Nifty to open with a big gap-up. Will it sustain?
Good Morning, Everyone, We saw Nifty being very volatile yesterday before today's weekly expiry, and similar movements can be expected today too. But 2 major concerns have become neutral now which we'll discuss below.
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Global Markets:
Global markets went into a panic selling due to 2 major reasons 1. Evergrande issue in China
2. FED meet in the US
China Evergrande Group's main unit yesterday said that it would make a bond coupon payment on Sept. 23, offering some relief to jittery markets.
Federal Reserve Chair Jerome Powell said the U.S. central bank could begin scaling back asset purchases in November and complete the process by mid-2022, which came as a breather to many to believe that there is still time before markets can actually correct from the current levels.
The Dow Jones Industrial Average rose 475.84 points, or 1.40%, to 34,395.68, the S&P 500 gained 54.62 points, or 1.25 %, to 4,408.73 and the Nasdaq Composite gained 169.77 points, or 1.16 %, to 14,916.92.
Shares in Asia-Pacific were mixed in this morning's trade as investors continue monitoring the situation surrounding China Evergrande Group.
South Korea’s Kospi, returning to trade from holidays earlier in the week, slipped 0.81%. The S&P/ASX 200 in Australia edged 1.07% higher.
Indian Market:
Trends on the SGX Nifty indicate a big gap up open with almost 100 points gain, however, today being the weekly expiry, it could continue to be volatile throughout the day like yesterday.
Foreign direct investments into the country more than doubled to $20.42 billion during the April-July period of the current fiscal, the commerce and industry ministry said on Wednesday. Total Foreign Direct Investment (FDI) inflow rose to $27.37 billion during the first four months of 2021-22. In the year-ago period, the same was at $16.92 billion.
Total FDI comprises equity inflows, reinvested earnings, and other capital. "FDI equity inflows grew by 112 percent in the first four months of 2021-22 ($20.42 billion) compared to the year-ago period ($9.61 billion)," the ministry said in a release.
The Asian Development Bank (ADB) has lowered India’s growth projections for the current financial year by a percentage point to 10 percent, mainly due to disruptions in economic activity caused by the second wave of the COVID-19 pandemic.
In its update of the Asian Development Outlook (ADO) released on Wednesday, the multilateral lending agency has also trimmed the growth forecast for Asia as a region from 7.3 percent to 7.1 percent for 2021, though it retained the growth projections for China at 8.1 percent.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 1,943.26 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,850.02 crore in the Indian equity market on September 22
Stock Specific News:
Infosys | The company has announced a strategic collaboration with Amazon Web Services to develop quantum computing capabilities and use cases.
Bharti Airtel | The record date for the company's Rs 21,000-crore rights issue is set as September 28. The rights issue will open on October 5 and close on October 21.
Vodafone Idea | The company will review the terms of its planned fund-raise and may drop a plan to monetize assets, managing director and chief executive officer Ravinder Takkar reportedly said. This is after last week’s telecom rescue package eased concerns over the telecom company's survival.
Escorts | Japanese agriculture and heavy equipment firm Kubota Corp is in talks with the promoters of the company, the Nanda family, to raise its stake and eventually become a controlling shareholder in the tractor maker, as per reports.
Zomato | Food delivery companies Swiggy and Zomato have sought clarification from the government about the recent decision to treat them at par with restaurants under the GST framework. The companies want clarity around how GST would be levied and whether this could lead to “tax cascading” or problems in claiming input tax credits, reports said.
Reliance Industries | Reliance Retail is reportedly foraying into the intensely competitive online retailing of multi-brand beauty and cosmetics business.
HDFC Bank | Arvind Kapil, country head of retail assets at HDFC Bank, said unsecured business, salaried segment, vehicle loans, and mortgages, all are seeing a double digital sequential growth. He said the bank is back to pre-COVID levels across products and segments.
Federal Bank | The lender signed a memorandum of understanding with Ashok Leyland for customised financial solutions.
IDFC | The company's shareholders have rejected the appointment of Vinod Rai as a non-independent, non-executive director. They have approved the appointment of Jaimini Bhagwait as an independent director and Anil Singhvi as an independent director.