Share Market Live: SGX Nifty Hints At Gains; Aptus Value, Chemplast Sanmar To List Today

Indian bonds may open lower as a surge in crude prices threaten to weigh on the nation’s inflation and finances. Bond investors will also await a Rs 11,200 crore ($1.5b) sale of state debt. 10-year yields rose 1bp to 6.24% on Monday; 5-year yield steady at 5.69%

India plans to raise Rs 6 Lakh Crore ($81 billion) by leasing out state-owned infrastructure assets over the next four years to fund new capital expenditure without pressuring government finances, Finance Minister Nirmala Sitharaman said on Monday.

The National Monetisation Pipeline (NMP) marks an encouraging and long-awaited initiative by the central government to monetise brownfield assets to fund medium-term infrastructure needs, Radhika Rao, India economist at DBS Bank, wrote in a note.

• Whilst such initiatives have been undertaken in the past, expectations are that a clear visibility over the asset pipeline, pre-set annual targets and regular assessments will contribute to making the program more effective than earlier initiatives.

• While the FY22 fiscal math has already set the divestment target at a high of INR1.75t, next year’s budget might also resort to a higher projection to factor in the targeted.

• If effective, the NMP will help achieve two birds with one stone - fund crucial infrastructure projects yet keep fiscal consolidation plans on track - the glide path aims to narrow the deficit to below -4.5% of GDP by FY26.

USD/INR fell 0.2% to 74.2125 on Monday. Global Funds sold net Rs 1,360 crore of India stocks Monday.

Asian stocks rose on Tuesday after a boost to the U.S. vaccination drive allayed some concerns over the delta strain’s economic impact, lifting Wall Street. The dollar held a drop and oil steadied after surging.

MSCI Inc.’s Asia-Pacific share gauge climbed for a second day, aided by jumps in Japan as well as Chinese technology stocks, with South Korea also advancing. Equities in China overall posted a modest gain after the central bank in a statement called for more credit support for the real economy.

U.S. futures nudged higher after American equities extended a rebound on full approval for the Pfizer Inc.-BioNTech SE shot, which raises the prospect of more vaccine mandates to underpin economic reopening.

India’s SGX Nifty 50 Index futures for August delivery rose 0.6% to 16,586.50, while MSCI Asia Pacific Index gained 1.2%. The NSE Nifty 50 Index gained 0.3% on Monday to 16,496.45.

Commodities held a surge — including oil’s biggest jump in nine months overnight in New York — in a return of the reflation trade linked to the recovery from the pandemic. Treasuries were steady ahead of the Jackson Hole symposium.

Elsewhere, gold was around the highest in more than two weeks and Bitcoin traded near $49,000.

Back home, Aptus Value and Chemplast Sanmar will debut after IPO. Maruti, Wabco are holding their annual shareholders’ meeting. Foreign investors bought net Rs 517 crore of stocks on Aug. 20, according to NSDL website.