Dear All,
Markets update 02/07/21:
USDINR: ₹74.56; Brent: $76.10; Gold: $1,773; Bitcoin: $33,599; US 10 year: 1.466%; CBOE Vix: 15.48; USD index: 92.572
US markets kicked off the quarter with gains driven by value / cyclical stocks on continuing strong economic data. The June ISM manufacturing index came in at 60.6% below 61.2% for May though still strong & the 13th straight month of expansion. The weekly initial jobless claims for the week of 26 June declined by 51,000 to 364,000 which is the lowest since Mar 20 implying continuing progress in the labor markets. Oil prices also aided energy stocks. Markets are awaiting the non farm payrolls due today which could determine next steps of the Fed.
The S&P 500 rose 0.5% and notched its sixth-straight record close, finishing above 4,300 for the first time at 4,319. The Dow was higher by 0.4% / 131 points to close at 34,633, while the tech-heavy Nasdaq Composite ticked up about 0.1% to 14,522.38.
European stocks closed higher with the Euro Stoxx up 0.6%. The DAX was up 0.5% to 15,603, the CAC was up 0.7% to 6,553 & the FTSE was up 1.25% to 7,125.
Shares in Asia-Pacific slipped on Thursday on slowing Chinese growth. The Caixin/Markit manufacturing Purchasing Managers’ Index for June came in at 51.3 on Thursday, a lower reading than May’s 52.0. Chinese stocks closed lower as the Shanghai composite declined fractionally to 3,588 and the Shenzhen component slipped 0.8% to 15,038.
India stocks declined for a fourth day on rising Covid cases & also the weak manufacturing PMI for June at 48.1 from 50.8 in May. The Sensex lost 0.3% to 52,318, The Nifty 50 Index fell nearly 0.3% to 15,680.
The USD index closed higher by 0.2% at 92.572. EURUSD was at 1.1844, GBPUSD at 1.376, USDCNY at 6.4679 & USDJPY at 111.56. USDINR closed up 24 paise at 74.56.
Oil prices edged higher ahead of an OPEC+ meet on supply curbs where they are expected to increase production by lower levels - Brent was up 2% at $76.10 & U.S. WTI was up 2.4% at $75.23. Spot gold rose up 0.2% at $1,773.
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News:
Economic Times
- Vedanta Group to invest Rs 5,000 crore on social impact programs
- Srei Infra Finance's board okays fundraising of up to Rs.2,500 crore
- Temasek-owned Olam to sell Maharashtra Sugar plant to Wilmar-Renuka for Rs.350-500 crore
- JSW Steel to pump in over Rs/25,000 crore to ramp up capacity
- Jindal Steel and Power to invest Rs.7,500 crore, set up steel plant in Andhra Pradesh
- Piramal Investment Advisory Services, 4 others settle case with SEBI
- Puravankara FY21 sales bookings up 28% at Rs.2,202 crore
- 9 NTPC units in eastern region achieve highest ever quarterly power generation
- Ashok Leyland total June dispatches zoom to 6,448 units
- Adani Ports aims to double EBITDA by 2025
- GR Infraprojects IPO price band set at Rs.828-837; grey market premium at 41%
Business Standard
- Banks' asset quality remained stable during pandemic year: RBI FSR
- Financial creditors to take 95% haircut on Rs 7,800 cr Jet Airways dues
- Telecom industry in trouble' is an understatement: Airtel's Sunil Mittal
- RIL's giga factory-sized ambition for hydrogen could be a game changer
- Auto firms post record production in June, make up for halt in May
Financial Express
- SEBI floats consultation paper on Superior Voting Rights Share framework
- Insider trading case: SEBI bars Biocon’s official from securities market for 3 months, levies fine
- Fiscal deficit reined in at 8.2% of Budget Estimate
- Ministries told to limit Q2 spending at 20% of BE
- Govt removes import restrictions on refined palm oil till December
- Eight core sectors’ output rises 16.8 pc in May
Mint
- Supply chain deficit set to raise prices of electronic products
- Oil prices surge as OPEC weighs rising demand in rich countries
- UPI transactions surge to ₹5.47 lakh crore in June
- OPEC+ panel recommends gradual oil-output hikes for rest of year
- Investors' wealth soars ₹25.46 lakh cr so far this fiscal
- JSW Steel to pump in over ₹25,000 cr to ramp up capacity to 37 million tonne
Business Line
- Reliance Securities: SEBI confirms ban on 19 entities in front running case
- Tata Steel eyes 25 per cent sales from its digital platform
- OneWeb is part of the India vision: Sunil Mittal
- Cabinet approves additional ₹19,041 crore for BharatNet PPP
- Zydus seeks emergency-use nod for plasmid DNA vaccine
- Centre approves proposals for 14 companies under PLI scheme for IT Hardware Products
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Indian Market Opening:
The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate an opening for the index in India with a 9 points gain.
