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.
>> India plans law to ban cryptocurrency
>> LVB-Clix merger plans in limbo
>> Lenders revoke Biyani pledged shares
>> Dalio warns dollar at risk of losing status
And there is more.
But first, a quick glance at the state of the markets...
>> Nifty futures on the Singapore Exchange traded 23 points lower at 7 am (IST) this morning, signalling a tepid start ahead for Dalal Street.
>> Asian stocks were little changed on Wednesday, as investors awaited a US Fed meeting to gauge the extent of central bank support for the economic recovery. Japan’s Topix added 0.1%, Hong Kong’s Hang Seng rose 0.4% and Australia’s S&P/ASX 200 Index 0.7%. On the downside, Shanghai Composite slid 0.1% and South Korea’s Kospi 0.1%.
>> US stocks ended off their session highs, with the Dow industrials closing little changed. The S&P500 gained 0.52% while the tech-heavy Nasdaq rose 1.21%.
IN OIL MARKET
>> Oil prices rose on Wednesday, extending gains from the previous session, as a hurricane disrupted US offshore oil and gas production. Brent crude rose by 15 cents, or 0.4%, to $40.68 a barrel, while WTI crude gained 18 cents, or 0.5%, to $38.46
IN CURRENCY MART
>> The rupee pared early gains to settle 16 paise lower at 73.64 against the US dollar on Tuesday due to dollar buying by banks and oil importers.
>> The US dollar traded steady. The yen rose 0.1 per cent while the euro slipped 0.1%. The offshore yuan traded at 6.7791 against the greenback.
AND IN BULLION
>> Spot gold prices in India rose 0.02% to Rs 50,910 per 10 gm against the previous week's average of Rs 50,591. In global markets, gold was little changed at $1,952.77 an ounce. On MCX, gold futures traded flat at Rs 51,932, while silver futures too remained stable at Rs 69,309 a kg.
All in all, Dalal Street looked headed for a weak start. On Tuesday, Nifty reclaimed the 11,500 level and formed a bullish candle on the daily chart. Analysts said levels near the recent swing high of 11,585 may continue to create hurdles for the index in the near term.
LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.
… India plans to introduce a new law banning trade in cryptocurrencies, placing it out of step with other Asian economies which have chosen to regulate the fledgling market. The bill is expected to be discussed shortly by the federal cabinet before it is sent to parliament, according to people familiar with the development who who asked not to be identified, citing rules on speaking with the media. The government will encourage blockchain, the technology underlying cryptocurrencies, but is not keen on cryptocurrency trading, officials said.
… The dollar’s decades-long position as the global reserve currency is in jeopardy because of steps the U.S. has taken to support its economy during the Covid-19 pandemic, according to Ray Dalio, founder of hedge fund giant Bridgewater Associates. While equities and gold benefited from the trillions of dollars in fiscal spending and monetary injections, those efforts are debasing the currency and have raised the possibility that the US will go too far in testing the limits of government stimulus, Dalio said in an interview.
… China is believed to have brought forward more troops in the past week along the LAC in Ladakh, taking its total troop deployment to approximately 52,000. Of these, 10,000 troops have been deployed on the southern bank of the Pangong Tso that has witnessed hectic military activity since the manoeuvres of August 29-30. These details form part of a latest comprehensive assessment by security forces on the “eyeball to eyeball” deployment of Indian and Chinese troops in Ladakh.
… Some of the lenders to Kishore Biyani such as PE funds Apollo Global Management, Aion and Blackstone, along with RBL Bank and Axis Finance have recently invoked pledges to take equity stakes in Future Group firms while a few equity investors, such as Norges Bank, have downsized their holdings. In the past week, several lenders have invoked pledges and taken control of large chunks of Biyani’s shares in listed group companies including Future Lifestyle Fashions, Future Supply Chain, Future Consumer and even flagship Future Retail.
… Lakshmi Vilas Bank said it "substantially completed" the due diligence for its proposed merger with the Clix Group, even as the extended deadline for the completion of the process ended Tuesday, and said that the two parties would continue to discuss the future course of action. This leaves doubts on whether the fate of the deal still hangs in balance.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
· SpiceJet on Tuesday reported a Rs 593.4 crore net loss for June quarter, against a Rs 261.7 crore profit a year ago, as flight operations remained suspended for most part of the three-month period following the nationwide lockdown.
· Foreign brokerage CLSA prefers Hero MotoCorp among two-wheelers as it is gaining share in wholesale and retail driven by the strength in entry and executive motorcycles.
· Indian Bank said it would raise Rs 1,500-2,000 crore by selling additional tier-1 (AT1) bonds in the December quarter, if the market conditions improves
· Indiabulls Housing Finance said Brickwork Ratings has assigned short-term rating of A1 plus to the company, signifying adequate degree of safety and low credit risk.
· IT firm Hexaware Technologies said market regulator Sebi has allowed extension of closure of its delisting offer to September 16.
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye