Domestic stocks could take a break on Friday after seeing a strong rally the day before. US stocks closed higher overnight. The dollar index, which has an inverse relationship to stocks, also hovered near the one-week low. But Asian markets were trading largely lower at the start of trading, sending mixed signals to domestic investors. Here is the detail of the actions prior to marketing:

STATE OF THE MARKETS


SGX Nifty signs a positive start
Shrewd futures on the Singapore Stock Exchange traded 28 points, or 0.16%, up to 17,857, signaling that Dalal Street was heading for a positive start on Friday.

  • Technical view: Nifty formed a bullish candle on the daily chart on Thursday. Analysts said a breach of the 18,000 level in the next few days is a real possibility, as long as the index remains above the 17,650 level.
  • India VIX: The fear gauge rose 0.66% to 16.60 Thursday from its close of 16.49 Wednesday.

Asian stocks drop early in trading
Asian stock markets were mostly trading lower on Friday, as investors nervously await developments on the fate of struggling Chinese real estate giant Evergande. The MSCI’s largest Asia-Pacific stock index outside of Japan fell 0.16 percent.

  • Australia’s ASX 200 fell 0.34%
  • New Zealand DJ shed 0.59%
  • Japan’s Nikkei jumped 1.82%
  • China’s Shanghai Comp fell 0.12%
  • Hong Kong’s Hang Seng fell 0.55%

US stocks have stabilized
Wall Street stocks rallied for the second day in a row. The rally put major indices on pace for weekly gains just four days after a large selloff gave the S & P500 its biggest slippage since May and sent the Dow down more than 600 points.

  • The Dow Jones jumped 1.48% to 34,764.82
  • The S & P500 climbed 1.21% to 4,448.98
  • Nasdaq added 1.04% to 15,052.24

The dollar wallows near a one-week low
The dollar wallowed near its lowest level in a week against its major peers on Friday, as improving risk sentiment erased recent gains amid easing concerns over contagion in a possible default by the China Evergrande group.

  • The dollar index fell to 93.068
  • The euro gained 0.05% to $ 1.1743.
  • The pound rose 0.07% to $ 1.3734
  • The yen fell to 110.385 per dollar
  • The yuan was trading at 6.4607 against the greenback

Oil should test its highest for 3 years
Oil prices rose for a fourth day on Friday, pushing Brent to three-year highs as investors focused on tighter supplies amid appetites for riskier assets like crude and large hopes of recovery from the pandemic. Brent crude rose 40 cents, or 0.5% to $ 77.65 a barrel. US oil rose 27 cents, or 0.4%, to 73.57 a barrel.

DII buy worth Rs 1,173 crore
Net-net, foreign portfolio investors (REITs) turned buyers of domestic stocks to the tune of Rs 357.93 crore, according to data available from NSE. The DII were buyers to the tune of Rs 1,173.09 crore, the data showed.

MONETARY MARKETS


Rupee:
The rupee rebounded 23 paise to close at 73.64 against the US dollar on Thursday following improved risk appetite among investors triggered by positive global signals.

10-year bond: The 10-year Indian bond rose 0.03% to 6.140 after trading in a range of 6.123 to 6.160.

Call rates: The weighted average overnight call rate stood at 3.16% on Thursday, according to RBI data. It has moved in a range of 1.95 to 3.40 percent.

DATA / EVENTS AT
LOOK

  • GB CBI Distributive Trades SEP (3:30 p.m.)
  • IN Growth of deposits YoY SEP / 10 (5 p.m.)
  • IN Foreign exchange reserves 17 / SEP (5 p.m.)
  • IN Bank Loan Growth YoY SEP / 10 (5:00 p.m.)
  • GB BoE Tenreyro Speech (6.30 p.m.)
  • Speech by US Fed Chairman Powell (7:30 p.m.)
  • Speech by Clarida from the US Fed (7:30 p.m.)
  • US Fed’s Bowman Speech (7:30 p.m.)
  • US New Home Sales AOT (7:30 p.m.)

MACROS


RBI could cut bond purchases
Traders are seeing signs that India’s central bank is looking to drain record liquidity from the banking system, another sign that the global flow of easy money in the era of the pandemic may start to ease. The Reserve Bank of India is increasingly shifting its forex intervention to the futures market to avoid injecting rupee liquidity, according to traders and economists, including Madhavi Arora of Emkay Global Financial Services Ltd. The monetary authority also reports a reduction in its outright obligation. purchases, or even eliminate them altogether, as of the next quarter, some of them said.

Auto, gadgets to pinch pockets more
Prepare for a further rise in the prices of cars, two-wheelers, smartphones, laptops, televisions, refrigerators and air conditioners. Thanks to relentless increases in input and freight costs, high-priced consumer items are expected to experience an unprecedented fourth to fifth round of price hikes this year, ahead of the peak sales period – the holiday season. Prices for consumer electronics could see an increase of up to 8%, while cars and two-wheelers could see a rise of 1 to 2% in the coming weeks. Prices for cars and two-wheelers have seen staggered increases of 10-15% on several occasions over the past 12-18 months.

Automatic debit rule: ICICI, Axis and HDFC ensure service continuity
Three of India’s largest private lenders – HDFC Bank, ICICI Bank NSE 1.94% and Axis Bank – have said they will fulfill the Reserve Bank of India’s mandate for recurring payments by the October 1 deadline. The commitment was given by the spokespersons of the respective banks and the communications sent by the lenders to the customers.

Kiranas used apps to purchase $ 4 billion worth of products in FY21
Kirana stores have ordered nearly $ 4 billion worth of groceries and daily essentials either from organized cash and carry businesses or directly from businesses through online apps, bypassing traditional distributors afterwards. that last mile delivery has been disrupted due to Covid-19 restrictions.

Bookings surge at many hotels as India Inc restarts
Expensive business bookings, conferences and seminars are making a comeback at city hotels in India, driving room rates up. ITC Windsor in Bengaluru saw an increase in occupancy thanks to the India International Jewelery Show hosted by the Gem & Jewelery Export Promotion Council in the city last week, while ITC Royal Bengal in Kolkata recently received awards. delegations of pharmaceutical companies.


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