Last Updated : Oct 26, 2020 07:50 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 flat opening for the index in India with a 3 points loss.

A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS
A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS

The Indian stock market is expected to open flat following a cautious Asian market as trends on SGX Nifty indicate a flat opening for the index in India with a three-point loss.

The BSE Sensex gained 127.01 points at 40,685.50 on October 23 while the Nifty50 climbed 33.90 points to 11,930.40. According to pivot charts, the key support level for the Nifty is placed at 11,901.23, followed by 11,872.17. If the index moves up, the key resistance levels to watch out for are 11,966.93 and 12,003.57.

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:

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US Markets

The S&P 500 and Nasdaq closed modestly higher on Friday in choppy trading, with investors keeping a close eye on negotiations on a U.S. stimulus package that would ease the economic shock caused by the coronavirus pandemic.

The Dow Jones Industrial Average closed 28.09 points lower, or 0.1 percent, to 28,335.57, the S&P 500 gained 11.9 points, or 0.34 percent, to 3,465.39 and the Nasdaq Composite added 42.28 points, or 0.37 percent, to 11,548.28. The communication services sector rose 1.1 percent, the highest gainer among the major S&P sectors.

Asian Markets

Global shares got off to a cautious start on Monday as surging coronavirus cases in Europe and the United states threaten the economic outlook, even as growth in China provides some support to Asia.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, but remained short of its recent 31-month peak. Japan’s Nikkei rose 0.2 percent, and South Korea’s main index was up 0.4 percent.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the index in India with a 3 points loss. The Nifty futures were trading at 11,932 on the Singaporean Exchange around 07:30 hours IST.

Oil falls more than 1 percent

Oil prices fell on October 26, extending last week's losses, as a jump in COVID-19 infections in the United States and Europe raised alarms over crude demand, while the prospect of increased supply also hurt sentiment.

Brent crude was down by 53 cents, or 1.3 percent, at $41.24 by 0052 GMT. U.S. West Texas Intermediate (WTI) dropped 53 cents, or 1.3 percent, to $39.32, having fallen more than a dollar shortly after the start of trading.

FPIs remain net buyers in October

Foreign portfolio investors (FPI) remained net buyers in Indian markets in October so far, pumping in a net Rs 17,749 crore in the month as better than expected quarterly results, the opening of the economy, and resumption of business activities kept investors' interest intact.

In equities, FPIs invested a net sum of Rs 15,642 crore and the debt segment saw an inflow of Rs 2,107 crore during October 1-23, the depositories data showed. The total net investment during the period under review stood at Rs 17,749 crore.

Recognised PFs can invest in 'A' or higher rated securities: CBDT

The Income Tax department has allowed recognised provident funds to invest in ''A'' or higher-rated debt securities, a move which will give them flexibility to retain their current investments in bonds even where such papers have been downgraded.

The Central Board of Direct Taxes (CBDT), in a notification dated October 22, amended Income Tax rules allowing recognised PF trusts to invest in ''A'' or above rated securities in 2020-21 fiscal.

LIC IPO may spill over to next fiscal

The mega initial public offering of Life Insurance Corp (LIC) may spill over to the next fiscal as the government will first look at the independent actuarial valuation of the country''s largest insurer, a top official has said.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the pre-IPO work of LIC is going on at four stages -- appointment of advisors for ensuring compliance, legislative amendment, LIC''s internal software changes to come out with its ''embedded value'' and appointing an actuary for vetting LIC's actuarial valuation.

India's forex reserves touch life time high of $555.12 billion

The country’s foreign exchange reserves touched a lifetime high of $555.12 billion after it surged by $3.615 billion in the week ended October 16, according to RBI data. In the previous week ended October 9, 2020, the reserves had increased by $5.867 billion to reach $551.505 billion.

During the latest reporting week, the rise in total reserves was due to a sharp rise in Foreign Currency Assets (FCAs), a major component of the overall reserves.

RBI board holds review meet to take stock of economic situation, other challenges

Amid the uncertainties created by the coronavirus pandemic, the Reserve Bank’s central board on Friday held a meeting to discuss, among other things, the economic situation and other challenges.

"The board reviewed the current economic situation, continued global and domestic challenges and various areas of operations of the Reserve Bank. The board also discussed the working of sub-committees of the central board and the local boards and deliberated on the aspects related to financial stability in the present milieu,” the RBI said in a release.

RBI Governor Shaktikanta Das tests positive for COVID-19

Reserve Bank of India (RBI) Governor Shaktikanta Das has tested positive for COVID-19, he posted on Twitter on October 25. "I have tested COVID-19 positive. Asymptomatic. Feeling very much alright. Have alerted those who came in contact in recent days," Das said.

"Will continue to work from isolation. Work in RBI will go on normally. I am in touch with all Dy. Govs and other officers through VC and telephone," the RBI Governor added.

Results on October 26

Kotak Mahindra Bank, SBI Life Insurance Company, Mahindra & Mahindra Financial Services, Angel Broking, Finolex Industries, Genus Paper & Boards, GHCL, Hindustan Media Ventures, Alicon Castalloy, Lasa Supergenerics, Lakshmi Machine Works, Max Ventures and Industries, Swaraj Engines, Torrent Pharmaceuticals and Zim Laboratories are among 36 companies to announce quarterly earnings on October 26.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 906.93 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 891.86 crore in the Indian equity market on October 23, as per provisional data available on the NSE.

7 stocks under F&O ban on NSE

BHEL, Canara Bank, Escorts, Vodafone Idea, NALCO, Punjab National Bank and Vedanta are under the F&O ban for October 26. 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 26, 2020 07:50 am
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