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Domestic stocks are likely to open on a cautious note as investors await Fed Chairman Jerome Powell’s speech at Jackson Hole Economic Symposium later in the day. Asian markets were largely mixed while US markets settled lower overnight after the Kabul bombings. Oil prices rose while the dollar remained firm. Here’s breaking down the pre-market actions:

STATE OF THE MARKETS


SGX Nifty signals a muted start

Nifty futures on Singapore Exchange traded 12.5 points, or 0.07 per cent, higher at 16,680.50, signaling that Dalal Street was headed for a muted start on Friday.

  • Tech View: Nifty50 on Thursday formed an indecisive Doji candle on the daily chart after making a similar candle in the previous session, which does not bode well for the index.
  • India VIX: The fear gauge gained marginally to 13.54 level on Thursday over its close at 13.50 on Wednesday.

Asian stocks mixed in early trade
Asian markets were trading mixed on Friday as investors awaited Fed Chair Jerome Powell’s much-awaited speech to see if he will detail plans to roll back the central bank’s massive stimulus measures. MSCI’s broadest index of Asia-Pacific shares outside Japan was up by 0.09 per cent.

  • Japan’s Nikkei declined 0.42%
  • Korea’s Kospi edged up 0.04%
  • Australia’s ASX 200 shed 0.15%
  • China’s Shanghai gained 0.28%
  • Hong Kong’s Hang Seng added 0.06%

US stocks settled lower
Wall Street closed lower on Thursday, ending a streak of all-time closing highs on concerns over developments in Afghanistan, while fears of a potential shift in US Federal Reserve policy prompted a broad but shallow sell-off the day before the Jackson Hole Symposium.

  • Dow Jones fell 0.54% to 35,213.12
  • S&P 500 declined 0.58% to 4,470
  • Nasdaq shed 0.64% to 14,945.81

Dollar firm ahead of Powell’s speech
The dollar held firm on Friday after the US Federal Reserve’s hawkish wing called for tapering bond purchases as investors looked to a highly-anticipated speech by Fed Chair Jerome Powell later in the day.

  • Dollar index moved up to 93.032
  • Euro held slipped to $1.1755
  • Pound dropped to $1.3703
  • Yen steady at 110.06 per dollar
  • Yuan gained to 6.4856 against the greenback

Oil looks set to post big weekly gains
Oil prices rose on Friday, on track to post big gains for the week, on worries about near-term supply disruptions as energy companies began shutting in production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend. US West Texas Intermediate (WTI) crude futures climbed 16 cents, or 0.2 per cent, to $67.58 a barrel, clawing back a 1.4 per cent loss on Thursday. Brent crude futures similarly rose 16 cents, or 0.2 per cent, to $71.23 a barrel,

FPIs sell shares worth Rs 1,975 crore
Net-net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1,974.48 crore, data available with NSE suggested. DIIs, also turned buyers to the tune of Rs 1,055.21 crore, data suggests.

MONEY MARKETS

  • Rupee: The Indian rupee eked out a marginal 2 paise gain to close at 74.22 against the US dollar on Thursday as participants looked for fresh triggers.

  • 10-year bond: India 10-year bond yield gained 0.16 per cent to 6.25 after trading in 6.24 – 6.26 range.

  • Call rates: The overnight call money rate weighted average stood at 3.19 per cent on Tuesday, according to RBI data. It moved in a range of 1.95-3.40 per cent.

DATA/EVENTS TO WATCH

  • US Fed Chair Powell Speech (7:30 pm)
  • IN Deposit Growth YoY AUG/13 (5 pm)
  • IN Foreign Exchange Reserves 20/AUG (5 pm)
  • IN Bank Loan Growth YoY AUG/13 (5 pm)
  • US Personal Income MoM JUL (6 pm)
  • US Personal Spending MoM JUL (6 pm)
  • US Goods Trade Balance Adv JUL (6 pm)
  • US PCE Price Index JUL (6 pm)
  • AU Retail Sales MoM Prel JUL (7 am)

MACROS


India top performing equity market
India’s equity market has emerged as the top performing among major economies year-on-year as well as in the year-to-date period, helped by strong retail and institutional flows amid relatively better earnings prospects. According to data from Bloomberg, benchmark Indian indices gained 45% and 19% in the past 12 months and year-to-date, respectively. India has outperformed the MSCI World index, a gauge for the developed markets, and MSCI Emerging index, a measure of performance of equities in the developing economies, by 15% and 29%, respectively, in the past 12 months. India’s return correlation with global equities.

PharmEasy plans to file IPO papers by October
India’s largest e-pharmacy platform PharmEasy is gearing up to file draft papers by October before an Initial Public Offering (IPO) later in the fiscal year, ET reported. This comes at a time when discussions with Japan’s SoftBank for a new funding round have fallen through.

India staring at drought
Drought conditions are on the horizon as total monsoon rainfall since the season began on June 1 is 10% below normal, according to data from the weather office. Hit by abysmal rains in August — the worst in recorded history — and a weak July, 36% of India by acreage has not received adequate rainfall, data from the India Meteorological Department (IMD) showed.

Strong capital buffers to help PSBs: Moody’s
State-owned banks, which collectively have a bigger share of the loan market than their more valued private peers, could report a spike in bad loans — up to 1.5% of their gross advances portfolio — in each of the next two years. However, the incremental impact will be manageable as legacy bad loans are being resolved, Moody’s Investors Service said.

Jio gains revenue market share in Q1
Reliance Jio Infocomm gained in revenue market share (RMS) in the April-June quarter, helped by a strong consumer uptake of its new cheaper JioPhone offers and strong sequential growth in revenue from national long distance (NLD) services. Bharti Airtel and Vodafone Idea (Vi), however, suffered sequential RMS contractions, stung by reduced revenues from NLD services and heavy customer losses (in the case of Vi).

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