The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a flat opening for the index in India with a 12 points loss.
The Sensex declined 172.61 points to close at 39,749.85 on October 29 and the Nifty fell 58.8 points to 11,670.80. According to pivot charts, the key support levels for the Nifty is placed at 11,603.47, followed by 11,536.13. If the index moves up, the key resistance levels to watch out for are 11,741.17 and 11,811.53.
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:
US stocks closed higher on Thursday, with the technology heavyweights rallying ahead of major earnings reports and upbeat domestic economic data calming investor jitters about surging coronavirus cases.
The Dow Jones Industrial Average rose 139.03 points, or 0.52%, to 26,658.98, the S&P 500 gained 39.11 points, or 1.20%, to 3,310.14 and the Nasdaq Composite added 180.73 points, or 1.64%, to 11,185.59.
Asian markets looked to continue an upward swing on Friday, after a rebound in US equities and strong corporate earnings set the stage. Australia's ASX 200 climbed 0.14% in early trading, while Hong Kong's Hang Seng index futures were up 0.26%. Japan's Nikkei 225 futures were down 0.24% and down 0.31%.
Trends on SGX Nifty indicate a flat opening for the index in India with a 12 points loss. The Nifty futures were trading at 11,652 on the Singaporean Exchange around 07:30 hours IST.
Oil extends losses with 4% slump
Oil prices tumbled on Thursday, touching a five-month low and extending the previous day’s sharp decline on the impact renewed coronavirus lockdowns could have on oil demand.
December Brent crude futures settled lower at $37.65 a barrel, down $1.47, or 3.76%. U.S. West Texas Intermediate (WTI) crude futures settled at $36.17 a barrel, down $1.22, or 3.26%.
US economy notches record growth in third quarter
The US economy grew at an unrivaled pace in the third quarter as the government poured out more than $3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.
Gross domestic product rebounded at a 33.1 percent annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. That was the fastest pace since the government started keeping records in 1947 and followed a historic shrinkage rate of 31.4 percent in the second quarter.
Bank credit to industry recorded ‘nil’ growth in September on YoY basis: RBI data
COVID-19 has severely impacted bank credit flow to multiple sectors and this is reflected in the latest data from the Reserve Bank of India (RBI) on sector-wise credit growth.
On a year-on-year basis, overall bank credit growth decelerated to 5.8 percent in September this year as compared with 8.1 percent in the year-ago period.
Eight core industries' output contracts 0.8% in September
Contracting for the seventh consecutive month, the output of eight core infrastructure sectors dropped by 0.8 percent in September, mainly due to decline in production of crude oil, natural gas, refinery products and cement. The production of eight core sectors had contracted 5.1 percent in September 2019, data released by the Commerce and Industry Ministry showed on October 29.
The decline in output during the month under review was lowest since March. Barring coal, electricity and steel, all sectors — crude oil, natural gas, refinery products, fertiliser and cement — recorded negative growth in September 2020.
India's fiscal deficit at 114.8% of annual target at September-end
The government's fiscal deficit rose to Rs 9.14 lakh crore, about 114.8 percent of the annual budget estimate, during the first six months of the current financial year, mainly on account of poor revenue realisation. The revenue realisation during the current fiscal suffered on account of the lockdown imposed by the government to check the spread of coronavirus pandemic.
In absolute terms, the deficit was Rs 9,13,993 crore, as per the data released by the Controller General of Accounts (CGA). The deficit at the end of the first six months of the previous financial year was 92.6 percent of the annual target.
ECB eyes more bond buys, cheap loans in December as pandemic hits
The European Central Bank committed on Thursday to take new action in December to contain the growing fallout from a second wave of coronavirus infections, likely in the form of more bond purchases or cheap credit for banks.
While the bank’s Governing Council left policy unchanged this time around, it was the clearest hint yet of more stimulus to come as new national lockdown measures make a double-dip recession increasingly likely for the euro zone economy.
