Key indices ended with modest losses on Wednesday, tracking mixed Asian cues. The Nifty settled above 17,700 mark after hovering in a range of 17,608.15 and 17,781.75. A spike in U.S. benchmark bond yields and a strong dollar capped gains in equities. Trading was volatile ahead of monthly F&O expiry on Thursday, 30 September 2021.
The barometer index, the S&P BSE Sensex, fell 254.33 points or 0.43% to 59413.27. The Nifty 50 index fell 37.30 points or 0.21% to 17,711.30.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index was up 0.62% while the S&P BSE Small-Cap index rose 0.40%.
The market breadth was positive. On the BSE, 1,915 shares rose and 1,364 shares fell. A total of 155 shares were unchanged.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee fell to 74.1475 from its previous closing of 74.06.
MCX Gold futures for 5 October 2021 settlement rose 0.19% to Rs 45,940.
The yield on India's 10-year benchmark federal paper (06.10 GS 2031) fell to 6.207%, compared with 6.228% at close in the previous trading session.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 93.82.
In the commodities market, Brent crude for November 2021 settlement fell 54 cents or 0.68% to $78.55 a barrel.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 232,730,064 with 4,764,388 deaths. India reported 282,520 active cases of COVID-19 infection and 447,751 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
A total of 87,74,59,487 COVID-19 vaccine doses have been administered in the country so far, with over 53.99 lakh doses being given yesterday, according to the Co-WIN dashboard.
SEBI Framework for Gold And Social Stock Exchanges:
Stock market regulator Securities Exchange Board of India (SEBI) has approved the frameworks for gold exchange and Social Stock Exchange. The market regulator also approved amendments to delisting framework for equity shares at the board meeting held yesterday.
A gold exchange is being set up to trade the yellow metal in the form of electronic gold receipts, which will help in having a transparent domestic spot price discovery mechanism. The instrument representing gold is to be called Electronic Gold Receipt (EGR), and will be having trading, clearing and settlement features akin to other securities.
In a statement, SEBI said the Gold Exchange, encompassing the entire ecosystem of trading of EGR and physical delivery of gold, is expected to create a vibrant gold ecosystem in the country. The Gold Exchange would be a national platform for buying and selling EGRs with underlying standardized gold in India and also create a national pricing structure for gold.
SEBI has also allowed the introduction of silver exchange traded funds (ETFs) in India. The Sebi board approved the amendment to Sebi (Mutual Funds) Regulations, 1996 to enable the introduction of Silver ETFs. These will be in line with the regulatory mechanism for gold ETFs.
Under the creation of Social Stock Exchange (SSE), the SEBI board said it will be used for purpose of fund raising by social entrepreneurs. SSE will be a separate segment of the existing stock exchanges.
Global Markets:
The US Dow Jones index futures were up 203 points, indicating a rebound in US market today.
European shares advanced while most Asian stocks ended mixed on Wednesday.
U.S. stocks fell sharply on Tuesday, with tech names dragging down the broader markets as Treasury yields traded near three-month highs and lawmakers in Washington continued their budget stalemate.
Also weighing on sentiment was a budget showdown in Washington. Senate Republicans blocked a House-passed bill Monday that would have funded the government into December and suspended the debt ceiling until December of 2022.
Congress must approve government funding by Friday to avoid a shutdown, and Treasury Secretary Janet Yellen warned Congress in a letter on Tuesday that lawmakers need to raise the debt limit by October 18 to avoid a government default. President Biden's massive infrastructure plan also faces an uncertain future.
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