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    SGX Nifty up 40 points; here's what changed for market while you were sleeping

    Synopsis

    Asian shares markets were trading mixed on Wednesday as investors turn cautious by falls on Wall Street with eyes on the outcome of a US Federal Reserve meeting later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan was up by 0.16 per cent.

    market-getty-24Getty Images
    India 10-year bond yield gained 0.15 per cent to 6.18 after trading in 6.17 - 6.19 range.
    The domestic equity market looks set to open higher on Wednesday ahead of the outcome of the two-day US Fed policy meet. Other Asian markets traded weak and US stocks settled lower overnight. All eyes would be on the IPO by Rolex Rings that opens today. Some volatility in stocks is likely ahead of Thursday’s expiry of monthly F&O contracts. Here's breaking down the pre-market actions:

    STATE OF THE MARKETS

    SGX Nifty signals a positive start
    Nifty futures on Singapore Exchange traded 37.5 points, or 0.24 per cent, higher at 15,779.50, signaling that Dalal Street was headed for a positive start on Wednesday.

    • Tech View: Nifty50 on Tuesday formed a large bearish candle on a daily scale but analysts do not see it as a sign of weakness but consolidation in the 15,600-15,900 range.
    • India VIX: The fear gauge jumped 6 per cent to 13.23 level on Tuesday over its close at 12.45 on Monday.

    Asian stocks mixed in early trade
    Asian shares markets were trading mixed on Wednesday as investors turn cautious by falls on Wall Street with eyes on the outcome of a US Federal Reserve meeting later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan was up by 0.16 per cent.

    • Japan's Nikkei declined 0.75%
    • Korea’s Kospi gained 0.19%
    • Australia's ASX 200 shed 0.35%
    • China’s Shanghai Composite fell 0.82%
    • Hong Kong’s Hang Seng soared 1.70%

    US stocks settled lower
    US stocks on Tuesday declined, ending a five-day winning streak in the three major indices, as investors were cautious before results from top tech and internet names and Wednesday's Federal Reserve announcement.

    • Dow Jones fell 0.24% to 35,058.52
    • S&P 500 shed 0.47% to 4,401.46
    • Nasdaq tanked 1.21% to 14,660.58

    Dollar edges lower, awaits Fed signals
    The dollar was pinned below recent highs on Wednesday by a decline in real yields and by trepidation ahead of a Federal Reserve meeting, while other safe-haven currencies were in favour following an unnerving plunge in Chinese equity markets.

    • Dollar index fell to 92.472
    • Euro rose to $1.1819.
    • Pound jumped to $1.3874.
    • Yen gained to 109.85 per dollar
    • Yuan teetered at 6.5180 against the greenback

    Brent rises as US inventories drop
    Oil prices climbed on Wednesday after industry data showed US crude and product inventories fell sharply than expected last week, reinforcing expectations that demand will outstrip supply growth even amid a surge in Covid-19 cases. US West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.6%, to $72.08 a barrel at 0119 GMT, reversing Tuesday's 0.4% decline.

    FPIs sell shares worth Rs 1,459 cr
    Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1459.08 crore, data available with NSE suggested. DIIs, turned buyers to the tune of 729.96 crore, data suggests.

    Q1 earnings today
    Maruti Suzuki, Nestle (India), SRF, IDBI Bank, United Breweries, Oracle Financial Services Software, Cofoge, ABB India, Pfizer, Central Bank of India, Happiest Minds Technologies, Grindwell Norton, Welspun India and UTI Asset Management Company are among the company that will announce quarterly earnings today.


    MONEY MARKETS

    Rupee: The rupee slipped by 5 paise to close at 74.47 against the US currency on Tuesday as the dollar strengthened in the overseas markets and the domestic equity indices closed with losses.

    10-year bond: India 10-year bond yield gained 0.15 per cent to 6.18 after trading in 6.17 - 6.19 range.

    Call rates: The overnight call money rate (weighted average) stood at 3.23 per cent, according to RBI data. It moved in a range of 1.90-3.40 per cent.


    DATA/EVENTS TO WATCH

    • Q1 Earnings: Maruti Suzuki | Nestle | IDBI Bank | Happiest Minds
    • US Fed Interest Rate Decision (11:30 pm)
    • US 2-Year FRN Auction (9 pm)
    • Wholesale Inventories MoM Adv JUN (6 pm)
    • Goods Trade Balance Adv JUN (6 pm)
    • Nationwide Housing Prices YoY JUL (11:30 am)
    • BoJ Summary of Opinions (5:20 am)
    • US API Crude Oil Stock Change 23/JUL (2 am)
    • AU Inflation Rate YoY Q2 (7 am)

    MACROS

    Supply delays from China may dampen festive season
    Consumer electronics and smartphone companies in India are staring at further delays in supplies of components from China ahead of the crucial festive season owing to a shortage of cargo ships and record rains in parts of the neighbouring country, said industry executives. The fresh challenges come at a time when the industry is already facing a shortage of components, which has intensified along with price increases in the past couple of months.

    IMF cuts India’s growth forecast
    The International Monetary Fund (IMF) has slashed India’s growth forecast for FY22 to 9.5% from its previous projection of 12.5% citing the severe second Covid-19 wave during March-May. The global growth forecast remained unchanged at 6% for the calendar 2021 as upgrades in the developed world were offset by downgrades in several countries that experienced renewed waves, notably India.

    Booster shot for telecom in the offing
    The government is considering a slew of long-term measures to improve the health of the debt laden telecom sector, which includes prospectively redefining adjusted gross revenue (AGR) to exclude ‘non-telecom’ items and allowing telcos to surrender unused spectrum for a small penalty. Other measures being discussed with the Department of Telecommunications (DoT) include reduction in licence fees (LF) and spectrum usage charges (SUC) and phasing out bank guarantees, senior government officials said.

    Crypto exchange to get decentralized
    India’s largest cryptocurrency exchange by volume, WazirX, is at an advanced stage of launchng a decentralised exchange, co-founder Nischal Shetty said. Unlike a centralised setup, where an exchange is the custodian and controls who can or cannot open an account on it, a decentralised exchange operates without an intermediary organisation for clearing transactions. The trades are executed on self-executing smart contracts.

    Kirloskars tussle over 130-year legacy
    A tussle is brewing again in the Kirloskar family after Kirloskar Brothers Limited (KBL), chaired by Sanjay Kirloskar, objected to the mention of the 130-year legacy of the company by other Kirloskar companies led by Atul and Rahul Kirloskar. In a letter to markets regulator Sebi and the stock exchanges, KBL has staked exclusive claims over the legacy of the Kirloskar name. Companies led by Atul Kirloskar and Rahul Kirloskar had earlier this month launched a new group strategy and also adopted a new logo. The companies include Kirloskar Oil Engines Limited, Kirloskar Industries Limited, Kirloskar Pneumatic Company Limited and Kirloskar Ferrous Industries Limited.

    FIIs halt IFSC plans
    Several foreign financial institutions looking to set up investment entities in Indian International Financial Services Centres (IFSCs) have hit the pause button pending negotiations of India’s terminated bilateral trade agreements with 58 countries even as Indian funds are exploring opportunities in these centres. A European fund that was looking to set up a base in India via IFSC stumbled into a roadblock after its legal advisors pointed out that India doesn’t have trade treaties in place with several counties.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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