Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Saloni Goel, and here is what we have to start your day.
>> FPIs oppose India bid to go for T+1 settlement
>> India to allow overseas listing in 7 countries
>> Centre offers to borrow to end GST logjam
>> JLR recalls furloughed workers amid demand surge
And there is more.
But first, a quick glance at the state of the markets...
>> Nifty futures on the Singapore Exchange traded 90 points higher at 7 am (IST), indicating a rebound ahead on Dalal Street.
>> Stocks struggled to make gains in early Asian trade as investors mulled the economic impact of fresh Covid restrictions in some parts of the world. Shares dipped in Tokyo, Sydney and Seoul, while Hong Kong saw modest gains.
>> US stocks came under pressure overnight as fear of a resurgence in Covid cases dented investor sentiment. Dow fell 0.07%, the S&P500 0.15% and the Nasdaq Composite 0.47%.
IN OIL MARKET
>> Crude oil ticked lower by concerns about the new wave of coronavirus. Brent crude futures fell 16 cents to $43.16 a barrel, while WTI crude slipped 8 cents to $40.96
IN CURRENCY MART
>> The rupee on Thursday settled 5 paise lower at 73.36 to the US dollar as weaker Asian peers and fund outflows from domestic markets weighed on investor sentiment
>> The dollar was headed for its best week of the month on Friday, as surging coronavirus cases sent nervous investors seeking safe haven. The greenback touching a two-week high of 93.91 on Thursday. The yen strengthened 0.08% versus the greenback. The euro fell 0.01% and the pound sterling 0.09%
AND IN BULLION
>> Gold and silver prices moved lower in Indian markets on Thursday, tracking softer global rates. On MCX, December gold futures declined 0.4% to Rs 50,360 per 10 gm while December silver futures fell 0.9% to Rs 61,064 a kg. In international market, the yellow metal traded flat at $1,908
All in all, Dalal Street looked set for some solid gains. On Thursday, Nifty50 snapped a 10-day winning streak and formed a large bearish candle on the daily chart. Analysts said the same has bearish implications.
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… Paving the way for a global listing by the likes of Reliance Jio, LIC and Indian startups, the government is set to notify seven countries and GIFT City where they can go public, while easing several norms to facilitate the process. The ministry of corporate affairs and the department of economic affairs have agreed to do away with the contentious clause of dual listing, which required a company to list in India as well as overseas.
… Overseas portfolio investors, who collectively own about one-fifth of top Indian stocks, are opposing the regulator's proposal to crunch the settlement cycle for trades to just one day instead of two — something they believe will create more procedural problems instead of solving them. Asia Securities Industry & Financial Markets Association has written to the finance ministry, seeking intervention to halt the proposed change that seems to have the support of local funds and investors.
… The Centre will borrow the GST compensation shortfall of Rs 1.1 lakh crore, if all the states choose that option, and pass the amount on to them, marking a dramatic shift in stand that should resolve the row over the matter. The expectation is that the conciliatory move will bring the opposition-ruled states round.
.... Increased digital adoption and deal wins has helped the performance of the IT industry to bounce back in the July-September quarter. What has also benefited the margins of the top tier IT giants is the reduction of travel expenses of more than 70% year-on-year. Travel costs at TCS, Wipro and Infosys reduced by 65%, 72% and 75% year-on-year respectively in the quarter ended September.
… Sovereign funds and wealthy investors are buying into real estate investment trusts (REIT) that offer relatively more attractive returns and are perceived to be safer than bonds - at least on paper. The listed units, such as Mindspace or Embassy, are trading at about 10-20% premium to their listing prices. This is in addition to periodic interest payments, yielding 6-7.5% post-tax returns
… Jaguar Land Rover has called back to work as much as 85% of its more than 20,000 workers furloughed in the UK, as the Tata Motors-owned British luxury-vehicle maker steps up production amid a revival in demand in most of its markets. Sales in the July-September quarter were 50% more than the previous three months, when most markets around the world were in a lockdown. Its UK factories are now working on two shifts.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
• Equitas Small Finance Bank has begun exploring the possibility of a merger with a non-bank lender as a follow-up measure to pare promoters’ holding to the mandated 40%.
• Canara Bank is planning to raise up to Rs 2,000 crore through a QIP by December, likely becoming the first public sector lender to raise equity capital from the markets in FY21.
• The country’s biggest institutional investor, Life Insurance Corporation of India, is keen on divesting its stake in IDBI Bank
• Cyient reported a 14.8 per cent decline in its consolidated net profit at Rs 83.9 crore for September 2020 quarter.
• Pureplay mortgage lender LIC Housing Finance expects a bumper festival season as it eyes loan growth to be in double digits
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye