Markets

What changed for the market while you were sleeping? 15 things you should know



Kshitij Anand

Moneycontrol News

The Nifty50 is likely to open flat on Thursday tracking muted handover from Wall Street. The Nifty50 closed 33 points lower at 10,081 on Wednesday.

The Nifty50 hit a record high but then quickly sold off in the last one hour of trade soon after the monetary policy committee (MPC) decided to slash key rate by 25 bps. The index formed a ‘Bearish Belt Hold’ kind of pattern on the daily candlestick charts.

Traders are advised to stay long and initiate buy on dips strategy towards any fall towards 10,000 levels. Although, Bearish Belt Hold is a trend reversal pattern but doesn’t go short in this market because it still requires confirmation.

The index now has to respect to its rising support trend line by connecting the recent swing lows of 9543, 9646, 9838 and 9944 so the major trend is still intact even after a small decline from higher levels.

As long as Nifty trades above 10,000 levels, the upside remains intact and investors can initiate long positions for the next possible target placed at 10,350 and keep a stop loss 9,944.

Asian markets are trading lower as investors booked the recent gains after Dow Jones Industrial Average has broke the 22,000 barrier. Nikkei was down 0.40 percent and Kospi declined over 2 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:

Dow cracks 22,000 for the first time, Apple hits record high

The Dow climbed above the 22,000 mark for the first time, buoyed by Apple’s healthy quarterly iPhone sales. Apple jumped 4.73 percent to a record high after the world’s largest publicly listed company reported strong results. It is up 36 percent this year, said a Reuters report.

Two-thirds of S&P 500 companies have reported their second-quarter earnings so far and 72 percent of them have beaten Wall Street’s expectations, according to Thomson Reuters I/B/E/S.

The Dow Jones Industrial Average rose 0.24 percent to end at 22,016.24, a record high. The S&P 500 gained 0.05 percent to 2,477.57 and the Nasdaq Composite was flat at 6,362.65.

SGX Nifty

The Nifty50 futures on the Singapore Stock Exchange were trading 28.50 points lower at 10,059 indicating a lower opening for the domestic market.

Arun Jaitley indicates scope for rationalisation of rates under GST

Finance minister Arun Jaitley said that there is scope to rationalise goods and services tax (GST) and rolling 12 percent and 18 percent slabs into one as the implementation of the country’s most comprehensive indirect tax reforms progresses, said an ET report.

The current GST has 5 per cent, 12 percent, 18 percent and 28 percent rates, plus one for luxury and sin goods. There are some that are zero rated or nil rate.

Government likely to end subsidy on kerosene

The government has taken further steps to gradually reduce subsidy on kerosene, continuing the series of market-oriented reforms that have galvanised the petroleum sector and attracted big-ticket investment after an era of excessive controls, said an ET report.

In a recent communication, it has asked state oil companies to keep raising prices of subsidised kerosene by 25 paise every fortnight until the subsidy is eliminated, or until further orders, sources said. The oil ministry had earlier ordered a similar increase only up to July this year.

NCLT to take call on RComm-Aircel merger admitting case today

The National Company Law Tribunal (NCLT) is expected to take a call on whether to admit Reliance Communications’ merger proposal with Aircel on Thursday even as the telecom department suggested that the proposed partners should first get clearance from the Supreme Court, said an ET report.

An NCLT bench of judges BSV Prakash Kumar and V Nallasenapathy will continue to hear the admission plea when it is expected to take a final call.

Amazon, two others get nod for FDI in food retail

The government has approved three foreign direct investment proposals in food retail, including that of e-commerce major Amazon, commerce and industry minister Nirmala Sitharaman told Parliament on Wednesday, said an ET report.

In a written reply to Rajya Sabha the minister informed that FDI proposals of Amazon Retail and online grocery service providers Grofers and Supermarket Groceries Supplies have been approved by the department of industrial policy and promotion (DIPP), it said.

