SGX Nifty down 260 points; here’s what changed for market while you were sleeping

Domestic equity markets are set to kick off the new week with a major gap down at open, tracking the negative cues from the global peers. Asian stocks slid at open, whereas US shares settled sharply lower tracking the interest rate hike signals from the US Fed. A sudden spike in geopolitical worries is also likely to dent sentiments along with weakness in rupee. Back home, traders await Q2 earnings from which will officially kick off earnings season for September 2022 quarter. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

SGX Nifty signals a negative start

Nifty futures on the Singapore Exchange traded 259.5 points, or 1.5 per cent, per cent lower at 17,054.5, signaling that Dalal Street was headed for a negative start on Monday.

Tech View: As Nifty ended the week higher on Friday, a long bull candle with upper and lower shadow was formed on the weekly scale. Analysts said this could be a confirmation of the bullish hammer pattern formed in the last week.

India VIX: The fear gauge dropped as much as 3 per cent to 18.81 level on Friday over its close at 19.32 on Thursday.

Asian stocks tanked at open

Stocks skidded lower in Asia on Monday after a surprise drop in US unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again. MSCI’s index of Asia-Pacific shares outside Japan was trading 1.36 per cent lower.

Japan’s Nikkei dropped 0.71%

Australia’s ASX 200 tanked 1.60%

New Zealand’s DJ declined 1.72%

South Korea’s Kospi shed 0.22%

China’s Shanghai plunged 0.66%

Hong Kong’s Hang Seng fell 2.49%

US stocks settled with big cuts

Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood the Federal Reserve will barrel ahead with an interest rate hiking campaign many investors fear will push the US economy into a recession.

Dow Jones tanked 2.11% to 29,296.79

S&P 500 plunged 2.80% to 3,639.66

Nasdaq tumbled 3.80% at 10,652.40

Dollar climbs further

The dollar started the week firmly on Monday, with a strong U.S. labour market reinforcing bets on higher interest rates as traders braced for data expected to show stubbornly high inflation.

Dollar index was firm at 112.83

Euro was little changed to $0.9733

Pound edged lower to $1.1071

Yen was struggling at 145.37 per dollar

Yuan exchanged hands at 7.1138 against the greenback

Oil took a breather

Oil prices slipped on Monday, easing off five-week highs, as the market took profits following strong gains last week on expectations of tighter supplies following OPEC+ cuts and ahead of the European Union embargo on Russian oil.

Brent crude futures fell 81 cents, or 0.8 per cent, to $97.11 a barrel by 0131 GMT while West Texas Intermediate crude was at $91.88 a barrel, down 76 cents, or 0.8 per cent.

FIIs buy shares worth Rs 2,251 cr

Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 2,250.77 crore, data available with NSE suggested. However, DIIs turned net buyers to the tune of Rs 545.25 crore, data suggests. FPIs have resumed buying Indian stocks, pouring over Rs 2,400 crore in the domestic equity markets in the first week of October.

Stocks in F&O ban today

No stocks is under the F&O ban for Monday, October 10. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 per cent of the market-wide position limit.

Tracxn Technologies IPO

The initial public offering (IPO) of Tracxn Technologies will kick off for subscription on Monday, October 10 and can be subscribed till Wednesday, October 12. The company is aiming to raise about Rs 310 crore via its initial stake sale, which is completely an offer for sale (OFS), whose price band is fixed between Rs 75-80 with a lost size of 185 equity shares.

Gross direct tax collection rise 24%

The gross collection of tax on corporate and individual earnings jumped nearly 24 per cent so far in the current fiscal year to Rs 8.98 lakh crore, the tax department said on Sunday.

This includes a 32 per cent growth in personal income tax (including Securities Transaction Tax) mop up and 16.73 per cent increase in corporate tax revenues over the same period last year.

Nomura moderates India’s growth

Japanese brokerage Nomura has projected a sharp moderation in India’s growth rate for FY24 to 5.2 per cent as compared to FY23, saying Indian policymakers are “misplaced” about their optimism on the country’s growth prospects.

After a week-long meetings with policymakers, corporates, commercial banks and political experts, its economists said its FY23 GDP growth estimate is at 7 per cent – at par with the RBI’s revised down forecast – but it expects a “sharp moderation” to 5.2 per cent in FY24.

Realty PE investment rose 40% in H1FY23

Private equity (PE) investment in real estate increased 40 per cent during the April-September period of this fiscal to $2.8 billion, with a huge inflow coming from foreign funds especially in office assets, says a report. According to the Anarock report, PE investment stood at $2 billion in the corresponding period of the last financial year.

India’s steel output rose

India’s crude steel output rose by 2.56 per cent to 30.06 million tonne (MT) during the July-September period of the ongoing financial year. As per research firm SteelMint, the top six steel makers —

, , , , AMNS India and RINL — produced 18.29 MT steel, the rest 11.77 MT came in from the secondary sector.

MONEY MARKETS

Rupee: The rupee depreciated further by 13 paise to hit a new life-time closing low of 82.30 against the US dollar on Friday as a firm American currency and risk-averse sentiment among investors weighed on the local unit.

10-year bonds: India 10-year bond jumped mildly by 0.08 per cent to 7.46 after trading in 7.45 – 7.51 range on Friday.

Call rates: The overnight call money rate weighted average stood at 5.73 per cent on Friday, according to RBI data. It moved in a range of 4.70-5.90 per cent.