INVESTMENT PRODUCTS

MORNING CUPPA
SEP 02, 2021

TRADE NOW
Equity:
• Nifty closed @ 17,076 (-56) and Sensex @ 57,338 (-214) on Wednesday. SGX Nifty is trading 3
points lower (as of 7.30 a.m.)
• India's power consumption grew 18.6% yoy in August and was higher than pre-COVID levels
• Vedanta's board approved interim dividend of Rs. 18.5 per share for FY22, amounting to Rs.
6,877 crores
• India to offer indemnity to financial bidders of Air India, from any liability arising out of Cairn
Energy lawsuit
• NMDC's iron ore production increased 44% to 15.02 MT in April-August 2021
• Zerodha received SEBI's in-principle approval to start its mutual fund business
• Tata Motor's total domestic wholesale sales increased 53% MoM to 54,190 units in August
2021
• Bajaj Auto reported 5% YoY increase in total sales to 3,73,270 units in August 2021
• RBI imposed penalty of Rs. 25 lakhs on Axis Bank for flouting KYC norms
• NTPC REL received letter of award for 325 MW solar projects in Madhya Pradesh
• Indian ADRs: Tata Motors (+2.5%), Vedanta (+2.0%) and Dr. Reddy's (+1.8%) were the major
movers among Indian ADRs

Debt:
• 10yr G-sec bond yield fell by 2 bps to 6.20% on Wednesday
• RBI accepted T-Bills worth Rs. 17,000 cr in weekly auction with cutoff for 91-364 days ranging
between 3.29-3.62%
• India's manufacturing PMI fell to 52.3 in Aug from 55.3 in Jul due to Covid-induced curbs and
rising input costs
• GST collection remained above Rs. 1 tn mark for 2nd straight month in Aug at Rs. 1.12 tn (30%
YoY growth), though lower than Rs. 1.16 tn in July
• SBI raised Rs. 4,000 cr via AT1 bonds (5yr call option) with coupon fixed at 7.72%
• Axis Bank has raised $ 600 mn, out of an estimated $ 2.3 bn subscription bids, through dollar-
denominated AT1 bonds (5yr call option) at 4.1%

Commodities:
• Spot gold was firm at $1,813.2/oz as investors focus on US labour data
• Brent crude dropped by 2.3% to $71.3/barrel as OPEC+ stuck with its plan to boost crude
production by 400,000 bpd each month
• US crude stockpiles dropped by 7.2 mn barrels last week, higher than expected
• LME copper prices fell by 2% to $9,339/tonne as factory activity slowed across various parts of
Europe & Asia
 Currency:
• Rupee snapped 4-day winning streak on Wednesday, settled 8 paise lower at 73.09 against the
USD
• US Dollar Index (DXY) made a low of 92.38 on Wednesday, as the US ISM Manufacturing PMI
for Aug rose to 59.9, beating expectations of 58.6 while the ADP jobs survey showed that the
private sector added just 374K new jobs in Aug, far below than the 613K expected
• EUR/USD made a high of 1.186 on Wednesday, as the EU July Unemployment rate was
confirmed at 7.6% as expected while downbeat US employment data cooled expectations of a
strong Non-farm Payroll data on Friday

International Markets:
• US Private payrolls rose by 374,000 in August, well below the Dow Jones estimate of 600,000
though above July’s 326,000
• Euro zone manufacturing Purchasing Managers’ Index (PMI) fell to 61.4 in August from July’s
62.8 as supply chain issues caused by the coronavirus pandemic continued
• China PMI dropped to 49.2 in August from July’s 50.3. It fell below the 50-level, a level that
separates expansion from contraction, for the first time since April 2020 as fresh virus
outbreaks disrupted production
• Manufacturing PMIs for Indonesia, Vietnam, Thailand, Philippines and Malaysia all remained
deep in negative territory in August, reflecting disruption from lockdowns that forced factories
to halt or slow production.
• SoftBank Group Corp. is planning to sell 450 billion yen ($4.1 billion) of subordinated bonds
due in 2028 on Sept. 10. It could be Japan’s biggest yen corporate bond sell-off this year

Change (%)
Last Traded Price 1D MTD YTD 1Y
Sensex 57,338 -0.4% -0.4% 20.1% 47.4%
Nifty 50 17,076 -0.3% -0.3% 22.1% 48.9%
S&P BSE Mid Cap 24,073 0.9% 0.9% 34.2% 62.3%
S&P BSE Small Cap 26,980 0.2% 0.2% 49.1% 87.2%
Dow Jones 35,313 -0.1% -0.1% 15.4% 23.3%
Nasdaq 15,309 0.3% 0.3% 18.8% 28.2%
Hang Seng (7.30 AM) 26,218 0.7% 1.3% -3.7% 4.1%

Gold (USD/ounce) 1,813 0.0% 0.0% -4.4% -8.0%

Silver (USD/ounce) 24.2 1.1% 1.1% -8.4% -14.2%
Crude (Brent)(USD/Barrel) 71.3 -2.3% -2.3% 37.6% 56.4%
Copper(USD/pound) 4.3 0.0% -2.4% 24.3% 42.9%
*Steel HRC FoB China
919.9 0.0% 1.7% 44.3% 83.6%
(USD/tonne) (derived)
Levels
10 Year G-Sec (India) 6.20 6.22 6.22 5.89 5.94
US 10 Year 1.30 1.31 1.31 0.92 0.67

USD INR 73.09 73.01 73.01 73.04 73.00

EUR USD 1.18 1.18 1.18 1.22 1.19
USD JPY 110.10 110.02 110.02 103.21 105.95
*Data as of August 31, 2021
Investment in securities market are subject to market risks, read all the related documents carefully before investing. This information is only for consumption by the client and
should not be redistributed. Information herein is believed to be reliable however HDFC Securities Ltd. does not warrant its completeness or accuracy.
SEBI Registration & Disclaimer: https://www.hdfcsec.com/article/dislaimer-1795