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

Kshitij Anand

Moneycontrol News

The Nifty50 is likely to open higher on Tuesday tracking positive handover from Wall Street. The Nifty50 closed 9 points lower at 10,057 on Monday.

The Nifty50 which started on a buoyant note failed to hold on to momentum and corrected in the second half of the trading session and closed below its opening level making a small bearish candle on the daily candlestick charts.

The Bears regained control and pushed the index towards its support level placed at 5-days exponential moving average (DEMA) of 10,050 as it touched its intraday low of 10,046.35.

Bulls have one more reason to worry as the Moving Average Convergence and Divergence, popularly known as MACD, gave a ‘sell’ signal on the daily charts for the first time since June.

Although, history suggests that market moved higher even though MACD gave a sell signal, but still it is a negative indicator and cannot be ignored.

Traders can still remain long as long as Nifty holds on to key support levels with a trailing stop placed at 9988.

Asian shares are trading lower on Tuesday. Nikkei and Kospi was down 0.3 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:

Wall Street ends higher

The Dow edged up to its ninth record closing high in a row while the S&P ended slightly higher on Monday in a light trading session, said a Reuters report.

The Dow Jones Industrial Average rose 25.61 points, or 0.12 percent, to close at 22,118.42. The last time the Dow had nine straight record closes was in February when it boasted 12 in a row.

The S&P 500 climbed 4.08 points, or 0.16 percent, to 2,480.91 and the Nasdaq Composite added 32.21 points, or 0.51 percent, to end at 6,383.77.

SGX Nifty

The Nifty50 futures on the Singapore Stock Exchange were trading 1 points lower at 10,088 indicating a flat opening for the domestic market.

Tata Steel Q1 profit jumps over 4-fold

Tata Steel has reported more than four-fold jump in consolidated profit at Rs 933 crore during April-June quarter, compared with Rs 209.43 crore in same quarter last year.

The profitability was driven by strong operational performance of India as well as Europe businesses. However, it partly hit by South-East Asian operations, and exceptional loss of Rs 617 crore mainly due to provision for mining related litigation.

Operating profit (EBITDA – earnings before interest, tax, depreciation and amortisation) grew by 51.9 percent year-on-year to Rs 4,974 crore and margin expanded by 350 basis points to 16.1 percent in the quarter ended June 2017.

Bharti Airtel to sell 3.7 percent stake in Bharti Infratel

Bharti Airtel will sell 3.7 percent in its telecom tower business Bharti Infratel to institutional investors. Bharti Infratel’s shares worth USD 400 million will hit stock exchanges on Tuesday morning.

The share sale will happen at 0-5 percent discount to the last closing price. The shares will be sold in price range of Rs 378-397.85 per share.

SEBI identifies stocks of 331 companies

In a letter to the exchanges, the Securities and Exchange Board of India (SEBI) has said that it has identified 331 companies that should be traded in a special category.

The stocks of these companies will be traded only once a month, sources close to the development have told Moneycontrol. The step has been taken by the markets regulator on directions of the finance ministry in an effort to identify shell companies, sources added.

Sebi may extend trading hours for derivatives market

In a bid to bring back some of the lost zing, the markets regulator, the Securities and Exchange Board of India (Sebi), is looking to extend the trading hours for the derivatives market, said a Business Standard report.

Sources said Sebi was considering if trading in index futures could be kept open even after the cash market closed. The move will provide investors the tool to price in news flow that comes after market hours.

PSU banks write off Rs 2.49 lakh crore of loans in 5 years

Public sector banks have “written off” nearly Rs 2.5 lakh crore loans in the last five financial years, the finance ministry said quoting RBI data.

As many as 27 public sector banks, including SBI and its five associates, in 2016-17 have written off Rs 81,683 crore, the highest in the last five fiscals. The amount was 41 per cent higher than that in the previous fiscal.

Govt has deactivated over 11 lakh PANs

The Income Tax Department recently deactivated over 11 lakh PAN cards to weed out “fake” and “duplicate” PANs. The move targets individuals with multiple PAN cards and those with PAN cards issued under false documents.

Blocking unauthentic PAN cards can help the government prevent identity theft and purchase of benami properties. It is imperative to check if your PAN is still active as the deadline to link Aadhaar with PAN ends on August 31.

Cess on luxury cars likely to increase to 25 percent from 15 percent

The GST (Goods and Services Tax) Council has recommended hiking the cap on cess of SUVs, large, mid-sized and luxury cars to 25 percent from 15 percent now, a decision that may make these class of vehicles more expensive.

The Centre will now have to amend the GST (Compensation to State) Act, 2017 to increase the maximum ceiling of cess on big cars, the finance ministry said on Monday.