“We agreed, all of us, that it was necessary to take action and therefore to recalibrate our instruments at our next Governing Council meeting,” ECB President Christine Lagarde said.
US jobless claims aid fall to 751,000, virus resurges
The number of Americans seeking unemployment benefits fell last week to 751,000, the lowest since March, but it's still historically high and indicates the viral pandemic is still forcing many employers to cut jobs. Rising confirmed virus cases in nearly every state, along with a cutoff in federal aid, are threatening to weaken the economy in the coming months. As temperatures fall, restaurants and bars will likely serve fewer customers outdoors. And many consumers may increasingly stay home to avoid infection. Those trends could force employers to slash more jobs during the winter.
The seven-day rolling average for confirmed new cases in the U.S. soared over the past two weeks from 51,161 to 71,832, according to Johns Hopkins University data. The government said Thursday that growth rebounded sharply in the July-September quarter after an epic collapse in the spring, when the economy shrank at a 31.4% annual rate. Yet growth is believed to be slowing sharply in the final three months of the year to a roughly 3% annual rate.
We are selling everything we produce, no need of GST cut now: Maruti Suzuki Chairman RC Bhargava
There is no need for an immediate cut in Goods and Services Tax (GST) on automobiles since demand is upbeat, said Chairman of Maruti Suzuki RC Bhargava. The Delhi-based car maker sold nearly 10,000 cars every day during the ten days of Navratri and Dussera festivities.
“The auto industry has done pretty well in the second quarter and I don’t think that anybody has said that they have suffered due to lack of demand. In fact production capacity, more than anything else, is still being built up due to various constraints. Therefore if I was in the government at this point when there is no lack of demand for what can be produced, giving relief at this stage will be quite unnecessary,” Bhargava said.
Govt likely to extend Air India bid deadline to December 14
The government is likely to extend the deadline to bid for Air India till December 14 and also give flexibility to a potential investor to decide on the humongous debt with the national carrier, a source said. The deadline to bid for buying out Air India ends on October 30.
The flexibility to potential investors on the quantum of the Rs 60,074 crore debt that they want to absorb will replace the current condition of the buyer taking over more than a third of the debt and transferring the rest to a special purpose vehicle. The source said the Air India Specific Alternative Mechanism (AISAM) has cleared the extension of deadline to December 14 to give time to potential investors to raise queries on the changes being made in the Preliminary Information Memorandum (PIM).
RBI cancels certificate of registration of seven NBFCs
The Reserve Bank of India (RBI) has cancelled the certificate of registration of seven non-banking finance companies. These include Malpani Financial Services Private Limited, Vishav Dealer Private Limited, U K Fin Services Limited, Prabhat (India) Limited, Compusta Securities Private Limited, Harshant Investments Private Limited and Sajjan Commercial Enterprises Ltd.
These companies shall not transact the business of a non-banking financial institution, the RBI said in a press release on October 29. The central bank has been tightening monitoring and scrutiny of non-banking firms over the years as these companies are considered high-risk in nature and more prone to shocks during an economic downturn.
Results on October 30
Reliance Industries, IndusInd Bank, Indian Oil Corporation, DLF, LT Foods, Deepak Nitrite, Dhanuka Agritech, Dixon Technologies (India), Edelweiss Financial Services, Emkay Global Financial Services, IFB Industries, Intellect Design Arena, Jindal Steel & Power, Jindal Stainless, Just Dial, Mahindra Lifespace Developers, Mahindra Logistics, Max Financial Services, Motilal Oswal Financial Services, NIIT, Nucleus Software Exports, Quess Corp, RPG Life Sciences, Sundaram-Clayton, UPL, Vakrangee and Zee Media Corporation among 80 companies will declare their quarterly earnings on October 30.FII and DII data
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) net sold shares worth Rs 420.95 crore and Rs 253.41 crore, respectively, in the Indian equity market on October 29, as per provisional data available on the NSE.
Disclaimer: "Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol."With inputs from Reuters & other agencies