Market Update and News Roundup: 29/09/2021

Market Update

▫️Indian markets witnessed heavy sell-off on Tuesday, following weal global cues due to rise in bond yields and crude oil prices. Further, slowdown in China’s economy also turned foreign investors cautious.

▫️Sell off was also seen in bonds, as Indian government bond yield rose 9 bps in the past 3 days, tracking the rise in US treasury yields.

▫️Sensex and Nifty closed at 59,667 (-0.68%) and 10,748 (-0.60%).

▫️Power Sector, Energy, Steel, PSU Bank tried to support the markets but were outpaced by sell off in Realty, IT, Media and FMCG.

▫️Market Breadth was largely negative with advance decline ratio of 685:1135. Midcap and Small indices also fell in line with the benchmark.

▫️ Volatility index climbed by 2.66% to 18.53.

▫️Ruppee continued its free fall and closed 20 paise weak, at 74.04, tracking sell of in asian currencies and fall in domestic equities.

▫️The oil price rising streak finally ended on Tuesday, with the Brent Crude price falling before $78 mark, as investors looked for profit booking.

▫️Gold prices continued to fall, and ended below the 46k mark due to higher bond yields.

▫️US treasuries rose to 1.5%, first time since June, on expectations of sooner then expected rate hikes. Further, US Consumer Confidence index came lower at 109.3 than expectation of 115.

▫️As a result, US markets experienced large sell of with Dow and S&P500 falling 1.6% and 2.0%.

▫️Today morning US futures are trading positive. Whereas Asian markets have opened in deep red territory. Lower SGX Nifty is also indicating a lackluster start for the Indian Markets.

▫️Stocks in F&O ban: SUNTV, SAIL, IDEA and ZEEL.

News Roundup

▫️ Govt. is actively looking to privatise non-strategic PSUs (focus on SAIL, NBCC, Madras Fertilizer and National Fertilizer).

▫️ State Govt’s indebtedness to remain high, with debt to GDP ratio estimate of 33% in FY22.

▫️ Business Redemption index moved to record high of 105.0 during September, thanks to surge in mobility in Hyderabad and Pune.

▫️Future Group may hold shareholder meet, to seek approval for sale of assets to RIL.

▫️India has one of the highest fintech adoption rate globally with score of 87%, compared to global average of 64%.

▫️India has scrapped of 22,000 compliances, decriminalised 103 corporate offences and removed 327 redundant provision, to promote ease of doing business.

▫️ Govt. has notified that only Indian registered companies can opt for the ₹10k crores textile PLI scheme.

▫️ American airlines and Indigo signed a one way codeshare contract under which the foreign operator can sell seats on the Indian carrier.

▫️ Godrej Industries raised ₹750 crores via bonds.

▫️Eveready Industries is looking to expand, and add products under the Eveready brand.

▫️UP Govt. to promote wine production and will aid in setting up dozen of wine production units.

▫️In a blow to Adani Gas, Supreme Court rejected Adani’s plea to distribute gas in districts of Gujarat.

▫️US trade deficit increased by 0.9%, while its consumer confidence hit 7 month low.

▫️US Treasury Secretary Janet Yellen, has warned the US govt. that her department will run out of cash by Oct 18, and they will be unable to honor US govt. obligations. This led to sharpe rise in US yields to 1.5%.

▫️Japan lifted Covid-19 emergency, and is now looking to boost the economy.

▫️Muthoot Finance joined hands with a tech company to launch AI assistant.

▫️Indian Bank partnered with TN govt. for performing the state’s treasury activities.

▫️MSCI Index can go for composition change which can attract $ 1 billion in Indian markets, potential stocks that can be included are: Zomato, Mphasis, Mindtree, IRCTC, SRF and Godrej Properties.

▫️ Whirlpool India to buy additional stake in Elica PB India for $57 million.

This post is for educational purposes only.

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