notes) rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months. According to SEBI data, the value of P-note investments in Indian markets -- equity, debt and hybrid securities -- rose to Rs 1,01,798 crore at July-end from Rs 92,261 crore as of June 30, 2021.

FPIs pump in Rs 7,245 crore in August so far

Foreign portfolio investors (FPI) have pumped in a net Rs 7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment. The gradual increase in the amount of net inflows indicates that investors are slowly dropping their cautious stance and gaining higher conviction on the Indian markets, said Himanshu Srivastava, associate director - manager research, Morningstar India.

As per depositories data, Rs 5,001 crore was invested in equities and Rs 2,244 crore in the debt segment by overseas investors between August 2-20. This took the total net investment to Rs 7,245 crore.

Rakesh Jhunjhunwala-backed Metro Brands files IPO papers with Sebi

Footwear retailer Metro Brands has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share-sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 250 crore and an offer-for-sale of 2,19,00,100 equity shares by selling shareholders, according to the draft red herring prospectus (DRHP).

The company will consider a pre-IPO placement aggregating up to Rs 10 crore. If such placement is completed, the fresh issue size will be reduced.

India's forex reserves decline $2.10 billion to $619.365 billion

India’s foreign exchange reserves decreased by $2.099 billion to stand at $619.365 billion for the week ended August 13 due to a fall in core currency assets and gold, RBI data showed on Friday. The forex kitty had increased by $889 million to a lifetime high of $621.464 billion in the previous reporting week.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 2,287.03 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 119.30 crore in the Indian equity market on August 20, as per provisional data available on the NSE.

With inputs from Reuters & other agencies