Money & markets in 5 minutes

Things worth knowing

1. 01
   MARKETS

   Benchmarks bounce back on Middle East hopes

   The Sensex rose 299.17 points (0.40%) to 74,828.25 and the Nifty gained 117.80 points (0.50%) to 23,446.80. Metal, FMCG and PSU bank stocks led, while Nifty IT fell 0.86%, its third straight decline. The broader market did better than the headline indices, with BSE midcaps up 0.63% and smallcaps up 0.65%; on the BSE, 2,811 shares rose against 1,578 that fell. The India VIX, which measures expected volatility, dropped 6.41% to 10.29.

   So what for you?

   Yesterday's fall and today's rise roughly cancelled out, which is what most individual days do. A low and falling VIX means traders expect calmer markets ahead; it describes the mood, not what prices will do next.

2. 02
   CURRENCY

   Rupee ends its winning run as the dollar firms

   The rupee closed at 95.74 per dollar, weaker than Tuesday's 95.59, ending a five session gaining streak. The dollar strengthened as markets priced in more US interest rate hikes after the Federal Reserve raised rates last week, while dollar sales by state run banks limited the rupee's slide. Separately, RBI Deputy Governor Poonam Gupta said there is "a fair case for the rupee to not just stabilise but perhaps even appreciate from the current levels," citing a lower current account deficit and large forex reserves.

   So what for you?

   Higher US rates tend to pull money towards the dollar, which is why a decision in Washington can move the rupee in your wallet. If you have a foreign trip, overseas tuition or a dollar bill coming up, currency moves change what it costs you in rupees.

3. 03
   ECONOMY

   India's private sector picks up speed

   The HSBC flash India Composite PMI rose to 56.5 in September from 54.3 in August. Manufacturing climbed to 55.7 from 52.8 and services to 55.8 from 54.1 (any reading above 50 means expansion). Hiring improved in both sectors and input cost inflation eased to its lowest since January, though export order growth slowed to its weakest in nearly three years.

   So what for you?

   PMI surveys ask purchasing managers whether business is getting better or worse, so they are an early read on demand and hiring. Stronger orders and easing cost pressure are healthy signs for jobs and prices, but they are one month of survey data, not a guarantee.

4. 04
   COMPANIES

   Ola Electric lines up a rights issue

   Ola Electric told the stock exchanges that its board will meet on 28 September to consider raising money through a rights issue of equity shares. The company has not yet disclosed the size, price or entitlement ratio; those details are expected after the board decides.

   So what for you?

   A rights issue lets a listed company sell new shares to its existing shareholders, usually at a discount, in proportion to what they already hold. Shareholders who do not take up their rights see their ownership share shrink, which is called dilution. It is a common way for companies to raise fresh capital, and understanding it helps you read such announcements calmly.