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 22 points gain.
The BSE Sensex declined 8.41 points to 37,973.22 on September 29 while the Nifty50 fell 5.10 points to 11,222.40. According to pivot charts, the key support levels for the Nifty is placed at 11,167.13, followed by 11,111.87. If the index moves up, the key resistance levels to watch out for are 11,291.53 and 11,360.67.
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:
Wall Street closed lower on Tuesday, snapping a three-day winning streak as investors took money off the table hours before the first U.S. presidential debate.
The Dow Jones Industrial Average fell 131.4 points, or 0.48%, to 27,452.66, the S&P 500 lost 16.13 points, or 0.48%, to 3,335.47 and the Nasdaq Composite dropped 32.28 points, or 0.29%, to 11,085.25.
Asian shares slipped and the dollar was under pressure on Wednesday in the lead up to the first U.S. presidential debate, as financial markets looked to take a measure of both candidates.
MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1% in early trade. Japan's Nikkei was down 0.2% and Australia's ASX 200 fell 1.3%, while markets in Seoul rose 0.8%.
Trends on SGX Nifty indicate a positive opening for the index in India with a 22 points gain. The Nifty futures were trading at 11,266 on the Singaporean Exchange around 07:30 hours IST.
Analysing economy, could give one more stimulus if necessary: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman expects the economy has turned “for the better” in Q2 and Q3 after a dismal 23.9 percent fall in Q1FY21 due to the pandemic and lockdowns, adding that the Centre would not be averse to “one more stimulus if necessary”. “We are hearing everyone out, we are analysing every area of the economy. I am open to one more support if necessary. We are constantly exchanging a lot of thoughts with industry,” she said as per Hindustan Times.
“If in Q2 at least 50 percent levels have been reached, then it can’t be as bad as Q1. The revival is also happening in many labour-intensive areas … as migrants have started returning to work. Some industries tell me that domestic demand is increasing … they are also seeing export orders increasing faster than expectations. I guess, Q2 and Q3 will be better,” she added.
Japan's factory output rises for third month in August
Japan’s factory output rose for the third straight month in August, in a positive sign for manufacturers as economic activity gradually recovered further from the impact of the coronavirus pandemic.
August’s rise, which was much slower than the previous month’s record 8.7% gain, came in largely in line with the median market forecast of 1.5% growth in a Reuters poll of economists.
China's factory activity extends solid growth in September, new export orders surge: Caixin PMI
Activity in China’s factories extended solid growth in September as payrolls expanded for the first time this year and overseas demand surged, a private survey showed on Monday, adding further momentum to an economy recovering from the coronavirus crisis.
The Caixin/Markit Manufacturing Purchasing Managers’ Index(PMI) barely budged from the previous month, down fractionally to 53.0 from August’s 53.1, with the gauge staying above the 50-level that separates growth from contraction for the fifth consecutive month.
Oil drops second day as surging coronavirus cases prompt demand worries
Oil prices fell for a second day on Wednesday, extending big losses from the previous session amid rising concerns about fuel demand as the coronavirus pandemic worsens.
Brent crude dropped 23 cents, or 0.6%, to $41.03 per barrel by 0048 GMT. West Texas Intermediate fell 26 cents, or 0.7%, to $39.29.
SEBI decides to strengthen debenture trustee role
To protect the interest of debenture holders, markets regulator Sebi on September 29 decided to strengthen the role of a debenture trustee (DT). The DT would exercise independent due diligence of the assets on which charge is being created, Sebi said in a statement after its board meeting.
Also, they will take required action by convening the meeting of debenture holders for enforcement of security, joining the inter-creditor agreement under the framework specified by the Reserve Bank of India (RBI). In addition, DT would also carry out continuous monitoring of the asset cover, including obtaining mandatory certificate from the statutory auditor on a half-yearly basis.
RBI defers CCB implementation by 6 months due to COVID-19
The Reserve Bank on September 29 deferred the implementation of the capital conservation buffer (CCB) requiring banks to set aside additional reserves of 0.625 percent by a further six months due to the COVID-19 pandemic. The implementation of the regulations was to happen by September 30, and the same has been now deferred to April 1, 2021, the RBI said in a notification.
"In view of the continuing stress on account of COVID-19, it has been decided to defer the implementation of the last tranche of 0.625 percent of the CCB from September 30, 2020 to April 1, 2021," it said. Accordingly, the minimum capital conservation ratios shall continue to apply till the CCB attains the level of 2.5 percent on April 1, 2021, the RBI said.
Government to seek Cabinet approval to sell 25% stake in LIC: Report
The government is planning to seek Cabinet approval to sell 25 percent stake in Life Insurance Corporation (LIC) of India, the country's largest life insurer, sources told Bloomberg. The report notes that to prepare for the sale, the Centre is looking to amend the Life Insurance Corporation of India Act under which the state-run company was set up. The Narendra Modi government is hoping that the LIC IPO will help plug a burgeoning budgetary gap, which has further widened because in light of the coronavirus pandemic-led lockdown and its economic fallout.
Deloitte Touche Tohmatsu India Ltd and SBI Capital Markets Ltd have reportedly been picked to help during the preparation stage of the IPO, Bloomberg had reported in August. These advisors will help evaluate the capital structure for LIC as well as aid the company in reworking its financial statement.
SEBI notifies easier rights issue norms
Markets regulator SEBI has notified new rights issue rules to rationalise the eligibility criteria and disclosure requirements to make fund raising easier, faster and cost-effective.
Under the new norms, a company is allowed to make truncated disclosures, provided the firm has been filing periodic reports, statements, the information in compliance with listing regulations for last one year instead of last three years, as was required earlier.
Automobile sales may fall 20-25% this fiscal: Ind-Ra
Rating agency Ind-Ra expects automobile sales to decline by 20-25 per cent this fiscal against its earlier forecast of 22-25 percent on account of increasing preference for personal mobility and an expected demand rebound from rural and semi-urban markets.
At the same time, the rating agency has maintained a negative outlook for the auto sector for the second half of the fiscal, owing to continued weak consumer sentiments and macroeconomic headwinds amid the disruptions caused by the pandemic, Ind-Ra said in a release.
RBI gives more time to states to avail additional market borrowing, OD facility
With an aim to help state governments tide over the financial problems triggered by the COVID-19 pandemic, the RBI on September 29 extended by six months the additional flexibility provided to states to raise funds through market borrowing and overdraft.
On a review, it has been decided to extend the measures announced on April 17, 2020 and April 7, 2020 with regard to increase in WMA Limits of states/UTs and overdraft (OD) regulations, respectively, for a further period of 6 months till March 31, 2021, the central bank said in a press release.
SEBI slaps Rs 1 crore fine on Brickwork Ratings for lapses in assigning credit ratings to Essel Group companies' NCDs
Markets regulator Securities and Exchange Board of India (SEBI) on September 29 imposed a penalty of Rs 1 crore on Brickwork Ratings India, for lapses while assigning credit ratings to non-convertible debentures (NCDs) of Essel Group companies.
Brickwork Ratings also failed to review the rating of NCDs of Great Eastern Energy Corporation after another credit rating agency downgraded the NCDs in April 2017 due to "delays in debt servicing of bank facilities on account of tightening of liquidity", it said. Also, the regulator has made delay in recognising default of NCDs of Diamond Power Infrastructure Ltd.
1 stock under F&O ban on NSE
Vedanta is under the F&O ban for September 30. 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