Stock Market News Briefing: ETMarkets Morning Podcast: FII short covering driving up Nifty & other top stories this morning

Stock Market News Briefing: ETMarkets Morning Podcast: FII short covering driving up Nifty & other top stories this morning

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.

>> FII short covering driving up Nifty
>> Amazon, Flipkart to launch big sale tomorrow
>> SBI chief calls for ending loan moratorium
>> Voda-Idea pays up govt dues, saves bank guarantees

And there is more.

But first, a quick glance at the state of the markets…

>> Nifty futures on the Singapore Exchange traded 17 points higher at 7 am (IST) this morning, signaling a flat start ahead for Dalal Street.


>> Asian stocks opened mixed as investors mulled the progress of stimulus talks in Washington and reports of a plan to review the US-China trade deal. Shares fell in Japan, Australia and Shanghai, but rose in South Korea. Hong Kong fluctuated at the open.

>> Wall Street ended higher after a choppy session overnight, lifted by Apple and energy stocks. Dow rose 0.62% to 26,828, while the S&P500 gained 0.36% to 3,306 and the Nasdaq climbed 0.35% to 10,941.


>> The rupee pared some of its initial losses and settled 3 paise down at 75.04 against the US dollar on Tuesday, even as the domestic equity market was trading with significant gains.

>> The dollar was under pressure from a towering euro and crumbling US yields. The Japanese yen rose as did the Australian and New Zealand dollars. The pound held steady.


>> Oil prices fell for the first time in four days, pulling back from as much as five-month highs amid mounting coronavirus cases worldwide. Brent crude fell 16 cents, or 0.4%, to $44.27 a barrel, while WTI slipped 17 cents, or 0.4%, to $41.53


>> Gold futures October contract hit a record high of Rs 54,480 per 10 gm on Tuesday, before dipping a tad to Rs 54392 late night India time. The rise reflected the jump in overseas gold to $2002.5 an ounce.

All in all, Dalal Street looked headed for a muted start this morning. On Tuesday, Nifty50 snapped a four-day losing streak, formed a bullish candle on the daily chart and negated the lower highs and lows of the last four sessions. Analysts said follow-up buying would confirm the upside momentum.

DO Watch out for
July Services PMI data for India, China, US and others today

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… Short covering in weekly index options and addition of fresh bullish bets on index futures by FIIs fuelled Tuesday’s 200-point Nifty rally to 11,095. Weekly options data hinted that Nifty could immediately test the resistance at 11,200 before moving higher. FIIs net purchased 22,560 index futures contracts on Tuesday, up from 3,370 contracts a day earlier.

.. India’s top online marketplaces, Amazon and Walmart-owned Flipkart, are launching promotional events, beginning August 6, aimed at helping sellers liquidate old inventory and free up working capital ahead of mega festival sales. Amazon’s two-day sale will be its first large promotional event since the easing of the lockdown. Flipkart’s four-day event will focus on electronics, appliances and fashion

… Early indicators of India’s economic activity in July, like auto sales and electricity consumption, showed an improvement from June, though factory output contracted more sharply in July compared to the previous month. Japanese brokerage Nomura said the July uptick reflected post-lockdown normalisation and pent-up demand driven largely by a recovery in rural demand.

… SBI chairman Rajnish Kumar says the government and corporates have to open up their wallets to invest, and their actions should go hand-in-hand for a quick economic recovery since the vital middle class remains cautious amid ongoing unlocking of the economy. He said the ongoing payments moratorium has achieved the limited purpose it was aimed at, and RBI now has to look at providing restructuring relief to banks.

… Vodafone Idea has paid the telecom department most of its Rs 1,200 crore dues towards licence fee and spectrum usage charge for April-June, after missing the deadline of July 15, people familiar with the matter said. Government officials said a further delay in payment could have led to the DoT invoking bank guarantees, as per rules — something the cash-strapped telco cannot afford.


… White House negotiators on Tuesday vowed to work “around the clock” with congressional Democrats to try to reach a deal on coronavirus relief by the end of this week, as the pandemic takes a heavy toll on American life.


Bharti Airtel is set to sign a strategic alliance with Amazon Web Services, the cloud services arm of the retail giant, to tap small-and-medium businesses and take on the Reliance Jio Infocomm-Microsoft combine

Private lender Axis Bank has launched its qualified institutional placement (QIP) on Tuesday to raise up to Rs 10,000 crore.

SBI Card, the country’s second largest credit card issuer, on Tuesday said Ashwini Kumar Tewari has taken over as its new managing director and chief executive officer, effective August 1.

Maruti Suzuki is expecting sales in the second half of the ongoing fiscal 2021to match those in the previous-year period, before the market gets back to a phase of growth in FY22.

State-run oil companies have spent 13% of their annual capex target of Rs 98,500 crore in the first quarter of the financial year with Oil India spending at the fastest clip and GAIL the slowest.

That’s it for now. For all the market news through the day, do track Have a great day ahead! Bye-bye

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