Markets

What changed for the market while you were sleeping? 20 things to know

Moneycontrol News

The market could look to continue its momentum from Thursday’s close and global cues are largely placed in this direction as well.

The NSE Nifty traded in a volatile range throughout the day on Thursday but bulls managed to regain control over D-Street after seven straight sessions of decline. The index made a bullish candle which closely resembles ‘Hammer’ like pattern on charts, after forming 7 consecutive bearish candles on daily charts.

The Nifty bounced back from its crucial support placed at 100-day exponential moving average (DEMA) placed at 9,714 for the second consecutive day in a row and as long as it trades above 9,685 chances of a bounce towards 9,920 is possible.

The trend reversal will be much stronger if the index decisively closes above 9,920. However, a breach of 9,685 on closing basis could again fuel bearish sentiments which could push the index back towards 9,638-9,600 levels.

The Nifty index opened at 9,736.40 and rose to an intraday high of 9,789.20 and retraced over 100 points to touch its intraday low of 9,687.55. It bounced back from its 10-day EMA to close 33 points higher at 9,768.95.

In the global market, Asian shares were mixed early in Friday trade after the greenback gave back some gains overnight as markets digested prospects for US tax reform. Markets in Asia also digested a raft of data out of Japan.

The Nikkei 225 shed 0.19 percent in early trade after the dollar rally paused overnight. The US currency, however, inched higher against the yen following the release of a raft of economic data early in the session. The greenback traded at 112.56 at 8:12 a.m. HK/SIN, up from levels around 112.4 earlier, but below the 113 touched during Asian trade on Thursday.

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

SGX Nifty

Nifty futures on Singaporean exchange were trading about one-third of a percent higher, hinting at a positive start to the market. The futures traded at 9,769, up about 32.5 points and 0.33 percent higher on Friday.

Dow closes higher; small cap stocks hit a record

The Dow Jones industrial average closed about 40 points higher Thursday and the small-cap Russell 2000 index hit an all-time high after the release of the GOP’s highly anticipated tax reform plan.

The S&P 500 gained 3 points to a record close of 2,510.06 , coming within 0.1 percent of its all-time high but failing to hit an intraday record. The Nasdaq composite closed 0.2 points higher, within 0.4 percent of its record. The Dow transports also edged up to an all-time high.

Oil gains on optimism over demand outlook, supply cuts

Oil prices rose on Friday, with both Brent and US crude set to chalk up another weekly gain as investors bet that efforts to cut a global glut are working and that the demand outlook is improving.

US crude was up 2 cent at $51.58 a barrel at 0110 GMT. The contract is heading for a fourth consecutively weekly gain and is on track for a 9-percent advance this month.

Brent rose 22 cents to $57.63 a barrel, heading for a fifth weekly climb and a 10-percent gain for September.

Govt keeps borrowing target unchanged at Rs 2.08 lakh cr for second half of FY18

The Centre on Thursday kept the gross borrowing target for October-March unchanged at Rs 2.08 lakh crore but indicated that the government may raise more funds from the market if required.

The net borrowing during the second half of the financial year will continue to remain at Rs 1.92 lakh crore. A major part of the borrowing will be done in the quarter ended December.

There is room for a 50 basis point rate cut: P Chidambaram

‘There is room for a 50 basis point rate cut’ that’s the word coming in from P Chidambaram, one of the two former Finance Ministers who have lashed out against the government on the state of the economy, the other being Yashwant Sinha. CNBC-TV18’s Shereen Bhan caught up with P Chidambaram to discuss more on this issue.

Fin min asks CPSEs to spend additional Rs 25,000 cr on capex to boost investment

The Finance Ministry has asked Central Public Sector Undertakings (CPSEs) to spend an additional Rs 25,000 crore towards its capital expenditure (capex) programme, in a bid to boost investment in the economy.

The Finance Minister Arun Jaitley Thursday reviewed the capital expenditure programme and status of dividend distribution of CPSEs and authorities with the secretaries of concerned ministries and heads of such companies, pertaining to sectors such as petroleum, defence, power, road transport, railways, coal, mines, steel, and atomic energy.

GST mop-up worries misplaced, but still is negative on markets: UBS

With the ongoing correction in the markets indicating a possible investor uneasiness over the shortfall in GST revenue, a foreign brokerage said such concerns are premature and full-year tax collections could still be in line with the budgeted target.

“Our calculations of potential monthly GST revenue in FY18, assuming 8 percent year-on-year growth and seasonality of monthly indirect tax revenue, suggest that GST collection is tracking just fine,” Swiss brokerage UBS Securities said in a report on Thursday.

RBI increases investment limit in govt bonds for foreign investors by Rs 14,200 cr

The total investment limit for foreign portfolio investors (FPI) in government securities for the October to December quarter has been increased by Rs 14,200 crore to Rs 2,89,300 crore, the Reserve Bank of India said on Thursday. The existing limit stands at Rs 2,75,100 crore.

Effective from October 3, the limits for investment by FPIs for the quarter October-December 2017 is increased by Rs 80 billion (Rs 8,000 crore) in central government securities and Rs 62 billion (Rs 6,200 crore) in state development loans, the central bank said in a notification.

