SGX Nifty down 175 points; here's what changed for market while you were sleeping

Weak data in the US overnight further dashed hopes of a quick economic recovery globally, leading to a major slump in the US stocks, which is likely to have a bearing on domestic stocks for the sixth straight session. September F&O expiry will only heighten the volatility. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS
SGX Nifty signals gap-down start
Nifty futures on the Singapore Exchange traded 176.50 points, or 1.57 per cent lower at 11,050, in signs that Dalal Street was headed for a gap-down start on Thursday.

Tech View: Strong Nifty rebound unlikely
Nifty50 on Wednesday declined for the fifth trading session and formed a bearish candle with a long wick, similar to the one made in the previous session. Nifty looks oversold, but analysts are ruling out any strong rebound. “If we overlay Bollinger Bands on Nifty50, the index is two deviations away from the mean. This suggests the market is oversold,” said independent analyst Manish Shah.

Asian stocks open lower
Asian stocks opened lower on Thursday, tracking a sharply lower Wall Street session amid fresh concerns that the global economic recovery is running out of steam. Data showed US business activity slowed in September, with gains at factories more than offset by a retreat at services industries. In Asia, E-mini futures for the S&P500 fell 0.11 per cent Japan's Nikkei225 declined 0.56 per cent.

US stocks resume sell-off on dim outlook
US stocks saw the return of heavy sell-off amid weakening of macroeconomic indicators and overshadowed recovery outlook. On Wednesday, the Dow Jones Industrial Average index lost 525.05 points, or 1.92 per cent, to 26,763.13. The S&P500 index dropped 78.65 points, or 2.37 per cent, to 3,236.92. The Nasdaq Composite Index shed 330.65 points, or 3.02 per cent, to 10,632.99.

Angel Broking IPO subscribed 1.46 times on Day 2
Angel Broking's IPO was subscribed 1.46 times on the second day of subscription on Wednesday. The Rs 600-crore public offer received bids for 2,00,94,459 shares against 1,37,70,491 shares on offer. The category meant for non institutional investors was subscribed 31 per cent and that of retail individual investors 2.79 times.

CAMS IPO subscribed 47x, Chemcon 149x
Computer Age Management Services' initial public offer was subscribed 46.93 times on the final day of bidding on Wednesday. The Rs 2,242-crore IPO of Warburg Pincus-backed CAMS received bids for 60,19,36,188 shares against the offer size of 1,28,27,370 shares. Chemcon Speciality Chemicals IPO, on the other hand, was subscribed a whopping 149 times.

FPIs sell Rs 3,912 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 3,912.44 crore, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,629.23 crore, data suggests.

MONEY MARKETS
Rupee: The rupee appreciated by one paisa to close at 73.57 against the US dollar on Wednesday as investors turned cautious amid weak domestic equities.

10-year bonds: India 10-year bond yield fell 0.33 per cent to 5.99 after trading in 5.98-6.03 range.

Call rates: The overnight call money rate weighted average stood at 3.40 per cent, according to RBI data. It moved in a range of 1.80-4.00 per cent.


DATA/EVENTS TO WATCH

BoJ Monetary Policy Meeting Minutes (05:20 am)
ECB Economic Bulletin (01:30 pm)
US Jobless Claims 4-Week Average 19/SEP (06:00 pm)
BoE Gov Bailey Speech (07:30 pm)
US New Home Sales MoM AUG (07:30 pm)
US Fed Chair Powell Testimony (07:30 pm)
ECB General Council Meeting
European Council Special Meeting

MACROS
Q1 FDI flow down 60%... Total FDI into India in the first quarter of 2020-21 plunged by 60% from the yearago period to $6.5 billion, reflecting the impact of the Covid-19 pandemic on the global investment scenario. Data released by the department for promotion of industry and internal trade on Wednesday showed Mauritius was the top source of FDI in the quarter ended June 30, replacing Singapore.

