News Bulletin and Market Update: 01/10/2021

Market Update

▫️Indian markets continued to fall for 3rd straight day, as weak overseas sentiment weighed on the domestic markets.

▫️Sensex and Nifty plunged to 59,126 (-0.48%) and 17,618 (-0.43%).

▫️ Market Breadth was almost flat with advance decline of 906:901. However, midcap and small cap indices outperformed the benchmark and closed positive.

▫️ Volatility eased down yesterday, with VIX falling more than 2%.

▫️ Sectorwise PSU Bank, Pharma and Realty supported the markets, while IT, Auto, Metal and Media dragged the bourses.

▫️Ruppee fell by 9 paise to close at 5 week low of 74.23, due to risk averse sentiments and foreign fund outflows. The ruppee has fell by 59 paise in last 5 sessions.

▫️ Gold prices remained below 46,000 mark, due ro subdued global cues.

▫️Crude oil prices fell slightly after OPEC nations mulled to expand output to counter the increasing oil demand.

▫️US approved the bill to extend debt limit, easing concerns from US Govt shutdown. However, there was 3rd weekly rise in jobless claims that infused fears of slowing economic recovery.

▫️As a result, US indices ended negative with a fall of more than 1%. Overall US markets ended the September quarter with a fall of 4.3%, highest since March’20.

▫️US Futures are trading negative this morning, complimented by very weak opening of Asian markets. SGX Nifty is down by 176 points (or by 1.0%), reflecting tough Friday for the Indian markets.

News Bulletin

▫️ Govt. has raised domestic gas price by 62% to $2.9/mmBtu. Negative for power, tile and fertilizers. City gas prices may rise. (ONGC & RIL will gain)

▫️ India’s core industry growth touched 11.6% in August.

▫️Rise in crude oil and coal prices to hurt the manufacturers input costs.

▫️NCLT orders ZEE to hold a Board Meeting for conducting EGM as per request of its shareholders (Invesco).

▫️Fiscal Deficit touched only 31% of the FY22 target by August, reflecting increasing in government revenue.

▫️ Govt. has kept interest rates on PPF and NSC unchanged.

▫️ Home registrations in Mumbai jumped by 35%, in September (best in 10 years).

▫️ India’s current account balance recorded a surplus of $6.5 billion in June quarter.

▫️ Govt. tied up Microsoft to launch digital skills program, for development of youth.

▫️Amid rising crude oil prices, domestic petrol and diesel prices have reached all time high.

▫️India Australia to sign Free Trade Agreement by 2022 end.

▫️Airtel to invest ₹5,000 crore in data centre expansion, to boost its other sources of revenue.

▫️Maruti expects to cut production by 40% at 2 of its plant due to semiconductor shortage.

▫️ Sterling and Wilson Solar have repaid loans worth ₹740 crores ahead of the deadline.

▫️Adani Energy has procured 40MW solar power project.

▫️Tata Steel has divested its 100% stake in Singapore based NatSteel holdings for $172 million.

▫️RBI’s new auto debit rules kick in from today (recurring transactions would require customer approval).

▫️Non Food, bank credit grew 6.7% in August.

▫️Bank of India raised ₹1,800 crores.

▫️ Aditya Birla AMC IPO fully subscribed on Day 2.

▫️ India’s hotel industry is on swift recovery path, and will clock 50% of the pre pandemic revenue in FY22.

▫️MCX partnered with TCS for transformation of its trading platform.

This is for educational purposes only.

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