Pull back troops from Doklam: China to India

China said it has conveyed its firm stand to India that it must take “concrete actions” by immediately pulling back troops from Doklam in the Sikkim section with “no strings attached” to resolve the current standoff.

SEBI gives more borrowing options to brokers

Securities and Exchange Board of India (SEBI) allowed stock brokers to borrow funds through the issuance of commercial paper and unsecured loans from directors and promoters in order to provide margin trading facility to their clients, said a PTI report.

Currently, a broker can use his own funds or borrow from banks and non-banking financial companies (NBFCs) for this purpose.

The move follows after SEBI received representations from brokers and their associations requesting to enable them to utilise funds from sources other than banks and non-banking financial companies for extending margin trading facility, the regulator said in a circular.

Cochin Shipyard IPO oversubscribed 3.16 times on Day 2

The initial share sale offer of Cochin Shipyard was oversubscribed 3.16 times on the second day of the three-day bidding today. The IPO received bids for 10,72,21,140 shares against the total issue size of 3,39,84,000 shares, data available with the NSE showed.

Security and Intelligence Services IPO oversubscribed 7 times

The initial share sale offer of Security and Intelligence Services (India) Limited (SIS) was oversubscribed 7 times on the last day of bidding on Wednesday.

The IPO to raise up to Rs 780 crore received bids for 3,72,20,814 shares against the total issue size of 53,16,187 shares, according to data available with the NSE till 1930 hours.

US bans travel to North Korea from September 1

A ban on travel by US passport holders to North Korea will take effect on Sept. 1 and Americans in the country should leave before that date, the US State Department said on Wednesday, said a Reuters report.

Journalists and humanitarian workers may apply for exceptions to the ban, the department said in a public notice, it said.

Donald Trump unveil bill to slash legal immigration to the US

US President Donald Trump and two Republican senators unveiled a plan at the White House to half the number of legal immigrants to the United States eventually and favour newcomers who speak English, said a Reuters report.

Trump threw his support behind a bill developed by senators Tom Cotton of Arkansas and David Perdue of Georgia that they say would cut legal immigration by 50 per cent over 10 years by reducing the kinds of relatives immigrants can bring into the country, it said. The legislation faces an uphill climb to get through Congress.

Dollar falls against euro on ECB; Dollar index touches 15-month low

The US dollar hit its lowest level against the euro in more than 2-1/2 years on doubts about another Federal Reserve interest rate increase this year and expectations for European Central Bank hawkishness, said a Reuters report.

The euro hit USD 1.1909, its highest level against the dollar since January 2015. Euro zone economic data has encouraged the view that the ECB is on a path toward tightening its monetary policy, which is considered a favorable scenario for the euro.

The dollar index, which measures the greenback against a basket of six major rivals, touched a 15-month low of 92.548 and was last down 0.2 percent at 92.833.

Gold nears seven-week high as investors look to Fed

Gold rose and was nearing seven-week highs as the dollar fell to a 15-month low and US data showed fewer-than-expected new jobs in July, bringing into question chances of the Federal Reserve raising interest rates in the coming months, said a Reuters report.

Gold is highly sensitive to rising rates because they lift bond yields, raising the opportunity cost of holding non-yielding bullion, and tend to boost the dollar, in which gold is priced, it said.

Spot gold was up 0.2 percent at USD 1,270.43 an ounce. US gold futures settled down 0.08 percent at USD 1,278.40.

68 companies to report Q1 results today:

As much as 68 companies on the BSE will be declaring their results for the quarter ended June 30 later today which include names like CEAT, Colgate Palmolive, Cummins India, Greaves Cotton, HCC, IOC, JSW Holdings, PNB Housing Finance, The Ramco Cement, Titan Company, Ujjivan, VIP Industries etc. among others.

4 stocks under ban period on NSE

Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

Securities which are banned for trading today include names like Indiabulls Real Estate, JP Associates, JSW Energy, and Wockhardt.

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