RBI says CPI will remain money policy anchor… A Reserve Bank of India (RBI) working paper said that the consumer price index (CPI) should continue as the anchor for the monetary policy and interest rate decisions despite the fact that food accounts for nearly half of the weight in CPI in India. Omission of food from CPI would create the risk of under-prediction of inflation, the paper argued.

Imports from China sharply down... India’s imports from China fell to $16.6 billion between April and July 2020 from $23.45 billion in the corresponding period last year, commerce and industry minister Piyush Goyal said in a written reply in Rajya Sabha on Wednesday. Some of the items exhibiting decline in imports include electronic components, telecom instruments, computer hardware, industrial machinery for dairy, electric machinery, residual chemical and allied products, consumer electronics, electronic instruments, fertilisers and products of iron and steel.

3 labour reforms bills passed... Parliament on Wednesday passed three key labour reform Bills that will provide greater flexibility to employers to hire and fire while ensuring social security for workers. The three Bills — Code on Occupational Safety, Health and Working Conditions; Industrial Relations Code and Social Security Code — were passed in the Rajya Sabha by a voice vote amid boycott by the opposition over the suspension of eight members. The Lok Sabha passed the Bills on Tuesday.

Mobile phone production closer to normal…. Local production of smartphones is inching closer to normal, with exports recovering to pre-Covid-19 levels and imports falling 53% from June highs, government data showed. Smartphone exports climbed to Rs 1,781 crore in August from Rs 976.3 crore in March, according to data from the commerce ministry on Tuesday. Imports surged to Rs 1,050 crore last month from Rs 13.4 crore in March.

China threatens to stop TikTok deal... Just a few days ago, the TikTok deal looked like a win for China. Now its state-run media are denouncing it as “an American trap” and a “dirty and underhanded trick.” The quick shift in sentiment shows the complications of concluding an agreement that is about much more than finding a proper valuation for an addictive video app that has enthralled teenagers around the world.

Proxy adviser lobbies against Sterling appointments.. Proxy advisory firm In-Govern Research Services has recommended shareholders to vote against the resolution pertaining to the reappointment of Pallon Mistry and Keki Elavia as director and independent director, respectively, to the board of Sterling and Wilson Solar. The firm has also recommended voting against related-party transactions for an indefinite number of years, in the forthcoming AGM on September 30.

Tata-Mistry split may not be amicable... A formal separation between the Tata Sons and the Shapoorji Pallonji Group is not likely to be amicable and the courts are likely to have a final say on the valuation of SP Group’s 18.4% stake in Tata Sons, people close to the situation said. Tata Sons is understood to be awaiting the Supreme Court view on Article 75 of the firm’s Articles of Association (AoA), which cannot be invoked by either side. “That would get them to move on the valuation exercise,” a Tata group insider said.

Sebi eases right issue rules… Sebi has changed the minimum subscription requirement in rights issues, a move aimed at making fundraising easier for companies. The regulator on Wednesday said the mandatory 90% minimum subscription would not be applicable to those issuers where object of the issue involves financing other than financing of capex for a project, provided that the promoters and promoter group of the issuer undertake to subscribe fully to their portion of rights entitlement.

RBI has no details of loan writeoffs… RBI said it has no information about loans of the top 100 defaulters and wilful defaulters that banks had written off, just over four months after it had put the total write-off of the largest 50 wilful defaulters at Rs 68,600 crore. “The information sought is not available with us,” the central bank said in a recent response to an RTI petition by a Kolkata-based activist Biswanath Goswami, who had sought details on the loans that had been written off.

Investment advisor norms from Sept 30… Sebi said on Wednesday the guidelines for investment advisors will come into force from September 30. According to the rules, a new client will be eligible to avail either advisory or distribution services within the group or family of the investment advisor and this option has to be made available at the time of onboarding. Existing clients will have to choose between distribution or advisory services, the regulator said.