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MORNING CUPPA
OCT 8, 2021

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Equity:
• Nifty closed @ 17,790 (+144) and Sensex @ 59,678 (+488) on Thursday. SGX Nifty is trading 36
points higher (as of 7.30 a.m.)
• China's energy crisis is hitting everything from iPhones to Milk
• PE group TPG is in talks to invest USD 1 bn in Tata Motors' EV unit
• Tata Motors is the likely front runner to take over Ford's Chennai unit
• Dixon Tech to make Acer laptops in India under PLI scheme
• Reliance retail to open 7-Eleven stores in India
• Vehicle registrations declined 5% in September over the pre-pandemic period of September
2019 due to chip shortage, low demand for 2-wheelers
• Bank of Baroda has reduced its home loan rates by 25 bps to 6.5% from 6.75%
• Piramal Enterprise said it will demerge its pharma business and merge the group's financial
services units (including DHFL) with its holding company.
• Paytm is in talk with Abu Dhabi Investment Authority, Singapore’s GIC Pte and Black Rock to
become anchor investors for its IPO
• Bombay HC has dismissed the petition filed by SREI's promoters against RBI's move to
supersede the company's board
• Indian ADRs: Tata Motors (+15.3%), Vedanta (+1.7%) and Infosys (+1.4%) were the major
movers among Indian ADRs

Debt:
• 10yr G-sec yield fell by 1 bps to 6.27% on Thursday
• Government has released Rs. 40,000 cr to the states and UTs to meet GST compensation
shortfall. With this, total amount released in FY22 YTD is Rs. 1.15 lakh cr vs. Rs. 1.59 lakh cr
shortfall estimated for FY22
• Fitch Ratings has cut India's GDP growth forecast to 8.7% for FY22 from 10.0% projected in Jun
• India's CPI inflation in Sep is likely to have eased for the 4th straight month with median
forecast significantly lower at 4.5% vs. 5.3% actual in Aug, as per Mint poll
• India's unemployment rate fell sharply in Sep to 6.86% from 8.32% in Aug with creation of 8.5
mn additional jobs, as per CMIE

Commodities:
• Brent crude prices rebounded and rose by 1.7% to $82.5/barrel. Reports stating that US would
not release emergency crude reserves or ban exports to ease tight supplies supported
• Spot gold fell by 0.4% to $1,755.2/oz as positive weekly US jobs data lifted bond yields
• LME copper prices rose by 2.3% to 9,302/ton. Rebound in global equities, falling exchange
inventories and supply threat at a Peru mine supported the prices
• World food prices rise to a 10 year peak. FAO's food price index, which tracks international
prices of the most globally traded food commodities, averaged 130 points in Sep-21, the
highest reading since Sep-11. On a YoY basis, the prices were up by 32.8%
 Currency:
• Rupee snapped its 3-session losing streak to settle 20 paise higher at 74.78 against the USD on
Thursday, as profit booking in crude oil prices and recovery in riskier assets supported the INR
• US Dollar Index (DXY) traded cautiously to close flat at 94.22 on Thursday, ahead of the much
awaited Non-Farm Payroll data & unemployment rate later today
• GBP/USD made a high of 1.364 on Thursday, after Russia offered to ease Europe’s energy crisis
and upbeat market sentiment benefitted the high-beta British Pound
• USD/CAD made a 1-month low of 1.254 on Thursday, favored by a weaker dollar and higher
crude oil prices

International Markets:
• The U.S. Senate on Thursday approved legislation to temporarily raise the federal
government's $ 28.4 tn debt limit by another $ 480 bn and avoid the risk of a historic default
this month
• US weekly Jobless claims post sharp decline to 326,000 for the week ended Oct 2, was below
estimates of 345,000
• As per a report by S&P Global ratings, Global debt levels could reach about 260 % of GDP by
2021 end, though low interest rates mean the ability to service it will be manageable
• Private equity major Blackstone announced the acquisition of VFS Global, the world's largest
visa outsourcing specialist for $1 bn for a 75% stake in the company, valuing it at $ 2.2 bn
• A US federal judge has declared it unlawful for the State Department to stop issuing visas
during travel bans

Change (%)
Last Traded Price 1D MTD YTD 1Y
Sensex 59,678 0.8% 0.9% 25.0% 49.6%
Nifty 50 17,790 0.8% 1.0% 27.2% 51.6%
S&P BSE Mid Cap 25,800 1.7% 2.2% 43.8% 74.5%
S&P BSE Small Cap 29,089 1.4% 3.6% 60.7% 93.3%
Dow Jones 34,754 1.0% 2.7% 13.6% 22.8%
Nasdaq 14,654 1.0% 1.4% 13.7% 28.9%
Hang Seng (7.30 AM) 24,664 -0.2% 0.4% -9.4% 1.7%

Gold (USD/ounce) 1,755 -0.4% -0.1% -7.5% -7.0%

Silver (USD/ounce) 22.6 0.0% 1.8% -14.3% -5.2%
Crude (Brent)(USD/Barrel) 82.5 1.7% 5.0% 59.2% 96.4%
Copper(USD/pound) 4.2 2.3% 4.0% 20.6% 39.9%
*Steel HRC FoB China
910.0 -0.9% 0.1% 42.7% 83.7%
(USD/tonne) (derived)
Levels
10 Year G-Sec (India) 6.27 6.28 6.22 5.89 6.01
US 10 Year 1.58 1.53 1.49 0.92 0.78

USD INR 74.79 74.98 74.24 73.04 73.33

EUR USD 1.16 1.16 1.16 1.22 1.18
USD JPY 111.67 111.41 111.27 103.21 105.96
*as of October 6, 2021
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