Moneycontrol
Jul 18, 2017 07:27 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? 14 things to know

A look at top cues from domestic and international markets that could have a bearing on D-Street on Tuesday.

Kshitij Anand @kshanand

The Nifty is likely to open flat on Tuesday tracking positive handover from Wall Street. The Nifty closed 29 points higher at 9,915 on Tuesday.

The index formed a small bullish candle on the daily candlestick charts as the Nifty moved in a defined range throughout the trading day.

A short bull candle formed after a hanging man pattern negates the negative pattern but technical chartists are still of the view that investors will be better off booking some profits off the table.

It is important for the index to hold above 9,800-9,850 for the upside to continue while key resistance levels are placed at 9,950-10,000.

After a sharp rally of over 400 points from a recent low of 9450, investors can look at booking some profits because markets are hinting at overbought levels.

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 mixed:

The US markets ended on a flat note on Monday as gains in utilities and consumer stocks offset declines in healthcare. After the closing bell, Netflix shares jumped 8.5 percent to $175.45 following better than expected subscriber growth, said a Reuters report.

The Dow Jones Industrial Average fell 8.02 points, or 0.04 percent, to 21,629.72, the S&P 500 lost 0.13 points, or 0.01 percent, to 2,459.14 and the Nasdaq Composite added 1.97 points, or 0.03 percent, to 6,314.43.

SGX Nifty

The Nifty futures on the Singapore Stock Exchange were trading 30 points lower at 9,914 indicating a flat to negative opening for the domestic market.

US outlines NAFTA objectives

The United States on Monday outlined a tough negotiating strategy for revising the 1994 North American Free Trade Agreement and for the first time in a U.S. trade deal said it would seek to deter currency manipulation by trading partners, said a Reuters report.

The document asserts that no country should manipulate currency exchange to gain an unfair competitive advantage.

It also plans to eliminate a range of non-tariff barriers to U.S. agricultural exports to Canada and Mexico. These include subsidies and unfair pricing structures, it said.

Dollar index hits 10-month low

The US dollar hit its lowest level against a basket of major currencies in 10 months on strong Chinese economic data and doubts that the Federal Reserve would raise interest rates again this year, said a Reuters report.

The dollar index, which measures the greenback against a basket of six major rivals, touched its lowest since last September of 95.018. While it was last mostly flat on the day, it was not far from that 10-month trough at 95.157, the report added.

Oil prices ease on signs of steady output

Oil prices were about 1 percent lower as investors continued to await strong indications that an OPEC-led effort to drain a glut was proving effective but output increases in some top producers eased, said a Reuters report.

Brent crude fell 49 cents, or 1 percent, to settle at $48.42 a barrel. U.S. crude ended the session 52 cents, or 1.1 percent lower at $46.02. Prices had earlier touched their highest since July 5.

GST Council hikes cess on cigarettes

Cigarette stock will be in focus after the Goods and Services Tax (GST) Council headed by Finance Minister Arun Jaitley on Monday decided to increase the cess on cigarettes, giving out a strong message that any reduction in taxation on demerit goods will not be accepted.

The revision in the tax rate will lead to Rs 5,000 crore gain to the government on an annual basis. While the 28 percent tax and an ad valorem at 5 percent will remain, the numerical value of cess on cigarettes will be increased from Monday midnight, Jaitley said

Religare says it suffers cyber attack

Amidst reports of cyber attacks on its IT systems, financial services conglomerate Religare Enterprises on Monday said its data and operations are "completely safe" and its cyber security cell is investigating into the matter, highlighted a report.

IT systems across the globe in the recent past have been facing some or the other kind of malware attacks with the intention to extract monies from the system owners.

Religare Enterprises said the problem is exactly not in the nature of cyber attacks and there were some stray incidents, following which an advisory was issued from the information technology (IT) department of the company, said the report.

Bharti Airtel may go for consolidation

Analysts say a consolidation opportunity may arise in the market amid reports that efforts are underway to find a buyer for the country’s troubled fourth-largest carrier, Etisalat Nigeria, said an ET report.

“Nigeria is Bharti’s largest Africa market where a potential consolidation opportunity is arising with Etisalat Nigeria looking for buyers after having failed to service debt obligations,” said Bank of America Merrill Lynch in a note to clients, a copy of which was seen by ET. Nigeria generates 30% of Bharti Airtel’s Africa revenues.

Modi likely to go for Cabinet expansion

Prime Minister Narendra Modi is likely to go for a Cabinet expansion as senior minister M. Venkaiah Naidu's almost certain election as the next vice president will leave two heavyweight portfolios without a Cabinet minister, said a report.

Already, two key ministries-- defence and environment--are without a full-time minister. Finance Minister Arun Jaitley and Science and Technology Minister Harsh Vardhan are holding the additional charge of these two portfolios respectively.

SBI Life gets ready for a big IPO this year

SBI Life Insurance, which has filed the draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi), is likely to bring out the largest initial public offering (IPO) in the insurance space. Sources said that the insurer could raise as much as Rs 8500-9000 crore from the IPO.

Once listed, this would be the second life insurer after ICICI Prudential Life Insurance to be listed on the stock exchanges.

RIL, Shell, ONGC asked to pay $3 billion in penalty

The government has ordered Reliance Industries (RIL), Shell and ONGCBSE 0.95 % to pay a combined $3 billion in penalty following an arbitration award in the Panna Mukta Tapti (PMT) oil field dispute that went in favour of the government, according to people familiar with the matter, said an ET report.

RIL and Shell have appealed the arbitration award in a UK court. The oil ministry sent out a demand notice last month to Reliance and Shell, which owns 30% each in the PMT fields off the Mumbai coast, as well as to ONGC that owns the balance 40% participating interest. The three companies have to pay the penalty proportionate to their stake in the fields, said the report.

Rupee ends higher against USD

The Indian rupee on Monday appreciated 0.1 percent to close at over a month’s low of 64.35 to the dollar, tracking gains in domestic equity markets and other Asian currencies.

Intraday, the rupee touched a high and low of 64.33 and 64.40 against the dollar, respectively. Dealers said that some custodian banks were seen selling the dollar throughout the session, most likely on behalf of their foreign portfolio investor clientele who would have looked to invest in Indian equities.

18 companies to report Q1 results today:

18 companies will report their results for the quarter ended June on Tuesday which include names like Crisil, HT Media, Jay Bharat Maruti, Jubilant Lifesciences, Sasken Technologies, Network 18, HUL, and UltraTech Cement etc. among others.

10 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% of the market-wide position limit.

Securities which are banned for trading today include names like Fortis Healthcare, GMR Infrastructure, HDIL, Indiabulls Real Estate, Jaiprakash Associates, JSW Energy, JustDial, Kaveri Seeds, OBC, and Ujjivan.
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