Trends on SGX Nifty indicate a negative opening for the index in India with a 49 points loss.
The Indian stock market is expected to open in the red following a cautious Asian market. Trends on SGX Nifty indicate a negative opening for the index in India with a 49 points loss.
Nifty closed 29 points, or 0.26 percent, lower at 11,073.45 on July 31 while Sensex finished 129 points, or 0.34 percent, down at 37,606.89. According to pivot charts, the key support level for the Nifty is placed at 11,016.67, followed by 10,959.83. If the index moves up, the key resistance levels to watch out for are 11,140.37 and 11,207.23.
Stay tuned to Moneycontrol 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 Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government’s next round of coronavirus aid kept economic worries on the radar.
The Dow Jones Industrial Average rose 114.67 points, or 0.44%, to 26,428.32, the S&P 500 gained 24.9 points, or 0.77%, to 3,271.12 and the Nasdaq Composite added 157.46 points, or 1.49%, to 10,745.28.
Asian Markets
Asian shares and the dollar made a cautious start to the new month on Monday as U.S. lawmakers struggled to hammer out a new stimulus plan and a global surge of new coronavirus cases showed no sign of abating.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2%, though that was from a six-month top. Japan's Nikkei added 1.1% courtesy of a pullback in the yen, while South Korea shares eased 0.3%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 49 points loss. The Nifty futures were trading at 11,055 on the Singaporean Exchange around 07:30 hours IST.
Oil edges lower on oversupply concerns
Oil prices fell on Monday on concerns about oversupply as OPEC and its allies, together known as OPEC+, are due to pull back from production cuts in August while an increase in COVID-19 cases worldwide raised fears of slower pick-up in fuel demand.
Brent crude futures slid 8 cents, or 0.2%, to $43.44 a barrel by 0001 GMT while U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.3%, at $40.15 a barrel.
South Korea's factory activity shrinks for 7th month but recovery in sight - PMI
South Korea’s manufacturing activity shrank at a much slower pace in July, signalling that a gradual recovery in demand is gaining momentum on easing lockdowns, although the resurgence in infections remained a risk.
The IHS Markit purchasing managers’ index (PMI) rose to 46.9 in July from 43.4 in June, marking the highest reading since January. But that was still below the 50 threshold that separates growth from contraction.
USA hikes H-1B visa fee by 21%, L visa fees hiked 75%
The United States Department of Homeland Security (DHS) has increased fees for non-immigrant work visas by 21-75 percent, effective from October. The DHS approved a final rule on July 31, per which employers filing visa petitions will now pay $555 fee (21 percent increase) for H-1B high-skill visas and $850 (75 percent increase) for L (intra-company transfer) visas, The Economic Times reported.
“USCIS is required to examine incoming and outgoing expenditures and make adjustments based on that analysis … These overdue adjustments in fees are necessary to efficiently and fairly administer our nation’s lawful immigration system, secure the homeland and protect Americans,” Joseph Edlow, acting head at USCIS told the paper.
Japan first quarter GDP unchanged at 2.2% annualised contraction after second revision
Japan’s economy shrank an annualised 2.2% in January-March, unchanged after a second revision, data from the Cabinet Office showed on Monday. The additional revision for gross domestic product (GDP) compared with economists’ median forecast for a 2.8% contraction in a Reuters poll.
On a quarter-on-quarter basis GDP shrank 0.6%, also unchanged from the second preliminary reading and compared with a median forecast for a 0.7% fall.
Government widens ambit of Rs 3 lakh cr MSME credit guarantee scheme
The government on Saturday widened the scope of the Rs 3-lakh crore MSME credit guarantee scheme by doubling the upper ceiling of loans outstanding to Rs 50 crore and including certain individual loans given to professionals like doctors, lawyers and chartered accountants for business purposes under its ambit. The tweaking of the Emergency Credit Line Guarantee Scheme (ECLGS)was done based on demand from trade bodies and in line with new MSME definition approved by the Union Cabinet in June.
"We have also decided to cover individual loans given to doctors, chartered accountants for business purposes under the scheme," Financial Services Secretary Debasish Panda said.
SEBI extends digital signature certification till December 31
Markets regulator SEBI on Friday allowed listed companies to use digital signature certifications till December 31 for submissions made to the stock exchanges under the disclosure norms. Earlier, this was permitted till June 30.
The extension has been granted after SEBI received a representation from the Institute of Company Secretaries of India (ICSI) stating that due to the COVID -19 pandemic and precautionary measures for its curtailment, company secretaries continue to face operational challenges in carrying out certification and authentication of documents in physical form.
