Daily Dose of Market and News: 17/09/21

Market Update

▫️ Indian markets extended the rally, on account of support measures announced by the government for various sectors.

▫️Sensex and Nifty closed at 59,141 (+0.71%) and 17,629 (0.69%).

▫️Banking Sector was show stealer which jumped on expectations of Finance Minister’s announcement of government funded Bad Bank. Nifty Bank and Nifty PSU Bank surged 2.22% and 5.43%. Whereas, IT and Media stocks under performed.

▫️Broader Markets lagged the benchmarks as Midcap and Smallcap indices rose only marginally, and Advance Decline ratio was in favour of bears (841:969).

▫️Rupee ended the day slightly weak by 2 paise and closed at ₹73.52 against dollar, amid strength in dollar against global currencies.

▫️Oil prices fell on Thursday finally ending its positive streak, as US production gradually returns back to normal and strong dollar.

▫️Gold prices fell significantly (-1.72%) below 47k mark, due to rally in US Bond yields and stellar performance of domestic equities.

▫️All eyes are on US Fed meeting next week and US market is linking all economic data to the likelihood of bond tapering program.

▫️ Yesterday US posted better than expected retail sales data, which according to investors was negative for the market as it may force Fed to begin tapering program sooner. Hence, US markets closed negative yesterday.

▫️This morning US indices continue to trade in red. Asia is also trading negative, in anticipation of Fed policy outcome and weak Chinese economy. Hong Kong’s index is trading at year’s lowest level. SGX Nifty is also suggesting a quiet start for Indian markets.

News Bulletin

▫️ Finance Minister yesterday announced the specifics of Bad Bank, which will resolve NPAs of about ₹2 lakh crore. To provide sovereign backing to the entity, govt. will guarantee ₹31,000 crore worth of securities issued by the bad bank for fund raising.

▫️ Govt has invoked 3 way pact to recover long standing dues from state run power companies. RBI deducted ₹5,100 crores from accounts of 3 states for their power dues. (Very tough stance by govt. to benefit Coal India and NTPC)

▫️Bharti Airtel Chairman Mittal spoke to Vodafone Inc’s CEO Nick Read, and urged him to reinvest in Vodafone India and recover lost ground, as the government has provided the required support.

▫️ Airtel will use the moratorium and invest the money saved in 5G.

▫️Telecom Dispute Appellate stayed the order on Telcom Department’s demand for ₹1,376 from Airtel over unpaid dues.

▫️ZEE Entertainment BOD to back its two directors against whom shareholders have displayed outburst.

▫️₹6k crores investment have already been pledged by 52 companies under PLI scheme for white goods.

▫️Ola sold ₹600 crores e-scooter on Day 1. (Big Industry Disruption)

▫️India’s GDP to grow by 7.2% in 2021, despite the horrific 2nd wave.

▫️Anti Dumping duties of certain steel products may be extended to help the domestic steel manufacturers.

▫️India became second largest tech hub for Amazon globally after home country US.

▫️Hero Moto to hike prices for its products from next week as input cost rises.

▫️TVS Motor enters into Europe with acquisition of Swiss e bike maker EGO.

▫️After a slump in Chinese markets, there are no Chinese firms left in the world’s top 10 companies list by Market Cap.

▫️RBI Spokesperson said that the Central Bank will remain in liquidity absorption mode to suck excess liquidity out of the banking system.

▫️Malabar Gold will invest ₹750 crores to set up factories in Telangana.

▫️Kotak Mahindra Bank bought vehicle finance portfolio of Volkswagen’s financing arm.

▫️ NBFC raised heavy funds via commerical papers between Apr-Aug to fund HNI demand for investment in IPOs.

▫️SBI and BOB announced attractive offers for home loan.

▫️Over 20% of Indian adults are fully vaccinated.

▫️ Domestic Air Traffic volume improved significantly as 6.7 million passengers flew in August compared to 5.0 million in July (+ve for airlines).

This is for educational purposes only.

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