The Hang Seng fell 2.1%, while the Shanghai Composite is trading on a flat note. Nikkei is trading down 0.3%.
In US stock markets, Wall Street indices ended lower on Friday as doubts about the resilience of the global economic recovery hurt former reopenings in energy, hotels and travel.
Friday’s data showed U.S. producers’ prices surged sharply in August, leading to the biggest annual gains in nearly 11 years. The reading sent the benchmark US 10-year Treasury yield higher.
The Dow Jones Industrial Average closed down 270 points, or 0.8%. The index was down for the fifth day in a row and dropped 2.2% last week, marking the second consecutive week of decline for the index.
Meanwhile, the Nasdaq Composite closed down 133 points, or 0.9%. It lost 1.6% for the week.
Back home, Indian stock markets have opened on a negative note.
BSE Sensex is trading with a fall of 149 points. Meanwhile, NSE Nifty is trading with a fall of 41 points.
HDFC and Maruti Suzuki are among the top gainers today. On the other hand, HCL Tech is among the top losers today.
BSE Mid Cap Index and BSE Small Cap Index opened up 0.1% and 0.3% respectively.
Buying interest is visible in the sectoral index with the metal sector and FMCG sector stocks.
On the other hand, Oil & Gas stocks and Banking stocks are trading in the red.
Hindalco and Nalco shares hit 52-week high today.
Rupee is trading at 73.58 against US Dollar.
Gold prices up 0.2% ₹46,896 per 10 grams.
Meanwhile, silver prices are trading lower by 0.3%. ₹63,392 per kg.
Gold weakened today on a strengthening dollar, while cautious investors await a reading on US consumer prices this week.
Crude oil prices hit a one-week high today as concerns over US supplies following damage from Hurricane Ida supported the market, along with expectations of higher demand.
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In news from the power sector, Tata Power is one of the top buzzing stocks today.
Tata Power and Adani Group have been asked by the lenders of Power Transmission Company to submit revised bids for South East UP Power Transmission.
Both had submitted binding offers for the company in the second week of August along with three other bidders including Power Grid Corporation.
However, both their proposals were conditional on lenders overturning the suspension order on the 1,600-km project run by the company for delay in completion by the State Electricity Transmission Authority.
People close to the development said the lenders did not agree to this condition.
Lenders including Bank of India, Axis Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) had snatched control of the transmission company from Spain’s Grupo Isolux Corsan after defaulting on dues.
South East UP Power had won a 35-year concession to build and operate a power transmission network in Uttar Pradesh and had taken a loan of approx. ₹37 billion from local lenders.
The parent company eventually filed for bankruptcy in Spain, leaving the Indian entity in debt and without financial support.
Tata Power and Adani have offered above ₹26 billion Tata has bid through its arm Resurgent Power Ventures.
According to reports, competition for acquisitions is indicating strong investor interest in the power transmission sector, which is dominated by public sector companies.
When and how the acquisition is completed remains to be seen.
Coming to Tata Power, take a look at the chart below to see how the stock has performed over the past one year.
see full image
Moving to the news from the mutual fund sector, record systematic investment plans (SIPs) have added to the excitement for them. ₹36 ton domestic mutual fund (MF) industry.
In the month of August, inflows through SIPs touched approx. ₹100 billion and new SIP registrations touched an all-time high of 2.5m.
This also occurs when markets trade at expensive valuations.
Total Assets Under Management (AUM) for SIP also touched a new record ₹5.3 tons.
SIP has been over flow ₹90 billion each in the last three months. Inflows through SIPs crossed so far in the current financial year ₹460 billion
In FY21, even when equity fund outflows continued, SIPs remained strong, leading to almost Rs. ₹960 billion net flow.
Market experts believe that there is scope for further growth of SIP book digital platform.
Strong SIP inflows are a big positive sign for the industry. Generally, SIP investors continue with their investments irrespective of the level of the market. On the other hand, investors who invest in lump sum churn out their holdings more often.
For example, equity inflows fell 62% in August ₹86.7 billion against record in August ₹225.8 billion in July.
However, SIP inflows increased gradually.
It just shows that SIP investors are in for the long haul instead of the three-year average time frame how they used to do it earlier.
Looking at it from a bigger picture perspective, it shows that despite all the bad news about the economy, huge money is continuously flowing into the stock markets.
How the SIP activity progresses in the coming months remains to be seen.
This article is syndicated from equitymaster.com
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