Market Update and News Bulletin: 21/09/2021

Market Update

▫️ Soft global market ahead of Central Bank’s meeting, sharp fall in ruppee and high likelihood of default by Chinese Giant Evergrande pulled Indian markets down yesterday.

▫️ Sensex and Nifty ended in red at 58,491 (-0.89%) and 17,397 (-1.07%).

▫️The volatility index climbed 14.84% to 17.49, indicating fear among traders.

▫️Sectorally, metals, utilities, basic materials and power indices nose dived, while FMCG ended in green.

▫️ Market breadth was weak, with midcap and small cap indices extended losses more than the benchmark. Advance: Decline was also unfavorable at 369:1484.

▫️Rupee closed 26 paise lower at one month low of 73.74. This was mainly due to solvency concerns of Chinese Giant Evergrande, which forced investors to run to safety of US Dollar.

▫️Oil prices fell nearly 2% amid growing risk aversion, which hurted global commodity prices.

▫️ Gold ended flat at ₹46,282 ahead of US Fed meeting.

▫️ US Markets fell almost 2% and ended negative, as worries from contagion effect of collapse of Evergrande shook of the global financial markets.

▫️US Futures are trading positive this morning after sharp sell of yesterday. Asia is trading positive too.

▫️Stock in F&O Ban: IRCTC, IDEA, IBULHSGFIN, PNB, SUN TV, NATIONALUM, SAIL and EXIDEIND.

News Bulletin

▫️ Vodafone Idea may see fresh equity from promoters. The Company has been trying to raise ₹25,000 crore, but has not been successfull yet.

▫️Steel manufacturers have asked for government support to create demand.

▫️RBI will buy government bonds worth ₹15,000 crores from open market on Thursday.

▫️ Unemployment rate fell to 8 month low of 5.89% for the week ended on 19th September.

▫️Nestle India is cautious of margins in the coming year due to high input prices.

▫️EPFO added 14.65 lakh members in July (high employment rate).

▫️ Erratic monsoon may hit pulses and kharif production this year.

▫️ Daily e way bill generation for the week ended on 19th September was up 10.1% from previous week (uptick in economy).

▫️India will resume export of Covid vaccines from October.

▫️L&T bagged a significant order from Petronet LNG for construction of 2 large LNG storage tanks.

▫️Adani Posts get approval to acquire 10% stake in Gangavaram Port (Andhra Pradesh).

▫️Tata Power to build 250 MW Solar Plant in Maharashtra.

▫️ Crypto currency fell more than 10% yesterday on global market weakness.

▫️Chinese Realty Giant Evergrande may default on its dues, which may affect the global financial system. The company’s debt is equivalent to 2% of the Chinese GDP.

▫️ HDFC Bank ties up with Paytm to stir up credit card issuance.

▫️SEBI mandates that staff of Asset Management Companies must invest 20% of their gross salaries in MFs operated by their company.

▫️Coal India entered into ₹1,880 crores worth contract with Prabha Energy for extraction of coal bed methane.

▫️In a big relief, govt. clarified that back office services outsourced to India by foreign companies won’t attract 18% GST.

This is for educational purposes only.

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