10 lakh bank employees to go on strike on August 22

About 10 lakh bank employees and officers will go on strike on August 22 to protest against 17 issues including privatisation of public sector lenders, bank mergers, write-off of non-performing loans and hiked services charge post GST (goods and services tax).

The issues also include accountability of banks’ top management, implementing recommendations of Parliamentary Committee on recovery of bad loans, pension related improvements and adequate recruitment in all cadres, among others.

USD 100b Cash: Buffett’s Unwanted Milestone

Berkshire Hathaway reported that it held just shy of USD 100 billion in cash at the end of the second quarter, said a Bloomberg report.

While that figure highlights the staggering moneymaking ability of the businesses he’s collected over the years, it’s also a burden, it said.

Because Berkshire doesn’t pay a dividend and rarely buys back its own stock, Buffett is on the hook to find ways to invest those funds.

US can talk to North Korea if it stops missile tests

The US Secretary of State Rex Tillerson held a door open for dialogue with North Korea on Monday, saying Washington was willing to talk to Pyongyang if it halted a series of recent missile test launches, said a Reuters report.

Tillerson’s comments at a regional security forum in Manila were the latest US attempt to rein in Pyongyang’s nuclear and missile programs after months of tough talk from U.S. President Donald Trump, it said.

Oil slides as output rises at Libya’s largest oil field

Oil prices fell as much as 2 percent on selling triggered by a rebound in production from Libya’s largest oil field, along with worries about higher output from OPEC and the United States, said a Reuters report.

Global benchmark Brent crude futures were down 26 cents, or 0.5 percent, at USD 52.16 a barrel after trading as low as USD 51.37 a barrel. US crude futures were down 34 cents, or 0.7 percent, at USD 49.24 per barrel, after seeing a low of USD 48.54 a barrel.

GIC Re files for IPO, seen raising over USD 1 billion

State-owned reinsurer General Insurance Corp of India filed for an initial public offering, which bankers have said could raise more than USD 1 billion, as part of the government’s plans to list five non-life insurers in which it holds stakes, said a Reuters report.

The government will be selling about 107.5 million shares in GIC Re’s IPO, while the insurer will sell 17.2 million new shares, comprising a total 124.7 million, or 14.22 percent of the company’s post-issue share capital, according to the filing.

July sovereign gold bonds to start trading from August 8

The Reserve Bank of India on Monday said the sovereign gold bonds issued last month will be eligible for trading on stock exchanges from August 8.

The Sovereign Gold Bond Scheme 2017-18 – Series II was announced by the Government of India on July 6.

Applications for the bonds were accepted from July 10-14, 2017 and issued on July 28.

Bank of Maharashtra cuts MCLR rates by 0.05-0.15 percent from Aug 7

State-owned Bank of Maharashtra has slashed the marginal cost based lending rates (MCLR) by 0.05 to 0.15 percent with effect from Monday, making its home loans cheaper.

The base rate remains unchanged at 9.70 percent per annum, Bank of Maharashtra said in a regulatory filing.

Rupee closes down 0.36 percent against US dollar

The rupee weakened slightly against the USD, tracking losses in local equity and Asian currencies market on Monday.

The rupee closed at 63.81 a dollar, down 0.36 percent from its Friday’s close of 63.58. The currency opened at 63.73 a dollar and touched a high and a low of 63.65 and 63.84, respectively.

Idea-Vodafone merger gets conditional nod

SEBI gave a conditional go-ahead to the USD 23 billion deal between Idea Cellular and Vodafone India, which would be subject to the outcome of an ongoing probe by the regulator and approvals from public shareholders and NCLT.

The multi-layered deal was announced in March and recently got clearance from the fair trade regulator CCI.

LPG Subsidy for poor to stay: Oil Minister Pradhan

The subsidy on LPG cylinder for domestic use for the poor will continue, Oil Minister Dharmendra Pradhan said.

“We have no plan to withdraw subsidy on LPG for domestic use. Subsidy on LPG and kerosene will continue for the poor and common people,” Pradhan told reporters.

123 companies to report Q1 results today:

As much as 37 companies on the BSE will be declaring their results for the quarter ended June 30 later today which include names like Abbott India, Astral Poly, Astrazenca Pharma, Bank of India, Century Textiles, Future Retail, Gabriel India, Jagran Prakashan, Jindal Steel & Power Ltd, JK Agri, United Spirits, Muthoot Finance, NCC, Prism Cements, SRF, Tata Chemicals, Thermax, Timken India etc. among others.

7 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 HDIL, Indiabulls Real Estate, India Cements, JP Associates, JSW Energy, Kaveri Seeds, and Wockhardt.

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