The Indian stock market is expected to open higher following positive global cues. Trends on SGX Nifty indicate a positive opening for the index in India with a 37 points gain.
The BSE Sensex surged 835.06 points or 2.28 percent to 37,388.66 on September 25. The Nifty50 climbed 244.80 points or 2.27 percent to 11,050.30. According to pivot charts, the key support levels for the Nifty is placed at 10,912.46, followed by 10,774.73. If the index moves up, the key resistance levels to watch out for are 11,130.26 and 11,210.33.
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:
Technology stocks again rode to Wall Street's rescue on Friday, lifting the main indexes more than 1%, but the Dow and the S&P 500 still posted their longest weekly losing streaks in a year as fears of a slowing economy sparked an almost month-long rout.
The Dow Jones Industrial Average rose 358.52 points, or 1.34%, to 27,173.96. The S&P 500 gained 51.87 points, or 1.60%, to 3,298.46 and the Nasdaq Composite added 241.30 points, or 2.26%, to 10,913.56.
Asian shares were on the defensive, while oil prices edged lower on Monday as investors were cautious ahead of a U.S. Presidential debate and as coronavirus cases spike again in a blow to global economic recovery hopes.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.04% to 547.79, not too far from a two-month low of 543.66 hit last week. Japan's Nikkei rose 0.65%, partly on a lower yen, while South Korea's KOSPI index gained 0.8%.
Trends on SGX Nifty indicate a positive opening for the index in India with a 37 points gain. The Nifty futures were trading at 11,077 on the Singaporean Exchange around 07:30 hours IST.
Oil edges lower as rising virus cases cloud demand recovery outlook
Oil prices dipped again on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with crude on track for its first monthly fall in many months after slipping last week.
Brent crude edged down 8 cents, or 0.2%, to $41.84 a barrel by 0003 GMT after dropping 2.9% last week. U.S. West Texas Intermediate was at $40.12 a barrel, down 13 cents or 0.3%.
India's economy to experience record contraction in 2020-21: S&P
India's economy may experience a record contraction in the current financial year mainly due to the global COVID-19 pandemic, and the real GDP growth is expected to recover from next fiscal onwards, according to a report by gobal rating agency S&P. India's weak fiscal settings will worsen further this year, constraining the government's ability to aid the economy, it said.
However, it said the country's external settings have improved, helped by the rapid accumulation of foreign exchange reserves. "We are affirming our 'BBB-' long-term and 'A-3' short-term foreign and local currency sovereign credit ratings on India.
"The stable outlook reflects our view that India's contraction in fiscal 2021 will be followed by a significant recovery, which will stabilise the country's broader credit profile," it said. The sovereign credit ratings on India reflect the economy's above-average long-term real GDP growth, sound external profile and evolving monetary settings, it said.
India will contest Vodafone tax-case win, reach out to reassure foreign investors: Report
The Indian government will contest the compensation awarded to Vodafone by an international court at The Hague in its retrospective tax dispute, while simultaneously reaching out to foreign institutional investors reassuring them that India will honour its obligations and taxation policy.
The parent company of Vodafone India had won its case against the Centre at the Permanent Court of Arbitration against the about Rs 40,000 crore levied as retrospective tax dues. However, the government remains confident it can successfully challenge the enforcement of the award in Indian courts, sources told the Business Standard.
India's crude steel output falls over 4% to 8.48 MT in August: World Steel Association
India’s crude steel production fell over 4 percent to 8.478 million tonnes (MT) in August 2020, according to the World Steel Association (worldsteel). The country had produced 8.869MT of crude steel during the same month last year, the global industry body said in its latest report.
However, global steel output has started showing a positive trend, the data showed. "World crude steel production for 64 countries reporting to the worldsteel was 156.244MT in August 2020, registering a rise of 0.6 per cent compared to August 2019,” the worldsteel said.
Job searches for roles in hospitality, tourism on rise since May: Report
Job searches for roles in the hospitality and tourism sector have been on the rise since May, coinciding with the easing of lockdown measures across the country, says a report. Searches by job seekers saw a 30 percent increase between May and August 2020, according to a report by global job site Indeed.
Jobs in hospitality and tourism are bouncing back in India, its data suggests. Job postings in the sectors were down only 58 percent in September, against the 69 percent drop in May this year — when compared with 2019 levels.
India's forex reserves up by $3.378 billion to record $545.038 billion
The country's foreign exchange reserves increased by $3.378 billion to touch a lifetime high of $545.038 billion in the week ended September 18, RBI data showed. In the previous week ended September 11, the reserves had declined by $353 million to $541.660 billion.
During the reporting week, the forex kitty rose mainly due to an increase in foreign currency assets (FCA), a major component of the overall reserves. FCAs swelled by $3.943 billion to $501.464 billion in the reporting week, the central bank data showed.
RBI to hold rates as inflation rises, even in recession: Reuters poll
The Reserve Bank of India will keep rates on hold until early next year in a delicate balancing act between curbing high inflation and lifting the economy from its worst recession on record, a Reuters poll of economists showed. August inflation, at 6.69 percent, held above the top end of the RBI's medium-term target range of 2-6 percent for the fifth consecutive month amid supply disruptions, while coronavirus infections spread in India at the fastest pace anywhere in the world.
All 66 respondents expected no change at the Sept 29-Oct 1 meeting and the consensus showed rates would remain on hold in December, according to the poll which was conducted over the last few days.
Mazagon Dock Shipbuilders IPO
The maiden public issue of Mumbai-headquartered Mazagon Dock Shipbuilders is set to open for subscription on September 29. The initial public offering, the eleventh IPO this year, will close on October 1 and the listing on BSE and NSE is expected on October 12. The book running lead managers to the issue are Yes Securities (India), Axis Capital, Edelweiss Financial Services, IDFC Securities and JM Financial.
The IPO consists an entire offer for sale of 3,05,99,017 equity shares by the Ministry of Defence, Government of India. The issue includes an employee reservation portion of 3,45,517 equity shares. The total offer will constitute 15.17 percent of the post issue paid-up equity.
FPIs pull out net Rs 476 crore so far in September from Indian markets
Foreign portfolio investors (FPI) have pulled out Rs 476 crore on net basis so far from Indian markets in September, reflecting a cautious stance by participants amid fears of resurgence of coronavirus cases in Europe and other countries. According to depositories data, FPIs have withdrawn a net Rs 4,016 crore from equities and invested a net sum of Rs 3,540 crore in debt instruments during September 1-25 — a net outflow of Rs 476 crore. FPIs remained net buyers for three consecutive months — June-August.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,080.21 crore, whereas domestic institutional investors (DIIs) net bought shares worth Rs 2,070.63 crore in the Indian equity market on September 25, as per provisional data available on the NSE.With inputs from Reuters & other agencies