What has changed for the market while you sleep? Top 10 things to know

The Indian stock market is expected to remain weak following its Asian counterparts after a record jump in COVID-19 cases worldwide. Trends on the SGX Nifty indicate a negative start in India with a loss of 48 points for the index.

The Sensex was up 548 points, or 1.50 percent, at 37,020.14 on July 17, while the Nifty was up 162 points, or 1.51 percent, at 10,901.70.
 
The key support level for Nifty is placed at 10,789.77, followed by 10,677.83. If the index moves up, the key resistance levels to watch out for are 10,973.57 and 11,045.43, according to pivot charts.
Stay tuned to stockinvestor to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets:
      The S&P 500 ended higher on Friday as investors anticipated further financial stimulus opportunities against fears of further trade disruptions due to a record rise in COVID-19 cases.

The Dow Jones Industrial Average fell 0.23% to close at 26,672.36 points, while the S&P 500 rose 0.29% to 3,224.75. The Nasdaq Composite rose 0.28% to 10,503.19.

Asian Markets:

      Asian stocks opened on Monday as investors focused on efforts to combine further economic stimulus in the eurozone and the United States to help economies overcome the effects of the record jump in COVID-19 cases worldwide.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat at 541.49, with Australian shares down 0.3% and South Korea’s KOSPI just a shade higher. Japan’s Nikkei was up 0.1%.

SGX Nifty:

   Trends on the SGX Nifty point to a negative start in India with a loss of 48 points for the index. Nifty Futures traded at 10,880 on the Singapore Exchange at 07:30 IST.

Oil falls as a worsening pandemic threatens recovery:

     Oil prices fell on Monday, and the rising pace of coronavirus infections is expected to help fuel demand recover.

Brent crude fell 10 cents or 0.2% to 00 43.04 per barrel at 0047 GMT, after falling slightly last week. After earning 4 cents last week, the U.S. Oil at 6 cents or 0.2%, per barrel.540.53.

Bharat Bond ETF garners Rs 10,000 crore:

      The second tranche of the Bharat Bond ETF was 3 times more subscribed, raising about Rs 10,000 crore. The Bharat Bond ETF was launched on July 14 and closed on Friday. The base issue size was Rs 3,000 crore, the green-shoe option was Rs 11,000 crore and the total size was Rs 14,000 crore.

“The second series of Bharat Bond ETF received an outstanding response, oversubscribed more than 3 times, estimated collection around Rs 10,000 crores with wide participation across categories,” Secretary DIPAM (Department of Investment and Public Asset Management) said in a tweet.

US economy faces significant risks, long road to recovery: IMF

     The U.S. economy is projected to slow to 6.6 percent in 2020 due to the coronavirus pandemic shock, but a resurgence of coronavirus infections and a systemic increase in poverty could worsen that outlook, International Monetary Fund staff warned Friday.

“There is tremendous uncertainty surrounding the financial publicity of the COVID-19 shock,” they said in a note. “It will take a long time to repair the economy and bring operations back to pre-epidemic levels.”

SEBI puts in place framework to provide an exit option to dissenting unitholders of REITs, InvITs:

     Market regulator SEBI on Friday unveiled a mechanism to provide exit options to unitholders who disagree with the REITs and invitations of emerging investment vehicles. SEBI said that in the case of equity listed companies, the buyer will be facilitated to place tenders by unitholders and settle them through the stock exchange mechanism for takeover, buy-back, and delisting purposes.

Buyer offering exit option to disagreeing unitholders of REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) needs to appoint one or more merchant bankers as lead managers (s) for exit offer, SEBI said in two separate circulars.

India’s forex reserves climb $3.1 billion to record $516.362 billion:

     The country’s foreign exchange reserves rose by $ 3.108 billion to $ 516.362 billion in the week ended July 10, according to RBI data. In the previous week ended July 3, reserves rose $ 6.416 billion to $ 513.54 billion.

For the week ended July 10, the forex kitty grew mainly on the back of rising foreign currency assets (FCAs), a major component of total reserves. FCA rose $ 2.372 billion to $ 475.635 billion during the reporting week, according to Reserve Bank data.