Bankers to HCC unit’s Lavasa Corp invoke RBI’s strategic debt restructuring

Lenders to Lavasa Corporation Limited, unit of Hindustan Construction Company (HCC) group, have invoked the strategic debt restructuring (SDR) plan to resolve the stressed assets of the firm.

Additionally, SDR has also been invoked on Lavasa’s two wholly owned subsidiaries – Warasgaon Assets Maintenance Limited and Warasgaon Power Supply Limited, HCC informed in a stock exchange filing. The total debt of the company to be restructured is tentatively at about Rs 3,000 crore.

North Korean firms in China ordered to close by January

China has ordered North Korean companies in the country to shut down by January as it applies UN sanctions imposed following Pyongyang’s sixth nuclear test, the commerce ministry said on Thursday.

The ministry said the companies, including joint ventures with Chinese firms, have 120 days to close from the date the United Nations resolution was adopted, September 11.

North Korea ready for war as people volunteer to join army

North Korea claimed that some 4.7 million students and workers have volunteered to join the military or re-enlist in the army since its leader Kim Jong-un vowed last week to retaliate against the United States.

The figure consisted of “students and workers” including 1.22 million women who in the past six days have been asked to join the ranks of the Korean People’s Army, the Rodong Sinmun daily report said.

White House battles critics over tax plan as lawmakers prepare to act

The White House struggled on Thursday to defend its new tax plan against criticism that it would help the rich at the expense of lower classes, as Republicans in Congress prepared to move ahead with actual legislation.

A day after President Donald Trump unveiled the plan and called it “a miracle for the middle class,” White House economic adviser Gary Cohn said he could not guarantee that all middle-class Americans would see their tax bills decline.

US second-quarter GDP growth revised up to 3.1 percent

The US economy grew a bit faster than previously estimated in the second quarter, recording its quickest pace in more than two years, but the momentum probably slowed in the third quarter as Hurricanes Harvey and Irma temporarily curbed economic activity.

The gross domestic product increased at a 3.1 percent annual rate in the April-June period, the Commerce Department said in its third estimate on Thursday. The upward revision from the 3.0 percent pace of growth reported last month reflected an increase in inventory investment.

India Inc’s foreign borrowings nearly halve to $1.64bn in August

Indian Inc’s foreign borrowings nearly halved to USD 1.64 billion in August this year, data from Reserve Bank showed on Thursday.

It includes borrowings through external commercial borrowings (ECBs) and rupee-denominated bonds (RDBs) — which were halted briefly recently. Indian firms had borrowed USD 3.17 billion through ECBs in August 2016.

Telcos to invest USD 20 billion in next 2 years: Bharti Enterprise VC

Telecom operators in the country are expected to invest USD 20 billion (around 1.3 lakh crore) in the next two years on expansion of network and operations, Bharti Enterprise Vice Chairman Akhil Gupta said on Thursday.

“Looking at the financial health of many operators, we need to change their model. They need to get, to my mind and experience, asset light. This obviously means massive investment. By very rough estimate, a conservative estimate, we are looking at over USD 20 billion investments in next two years,” Gupta said during a panel discussion at India Mobile Congress.

Angry Birds maker Rovio valued at $1 billion in IPO

Finnish mobile games studio Rovio Entertainment Ltd priced its initial public offering (IPO) at the top end of the initial range on Thursday, giving it a market value of 896 million euros ($1.06 billion) before its market debut on Friday.

Rovio, whose games have been downloaded 3.7 billion times, announced its long-awaited IPO this month, saying it aimed to boost growth and take part in gaming industry consolidation.

Domestic MF inflows into equity cross Rs 75K cr so far this year, FIIs play cautious

Domestic mutual funds have been on a buying spree in the last 3 years, while foreign investors remained cautious.

A look at the investment data of foreign institutional investors and mutual funds for the last 10 years, reveals that mutual funds have turned net buyers in the last 3 years. In 2017, so far domestic mutual funds have picked up shares worth over Rs 75,000 crore while FIIs invested Rs 38,000 crore in the stock market.

NSE aims for listing in second half of 2018

The National Stock Exchange is unlikely to go for a listing before the second half of 2018, the bourse’s new chief executive told Reuters.

The exchange had originally planned to go public this year, in what could be one of India’s biggest ever IPOs.

Sebi slaps Rs 1.1-cr fine on Crosseas Capital for fraud trade

Markets regulator Sebi imposed a penalty of Rs 1.1 crore on Crosseas Capital Services for indulging in fraudulent trading activities as a stock broker in the shares of Sudar Industries.

The Securities and Exchange Board of India (Sebi) had conducted an investigation in the share dealing of Sudar Industries (earlier known as Sudar Garments) on March 11, 2011 – the day when the firm got listed – for any possible violation of securities laws.

After BoB & Andhra Bank, State Bank of India cuts base rate to 8.95%

Ahead of the monetary policy rate decision, State Bank of India, country’s largest lender, cut base rate by 5 basis points (bps) to 8.95 percent. “Base rate reduced from 09.00 percent p.a. to 8.95 percent p.a. w.e.f. 01.10.2017,” SBI said on its website.

This comes after a couple of other public sector banks including Bank of Baroda and Andhra Bank earlier in the day announced a reduction in their base rates.

Bank of Baroda revised its base rate downwards by 35 bps to 9.15 percent with effect from October 1. Andhra Bank reduced the rates to 9.55 percent, down by 15 bps from 9.70 percent.

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