"Accordingly, authentication / certification of any filing / submission made to stock exchanges under the LODR (Listing Obligations and Disclosure Requirements) Regulations may be done using digital signature certifications till December 31, 2020," SEBI said in a circular.
GST collections drop to Rs 87,422 crore in July
GST collections in July fell to Rs 87,422 crore from Rs 90,917 crore in June, according to a Finance Ministry statement. However, July collections are higher than Rs 62,009 crore in May and Rs 32,294 crore in April.
"The gross GST revenue collected in the month of July, 2020 is Rs 87,422 crore of which CGST is Rs 16,147crore, SGST is Rs 21,418 crore, IGST is Rs 42,592 crore (including Rs 20,324 crore collected on import of goods) and Cess is Rs 7,265 crore," a finance ministry statement said.
Fin Min working with RBI on need for loan restructuring: Sitharaman
Finance Minister Nirmala Sitharaman on Friday said the government is working with the RBI on need for restructuring of loans to help industry tide over the impact of COVID-19. "The focus is on restructuring. Finance ministry is actively engaged with RBI on this. In principle, the idea that there may be a restructuring required, is well taken," Sitharaman said while addressing Ficci's National Executive Committee Meeting.
The Finance minister also said that the decision on reducing GST rates on the healthcare and other products will be taken by the GST Council.
PACL case: Sebi extends deadline for investors to check status of application, rectify errors
Markets regulator Sebi on Friday extended the deadline to October 31 for investors of PACL Ltd, having claims of up to Rs 5,000, to check the status of their application and rectify errors in the form. Earlier, the deadline was July 31.
A panel, headed by retired Justice R M Lodha, has been set up to manage refunds for investors who invested money in PACL. The panel has successfully effected refunds to the tune of Rs 268.47 crore to 9,71,565 investors with claims up to Rs 8,000, a separate statement noted.
India's June infrastructure output contracts 15% YoY
India's infrastructure output contracted 15 percent in June from a year earlier, government data released on Friday showed, as a lockdown in response to COVID-19 weighed on economic activities. Infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40 percent of industrial output, contracted 24.6 percent in the three months through June - the first quarter of the fiscal year - from a year earlier, the data showed.
Municipal bond issuers need to disclose borrowings, revenue grant details in offer documents: SEBI
Issuers of municipal debt securities will have to disclose all borrowings and revenue grants details of the last three years in the offer document, markets regulator SEBI said in a guidance note. The directions came after SEBI received certain queries from market participants seeking guidance on interpretation of some of the provisions of amended Municipal Regulations.
SEBI said issuers will have to disclose details of all borrowings along with outstanding amount of borrowings during the three years for which the audited financial information is being included in the offer document.
International flights ban extended until August 31
The government has extended the suspension of scheduled international flights till August 31. The current suspension was to expire today (July 31). "Recently,‘Transport Bubble’ agreement has also been signed with Kuwait... More similar arrangements are likely to fructify and ease passenger movements from different countries," the government said in a notification on July 31.
The suspension does not apply to international all-cargo operations and flights specifically approved by industry regulator DGCA.
SEBI relaxes upfront margin framework
In a relief to brokers and traders, markets regulator Sebi on Friday said penalty for short-collection will not be applicable if trading members collect at least 20 per cent upfront margin from the client. The decision has been taken after receiving representations from investors, trading members (TMs) or clearing members (CMs) and stock broker associations.
"If TM/ CM collects minimum 20 per cent upfront margin in lieu of VaR (value at risk) and ELM (extreme loss margin) from the client, then penalty for short-collection/ non-collection of margin shall not be applicable," Sebi said in a circular.
FPIs net buyers for 2nd month in July; invest Rs 3,301 crore
Foreign portfolio investors (FPI) remained net buyers for the second consecutive month in July by pumping in Rs 3,301 crore in Indian markets amid hopes of a coronavirus vaccine.
According to the depositories data, a net sum of Rs 7,563 crore was invested in equities while Rs 4,262 crore were withdrawn by FPIs between July 1-31. The net investment during the month stood at Rs 3,301 crore. In the previous month, FPIs put in a net Rs 24,053 crore in Indian markets.
Results on August 3
Dhanlaxmi Bank, Exide Industries, Kansai Nerolac Paints, KPIT Technologies, Nava Bharat Ventures, Solara Active Pharma Sciences, TRF, VST Industries, etc.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 958.64 crore while domestic institutional investors (DIIs) bought shares worth Rs 442.73 crore in the Indian equity market on July 31, as per provisional data available on the NSE.
With inputs from Reuters & other agencies