The BSE Sensex declined 164.11 points to 52,318.60, while the Nifty50 fell 41.50 points to 15,680 and formed a bearish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 15,646.17, followed by 15,612.33. If the index moves up, the key resistance levels to watch out for are 15,734.67 and 15,789.33.
Asian Markets
Asia-Pacific stocks were mixed in Friday morning trade as investors look ahead to a closely-watched U.S. jobs report set to be released later.
The Nikkei 225 in Japan nudged 0.3% higher while the Topix index gained 0.81%. South Korea’s Kospi rose 0.25%.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 9 points gain. The Nifty futures were trading at 15,736 on the Singaporean Exchange around 07:30 hours IST.
IMF raises US 2021 growth forecast to 7%
The International Monetary Fund raised its 2021 U.S. growth projection sharply to 7.0% due to a strong recovery from the COVID-19 pandemic and an assumption that much of President Joe Biden's infrastructure and social spending plans will be enacted.
The IMF's latest forecast, marking the fastest U.S. growth pace since 1984, compares with an April projection of 4.6% growth in 2021. The Fund raised its 2022 U.S. GDP growth forecast to 4.9%, up from its previous 3.5% April forecast.
OECD says 130 countries agree global taxation deal
Some 130 countries and jurisdictions have signed up to a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday. The Organization for Economic Co-operation and Development said in a statement that global companies, including US behemoths Google, Amazon, Facebook, and Apple would be taxed at a rate of at least 15 percent.
The formal agreement follows an endorsement by the G7 group of wealthy nations last month at a meeting in Britain, when US Treasury Secretary Janet Yellen said a global minimum tax "would end the race to the bottom in corporate taxation".
Bitcoin drops over 5% to $33,226.36
Bitcoin dropped 5.17% to $33,226.36 on Thursday, losing $1,810.87 from its previous close. The world’s biggest and best-known cryptocurrency is down 48.8% from the year’s high of $64,895.22 hit on April 14.
Ether, the coin linked to the ethereum blockchain network, dropped 7.28% to $2,110.53 on Thursday, losing $165.81 from its previous close.
RBI extends interest subsidy scheme for exporters until September
The Reserve Bank on Thursday said a scheme providing interest subsidy for post and pre-shipment export credit has been extended by three months till September, a move that will provide relief to exporters. Exporters get the subsidy under the Interest Equalization Scheme for pre and post-shipment Rupee Export Credit'. Earlier in April, the scheme was extended till June 30.
"Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to September 30, 2021," the RBI said in a circular.
Banks' gross NPA ratio may rise to 9.8-11.22% in March 2022: RBI
The gross non-performing asset (GNPA) ratio of banks may rise to 9.8-11.22 percent in March 2022 under various stress scenarios due to the impact of the COVID pandemic, the Reserve Bank of India (RBI) said in its July 2021 edition of the Financial Stability Report (FSR), published on July 1.
A loan is classified as an NPA when it has remained unpaid for more than 90 days. At the end of March 2021, the gross NPA ratio stood at 7.48 percent for the banking sector.
US jobless claims fall to 364,000, a new pandemic low
The number of Americans applying for unemployment aid fell again last week to the lowest level since the pandemic struck last year, further evidence that the job market and the broader economy are rebounding rapidly from the coronavirus recession.
The Labor Department reported Thursday that jobless claims dropped by 51,000 to 364,000. Applications for unemployment benefits have fallen more or less steadily since the year began. The rollout of vaccines has sharply reduced new COVID-19 cases, giving consumers the confidence to shop, travel, eat out and attend public events as the economy recovers.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs.1,245.29 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs.880.60 crore in the Indian equity market on July 1, as per provisional data available on the NSE.
With inputs from Reuters & other agencies
Have a good trading/investing day,
The Equities Guy.