HDFC Bank Q1 profit jumps 20% to Rs 6,658.6 crore, loan growth lifts NII 18%:

      HDFC Bank, India’s largest private lender, recorded 19.6 percent year-on-year growth in low-cost and NII-led independent profit for the quarter ended June 2020. However, increased profits and other revenues are limited due to the slowdown in economic activity.

Profit for the quarter rose to Rs 6,658.62 crore from Rs 5,568.16 crore in the year-ago period. Net interest income rose 17.8 percent year-on-year to Rs 15,665.42 crore in Q1FY21. The bank said in its BSE filing that healthy loan growth was 21 percent and deposits growth was 24.6 percent during the quarter.

FPIs pull out Rs 9,015 crore in July:

      Foreign portfolio investors (FPIs) have been net sellers in Indian markets so far in July, withdrawing Rs 9,015 crore from equities and debt securities, allowing emerging markets the opportunity to book profits.

According to depository figures, FPIs withdrew Rs 6,058 crore from equities and Rs 2,957 crore on a net basis during July 1-17. Net inflows from Indian markets during the period under review were Rs 9,015 crore.

Only 10% of manufacturing units report higher output in April-June: FICCI Survey:

     According to a quarterly poll conducted by industry body FICCI, the productivity growth report fell to 10 percent in April-June 2020. The survey, which received a response from more than 300 manufacturing units from large, SME segments with an annual turnover of over Rs 2.5 lakh crore, revealed that the automotive sector has suffered the worst in terms of ongoing operations in factories as per demand. And current orders post relaxation from lockdown restrictions.

Other sectors where the activity is low are leather and footwear, electronics and electricals & textile machinery. In addition, respondents expecting less or the same product were 90 percent in April-June 2020-21, up from 85 percent in the last quarter of 2019-20.

HDFC appoints record 19 merchant banks for mega Rs 14,000-crore fundraise:

      India’s largest private-sector mortgage financier Housing Development Finance Corporation (HDFC) Ltd has finalized a force of 19 merchant banks for its fundraising exercise. The subject told MoneyControl.

India’s largest private-sector mortgage financier Housing Development Finance Corporation (HDFC) Ltd. aims to increase the legitimacy of 19 merchant banks to Rs 14,000 crore and strengthen its balance sheet for its fundraising exercise. multiple sources with knowledge of the matter said

“Morgan Stanley, Kotak Mahindra Capital, Bofa Securities, Jefferies, JP Morgan, Citi, Nomura, HSBC Securities, BNP Paribas, Credit Suisse, UBS, Goldman Sachs, SBI Capital, ICICI Securities, JM Financial, Motilal Oswal, Axis Capital, HDFC Bank, and IIFL Capital are the 19 merchant banks which have been shortlisted by HDFC Ltd,” said an individual familiar with ongoing deliberations.

Mindspace Business Parks REIT to launch Rs 4,500 crore IPO:

     Mindspace Business Parks REIT, backed by Mumbai-based realtor K Raheja Corp and private equity firm Blackstone Group, will launch an initial public offering (IPO) to raise Rs 4,500 crore by the end of July. K Raheja Corp has filed an offer with SEBI for a proposed IPO.

Blackstone and K Raheja Corp will offload units worth Rs 3,500 crore, while REIT will sell about Rs 1,000 crore worth of fresh units in the issue. This offer opens for subscription on July 27th and ends on July 29th.

Results on July 20:

      ACC, SBI Cards and Payment Services, Bombay Dyeing, CSL Finance, Den Networks, Indo Amines, Maharashtra Scooters, NRB Bearings, State Trading Corporation of India, Swaraj Engines, etc.

FII and DII data:

      Foreign institutional investors (FIIs) bought shares worth Rs 697.08 crore, while domestic institutional investors (DIIs) sold shares worth Rs 209.42 crore in the Indian equity market on July 17, according to provisional data available on the NSE.

9 stocks under F&O ban on NSE:

      Nine stocks, including Bharat Heavy Electricals, Canara Bank, Century Textiles & Industries, Glenmark Mark Pharmaceuticals, Vodafone Idea, L&T Finance Holdings, National Aluminum Company, Punjab National Bank and Sun TV, were banned on July 20. The security in the F&O segment has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

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