Trade Nivesh | Trade before Monday Top 10 Things to Know

Trends on SGX Nifty indicate a negative opening for the index in India with a 31 points loss.

The Indian stock market is expected to open in the red following weak global cues. Trends on SGX Nifty indicate a negative opening for the index in India with a 31 points loss.

Sensex declined 633.76 points, or 1.63 percent, to 38,357.18 on September 4 while the Nifty corrected 193.60 points, or 1.68 percent, to close at 11,333.90. According to pivot charts, the key support levels for the Nifty is placed at 11,274.33, followed by 11,214.87. If the index moves up, the key resistance levels to watch out for are 11,422.63 and 11,511.47.

The Nasdaq closed lower on Friday though well above its session low as selling eased late in the day after investors dumped heavyweight technology stocks due to concerns about high valuations and a patchy economic

The Dow Jones Industrial Average fell 159.42 points, or 0.56%, to close at 28,133.31, the S&P 500 lost 2811 points, or 0.81%, to 3,426.96 and the Nasdaq Composite dropped 144.97 points or 1.27% to 11,313.13.

Stay tuned to Trade Nivesh to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms that could impact Indian as well as international markets.

Asian Markets

Asian shares started Monday on the backfoot as investors grapple with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply.

Japan’s Nikkei was down 0.4% ahead of a heavy week of macroeconomic data. Australian shares slipped 0.4% while South Korea and New Zealand’s benchmark index were off 0.1% each.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the index in India with a 31 points loss. The Nifty futures were trading at 11,329 on the Singaporean Exchange around 07:30 hours IST.

Expect vehicle scrappage policy by October: Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari on September 6 confirmed that the vehicle scrappage policy is in its final stages of approval and is likely to be rolled out within a month. Terming it as ‘very important’ for the auto industry revival, Gadkari told Mint the policy could even come as soon as September-end.

RBI revises audit norms for banks to improve risk management

The Reserve Bank on September 5 came up with a revised long format audit report (LFAR) norms to improve the efficacy of internal audit and risk management systems. The LFAR, which applies to statutory central auditors (SCA) and branch auditors of banks, has been updated keeping in view the large scale changes in the size, complexities, business model, and risks in the banking operations, the RBI said.

The revised FAR format will be put into operation for the period covering 2020-21 and onwards, the central bank said. “The overall objective of the LFAR should be to identify and assess the gaps and vulnerable areas in the business operations, risk management, compliance and the efficacy of internal audit and provide an independent opinion on the same to the Board of the bank and provide their observations,” the RBI said.

Happiest Minds garners Rs 316 crore from 25 anchor investors ahead of IPO

Smallcap IT company Happiest Minds Technologies on September 4 has raised Rs 315.90 crore from 25 anchor investors, ahead of its IPO scheduled to open next week. “The fundraising committee and selling shareholders in consultation with book running lead managers have finalized allocation of 1,90,30,541 equity shares to anchor investors,” the company said in its BSE circular.

Read also:- Happiest Minds IPO opens tomorrow; here are 7 things to know.

The company issued shares to anchor investors at Rs 166 per share, the higher end of the price band.

US job growth loses speed as fiscal stimulus ebbs

US employment growth slowed further in August and permanent job losses increased as money from the government started running out, raising doubts on the sustainability of the economy’s recovery from the deep COVID-19 recession. Nearly a fifth of the job gains reported by the Labor Department on Friday was from the government’s temporary hiring for the 2020 Census. While the unemployment rate fell below 10 percent, it was biased down by a continuing misclassification problem.

The slowdown pressures the White House and Congress to restart stalled negotiations for another fiscal package and is likely to become political ammunition for both Democrats and Republicans with just two months to go until the presidential election.

India’s forex reserves jump $3.883 billion to a record $541.431 billion

The country’s foreign exchange reserves surged by $3.883 billion to touch a lifetime high of $541.431 billion in the week ended August 28, RBI data showed on September 4. In the previous week ended August 21, the reserves had risen by $2.296 billion to $537.548 billion.

In the reporting week, the forex kitty rose mainly on the back of a jump in foreign currency assets (FCAs), a major component of the overall reserves. FCAs increased by $3.925 billion to $498.094 billion, the central bank data showed.

Japanese firms to get subsidies for shifting production from China to India, Bangladesh: Report

Japanese manufacturers that shift production out from China to India or Bangladesh will now be eligible for subsidies, as per a report by Nikkei Asian Review.

Japan’s Ministry of Economy, Trade, and Industry added “projects that will contribute to the resilience of the ASEAN-Japan supply chain” to its latest list, many of which are eyeing relocation to India and Bangladesh.

Sebi orders attachment of bank, Demat accounts of Mehul Choksi, Gitanjali Gems

Markets regulator Sebi on September 4 ordered the attachment of bank and Demat accounts of fugitive businessman Mehul Choksi as well as Gitanjali Gems and its executive director, Dhanesh Sheth, to recover dues worth over Rs 5 crore. Choksi, the uncle of diamantaire Nirav Modi, is the promoter and managing director of Gitanjali Gems.

H-1B visa regulations expected to be revised; tech workers could bear the brunt

For H-1B workers, things might go further down before America votes to elect the new President on November 3. For, the Department of Homeland and Security’s (DHS) proposed changes to the H-1B program might just take effect before the US gets the new President.

Details of these changes are kept confidential of course. According to the information available on the OMB site, these changes include revising the definition of specialty occupation to increase focus on obtaining the best and the brightest foreign nationals via the H-1B program.

Earnings on September 7

CG Power and Industrial Solutions, Future Lifestyle Fashions, Future Market Networks, General Insurance Corporation of India, Aurionpro Solutions, Hindustan Oil Exploration, McNally Bharat Engineering, Info Edge India, Orchid Pharma, RPP Infra Projects, Tera Software, among 50 companies which will declare their June quarter earnings on September 7.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 1,888.78 crore, while domestic institutional investors (DIIs) offloaded shares worth Rs 456.88 crore in the Indian equity market on September 4, as per provisional data available on the NSE.

6 stocks under F&O ban on NSE

Bharat Heavy Electricals, Canara Bank, Indiabulls Housing Finance, Vodafone Idea, Jindal Steel & Power, and Punjab National Bank are under the F&O ban for September 7. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.