Morning Daily

@9AM_25 September, 2020

US index futures are trading in green (upto 0.4%), as we write, after a positive performance at Wall Street yesterday. Trend on SGX Nifty hinting at a +ve opening for the index in India. Most of the Asian markets are trading in green during the early morning trade, following the positive global cues.

Yesterday, Nifty opened down by -120 points and traded with a negative bias for the trading session. Buying was in HealthCare stocks. Selling was in Automobile, Cement, Chemicals, Construction, Energy, Fertilizers, Financials, IT, Metals and Pharma stocks.

IndiaVix spiked up to close at 23.51 levels. USDINR spot continues to consolidate with a positive bias for last many trading sessions. At higher levels the first hurdle is around 74.5 levels. BankNifty continues to trade with a negative bias.

US Stock benchmark indexes ended with modest gains yesterday, reflecting a market that has struggled to find its footing amid signs of softening economic data and a raft of uncertainties ahead.

Stocks were wobbly for most of yesterday’s trading session, as investors waded through a morass of issues, including rancor on Capitol Hill, which has overshadowed progress on another pandemic spending bill. Market participants worry a lack of fresh stimulus would derail an economic rebound.

Gold futures ended higher yesterday to tally their first gain in four sessions, as a recent price drop to a two-month low raised the precious metal’s appeal among bargain hunters. Prices for the metal had been trading lower early in the session, and remains more than 4% lower for the week, with overall strength in the dollar contributing mightily to the deterioration in bullion. December gold shed $3, or 0.18%, to settle at $1873.80 an ounce.

Oil futures finished higher yesterday, supported by signs of tighter U.S. crude supplies, despite persistent concerns that rising cases of COVID-19 will lead to weaker energy demand. The commodity tallied a third climb in a row, but the gains have been modest and prices still remain lower for the week. As we speak, US WTI crude futures are trading higher by 0.62% to 40.56/barrel (@9AM IST), while Brent crude futures are up by 0.62% to $42.2/barrel.

U.S. Treasury yields slid yesterday in the wake of a rise in first-time jobless claims, underlining the continued weakness in the labor market and the broader economy. The 10-year treasury note yield fell 1.2 basis points to 0.664%, while the 30-year bond yield slipped 2.5 basis points to 1.401%, its lowest since Sept. 3.

Institutional Flows – Provisional (September 24, 2020)

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