US markets up, Chinese markets confused. Will more investment move to India now?
Good Morning Everyone, After Indian markets hit their all-time high yesterday, we could see similar sentiments in the global markets as well. Something interesting to note is that as of yesterday the Nifty has grown by 21% YTD making it the highest growing market in 2021 across the globe. Don't have a trading account yet? Click here to open your account in 10 minutes and start investing in sharemarket from today.
Global Markets:
The Dow Jones Industrial Average was up 0.1%, the S&P 500 and the Nasdaq Composite added 0.59% and 0.91%, respectively. The S&P 500 and Nasdaq hit record highs on Monday as technology stocks jumped after the Federal Reserve's dovish comments eased fears of a sudden tapering in monetary stimulus. Shares in Asia-Pacific mostly slipped in Tuesday morning trade, as data showed slowing Chinese factory activity growth in August.
The Nikkei 225 shed 0.1% while the Topix index declined 0.27%. South Korea’s Kospi dipped 0.15%.
Asia stock markets opened lower this morning despite fresh all-time highs on Wall Street, as worries about China’s slowing economic growth and regulatory changes weighed on investor sentiment.
MSCI’s gauge of Asia Pacific stocks outside Japan slipped 0.25%, while Japan’s Nikkei 225 fell more than 0.3% in the morning session.
Japan’s industrial output shrank in July as car production took a hit from a resurgence of the coronavirus in Asia that has cast doubt over recovery in the world’s third-largest economy.
Hong Kong’s Hang Seng Index and China’s benchmark CSI300 Index opened down 0.1% and 0.2% respectively.
China’s factory activity expanded at a slower pace in August as coronavirus-related restrictions and high raw material prices pressure manufacturers in the world’s second-largest economy, while services activity contracted sharply, national data showed this morning.
China's factory activity expanded at a slower pace in August, while the services sector slumped into contraction, as coronavirus-related restrictions and high raw material prices pressure businesses in the world's second-largest economy.
The official manufacturing Purchasing Manager's Index (PMI) was 50.1 in August from 50.4 in July, data from the National Bureau of Statistics (NBS) showed this morning.
Germany’s annual consumer price inflation accelerated to a fresh 13-year high in August, data showed on Monday, underlining growing price pressures as Europe’s largest economy recovers from the pandemic and companies struggle with supply shortages.
Indian Market:
Trends on the SGX Nifty indicate a flat start to the Nifty at 16930. 16800 will act as a major support to Nifty today and any movement below that can go into a selling mode. With the Chinese market in the doldrums due to unfavourable govt policies, we might see some more investment move into the Indian market.
Budget carrier Go Airlines, which has rebranded itself as 'Go First', has received market regulator Sebi's go-ahead for an initial public offer worth Rs 3,600 crore.
The airline plans to garner up to Rs 3,600 crore through the sale of shares, according to the Draft Red Herring Prospectus (DRHP). It also plans to raise up to Rs 1,500 crore by way of a pre-IPO (Initial Public Offer) placement.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 1,202.81 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 688.85 crore in the Indian equity market on August 30.
Stock Specific News:
Kotak Mahindra Bank | The bank has executed a Share Purchase Agreement for the sale of 20 crore equity shares of Airtel Payments Bank to Bharti Enterprises for Rs 294.8 crore.
Larsen & Toubro | The company has completed the sale of its entire stake in L&T Uttaranchal Hydropower to ReNew Power Services.
Axis Bank | Moody’s has assigned B1 (hyb) rating to the bank’s proposed offshore Additional Tier 1 (AT1) bonds.
HDFC Asset Management Company | The company has applied for 15 per cent of the paid-up equity share capital of AMC Repo Clearing by paying an application amount of Rs 22.18 crore.
Bank of Baroda | Shanti Lal Jain will step down as Executive Director of the Bank w.e.f September 1, due to his appointment as MD & CEO Of Indian Bank.
NHPC | The company said that Unit 3 (60 MW) of Bairasiul Power Station (3 X 60 MW) in Himachal Pradesh has been tested and commissioned after completion of Renovation and Modernization works.
Yes Bank | The bank has extended the Long Stop Date till December 31, 2021, for completion of stake sale in wholly-owned subsidiaries Yes Asset Management (India) Ltd and Yes Trustee Ltd to GPL Finance and Investments Ltd.
Jindal Steel & Power | The company’s board has approved raising up to $1 billion via senior bonds.
Bharat Forge | The company has clarified that media reports of the company being in talks with Tesla for auto components were incorrect.
KNR Constructions | The company will sell a stake in three roads SPVs to Cube Highways & Infrastructure.
Ipca Laboratories | CRISIL reaffirmed its credit rating for the company’s commercial paper programme at A1+.
Shriram EPC | IDBI sold more than 1.96 crore equity shares of the company via open market transaction, reducing shareholding to 0.07 per cent from 2.1 per cent earlier.
Aayush Food and Herbs | Classic Mercantile LLP bought a 5.77 percent stake in the company via an open market transaction on August 30