Markets should open higher in line with positive Asian markets

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Trends on SGX Nifty indicate a positive index opening in India with a gain of 89 points. Nifty futures were trading at 17,694 on the Singapore Stock Exchange around 7:30 a.m.

Indian markets could open higher, in line with positive Asian markets today and despite sluggish US markets on Thursday, said Deepak Jasani, head of retail, HDFC Securities.

“Nifty is expected to be positive at 17,700, up 90 points from Thursday’s close. Nifty is in a strong uptrend, traders can use any correction to initiate long positions with a strict stop-loss . Nifty may test 17730 and 17780 in the next few trading sessions. 17425 – 17450 is a strong support range, “said Gaurav Udani, CEO and Founder of ThincRedBlu Securities.

Nifty closed at record highs for the third consecutive session on September 16, helped by Banks & FMCG shares. At the close, the Nifty was up 0.63% or 110 points to 17,630.

Nifty continued to march uphill on September 16; however, the expected decline ratio fell below 1: 1, indicating profit taking across markets. We are witnessing a sector and stock market rotation among large caps. 17,740 is the next target for Nifty while 17,519 could be short term support.

US equities close mixed

U.S. stock indexes ended a checkered day with the Nasdaq Composite managing to post a slight gain, as August retail sales showed an unexpected increase and a measure of activity in the District of Philadelphia Federal Reserve was stronger than expected. Data showed August retail sales rose 0.7%, defying expectations to a 0.7% decline. Excluding autos, sales jumped 1.8 percent, against expectations of a 0.2 percent increase.

The S&P 500 ended slightly lower on Thursday, wiping out losses late in the session after surprisingly strong retail sales data highlighted the strength of the US economic recovery.

The Dow Jones Industrial Average fell 62.22 points, or 0.18%, to 34,752.17, the S&P 500 fell 6.65 points, or 0.15%, to 4,474.05 and the Nasdaq Composite added 20.30 points, or 0.13%, to 15,181.83.

Meanwhile, the Philadelphia Fed’s activity index jumped to 30.7 in September from 19.4 a month earlier. At the same time, data showed that first claims for unemployment benefits increased more than expected in the week ending September 11 (+20,000 to 332,000 vs. 320,000 expected), although continued claims declined. .

US economy collapses in third quarter

The U.S. economic rebound was rocked in the third quarter, in part due to the spread of the Delta coronavirus variant, with economists in a Reuters poll also pushing their expectations back to November for when the Federal Reserve announces an imminent policy change.

The median growth forecast for the third quarter from September 13 to 16 Reuters poll was cut at a seasonally adjusted annualized rate of 4.4 percent from 7.0 percent just a month ago and well below second-quarter growth of 6.6 percent, with the range showing lows and lower peaks.

Markets dive into the world on Thursday

Markets plunged globally on Thursday as concerns about investment in China and a day of decline on Wall Street outweighed positive economic data in the United States.

International investors who have crammed into China in recent years are now bracing for one of its big downturns as the problems of over-indebted real estate giant China Evergrande come to a head. The developer’s woes have snowballed since May. The decrease in resources against 2,000 billion yuan ($ 305 billion) in liabilities wiped out nearly 80% of the price of stocks and bonds, and an $ 80 million coupon payment is now looming next week.

Rs 30,600 cr approved for NARCTHE

On September 16, the Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by the National Asset Reconstruction Company Ltd (NARCL). Guarantee receipts represent an undivided right or interest in a financial asset. Typically, asset rebuilding companies or a bad bank buy distressed assets by paying 15% in cash and the balance 85% in collateral receipts.

Mixed Asian stocks

Asia-Pacific stocks were mixed in Friday morning trading as investors reacted to mixed US economic data released overnight.

The Nikkei 225 in Japan climbed 0.38% as the Topix index traded slightly higher. South Korean Kospi lost 0.22%.

Stable oil prices

Oil prices stabilized on Thursday after hitting a multi-week high a day earlier as the threat from Hurricane Nicholas to US Gulf crude production faded.

Brent crude ended the session up 21 cents, or 0.3%, at $ 75.67 a barrel. US West Texas Intermediate (WTI) ended the session unchanged at $ 72.61 per barrel.

Rs 30,600 cr approved for NARCL

On September 16, the Union Cabinet approved a government guarantee of up to Rs 30,600 crore for security receipts to be issued by the National Asset Reconstruction Company Ltd (NARCL). Guarantee receipts represent an undivided right or interest in a financial asset. Typically, asset rebuilding companies or a failed bank buy distressed assets by paying 15% in cash and the balance 85% in collateral receipts.

Addressing a press conference, Finance Minister Nirmala Sitharman said: “We are also setting up an Indian Debt Resolution Company Ltd to manage Non Performing Assets (NPAs). In this company, public sector banks (PSBs) and state-owned financial institutions will hold 49% of the capital. ”She added that private sector banks would also hold a stake.

Sebi envisions a separate category in the AIF

Market regulator Sebi plans to create a separate category in Alternative Investment Funds (AIFs) in which these entities can purchase distressed loans from banks and NBFCs. Highlighting the growing number of AIFs, Sebi chairman Ajay Tyagi said on Thursday that the last fiscal year saw 90 new AIFs registered with the regulator in different categories, bringing the total number to over 700.

“This would unlock the capital of banks and NBFCs and make it available for new loans. A new sub-category of AIF could be created for this purpose,” he added. Acknowledging the resumption of the launch of ESG programs by mutual funds in India in recent years, Tyagi said the regulator is currently engaging with the industry to disclose some broad ESG metrics regarding these programs.

Domestic passenger air traffic increases 33.8% DOM

Domestic passenger air traffic rose 33.8% month-on-month in August, the Directorate General of Civil Aviation (DGAC) announced on September 16. The total number of passengers in August was 67.01 lakh, compared to 50.07 lakh in July and 31.13 lakh in June. .

Passenger traffic in August 2021 also more than doubled compared to the same month last year, the aviation regulator said. In August of last year, the number of passengers carried by domestic airlines stood at 28.32 lakhs.

Six actions under F&O ban

Six actions – Escorts, Exide Industries, NALCO, SAIL, Sun TV Network and Zee Entertainment Network – are currently banned by F&O.

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Posted on: Friday September 17th, 2021 08:54 IST


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