Stock Market LIVE: Asian shares hint at bounce back; SGX Nifty in green
Asian market mostly opened in the green as investors bargain-hunted following sharp falls in the previous session. Wall Street stocks fell again overnight as recession fears brought volatility to financial markets.
Govt commits ₹7,385 crore under Fund of Funds for Startup India Investment
The Central government on Monday said that the Fund of Funds for Startups (FFS), launched under the Startup India initiative in 2016 by Prime Minister Narendra Modi has committed ₹7,385 crore to 88 Alternative Investment Funds (AIFs) as of September 24, 2022.
According to the Ministry of Commerce and Industry, these AIFs in turn have invested ₹11,206 crore in 720 startups.
FFS which was announced with a corpus of ₹10,000 crore has been playing a monumental role in mobilizing domestic capital in the Indian startup ecosystem.
“The corpus is to be built up over the 14th and 15th Finance Commission Cycles (FY 2016-2020 and FY 2021-2025) through budgetary support by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. (ANI)
India ONGC gets better price for oil under new rules -sources
India’s Oil and Natural Gas Corp has for the first time sold oil through a three-month local tender, commanding $5-$8 per barrel more than existing rates under new rules that allow producers marketing freedom, industry sources said.
ONGC, the country’s top oil explorer, accepted bids at that level through auction of light sweet oil from its western offshore field, including supplies from the country’s flagship Mumbai High fields, they said.
In June India abolished a rule that said oil from blocks awarded prior to 1999 must be sold to government-nominated customers, mostly state refiners. That meant producers such as ONGC and Oil India often sold oil from those blocks at below market rates. (Reuters)
Moody’s Analytics on Monday lowered its global economic growth forecast to 2.7% for 2022 from the 4.2% forecast in January
The global environment has become more fragile as record-high inflation continues to gain momentum and growth decelerates, it said.
It has projected global growth to slow down to 2.3% in 2023 from the 3.6% estimated earlier.
In its report Global Outlook: Global Economy on Edge, Moody’s Analytics cautioned that while it has projected that the global economy will grow in 2022, any policy missteps or additional risks would increase the threat of a global recession in the next 12 months above its current assessment.
“Stagflation risks have risen worldwide, but a stagflationary environment would take months to be realised…Business sentiment remains muted and is consistent with a global economy that is just avoiding recession,” the agency said in a report. (Read More)
Market wrap: Views from LKP Securities, Kotak Securities, TrustPlutus Wealth, and Angel One on Monday’s market
Rupak De, senior technical analyst at LKP Securities: Nifty remained volatile with a predominant negative bias throughout the day before ending 1.80% lower. The index fell below the previous consolidation low on the daily chart. However, it has found support at the long-term moving average, 200 DMA, which may act as the “line of polarity” for the short term. The momentum indicator is in bearish crossover and falling.
The trend for the short-term looks negative; however, further selling pressure may be seen only below 17950, where the 200 DMA is currently placed. On the higher end, immediate resistance is visible at 17300-17350.
Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd: The speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession. With the monetary policy decisions on the anvil, rate-sensitive stocks like banking, realty & auto crumbled badly as rate hikes could dent demand going ahead. However, due to markets being in oversold territory, we could witness a quick pullback rally. For traders, the 200-day SMA and 16850 would act as a key support level. On the flip side 17150 and 17200 could be the immediate hurdle for the bulls.
Vineet Bagri, managing partner- TrustPlutus Wealth: It seems that Indian markets are now catching up with global markets which have been soft for a month now. The sell-off which began last Friday continues today with the mid/small cap stocks particularly taking it on the chin. With today’s fall the Nifty return CYTD 2022 has turned negative.
The only sector holding out is the IT sector which is in the green due to the tailwind of a depreciating rupee which is at an all-time low of ~Rs.81.50
Investors are cautious on the outlook for equity markets globally due to the increasing assertiveness of global central banks on implementing interest rate hikes to tame rising prices. Thus central banks are likely to prioritise inflation control vis a vis economic growth thus raising the risks of a global recession.
On the positive side we have crude below ~$85/bl, but the benefit of the same gets negated partly due to the strengthening dollar. India is currently in a better position with a pickup in credit growth to ~15% and an uptick in tax collection.
India’s economy is in far better shape than others as regards growth prospects over the next 12 months. High frequency indicators too are stable. Nonetheless we could see further cuts in the Indian market over the next few days considering the hawkishness being displayed by global central banks and a weakening currency.
The selloff in the pound, unrelenting rise in the dollar index, weakening rupee and the impending RBI meet in the latter part of this week should keep markets on the tenterhooks. Nonetheless, we continue to believe in the relative outperformance/strength of Indian markets vs emerging/developed economies. We believe one needs to look beyond these current worries and use the bouts of volatility to invest in steady compounding stocks which are in secular businesses.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd: Recently, we managed to decouple with our global peers, but in the last couple of sessions, our markets finally surrendered to the global sell-off. Although we are back to the psychological level of 17000 in a flash, our broader structure still looks quite robust as compared to the US markets. Hence, we advise traders not to get baffled by this sharp decline and to remain firm. The benchmark index Nifty has now entered a cluster of key moving averages i.e. 89-day EMA and 200-day SMA. Also, the previous breakout point coincides around 16800; hence, as of now, we do not expect the correction to extend below these levels. If it gets breached, we may have to revisit our view; but as of now, we would like to believe we are very much close to the sacrosanct supports, and since markets are extremely oversold, it’s advisable to trim existing shorts and start nibbling into quality propositions.
Taking a glance at the US markets, we will not be surprised to see some relief in key indices there as they have been on a continuous declining spree for a month. Any rebound could certainly provide the much-needed cushion for our domestic markets, and since we are relatively stronger, a possibility of a sharper bounce back cannot be ruled out. As far as supports are concerned, 17000 – 16900 – 16800 is to be seen as a sacrosanct cluster, whereas on the flip side, 17200 followed by 17350 are to be seen as intraday resistances.
Mahindra to buy Rivigo’s B2B express biz
Mahindra Logistics on Monday announced the acquisition of the B2B express business of Gurugram-based logistics firm Rivigo Services, which will help the company accelerate its capabilities in this space.
Mahindra Logistics Ltd (MLL) will acquire the express business through a business transfer agreement (BTA), including the customers, team and assets of Rivigo’s B2B express business and its technology platform, Mahindra Logistics said in a statement.
Rivigo, however, will continue to own its truck fleet and the rights to the full truck load (FTL) operations. (PTI)
Rupee plunges to all-time low of 81.67 against US dollar on heavy forex outflows
The rupee plunged 58 paise to close at an all-time low of 81.67 against the US dollar on Monday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit.
Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said.
At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.
On Friday, the rupee slumped 30 paise to close at 81.09, its previous record low. (PTI)
Dow, S&P fall again, ending at lowest level of year
Wall Street stocks fell again Monday as major indices slumped to their lowest level of 2022 amid market fallout from central bank policy pivots to address inflation.
After last week’s rout, US indices climbed early in the session before falling.
The Dow Jones Industrial Average finished down 1.1% at 29,260.81.
The broad-based S&P 600 shed 1.0% to 3,655.04, while the tech-rich Nasdaq Composite Index declined 0.6% to 10,802.92.
Monday was the lowest close of 2022 for both the Dow and S&P 500. (AFP)
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