10 things to know before you make your opening trade on Tuesday

Weak global cues pushed benchmark indices lower on Monday. The S&P BSE Sensex saw a cut of over 500 points while the Nifty50 fell over 1 percent.  

Global markets were weak with Chinese, Japanese and Korean markets closed for holiday while investors across the globe fear tapering of stimulus programs by various central banks, suggest experts.  

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“European markets fell to a near two-month low and Germany's benchmark index sank 2%, as investors fear that the major central banks would start giving cues about tapering their stimulus programmes at their meetings this week,” Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said.  

“Investors are cautious ahead of Federal Reserve and ECB meeting this week, awaiting indications as to when the central bank will start withdrawing its monetary stimulus and start raising interest rates eventually,” he said. 

Another reason which led to the fall in equity markets was China’s second-biggest real estate developer Evergrande which is on the verge of bankruptcy. Metal remains top sectoral loser on D-Street on Monday. 

“Metals have been under pressure today on buzz over Chinese firm Evergrande facing financial trouble and speculation over default on debt payment, which has led to a selloff in most risky assets,” Navneet Damani, Head of Commodities & Currencies Research, Motilal Oswal Financial Services Ltd, said. 

“Metals complex has been roaring since the start of the year and looked quite overheated given the change in stance from the US Fed over its bond purchase programme and weaker data coming out of China over the last couple of months,” he said. 

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or economy:   

Global Markets:   

The US markets closed negative on Monday amid fears of Covid 19, a US debt default and the meltdown of Chinese property giant Evergranade. World stocks sold off sharply on Monday while safe-haven assets gained as troubles at property group China Evergrande fed concerns about spillover risks to the economy, sparking fresh investor worries ahead of a busy week of central bank meetings, said Reuters. 

On Wall Street, the Dow Jones Industrial Average fell 614.41 points, or 1.78%, to 33,970.47, the S&P 500 lost 75.26 points, or 1.70%, to 4,357.73 and the Nasdaq Composite dropped 330.07 points, or 2.19%, to 14,713.90. as Dow Jones loses 166 while Nasdaq has its worst week in over 2 months ending lower by 138 points. Asian markets too opened weak on Monday.   

Asian Markets: 

Asian markets opened mixed on Tuesday. While SGX Nifty marginally gained 49 points to 17,422.50, Japanese Nikkei cracked 570.21 points or 1.87 % to 29929.84 amid Chinese, Japanese and Korean markets closed for holiday on Monday.  

SGX Nifty: 

Trends on SGX Nifty indicate a positive opening for the index in India with a 49 points gain. The Nifty futures were trading at 17,404.00, up 30.50 points or 0.18% on the Singaporean Exchange around 07:30 hours IST. 

Evergrande contagion fears rise: 

World shares fell on Monday as investors fretted about the spillover risk to the global economy from property group China Evergrande's troubles, said a Reuters report.  

Regulators have warned that its $305 billion of liabilities could spark broader risks to China’s financial system if its debts are not stabilized, it said.   

Sebi tweaks MF compensation circular: 

The Securities and Exchange Board of India (Sebi) on Monday gave a clarification with respect to the circular dated April 28 on Álignment of interest of key employees of Asset Management Companies (AMCs), ahead of its implementation date of October 1. 

The regulator highlighted that junior employees – shall be required to invest 10%  during  October  01,  2021  to September 30, 2022 and 15% during October 01, 2022 to September 30, 2023. Employees below the age of 35 years shall be deemd as junior employees. 

Rupee slumps 26 paise: 

Indian rupee dived 26 paise to close at a near four-week low of 73.74 against the US dollar on Monday as weaker Asian peers and massive sell-offs in domestic equities weighed on investor sentiment. 

At the interbank foreign exchange market, the local currency opened at 73.82 and finally settled for the day at 73.74 a dollar, down 26 paise over its previous close, said a PTI report. 

FOMC meeting: Fed to reveal new projections 

U.S. Federal Reserve officials will lay bare how soon and how often they think the economy will need interest rates rises over the next three years when they release new forecasts at their policy meeting on Wednesday, said a Reuters report. 

There are rising expectations the central bank will at least use its upcoming meeting on Sept. 21-22 to signal it plans to start reducing its massive bond purchases, it said. 

Paras Defence IPO open on Tuesday: 

The IPO will open for subscription  on September 21 and conclude on September 23, the company said in a statement. It has fixed a price band of Rs 165-175 a share for its Rs 171-crore initial share sale. Paras Defence raises Rs. 51 crores from Anchor Investors. 

Read on Paras Defence IPO opens on September 21: Top 10 things to know, including key dates and how to check allotment status 

Sebi fines 8 entities for fraudulent trade in Videocon shares 

Markets regulator Sebi on Monday penalised eight entities for fraudulent trading in shares of Videocon Industries Ltd. The entities are Acuity Merchants Pvt Ltd, Godavari Commercial services Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt. Ltd, Coastal Fertilisers Ltd, Akansha Commodities Pvt Ltd, Messrs Agarwal Holdings and Superdeal Fincom Pvt Ltd. 

FII & DII Data: 

Foreign portfolio investors (FPIs) remained net buyers for Rs 92 cr in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 1626 cr, provisional data showed on the NSE. 

Stocks under F&O ban on NSE   

Eight stocks - Exide Industries, Indiabulls Housing Finance, Idea, IRCTC, NALCO, PNB, SAIL & Sun TV - are under the F&O ban. 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. 

(With inputs from PTI, Reuters and other agencies) 

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)