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Last Updated : Oct 05, 2020 08:26 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a tepid opening for the index in India.

The Indian stock market is expected to open flat following positive global cues. Trends on SGX Nifty indicate a tepid opening for the index in India.

The BSE Sensex surged 629.12 points or 1.65 percent to 38,697.05 on October 1 while the Nifty50 jumped 169.50 points or 1.51 percent to 11,417. According to pivot charts, the key support levels for the Nifty is placed at 11,366.47, followed by 11,315.93. If the index moves up, the key resistance levels to watch out for are 11,448.07 and 11,479.13.

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

The S&P 500 was lower on Friday as news that U.S. President Donald Trump tested positive for COVID-19 put investors in a risk-off mood and added to mounting uncertainties surrounding the looming election.

The Dow Jones Industrial Average fell 102.01 points, or 0.37%, to 27,714.89, the S&P 500 lost 28.19 points, or 0.83%, to 3,352.61 and the Nasdaq Composite dropped 226.18 points, or 2%, to 11,100.33.

Asian Markets

U.S. stock futures rose on Monday on hopes that President Donald Trump could be discharged from hospital later in the day, easing some of the political uncertainty that shook Wall Street in the previous session.

S&P 500 e-mini futures rose 0.45% in early Asian trading, while Nasdaq futures gained 0.58%. Asian markets looked set to follow that lead with Australian S&P/ASX 200 futures up 1.16%, Japanese stock futures rising 0.75%, and Hong Kong’s Hang Seng index futures up 1.38%.

SGX Nifty

The index is down 57 points from its October 1 closing of 11,467.50 and is trading at 11,410. Indian markets were shut on Friday on account of Mahatma Gandhi Jayanti, while SGX Nifty closed at 11,399 on October 2.

Japan's September service sector activity shrinks at slowest pace since pandemic's start

Activity in Japan’s services sector contracted for the eight straight month in September but at the slowest pace since the coronavirus pandemic started wreaking havoc on the economy, a private business survey showed on Monday, in a sign that demand is starting to steady.

The final Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to its highest in eight months, coming in at a seasonally adjusted 46.9 from 45.0 in the previous month.

September data showing credible signs of economic growth: Finance Ministry

The Finance Ministry said the month of September has exhibited “credible signs” of economic growth towards normalcy and the government is not averse to taking any further measures to ameliorate the suffering of people.

It said during the last six months of COVID-19 crisis, while pushing the fiscal stimulus and packages to boost recovery process of the economy it has taken every possible measure to address the concerns of all the stakeholders and the citizens and has progressively extended help on both the demand and supply side to bring the economy back on track.

“Earnest efforts made by the government in last few months during coronavirus period have now started showing the green shoots and the month of September has exhibited credible signs of economic growth towards normalcy,” the ministry said in a statement.

Willing to waive off interest on interest during moratorium: Centre to SC

Bringing huge relief to individual and MSME borrowers, Centre told the Supreme Court that it would waive interest on the repayment of loans of up to Rs 2 crore. The move will provide relief to individual borrowers and medium, small and micro enterprises (MSMEs) during the COVID-19 outbreak.

In an affidavit, the Centre said it will continue the "tradition of handholding the small borrowers" and has waived compound interest for the period for the most "vulnerable category of borrowers", legal news website LiveLaw reported.

CEOs indicate business sentiment revival; steady recovery of Indian economy on anvil: CII

The CEOs of top 115 companies who met at CII's National Council earlier this week indicated revival of business sentiment and a gradual rise in expected corporate performance in a poll, raising hopes that a steady recovery of India's economy is on the anvil.

The CEOs, who took the poll, included representatives from across sectors like metals and mining, manufacturing, auto, pharma, health, energy, infrastructure, construction and leading services sector including ITES, health hospitality tourism and e-commerce, the Confederation of Indian Industry (CII) said on Sunday. "A steady recovery of the Indian economy is on the anvil as corporate India restarts business and economic activity with lockdowns being increasingly relaxed in many parts of the country," the chamber said.

Unemployment rate falls in September: CMIE

Though the unemployment rate has fallen in September, it is not yet a cause for celebration, according to the Centre for Monitoring Indian Economy (CMIE). India's unemployment rate fell to 6.67 percent in September from 8.35 percent in August, according to CMIE data. The unemployment rates for urban and rural areas in September was 8.45 percent and 5.86 percent, respectively.

