Top 10 things to know before the market opens

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The Indian stock market is expected to open on a cautious note as trends on SGX Nifty indicate a positive opening for the index in India with a 18-points gain.

The market gave up most of the intraday gains amid volatility to end flat on September 27. The Sensex closed 29.41 points, or 0.05 percent, higher at 60,077.88, and the Nifty moved two points up, or 0.01 percent, to 17,855.10.

On the sectoral front, the auto index rose over 3 percent and the energy index added 1 percent. The IT index shed nearly 3 percent and pharma was down a percent.

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

US Markets

The S&P 500 and Nasdaq indexes ended lower on Monday with investors pivoting to value as tech shares, hurt by rising Treasury yields, weighed on equities in the quarter’s final week.

The Dow Jones Industrial Average rose 71.37 points, or 0.21%, to 34,869.37; the S&P 500 lost 12.37 points, or 0.28%, at 4,443.11; and the Nasdaq Composite dropped 77.73 points, or 0.52%, to 14,969.97.

Asian Markets

Stocks in Asia-Pacific largely declined in Tuesday morning trade as various firms downgraded China’s GDP forecasts. South Korea’s Kospi slipped 0.81%. In Japan, the Nikkei 225 fell 0.72% while the Topix index shed 0.99%. The S&P/ASX 200 in Australia dipped 0.28%.

SGX Nifty

Trends on SGX Nifty indicate a cautious opening for the index in India with an 18-points gain. The Nifty futures were trading at 17,874 on the Singaporean Exchange around 07:30 hours IST.

Goldman cuts China GDP growth forecast on energy supply crunch

Goldman Sachs has cut China’s economic growth forecast for 2021 to 7.8%, from 8.2% as energy shortages and deep industrial output cuts add “significant downside pressures”, it said in a note on Tuesday.

Goldman Sachs estimated that as much as 44% of China’s industrial activity has been affected, leading to a 1-percentage point decline in annualised GDP growth in the third quarter, and a 2-percentage point cut from October to December, it said.

Oil up on tight supply, Brent crude nears $80 a barrel

Oil prices gained on Monday for a fifth straight day, with Brent at its highest since October 2018 and heading for $80, as investors fretted about tighter supplies because of rising demand in parts of the world.

Brent crude was up $1.44, or 1.8%, to settle at $79.53 a barrel, having posted three straight weeks of gains. U.S. crude futures rose $1.47, or 2%, to settle at $75.45 a barrel, its highest since July, after rising for a fifth straight week.

April-June jobs data | 29% growth in employment across nine sectors, shows survey

India reported a 29 percent surge in employment across nine sectors, the All-India Quarterly Establishment-based Employment Survey for the April-June 2021 quarter showed on September 27. The survey was conducted by Labour Bureau to help the government assess employment generation across nine sectors on a quarterly basis.

The survey covers establishments with more than 10 workers. The nine selected sectors are Manufacturing, Construction, Trade, Transport, Education, Health, Accommodation and Restaurant, IT/ BPO and Financial Services.

China’s industrial profit growth slows for sixth month in August

Profits at China’s industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month, as manufacturers struggled with high commodity prices, COVID-19 and shortages in some key components.

Profits rose 10.1% on year to 680.3 billion yuan ($105 billion) last month compared with a 16.4% gain in July. Momentum in the world’s second-biggest economy has weakened in recent months with its vast manufacturing sector buffeted by gathering headwinds.

SEBI revises risk management framework for mutual funds

To protect the interests of investors and to ensure that mutual funds render high standard of service, the capital market regulator Securities Exchange Board Of India (SEBI) has come out with a revised risk management framework.

The bond schemes closure by Franklin Templeton AMC has left many investors in the lurch. After reviewing the risk management framework for mutual funds in the Mutual Funds Advisory Committee (MFAC), the recommendations of the panel have been incorporated by the regulator in the new risk management framework (RMF).

Paradeep Phosphates gets approval from Sebi to float IPO

Leading fertilizer company Paradeep Phosphates has received Sebi’s go-ahead to mop up funds through an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth Rs 1,255 crore and an offer for sale (OFS) of up to 12,00,35,800 shares by its existing shareholders and promoters, according to the draft red herring prospectus (DRHP).

Under the OFS, Zuari Maroc Phosphates (ZMPPL) will offer up to 75,46,800 shares and up to 11,24,89,000 equity shares will be offered by Government of India.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 594.63 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 1397.69 crore in the Indian equity market on September 27, as per provisional data available on the NSE.

With inputs from Reuters & other agencies

Asian shares gain but Evergrande jitters keep investors on edge

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Asian shares moved higher on Thursday, supported by some positive news from struggling developer China Evergrande Group, while the dollar held near a one-month top after the U.S. Federal Reserve took a hawkish tilt overnight.

However, investors remained on edge about Evergrande’s future, with a major test to come later on Thursday when $83.5 million in dollar-bond interest payments are due.

”It’s a long way to go yet in terms of this being resolved,” said Kerry Craig, global market strategist at JP Morgan Asset Management. ”You’ll see some of the immediate fears of a huge collapse and contagion start to recede, but it will still be an issue that pops up because the property market and construction is such a massive part of the Chinese economy.”

Evergrande’s shares surged 23% on Thursday after a unit said on Wednesday, when the Hong Kong market was closed for a holiday, that it had ”resolved” a coupon payment on an onshore bond.

The Hong Kong benchmark rose 1.6%, boosting MSCI’s broadest index of Asia-Pacific shares outside Japan, which gained 0.64%

Elsewhere, Chinese blue chips gained 0.74%, Australia’s benchmark rose 1.04%, and Korea’s Kospi fell 0.6% after returning from a three-day break to catch up with global falls earlier in the week.

U.S. stock futures, the S&P 500 e-minis, were up 0.31%.

Fears that Evergrande could fail to meet its obligations jolted global markets early this week as traders worried the giant developer’s issues could spill over to other property firms and banks. Concerns eased somewhat on Wednesday when the People’s Bank of China injected 90 billion yuan ($13.9 billion) into the banking system.

Investors were also focused on the U.S. Federal Reserve, which said overnight it will likely begin reducing its monthly bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected.

”The most striking part of what we learnt from the Fed was that market was very accepting of it,” Craig said.

The three major U.S. stock indexes closed up 1%, not far off where they were before the Fed announcement, and U.S. Treasury yields see-sawed, before largely taking the change in their stride. [.N]

The dollar rose after the Fed Chair’s remarks hitting a month-high of 93.526 against a basket of currencies particularly gaining against the euro and yen, but paused for breath in Asian hours

U.S. crude dipped 0.11% to $72.15 a barrel. Brent crude fell 0.35% $76.13 per barrel. [O/R]

Spot gold lost 0.24% to trade at $1763.43 per ounce [GOL/]