Moneycontrol
Last Updated : Jun 22, 2017 07:56 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? 10 factors you should know

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

The Nifty on Thursday could see a subdued opening, tracking slightly weak handover from the Wall Street. The index on Wednesday, which opened at 9,648.10, rose to an intraday high of 9,650.45 which made a small upper shadow on the charts.

The 50-share bourse also slipped to an intraday low of 9,608.60 before bouncing back towards its opening level and closed at 9,633.60, down 19.90 points, making a ‘hammer’ like pattern on the daily candlestick charts.

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

US stocks closed mostly lower on Wednesday as oil prices failed to rebound from a sharp fall during the previous session.

The S&P 500 closed marginally lower as energy stocks dropped 1.6 percent to lead decliners. The sector briefly erased losses after bullish supply data from the oil market was released.

The Dow Jones industrial average slipped about 55 points, with Caterpillar contributing the most losses. The Nasdaq composite outperformed, rising 0.7 percent as biotechnology stocks spiked higher.

The major US equity indexes closed lower on Tuesday as energy stocks faced pressure from oil's sharp fall, but the Dow managed to hit a record intraday high.

SGX Nifty

Trends on the SGX Nifty indicated a flat opening with a positive bias as the Nifty futures on the exchange were trading at 9,674, down up about 12 points.

Crude oil off its 10-month low mark

Oil prices rose for the first time in three days after US crude and gasoline stockpiles fell, but investors are looking for more signs that output cuts by OPEC and some other producers are ending a three-year glut.

The market largely shrugged off comments overnight from Iran's oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production.

Brent crude futures were 9 cents, or 0.2 percent higher, at USD 44.91 a barrel at 0018 GMT, after falling 2.6 percent in the previous session to their lowest since August last year.

Rupee

The rupee managed to pare its initial steep losses and closed with a marginal fall of 3 paise at 64.52 a dollar on sustained demand for the American currency from importers and banks.

Steady capital outflows amid a caution ahead of the release of RBI's minutes of its bi-monthly policy meeting largely weighed on forex trade.

Subdued local equities too impacted the trading pattern. The rupee opened sharply lower at 64.63 per dollar from Tuesday's closing of 64.49 at the Interbank Foreign Exchange (Forex) market.

CDSL IPO issue oversubscribed 170 times

The initial public offering of Central Depository Services (CDSL) has received tremendous response from all types of investors, with getting more than Rs 62,929 crore worth of bids against issue size of Rs 369.9 crore (excluding anchor investors' portion).

The Rs 524-crore issue has oversubscribed 170.11 times on final day, as per data available with exchange.

It has received bids for more than 422 crore equity shares against issue size of 2.48 crore shares.

Tata seeking majority stake in Air India?

Tata Group has reportedly shown interest in buying a majority stake in state-run carrier Air India, news agency Reuters reported, quoting a business news channel.

The channel added that Natarajan Chandrasekaran, chairman of Tata group's holding company Tata Sons, was in touch with the top leadership in the government about a deal.

An official at the Civil Aviation Ministry declined to comment on Tata's interest, saying any development on the carrier would be "intimated soon".

Fundraisers

Private sector Axis Bank has planned a capital raise of up to Rs 35,000 crore in about a year's time in line with its growth projection in domestic as well as overseas operations.

The country's third largest private sector lender said it may issue debt securities denominated in Indian rupees or any other permitted foreign currency including long term bonds, green bonds, non-convertible debentures on a private placement basis during the period of one year from the date of passing of the special resolution.

Meanwhile, Federal Bank on Wednesday launched an institutional sale of shares, aiming to raise around Rs 2,000 crore or USD 310 million in a capital. There is an option to upsize the issue by Rs 500 crore or USD 77 million, sources said.

In a regulatory filing, the bank said its credit committee, and investment and raising capital committee has authorised the opening of the qualified institutional placement (QIP) of shares on Wednesday. The floor price has been set at Rs 117.04 per share and it can sell shares at a discount of not more than 5 percent, it said in the filing.

SEBI plans to ease takeover process under bankruptcy code

The Securities and Exchange Board of India (SEBI) today said that it would ease the takeover process for banks under the recently-introduced bankruptcy code from its strict share pricing rules, adding that such transactions will be governed only by RBI regulations.

“Share price during stake sale under NCLT will be not bound by SEBI rules,” SEBI chairman Ajay Tyagi said at a press conference after conclusion of the regulator's board meeting.

The decision was put forth initially by bankers to cut losses, said Rajnish Kumar, MD of SBI. It will be applicable when any debt has to be converted to equity for sale.

Banks get an extension to deposit old notes

The government has permitted banks and post offices to deposit junked Rs 500 and Rs 1,000 notes with the Reserve Bank by July 20.

This is the second window the government has provided to banks, post offices and cooperative banks for depositing the junked notes with RBI.

The earlier window was open till December 31, a day after the 50-day period of demonetisation of high value currency.

RBI MPC largely wants to watch inflation, one seeks rate cut: Minutes

The Reserve Bank of India's monetary policy committee wants more evidence that inflation has sustainably fallen below its target before deciding whether to lower interest rates, minutes from its last meeting showed on Wednesday.

The RBI voted 5-1 to keep the repo rate at 6.25 percent earlier this month, but issued a slightly less hawkish statement after consumer inflation eased to 2.99 percent in April, below its 4 percent target.

Ravindra H. Dholakia, a professor who is one of three non-RBI members, was the lone dissenter, voting to lower the repo rate by 50 basis points by strongly arguing that inflation had eased enough to justify a rate cut.

The vote marked the first non-unanimous decision in the five meetings since the MPC was formed last September.

(With inputs from Reuters and cnbc.com)
First Published on Jun 22, 2017 07:42 am
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