Market Analysis and News Update: 23/09/2021

Market Update

▫️Indian markets traded in a narrow range yesterday, ahead of US Fed Policy Outcome.

▫️Sensex and Nifty ended flat at 58,927 (-0.13%) and 17,546.55 (-0.09%).

▫️ Sectorwise, Media and Realty outperformed, while financial services and private banks suffered.

▫️Overall, market breadth was positive with Midcap and Smallcap indices climbing 1.7% and 1.4%. Advance: Decline ratio of 1244:571, reflected bullish sentiments.

▫️ Ruppee fell 26 paise to close at 73.87, due to stronger dollar overseas.

▫️Oil prices rallied, as US oil inventories fell to their lowest level in 3 years.

▫️Gold prices remained in narrow range amid bond tapering program speculations.

▫️US Markets closed positive (+ve), after Fed policy outcome statement to reduce its monthly bond purchase program soon, and easing market tensions regarding Evergrande fall.

▫️This morning US futures are trading with a positive bias. Asia is trading mixed, with SGX Nifty is indicating positively flat opening for the Indian markets.

News Bulletin

▫️US Fed Meet ended yesterday. Fed announced it would reduce its monthly bond purchases as soon as November and interest rates could be raised more quickly (not this year atleast). However, Fed assured that their Accommodative stance would continue to support the market. (Overall, no surprises, US Markets reacted positively to the statement)

▫️In yesterday’s early hourse, Zee Entertainment announced its merger plan with Sony network, to create largest entertainment network in India. (Industry will consolidate more as OTT platforms gain market share)

▫️Voda Idea CEO and MD announced that the company will survive and will raise funds soon.

▫️ Children above the age 12 yeara may start receiving the jabs from next month.

▫️India’s crude oil production fell 2.3% in Aug, while Gas production rose more than 20%, because of RIL boosted gas production capacity.

▫️ Govt to raise fertilizer subsidy by another 25,000 crores (UPL in focus).

▫️Hero can end petrol 2 wheeler sales by 2027, and is increasing EV capacity at its manufacturing plant.

▫️FDI equity inflows rose 112% in Apr-July.

▫️ Property registrations in Mumbai are highly positive, and can break the 10 year record. (Real estate companies in focus)

▫️ Evergrande has negotiated the interest payment due today. (Confusing statement but atleast it seems the default risk is now off the table).

▫️ Govt. may block Chinese investment in LIC IPO.

▫️ Aluminum industry is facing coal shortage crisis, will lead to higher input costs.

▫️Mphasis to acquire US Based Blink for ₹694.3 crores.

▫️Infy announced collaboration with Amazon Web Services for cloud technology (recently TCS announced cloud partnership with Google)

▫️Mindtree plans expansion in Europe and APAC regions.

▫️ Chinese city with a 10 million population went into lockdown after covid case detection.

▫️BOI to raise ₹1,800 crores via bonds.

▫️Ashok Leyland partnered with Federal Bank for vehicle financing.

▫️Parad Defence IPO subscribed by 40 times on Day 2.

▫️ India’s active covid cases lowest since Mar 2020.

▫️Indian oil to establish refinery cum petrochemical unit in Tamil Nadu worth ₹31,580 crores.

▫️Natural Rubber prices slipped 5-10% last month (+ve for tyre companies)

This is for educational purposes only.

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