SGX Nifty:
Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 42 points at the opening bell.
SEBI clarification:
To achieve the desired objective of True to Label and Appropriate Benchmarking, SEBI issued a circular dated 11 September 2020 on Multi Cap schemes of Mutual Funds, requiring them to invest a minimum of 25% each in Large, Mid and Small Cap stocks, with the balance 25% giving flexibility to the fund manager.
In its clarification on 13 September 2020, SEBI said that Mutual Funds have many options to meet with the requirements, based on the preference of their unitholders. Apart from rebalancing their portfolio in the Multi Cap schemes, they could inter-alia facilitate switch to other schemes by unitholders, merge their Multi Cap scheme with their Large Cap scheme or convert their Multi Cap scheme to another scheme category, for instance Large cum Mid Cap scheme.
SEBI is conscious of market stability and therefore has given time to the Mutual Funds till 31 January 2021 to achieve compliance, through its preferred route of which rebalancing of the portfolio is only one such route.
Monsoon Session of Parliament:
The 18-day Monsoon Session of Parliament will begin from today under the shadow of the coronavirus pandemic. The Monsoon Session will see Lok Sabha and Rajya Sabha sitting in two different shifts, while special seating arrangements have been made for MPs in adherence to social distancing guidelines.
On the macro front, India's industrial output contracted 10.4% in July as against a 4.9% growth year-on-year (YoY), data released by the government on 11 September 2020 showed. This is against a 16.6% contraction in the month of June.
Global markets:
Overseas, Asian stocks are trading higher on Monday, with investors watching shares of Japanese conglomerate Softbank Group following an announcement of its sale of U.K. chip designer Arm to U.S. chip firm Nvidia.
Chipmaker Nvidia has agreed to buy Arm Holdings, a designer of chips for mobile phones, from Softbank in a deal worth $40 billion, the companies announced Sunday. The deal will be for a mix of $21.5 billion in Nvidia stock and $12 billion in cash, including $2 billion payable at signing.
Meanwhile, developments in Japanese politics were also watched as the search for the successor for Prime Minister Shinzo Abe continues. The ruling Liberal Democratic Party is set to hold an election to choose its new leader on Monday.
In US, the Nasdaq Composite Index fell 66.05 points, or 0.6%, finishing at 10,853.55 in another volatile session on Friday on continuing sell-off in tech stocks. The Dow Jones Industrial Average rose 131.06 points, or 0.5%, ending at 27,665.64; while the S&P 500 rose 1.78 points, or 0.1%, to close at 3,340.97.
Apple dropped 1.3% and Amazon fell by 1.9%. Facebook, Alphabet and Microsoft were all down. ByteDance rejected Microsoft's bid to buy TikTok's U.S. operations.
The Labor Department said Friday its U.S. consumer price index rose by 0.4% in August.
The Treasury Department said the federal budget deficit officially surpassed $3 trillion in August, and is on pace to hit $3.3 trillion when the fiscal year ends this month.
Domestic markets:
Back home, the equity market benchmarks ended with minor gains after a volatile trade on Friday. The barometer index, the S&P BSE Sensex added 14.23 points or 0.04% at 38,854.55. The Nifty 50 index advanced 15.20 points or 0.13% at 11,464.45.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,175.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 724.31 crore in the Indian equity market on 11 September, provisional data showed.
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