Trends on SGX Nifty indicate a positive opening for the index in India with a 14 points gain.
The Indian stock market is expected to open on a cautious note following global cues. Trends on SGX Nifty indicate a positive opening for the index in India with a 14 points gain.
The Sensex declined 97.92 points to 38,756.63 on September 14 and the Nifty fell 24.50 points to 11,440. According to pivot charts, the key support levels for Nifty are placed at 11,359.37, followed by 11,278.73. If the index moves up, the key resistance levels to watch out for are 11,544.77 and 11,649.53.
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:
U.S. stocks ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism.
The Dow Jones Industrial Average rose 327.69 points, or 1.18%, to 27,993.33, the S&P 500 gained 42.57 points, or 1.27%, to 3,383.54 and the Nasdaq Composite added 203.11 points, or 1.87%, to 11,056.65.
Asian shares looked set to open lower on Tuesday as investors shifted focus to upcoming data and central bank meetings although positive developments around potential COVID-19 vaccines and increased deal activity are likely to stem losses.
Australia's S&P/ASX 200 futures were down 0.22% and Hong Kong's Hang Seng index futures lost 0.08%. Japan's Nikkei 225 futures were flat.
Trends on SGX Nifty indicate a positive opening for the index in India with a 14 points gain. The Nifty futures were trading at 11,468 on the Singaporean Exchange around 07:30 hours IST.
Oil inches lower as bleaker demand outlook weighs
Oil prices inched lower on Tuesday as a bleaker outlook for global fuel demand prompted fresh selling, but short-covering ahead of a meeting later this week of OPEC and its allies, known as OPEC+, limited losses.
Brent crude was down 3 cents, or 0.1%, at $39.58 a barrel by 0102 GMT, reversing earlier gains. U.S. West Texas Intermediate (WTI) crude futures were down 2 cents, or 0.1%, at $37.24 a barrel.
Bank credit grows by 5.49%, deposits by 10.92%: RBI data
Bank credit grew 5.49 percent to Rs 102.11 lakh crore, while deposits increased 10.92 percent to Rs 141.76 lakh crore in the fortnight ended August 28, according to RBI data. In the fortnight ended August 30, 2019, banks’ advances were at Rs 96.80 lakh crore and deposits stood at Rs 127.80 lakh crore.
In the previous fortnight ended August 14, 2020, bank credit and deposits had grown by 5.52 percent and 11.04 percent to Rs 102.19 lakh crore and Rs 140.80 lakh crore, respectively.
India's retail inflation stood at 6.69% in August
India's retail inflation for the month of August stood at 6.69 percent, according to data released by the National Statistical Office (NSO) on September 14. The consumer price index (CPI)-based inflation rate for July has been revised to 6.73 percent from 6.93 percent.
The combined food price inflation (CFPI) for August stood at 9.05 percent, against 9.27 percent (revised) in July. Inflation in the vegetables basket came in at 11.41 percent in August, against 11.29 percent in July. In the fuel and light segment, inflation for the same month was 3.10 percent, against 2.80 percent in July.
India GDP: Rating agencies forecast contraction of 8% to 11.8% in FY21
India's gross domestic product (GDP) contracted 23.9 percent in the April-June quarter due to the COVID-19 pandemic and subsequent lockdowns. Though the government has started reopening the country in a phased manner and the economic activities have started to gather pace, rating agencies still see a major contraction in FY21 GDP growth. Rating agency Moody's has projected India's real GDP to contract by 11.5 percent in FY21, CNBC-TV18 reported.
Domestic rating agency CARE Ratings said the country's economy is likely to see a sharper contraction of 8-8.2 percent in the current financial year. Fitch Ratings has revised India's GDP outlook for FY21, stating that it will contract 10.5 percent, as against an earlier estimate of 5 percent contraction. According to India Ratings and Research, the India GDP growth forecast for FY21 was revised further down to a contraction of 11.8 percent from the earlier contraction of 5.3 percent.
EPF withdrawals during lockdown at nearly Rs 40,000 crore
Nearly Rs 40,000 crore was withdrawn from the Employees' Provident Fund account during the coronavirus-led lockdown period from March 25 to August 31, Minister of State – Independent Charge (MoS – IC) for Labour and Employment Santosh Kumar Gangwar said.
