Markets

What changed for the market while you were sleeping? 12 things you should know



Kshitij Anand

Moneycontrol News

The Nifty50 is likely to open lower on Friday tracking muted handover from Wall Street. The Nifty50 closed 6.8 points higher at 9,904 on Thursday.

The index closed I green but made a bearish candle on the daily candlestick charts as the closing level was lower than the opening level.

The index closed above its 10-days exponential moving average (DEMA) and 13-DEMA for the first time after 6 trading sessions.

The Nifty index failed to hold its gain and corrected towards 9,900 zones. It closed positive for the third consecutive session and has been making higher highs – higher lows on the daily chart.

Investors are advised to stay cautious as last minute selling on Thursday derailed rally on D-Street. They can lighten up their position on a bounce towards 9,950 levels.

If Nifty50 failed to reclaim 9,930 in next trading session, chances of decline towards key support levels cannot be ruled out, suggest experts.

Asian markets are trading in red on Friday morning after investors on Wall Street sold off on growing uncertainty over the Trump administration’s ability to follow through on its economic policies.

Nikkei slipped 1 percent while Kospi was down 0.30 percent.

Stay tuned with Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies:

S&P 500 posts biggest decline in three months

US stocks sold off on Thursday, with the S&P 500 recording its biggest daily percentage drop in three months as escalating worries about the Trump administration’s ability to push through its economic agenda rattled investors, said a Reuters report.

The benchmark index also closed at its lowest level since July 11. Investors appeared to be losing faith in the Trump administration’s ability to move forward with tax cuts and the rest of its domestic economic agenda, said the report quoting strategists.

The Dow Jones Industrial Average ended down 274.14 points, or 1.24 percent, to 21,750.73, the S&P 500 lost 38.1 points, or 1.54 percent, to 2,430.01 and the Nasdaq Composite dropped 123.20 points, or 1.94 percent, to 6,221.91.

SGX Nifty

The Nifty50 futures on the Singapore Stock Exchange were trading 58.50 points lower at 9825 indicating a negative opening for the domestic market.

Van ploughs through crowd in Barcelona

A manhunt is underway for the driver of a van that mowed through crowds of tourists on Barcelona’s most famous avenue on Thursday, killing at least 13 people in an attack that was claimed by Islamic State, said a Reuters report.

Authorities said the death toll could rise, with more than 100 people injured, some seriously. Police said they arrested two men, a Moroccan and a man from Spain’s north African enclave of Melilla, though neither was the driver, it said.

Chinese media takes potshots at India with racist video

Chinese state media agency Xinhua released a video on Wednesday that took a shot at India over the ongoing border dispute in the Doklam region.

The English-language video, which accuses India of committing “sins”, features a Chinese actor in a turban speaking in an Indian accent in a mocking manner.

US at economic war with China

President Donald Trump’s close aide Steve Bannon has advocated a tougher stance toward China asserting that the US is at economic war with it, prompting Beijing to warn that “there is no winner in a trade war”, said a report.

“We’re at economic war with China,” Chief White House Strategist Steve Bannon told The American Prospect. Of late media reports have said that Bannon is pushing for a strong policy against China. Many within the Trump Administration differ with him, it said.

SEBI to take stock of shell companies next month

As a multi-agency probe continues to check the black money menace, regulator Securities and Exchange Board of India (SEBI) will update its board next month on actions being taken against suspected shell companies – listed as well as unlisted ones – abetting alleged routing of illicit funds through stock markets.

While a large number of listed companies are under the scanner for allegedly being conduits for illicit money, the regulator is also keeping a close watch on cases where entities are availing LTCG (Long Term Capital Gains) benefits through sham transactions in stocks.

Cap prices of drugs & medical appliances too: Body

After the government fixed a price range for knee implants, a national body of medics working to promote ethical healthcare has demanded that a cap should be put on the cost of drugs and other medical appliances too.

Alliance of Doctors for Ethical Healthcare (ADEH) has submitted a detailed document regarding the prices of various types of implants and medicines to the chairman of the National Pharmaceutical Pricing Authority (NPPA), said a report.

After cardiac stents, the government on Wednesday fixed a price range for knee implants from Rs 54,000 to Rs 1.14 lakh, nearly 70 percent lower than most surgeries currently cost, it said.

Dollar edges up on euro woes

The dollar edged higher boosted by weakness in the euro after the European Central Bank’s July policy meeting minutes, but the U.S currency was volatile as rumors swirled about the possible resignation of Gary Cohn, director of the US National Economic Council, said a Reuters report.

Following rumors of Cohn’s departure, the White House released a statement saying he “intends to remain in his position.” That helped calm markets.

The dollar fell 0.55 percent against the yen to 109.60 yen and 0.4 percent against the Swiss franc. It hit session lows against both in the aftermath of the Barcelona attack. The dollar index edged up to 93.628.

Oil slides more than 1 percent despite steep draw in US crude stocks

Oil prices fell more than 1 percent on Wednesday even though US crude stockpiles declined by the most in a year, as data suggesting domestic production was edging higher stoked worries about the global crude glut, said a Reuters report.

Brent crude futures settled down 53 cents, or about 1 percent, at $50.27 per barrel. U.S. West Texas Intermediate (WTI) crude futures settled at $46.78 a barrel, down 77 cents, or 1.6 percent.

Euro zone yields dip on ECB and Fed caution

Euro zone government bond yields fell across the board after published remarks from policymakers in both Europe and the United States suggested they were cautious about withdrawing monetary stimulus too quickly, said a Reuters report.

European Central Bank policymakers worried about a possible overshoot in the euro when they met on July 20, minutes of the meeting showed on Thursday. They warned that easy financing conditions “could not be taken for granted” and depended on the ECB’s easy policy, it said.

PNB, HDFC Bank cut interest rate on savings by 50 bps

Two leading lenders Punjab National Bank (PNB) and HDFC Bank on Thursday slashed interest rate on savings bank accounts by 50 basis points to 3.5 percent on deposits up to Rs50 lakh.

Besides, PNB has also reduced interest rates on fixed deposits of less than 1 crore by 15-40 basis points on select maturities.

BSE asks trading members for details on PML rules compliance

Leading exchange BSE has asked trading members to report about their preparedness to comply with the amended prevention of money laundering (PML) rules whereby clients are required to furnish their Aadhaar details.

In June, the government had amended the Prevention of Money Laundering (Maintenance of Records) Rules. The BSE today said it is required to report to the Sebi on the preparedness of the trading members with respect to compliance with the amended rules.

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