Domestic stock markets are expected to open on a negative note on Friday, following the indices of their global peers. US stocks fell sharply in overnight trading as Asian peers were also down this morning. Firm dollar and weaker rupee add to REIT outflows. Back home, investors will take a look at the early days of Paras Defense and Space Technologies. Here is the detail of the actions prior to marketing:

STATE OF THE MARKETS


SGX Nifty signals negative start
Shrewd futures on the Singapore Stock Exchange traded 167.5 points, or 0.95%, down to 17,434.50, signaling that Dalal Street was heading for a negative start on Friday.

  • Technical view: Nifty50 formed a bearish candle on the daily chart on Thursday and continued its lower high-low formation for the third session.
  • India VIX: The fear indicator fell more than 2% to 18.40 Thursday from its close at 18.84 Wednesday.

Asian stocks are trading in dark red
Asian stock markets opened lower with a steep fall on Friday, extending the falls on Wall Street as investors weighed in on events this week. The markets in China and Hong Kong are closed today. The MSCI’s largest Asia-Pacific stock index outside of Japan fell 0.78%.

  • The Japanese Nikkei lost 1.96%
  • Australian ASX 200 loses 2.12%
  • Korea’s Kospi plunged 1.56%
  • New Zealand DJ is down 0.39%

Wall Street settles down and posts monthly loss
All three of Wall Street’s major indices ended lower Thursday and posted their worst quarters in at least 12 months, after a tumultuous month and period rocked by concerns over COVID-19, inflation fears and budget wrangling at Washington.

  • The Dow Jones lost 1.59% to 33,843.92
  • The S&P 500 fell 1.19% to 4,307.54
  • The Nasdaq fell 0.44% to 14,448.58

The dollar is heading for the best week in months
The dollar started the last quarter of 2021 near its highest levels of the year and headed for its best week since June, as currency markets braced for a hike in U.S. interest rates ahead of those major peers.

  • The Dollar Index held at 94.327
  • Euro held slipped to $ 1.1572
  • The pound fell to a 9-month low of $ 1.3445
  • The yen weakened to 112.08 per dollar
  • The yuan depreciated to 6.4467 against the greenback

Oil extends its gains overnight
Oil prices fell on Friday on the prospect that the OPEC + supplier alliance could accelerate the planned increase in production to ease supply problems, soaring gas prices prompting power producers to switch from gas petroleum.

US West Texas Intermediate (WTI) crude futures slipped 5 cents to $ 74.98 a barrel at 1:53 a.m. GMT, although the contract remained on track to post its sixth straight week of gains. Brent crude futures fell 7 cents, or 0.1%, to $ 78.24 a barrel, but still headed for a slight rise on the week, marking a fourth straight week of gains.

REITs sell shares worth Rs 2,226 cr
Net-net, foreign portfolio investors (REITs) turned sellers of domestic stocks to the tune of Rs 2,225.6 crore, according to data available from NSE. DII turned net buyers to the tune of 97.18 crore, the data suggests.

Strong SEO gains
Paras Defense and Space Technologies will go public today. The initial public offering of the manufacturer of defense and space engineering products was subscribed 304 times. The company is expected to make a solid start as it commanded a gray market premium of Rs 220-230 over its issue price of Rs 175.

MONETARY MARKETS


Rupee: The Indian rupee fell another 9 paise on Thursday to mark its lowest closing level in more than five weeks at 74.23 against the US dollar, amid risk aversion and outflows.

10-year bonds: The 10-year Indian bond jumped 0.27% to 6.22 after trading in a 6.19-6.23 range.

Call rates: The weighted average overnight call rate stood at 3.25% on Thursday, according to RBI data. It evolved in a range of 1.95 to 3.45%.

DATA / EVENTS TO FOLLOW


AU Home Loans MoM AOT (6 hrs)

AU Investment loans for AOT houses (6 hrs)

IN Markit Manufacturing PMI SEP (10:30 am)

EA Markit Manufacturing PMI Final SEP (1:30 p.m.)

GB Markit / CIPS Manufacturing PMI Final SEP (2 p.m.)

Flash on the EA SEP inflation rate (2:30 p.m.)

Core inflation rate EA YoY Flash SEP (2:30 p.m.)

IN 24 / SEP foreign exchange reserves (5 p.m.)

US Personal Expenses MoM AOT (6:00 p.m.)

US Personal Income MoM AOT (6:00 p.m.)

US AOT PCE Price Index (6:00 p.m.)

US ISM Manufacturing PMI SEP (7:30 p.m.)

Speech by the US Fed Harker (10:30 p.m.)

MACROS


Telecommunications department asks Vi and Airtel to pay 3,050 crore yen in penalties
The Ministry of Telecommunications (DoT) warned Vodafone Idea and Bharti Airtel to pay 3,050 crore cumulative penalties within three weeks for violating license conditions by denying Reliance Jio Infocomm adequate points of interconnection (PoI) in 2016 , which affected the quality of services.

Maruti worries about the shortage of fleas
India’s leading automaker Maruti Suzuki said on Thursday it expected total vehicle production in October at two of its factories to be around 60 percent of normal levels due to a global shortage of fleas. The Haryana plant in Maruti and its contract manufacturing company, Suzuki Motor Gujarat Private, will experience production cuts in October, the company said on Thursday in a regulatory filing.

Gas prices rose 62% for the first time since 2019
The government on Thursday hiked the price of natural gas used to generate electricity, make fertilizers and turned into CNG by 62% for use as fuel in automobiles and cooking gas for household kitchens.

Tata may have become Air India’s top bidder
The Air India Privatization Committee of Ministers headed by Interior Minister Amit Shah will meet in the coming days to review and approve the winning bid for the national carrier. According to people familiar with the matter, the Tata Group has become the top bidder, but a formal announcement will only be made after the panel has agreed.

Loans of Rs 30,000 crore Srei become NPA
A consortium of lenders led by UCO Bank has requested instructions from the central bank to continue collecting contributions from the Srei group after loans worth around 30,000 crore to the Kolkata-based financier officially qualified to be moved to the list of non-performing assets (NPA) this quarter, ET reported.


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