Hopes that Covid-positive President Trump could be discharged from hospital soon and the progress over US stimulus may offset concerns over slower-than-expected growth in US jobs could give Dalal Street a positive start on Monday. Here’s breaking down the pre-market actions:
SGX Nifty signals flat start
Nifty futures on the Singapore Exchange traded 19 points lower at 7 am (IST) in signs that Dalal Street was headed for a flat start on Monday. Nifty had closed at 11,416.95 on Thursday and was shut on Friday on account of Gandhi Jayanti.
Tech View: Nifty charts signal further rise
After two days of consolidation, Nifty50 took out the key resistance range of 11,300-350 on Thursday to close above the 11,400 level. The index formed a bullish candle on the daily chart and a Bullish Harami pattern on the weekly scale. Analysts said further upside in the index looks likely.
Asian stocks rise as Trump’s health improves
US S&P 500 e-mini futures ros 0.82 per cent in Asian trading, while Nasdaq futures gained 1.11 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.63 per cent. Australian stocks jumped 2.37 per cent for the biggest daily gain in almost two weeks. Japan’s Nikkei added 1.39 per cent. China’s financial markets are closed for a public holiday.
Oil prices gain 1% in early trade
Oil prices rose more than 1 per cent on Monday, lifted by comments from doctors for US President Donald Trump suggesting he could be discharged from hospital soon, just a few days after his positive test for Covid-19 sparked widespread alarm. Brent up to $39.79 a barrel, gaining 52 cents or 1.3 per cent. WTI crude was at $37.64 a barrel, up 59 cents, or 1.6 per cent.
US settled lower on Friday
Wall Street stocks fell Friday following a weak US jobs report and President Donald Trump’s shock announcement that he tested positive for coronavirus. The Dow Jones Industrial Average finished down 0.5 per cent at 27,682.81. The broad-based S&P500 index dropped 1 per cent to 3,348.44, while the tech-rich Nasdaq Composite index tumbled 2.2 per cent to 11,075.02.
Angel Broking to make market debut today
Angel Broking, whose IPO was sold from September 22 to September 24, is likely to make a debut on Monday at a 6-7 per cent discount to the issue price of Rs 306. The stock would be listing at a time when another debutant Chemcon Speciality Chemicals froze at a 20 per cent lower circuit limit on Thursday following a 115 per cent listing pop.
FIIs buy Rs 1,632 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,632.25 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 259.46 crore, data suggests.
TCS may buy back shares
TCS will consider a buyback of shares on October 7, when the company board meets for the second quarter results, India’s largest IT services company said on Sunday
Rupee: The rupee strengthened by 63 paise to close at 73.13 against the US dollar on Thursday amid positive macroeconomic data and a weak greenback overseas.
10-year bonds: India 10-year bond yield fell 0.32 per cent to 5.99 after trading in 5.96-6.00 range.
Call rates: The overnight call money rate weighted average stood at 3.43 per cent, according to RBI data.
DATA/EVENTS TO WATCH
- Japan Jibun Bank Services PMI Final Sept (06:00 am)
- Russia Markit Services PMI Sept (11:30 am)
- Japan BoJ Gov Kuroda Speech (12:10 pm)
- Euro Area Markit Services PMI Final Sept (01:30 pm)
- UK New Car Sales YoY Sept (01:30 pm)
- US Markit Services PMI Final Sept (07:15 pm)
- Eurogroup Video Conference
Trump may return to White House on Monday
US President Donald Trump’s condition is improving as he is being treated for Covid-19 at a military hospital, and he could return to the White House as early as Monday, the doctors leading his treatment said on Sunday, agencies reported.
Stormy GST Council meet ahead… The GST Council meeting on Monday could be a stormy one as opposition-ruled states clash with BJPruled ones over how they should be compensated for the shortfall in collections and are likely to force a vote on the issue. Opposition-ruled Punjab, Kerala, Delhi, Tamil Nadu, Telangana, Chhattisgarh, Rajasthan, West Bengal and Puducherry insist that the Centre must borrow to compensate them for the revenue loss on account of the transition to the GST regime and are likely to invoke the dispute resolution mechanism.
India Inc projects 51% capacity utilisation… India Inc is estimating capacity utilisation to rise above 50% during the second half of the fiscal year, according to an industry survey released on Sunday. A substantial percentage of the 115 CEOs polled by the Confederation of Indian Industry (CII) expect conditions to improve going forward. “A large percentage of the CEOs polled have shown confidence in the days ahead, indicating that the worst may be behind,” said a CII statement.
FinMin says demand surge palpable … India may have crossed the Covid-19 peak and the declining positivity rate will help fuel an economic recovery, the finance ministry said, while adding that it was “not averse to taking any further measures to ameliorate suffering of people.” The economy was “regaining normalcy,” with a palpable resurgence in demand in many sectors, the ministry’s Department of Economic Affairs said in its monthly review for September.
Karnataka wants to host Tesla… Karnataka has pitched Bengaluru to Tesla, the world’s most valuable carmaker, as a potential location for a Gigafactory where it can manufacture electric cars and batteries, a state government official told ET. Tesla has already held preliminary talks with the state for a research and innovation unit in the city, home to many of India’s electric vehicle (EV) startups such as Ola Mobility, Ather Energy, Mahindra Electric as well as units of Daimler and Bosch.
Beijing drags Delhi to WTO….. Beijing has accused New Delhi of discriminatory and restrictive trade measures, pointing to the ban on Chinese apps and curbs on foreign direct investment from the neighbouring country. During a recent meeting at the World Trade Organization (WTO), China alleged that the measures undermine the transparency, stability and predictability of the Indian market. China said India banned the use of 234 mobile apps, most of which were developed and operated by Chinese internet companies.
Eating out making comeback… Covid-19 is very much out there but eating out is making a comeback. After nearly six months of slump and shutdowns, top restaurants are seeing a steady rise in dine-in numbers, with many reaching 30-50% of pre-Covid levels despite restricted seating capacity. Markets such as Delhi-NCR, Punjab and Bengaluru have seen consistent, if not sharp, recovery in dine-in footfall, while much hope is pinned on Maharashtra, which will have staggered reopenings during the month, executives said.
US employment growth slows in Sept
US 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. Nonfarm payrolls increased by 661,000 jobs last month, the smallest gain since the jobs recovery started in May.
India Inc’s equity raising hits record… Equity fundraising by Indian companies has hit a record this year, surpassing even the best years of 2017 and 2019, data collected by ET show. Booming capital markets, low interest rates, ample liquidity and an urgent need for beefing up defences in a pandemic-hit economy is making India Inc raise record amounts of cash. Indian companies have raised Rs 1.49 lakh crore in April-September against Rs 1.47 lakh crore in the entire 12 months ended March 2020.
Banks breathe easy over interest waiver… The government’s proposal to pick up the tab for the waiver of “interest on interest” on loans of up to Rs 2 crore clears the uncertainty over bank earnings for the quarter, giving them room to offer liberal loan-rejig terms to stressed borrowers. The relief is likely to cost the Centre Rs 5,000-5,500 crore, according to the finance ministry’s initial estimates. Rating agency ICRA has pegged the cost at Rs 5,000-7,000 crore.
Telcos likely to see surge in revenue… Reliance Jio, Bharti Airtel and Vodafone Idea are likely to report sequential gains in mobile revenue and operating income in the July-September period, following a surge in recharges by users as Covid-19 lockdown curbs were eased, analysts said. Jio is expected to have benefited from higher user additions and gains in average revenue per user (Arpu) from home broadband customers, they said. These factors would help Jio report strong profit growth.