Sensex down sharply, Nifty down 113 points

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Benchmarks opened sharply lower in line with Asian and US markets (Friday). As of 9:16 a.m., the Sensex was down 359.77 points or 0.61% to 58,656.12 at the start of Monday’s trading, following losses from the main Tata Steel indices, the HDFC twins and ICICI bank in a context of limited trade on world markets. The Nifty lost 113 points or 0.64% to 17,472.15.

Tata Steel was the big loser of the Sensex pack, losing almost 6%, followed by Bajaj Auto, M&M, HDFC, PowerGrid and Maruti.

In contrast, Tech Mahindra, HUL, HCL Tech and TCS are among the winners.

In the previous session, the 30-stock index fell 125.27 points or 0.21% to 59,015.89, and Nifty slipped 44.35 points or 0.25% to close at 17,585, 15.

Foreign institutional investors (FIIs) were net buyers in the capital market as they bought shares worth Rs 1,552.59 crore on Friday, according to provisional trade data.

US stocks end sharply down

US stocks ended sharply lower on Friday, ending a week shaken by strong economic data, concerns over the corporate tax hike, the Delta COVID variant and possible changes to the Federal Reserve’s schedule United States for reducing asset purchases.

The Dow Jones Industrial Average fell 166.44 points, or 0.48%, to 34,584.88; the S&P 500 lost 40.76 points, or 0.91%, to 4,432.99; and the Nasdaq Composite lost 137.96 points, or 0.91%, to 15,043.97.

Stocks fell as bearish momentum gained momentum after reading consumer confidence close to its lowest level in about 10 years. Investors also faced on Friday the volatility resulting from the simultaneous expiration of options, known colloquially on Wall Street as quadruple witchcraft.

For the week, the Dow Jones lost around 0.1% in its third consecutive weekly decline, recording its longest weekly losing streak since the four weeks ending September 25, 2020.

The University of Michigan consumer confidence indicator rebounded slightly to a preliminary reading of 71 in September from a final reading of 70.3 in August, above consensus estimates of 72. However, the reading remains close to the roughly 10-year low seen in August, with consumers feeling worse about the economy today than at any time during the COVID-19 pandemic.

US Fed meeting

The US Fed’s meeting over the coming week may not be as eventful as investors expected. Some strategists expect the central bank’s withdrawal from its bond buying program to cause turmoil for stocks. But the Fed will likely only discuss the cut at the next meeting and, at most, signal that it may slow bond buying later in the year.

Asian stocks relax

Asian stocks eased and the dollar held on Monday before a week marked by no less than a dozen central bank meetings, highlighted by the Federal Reserve which is expected to take another step towards reduction.

Early Monday, the MSCI’s largest Asia-Pacific stock index outside of Japan plunged another 0.2%, after losing 2.5% last week. Japan’s Nikkei has been shut down and may be subject to consolidation after peaking in 30 years in hopes that a new prime minister will bring more stimulus and policy change.

The fate of Chinese real estate giant Evergrande, and its $ 300 billion in liabilities, is also at stake with a bond interest payment due Thursday. Evergrande, a Chinese real estate giant with more than $ 300 billion in debt, is likely to default next week. Global investors don’t seem too worried, but the looming crisis still has the potential to shake up financial markets. The lack of concern reflects expectations that, in the end, “the Chinese government will end up paying for it.

Oil prices fall

Oil prices fell on Monday, extending Friday’s losses after the US dollar hit a three-week high and the number of US rigs increased, although nearly a quarter of US production in the Gulf of Mexico has remained offline following two hurricanes.

US West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.4%, to $ 71.67 a barrel at 12:59 a.m. GMT, after falling 64 cents on Friday. Brent crude futures fell 27 cents, or 0.4%, to $ 75.07 a barrel after losing 33 cents on Friday.

National carriers can now operate at 85%

Domestic carriers can now operate flights at 85% of pre-COVID levels, up from 72.5% currently, the Civil Aviation Ministry said in a circular issued on September 18.

Flight capacity, which was reduced after the onset of the coronavirus pandemic, was increased to 80% in December of last year. However, it was further reduced and reduced to 50% on June 1 due to the second wave of COVID-19.

Festival season should support real estate

The Indian residential real estate market is expected to experience strong consumer demand during festival season with various banks, including SBI, offering concessional interest rates on home loans, according to real estate developers and consultants.

They also hoped that other public and private banks would soon announce their festival offers on mortgage interest rates and processing fees.

The country’s largest lender, State Bank of India, on Thursday announced various festive offers for potential home loan clients, including a home loan tied to credit rating from 6.70% regardless of the Amount of the loan. Previously, a borrower with a mortgage exceeding Rs 75 lakh had to pay an interest rate of 7.15%.

Forex decline

After hitting a record high the week before, the country’s foreign exchange reserves declined by $ 1.34 billion to $ 641.113 billion in the week ended September 10, 2021, according to RBI data. During the previous week ended Sept. 3, reserves had jumped $ 8.895 billion to a record high of $ 642.453 billion.

In the reporting week ended September 10, the decline in reserves was due to a decline in foreign currency assets (FCA), a major component of aggregate reserves, according to weekly data from the Reserve Bank of India (RBI) published on Friday.

Foreign portfolio investors (REITs) have remained net buyers in Indian markets so far in September by investing a net sum of Rs 16,305 crore. According to data from custodians, foreign investors invested Rs 11,287 crore in stocks and rupee 5,018 crore in the debt segment on a net basis between September 1 and September 17. During this period, the total net investment stood at Rs 16,305 crore.

8 actions under F&O prohibition

Eight stocks – Escorts, Exide Industries, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL and Sun TV Network – are under the F&O ban

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Posted on: Monday September 20, 2021 9:21 am IST


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