India's exports snap six-month losing streak, rise 5.27% in September

After contracting for six months in a row, the country's exports grew by 5.27 percent to $27.4 billion in September, Commerce and Industry Minister Piyush Goyal said on October 1.

He said this is an indicator of the "rapid recovery" of the Indian economy as it surpasses pre-COVID-19 levels across parameters. "Make in India, Make for the World: Indian merchandise exports grew 5.27 percent in September 20 as compared to last year," he said in a tweet.

SEBI extends relaxations to valuation of securities in case of COVID-induced restructuring

The Securities Exchange Board of India (SEBI) has allowed the valuation agencies to use discretion while valuing securities held by mutual funds in case the company that has issued the security goes through a debt restructuring.

SEBI has now relaxed its rules and allowed valuation agencies to be lenient if the company has been facing stress due to COVID-19. The market regulator has also added that valuation agencies must also, at the same time, factor the company’s change in terms of investment, it’s financial stress and capability to repay the dues or borrowings on the extended dates. In April 2020, SEBI had relaxed the valuation norms till the period of moratorium permitted by the Reserve Bank of India. SEBI has also provided relaxation to credit rating agencies in recognition of default for restructuring by the lender or investors solely due to COVID-19-related stress. Today’s announcement is an extension of all steps taken earlier.

Coal India production up 32% at 40.51 million tonnes in September

State-owned CIL on October 1 said it produced 40.51 million tonnes (MT) of coal in September, registering a growth of 31.6 percent over the same month last year. Coal India (CIL), which accounts for over 80 percent of domestic coal output, had produced 30.78 MT of the dry fuel in September 2019.

"Coal production at 40.51 MT in September'20, surged ahead by a robust 9.73 MT increase in absolute terms, compared to 30.78 MT in September'19, the growth being 31.6 percent," CIL said in a statement. For the first time in the current fiscal, growth was in double digits, with all CIL subsidiaries showing an increase.

Capex by Road Ministry in August rises nearly 42% MoM

With the government laying emphasis on ramping up capital expenditure to boost a sagging economy, data from the Controller General of Accounts (CAG) show that the Ministry of Road Transport and Highways is progressing on the right track as there has been a nearly 42 percent month-on-month rise in capital expenditure in August.

The ministry spent Rs 32,438.42 crore till August, up from Rs 22,853 crore in July. Last year, the ministry had spent Rs 27,936.26 crore in the same period. The budgetary allocation for current year is Rs 81,974.71 crore versus Rs 72,058. 58 crore last year.

SEBI fines NSE Rs 6 crore for acquiring stakes in CAMS, PXIL, 4 others without approval

Markets regulator SEBI on October 1 imposed Rs 6 crore penalty on NSE for picking up stakes in six entities, including CAMS and Power Exchange India Ltd, without obtaining the regulator's approval. Apart from CAMS and Power Exchange India Ltd (PXIL), the exchange acquired stakes in NSEIT Ltd, NSDL E-Governance Infrastructure Ltd (NSEIL), Market Simplified India Ltd (MSIL) and Receivables Exchange of India Ltd (RXIL).

FPIs pull out Rs 3,419 crore

Snapping their three-month buying spree, overseas investors turned net sellers in Indian markets in September due to uncertainty ahead of the US presidential polls and surging coronavirus cases.

Foreign investors withdrew Rs 3,419 crore on net basis from Indian markets in September, according to depositories data. A net of Rs 7,783 crore was withdrawn from equities while the debt segment saw inflows of Rs 4,364 crore.

US job growth slows

U.S. employment growth slowed more than expected in September and over 300,000 Americans lost their jobs permanently, dealing a potential blow to President Donald Trump ahead of the fiercely contested November, 3 presidential election.

Just over half of the 22.2 million jobs lost during the pandemic have been recouped. Former Vice President Joe Biden, the Democratic Party nominee, blames the economic turmoil on the White House's handling of the pandemic, which has killed more than 200,000 people and infected over 7 million in the nation.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 1,632.25 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 259.46 crore in the Indian equity market on October 1, as per provisional data available on the NSE.

1 stock under F&O ban on NSE

Vedanta is under the F&O ban for October 5. 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
First Published on Oct 5, 2020 07:47 am