Stock markets opened positive in line with Asian markets slightly higher on Tuesday September 21st. At 9:17 a.m., the Sensex was up 278.98 points or 0.48% to 58,769.91, and the Nifty was up 73.80 points or 0.42% to 17,470.70. About 1084 shares rose, 709 shares fell and 95 shares are unchanged.
HCL Tech, Tech Mahindra, Tata Steel, TCS were among the main winners while Nestlé, Maruti, UltraCem, HDFC were among the main losers at the opening bell.
Foreign Institutional Investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 92.54 crore on Monday, according to provisional trade data.
“Domestic stocks appear to be weak as the cascading impact of Evergrande defaults can make investors risk averse in the short to medium term,” Binod Modi Head-Strategy at Reliance Securities said, according to a PTi report.
However, given the growing possibility of declining profits in US markets following a sharp rise in the number of daily coronavirus cases and continued reform measures undertaken by the Indian government appear to have rekindled interest of IFIs for the domestic market, he noted.
On the global front, stocks came under heavy selling pressure on Monday as growing fears of a possible default by China’s second-largest real estate giant Evergrande spooked markets. All three indices in the United States registered a decline of about 2%.
In addition, investors have become cautious ahead of the results of the Federal Open Market Committee (FOMC) meeting on Wednesday, in which many investors expect hawkish comments from the US Federal Reserve, Modi added. .
Wall Street in decline
Wall Street fell on Monday, with the S&P 500 and the Nasdaq experiencing their biggest daily percentage declines since May, as fear of contagion from the potential collapse of China’s Evergrande prompted investors to pull out of stocks in a leak for Security.
The Dow Jones Industrial Average fell 614.41 points, or 1.78%, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70%, to 4,357.73 and the Nasdaq Composite lost 330.07 points, or 2.19%, to 14,713.90.
Global markets caught in fears over China Evergrande
On Tuesday, global stock markets were caught in the grip of contagion fears sparked by the unrest in China Evergrande, as growing risks that the real estate giant could default on its massive debt prompted investors to shy away from riskier assets. .
Asia-Pacific trade picks up
Asia-Pacific stocks rallied from Tuesday morning’s lows as investors continue to monitor the situation surrounding struggling developer China Evergrande Group.
Japan’s Nikkei fell 2.0%, resuming trading after a market holiday on Monday, while the MSCI’s largest Asia-Pacific stock index outside of Japan fell 0.2%. MSCI’s ACWI shed 0.13%, a day after the gauge of the 50 global stock markets fell 1.63%, its biggest drop in two months, and left it wobbling to its lowest level in two months .
U.S. Treasury yields fall
U.S. Treasury yields fell on Monday as fears that real estate developer China Evergrande Group might default intensified the sell-off in global equities and pushed investors to take refuge in safe-haven bonds.
Treasury prices rallied, pushing 10-year benchmark bond yields down 6 basis points to 1.306% at one point, before losing some price gains to trade at 1.3226 %.
US jobs report shows low jobs in September
A JP Morgan model that came close to virtually every other forecast in predicting the large deficit in last month’s U.S. jobs reports indicates another low number of jobs for September as consumers appear to have cut back their travel and leisure expenses since Labor Day.
The job tracker created by the bank’s quantitative research team, fed by a range of alternative data, including Chase credit card usage and airport security check volumes, suggests that the growth in l employment in September will rise to 333,000.
That would be a far cry from the kind of rebound from disappointing August job growth of just 235,000 – the lowest total since January – that policymakers at the Federal Reserve and elsewhere are hoping for.
Oil prices fall
Oil prices fell 2% on Monday as investors became more risk averse, hurting stock markets and boosting the US dollar, making oil more expensive for holders of other currencies.
Brent crude fell $ 1.42, or 1.9%, to $ 73.92 a barrel after falling to a low of $ 73.52 in session. US West Texas Intermediate (WTI) lost $ 1.68, or 2.3 percent, to end at $ 70.29 after falling to $ 69.86.
Fuel prices unchanged
Gasoline and diesel prices in the country have remained stable amid volatile global oil prices, with crude again on the rise. Petroleum marketing companies (OMCs) kept gasoline and diesel prices unchanged for the 16th day in a row on Monday.
As a result, the price of gasoline and diesel remains unchanged at Rs 101.19 and Rs 88.62 per liter in Delhi, according to Indian Oil Corporation, the country’s largest fuel retailer.
Nationwide, gasoline and diesel prices also remained static on Monday, but their retail prices varied depending on the level of local taxes in a particular state.
In Mumbai, the price of gasoline was stable at Rs 107.26 per liter on Monday, while diesel prices also remained unchanged at Rs 96.19 per liter. In Chennai, gasoline is priced at Rs 98.96 per liter and in Kolkata Rs 101.62 per liter. Diesel is also priced at Rs 93.26 and Rs 91.71 per liter in the two cities respectively.
G-sec acquisition program
The Reserve Bank of India (RBI) announced on September 20 the purchase on the open market of Indian government securities under the G-sec Acquisition Program (G-SAP 2.0) and the simultaneous sale of government securities Indian.
As a result, the RBI will purchase government securities on the open market under the G-sec Acquisition Program (G-SAP 2.0) for a total amount of Rs 15,000 crore on September 23, 2021. , the central bank said in a statement.
The central bank will buy the following government securities through a multi-security auction using the multiple price method, it said in a statement.
Sebi penalizes 8 entities
Market regulator Sebi on Monday sanctioned eight entities for fraudulent trading in shares of Videocon Industries Ltd. The entities are Acuity Merchants Pvt Ltd, Godavari Commercial services Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt. Ltd, Coastal Fertilizers Ltd, Akansha Commodities Pvt Ltd, MM. Agarwal Holdings and Superdeal Fincom Pvt Ltd.
They are liable to a fine of Rs 16 lakh, payable jointly and individually, for violating the standards prohibiting fraudulent and unfair commercial practices.
8 actions under F&O prohibition
Eight stocks – Exide Industries, Indiabulls Housing Finance, Vodafone Idea, IRCTC, NALCO, Punjab National Bank, SAIL and Sun TV Network – are under the F&O ban.
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Posted on: Tuesday September 21st, 2021 09:24 IST