Among the states, Maharashtra led the pack with the highest withdrawal amount of Rs 7,837.85 crore; followed by Karnataka (Rs 5,743.96 crore), Tamil Nadu (Rs 4,984.51 crore), Delhi (Rs 2,940.97 crore) and Telangana (Rs 2,619.39 crore) – who rounded off the top five.
Govt proposes additional cash spend of Rs 1.67 lakh crore
The government has sought the Parliament's nod for additional cash expenditure of Rs 1.67 lakh crore, less than 1 percent of GDP, in the first supplementary demand for grants for FY21 tabled in the Parliament on Monday by Finance Minister Nirmala Sitharaman, CNBC-TV18 reported.
In other big ticket expenditure, the government has proposed Rs 40,000 crore be allocated additionally for MNREGA, Rs 31,000 crore for direct benefit transfer for women account holders under the Pradhan Mantri Jan Dhan Yojana -- both allocations to be done for Ministry of Rural Development.
Further, Rs 10,000 crore additional spend has been sought for food subsidy in the first tranche under the National Food Security Act and Rs 10,615 crore additional cash expenditure for the Health Ministry in its efforts to contain the spread of COVID-19.
India's oil import bill declines by two-third on fall in international prices: Dharmendra Pradhan
India’s crude oil import bill fell to a third in the first four months of the current fiscal after international oil rates nosedived on demand evaporating due to the outbreak of coronavirus pandemic and ensuing lockdowns, Petroleum Minister Dharmendra Pradhan said on Monday.
The basket of crude oil India imports had averaged $64.31 per barrel in January 2020, which fell to $33.36 a barrel in March when the pandemic spread globally.
GST April-August revenue down over 30% YoY: These states saw highest decline
The goods and services tax (GST) revenue during the April-August period this year saw an overall decline of 30.4 percent as compared to the corresponding period last year. The Centre said on September 14 that the GST revenue between April and August 2020-21 stood at around Rs 2.72 lakh crore, while the same was at around Rs 3.90 lakh crore in the corresponding period last year.
Five states and union territories (UTs) witnessed a year-on-year (YoY) decline of over 40 percent in their GST revenue during the period. Uttarakhand GST revenue was -40.6 percent, Mizoram at -43.6 percent, Jharkhand at -40.9 percent, Daman and Diu at -44.0 percent and Goa -43.4 percent.
SEBI seeks clarification on Kalyan Jewellers IPO
Markets regulator SEBI has sought clarification from merchant bankers of the proposed initial public offering of Kalyan Jewellers India, which last month filed draft papers to raise an estimated Rs 1,750 crore. The proposed IPO comprises issuance of fresh equity aggregating up to Rs 1,000 crore and an offer for sale (OFS) worth Rs 750 crore, according to the Draft Red Herring Prospectus (DRHP). In an update on Friday, the regulator said it is awaiting response to the clarification sought on September 11 from the lead manager of the public issue.
However, details of the clarification sought for the IPO could not be ascertained. The proceeds from the fresh issue of shares would be utilised for working capital requirements and general corporate purpose.
Earnings on September 15
Vedanta, SpiceJet, Max India, Alankit, Allcargo Logistics, ARSS Infrastructure Projects, DB Realty, Future Enterprises, Gammon India, Hubtown, Indo Tech Transformers, ITD Cementation India, Jain Irrigation Systems, Kalyani Forge, Kilitch Drugs, Liberty Shoes, Manpasand Beverages, MEP Infrastructure Developers, Mercator, MTNL, National Fertilisers, Omkar Speciality Chemicals, Peninsula Land, Procter & Gamble Health, Power Mech Projects, Rolta India, RPP Infra Projects, Sakthi Sugars, Steel Strips Wheels, Sterling and Wilson Solar, Texmo Pipes & Products, Tilaknagar Industries, VA Tech Wabag and Zee Media Corporation are among over 600 companies to announce quarterly earnings on September 15.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 298.22 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 120.35 crore in the Indian equity market on September 14, as per provisional data available on the NSE.
8 stocks under F&O ban on NSE
Adani Enterprises, Bank of Baroda, BHEL, Canara Bank, Escorts, Indiabulls Housing Finance, Jindal Steel & Power and Vedanta are under the F&O ban for September 15. 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