The Indian stock market is expected to open in the green following strong Asian cues. Trends on SGX Nifty indicate a positive opening for the index in India with a 52 points gain.
The BSE Sensex climbed 353.84 points to 39,467.31 on August 28 while the Nifty50 rallied 88.30 points to 11,647.60, the highest level since February 26, 2020.
According to pivot charts, the key support levels for the Nifty is placed at 11,596, followed by 11,544.4. If the index moves up, the key resistance levels to watch out for are 11,692.6 and 11,737.6.
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 which could impact Indian as well as international markets:
US Markets
Wall Street advanced on Friday, with technology stocks driving the S&P 500 to its sixth record closing high since confirming a bull market on August 18. The Nasdaq also set an all-time closing high and the blue-chip Dow is now in positive territory year-to-date.
The Dow Jones Industrial Average rose 160.77 points, or 0.56 percent, to 28,653.04, the S&P 500 gained 23.3 points, or 0.67 percent, to 3,507.85 and the Nasdaq Composite added 70.30 points, or 0.6 percent, to 11,695.63.
Asian Markets
Asian shares notched a fresh two-year high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory for a protracted period, keeping the safe-haven dollar on the defensive.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2% to reach its highest since June 2018, extending a 2.8% rise last week. Nikkei rallied 1.4% aided by news Warren Buffett’s Berkshire Hathaway had bought more than 5% stakes in each of the five leading Japanese trading companies.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the index in India with a 52 points gain. The Nifty futures were trading at 11,742 on the Singaporean Exchange around 07:30 hours IST.
Oil prices edge up on stimulus support despite ample supplies
Oil prices nudged up on Monday, with Brent futures set to post a fifth straight monthly gain, as global stimulus measures underpin prices even as demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November climbed 27 cents, or 0.6%, to $46.08 a barrel by 0038 GMT, while U.S. West Texas Intermediate crude was at $43.11 a barrel, up 14 cents, or 0.3%.
Japan industrial output rises for second month but retail sales fall again
Japan’s factory output rose for a second straight month in July, signaling a gradual recovery from the blow delivered by the coronavirus pandemic. But retail sales fell for a fifth straight month and at a somewhat faster pace, a worrying sign for private consumption, which accounts for more than half of the world’s third-largest economy.
Ministry of Economy, Trade and Industry (METI) data showed Japan’s industrial output grew 8.0% in July from the previous month, versus economists’ median estimate of a 5.8% gain and following a 1.9% increase in June.
South Korea's factory activity grows for second month in a row in July
South Korea’s factory output grew for a second straight month in July, after marking the fastest growth since 2009 in June, though a resurgence in coronavirus infections is expected to further weigh on the economy.
Industrial production in July rose by a seasonally-adjusted 1.6% from a month earlier, Statistics Korea said on Monday, down from 7.2% in June and slightly missing the median forecast of a 1.9% rise.
Growth in China's factory activity slows in August
China’s factory activity grew at a slower pace in August as floods across southwestern China disrupts production while smaller firms continued to struggle, potentially tempering a robust recovery for the economy from the coronavirus shock.
The official manufacturing Purchasing Manager’s Index (PMI) fell slightly to 51 in August from 51.1 in July, data from the National Bureau of Statistics showed on Monday. It remained above the 50-point mark that separates growth from contraction on a monthly basis. Analysts had expected it to pick up a touch to 51.2.
August receives 25% more rainfall; highest in 44 years: IMD
India has received the highest rainfall in the month of August in the last 44 years, IMD data shows, as several parts of the country have witnessed floods. Until August 28, the month recorded a 25-percent surplus rainfall. It has also surpassed the previous highest rainfall in August, which was recorded in 1983. In that year, August had recorded a 23.8-percent excess rainfall.
The India Meteorological Department (IMD) data shows that in August 1976, the country had recorded a 28.4-percent excess rainfall. The country has so far recorded nine-per cent more rainfall than normal. Bihar, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Goa have recorded excess rainfall while Sikkim has recorded a large excess. Many states have seen floods after the swelling of rivers.
EY partner and former ICICI Securities senior executive Charanjit Attra likely to join SBI as new CFO
Charanjit Attra, a partner in Financial Accounting Advisory Services (FAAS) at EY India and a former ICICI Securities senior executive, is likely to join the country’s largest lender State Bank of India (SBI) as its new chief financial officer (CFO), multiple sources with knowledge of the matter told Moneycontrol.
Former deputy managing director and CFO Prashant Kumar had moved earlier to YES Bank as part of the Reserve Bank of India’s rescue plan led by SBI. Kumar was replaced in interim capacity by C. Venkat Nageshwar.
“Attra is likely to join SBI on October 1, 2020,” said one of the individuals cited above. “His past experience as the CFO of two corporates and his stint with the Big 4 worked in his favour. An official announcement can be expected shortly,” added a second individual.
Funds leverage, capex by CPSEs may boost GDP by 2-3%: PESB Chief Rajiv Kumar
Central public sector enterprises, which have a combined net worth of close to Rs 12 lakh crore, can boost India's GDP by 2-3 percent by leveraging funds and stepping up capital expenditure, Public Enterprises Selection Board (PESB) chairman Rajiv Kumar has said. He also exhorted public sector firms to "rise to the occasion" and play their part in building an 'Aatamanirbhar Bharat'.
Earnings on August 31
8K Miles Software Services, Arvind, Bharat Dynamics, BF Utilities, BPL, Dredging Corporation of India, GMDC, Indosolar, JK Cement, Morepen Laboratories, Mukand, NHPC, Prakash Industries, Pricol, Prozone Intu Properties, Shree Renuka Sugars, Sadbhav Infrastructure Project, Spandana Sphoorty Financial, Speciality Restaurants, Tera Software, Technocraft Industries etc will announce their quarterly earnings on August 31.
FPIs invest Rs 47,334 crore in Indian capital markets in August so far
Overseas investors remained net buyers in Indian capital markets in August so far, pumping in a massive Rs 47,334 crore on net basis as excess liquidity in the global markets and low interest rates drove money to emerging markets.
According to the depositories data, the equities segment saw a net investment of Rs 46,602 crore while Rs 732 crore was invested in the debt segment by foreign portfolio investors (FPI) in August so far. The total net investment between August 3-28 stood at Rs 47,334 crore.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,004.11 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 543.56 crore in the Indian equity market on August 28, as per provisional data available on the NSE.
2 stocks under F&O ban on NSE
Bank of Baroda and Vodafone Idea are under the F&O ban for August 31. 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
