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What changed for the market while you were sleeping? 10 things to know

Here are top cues from domestic as well as international markets which could have a bearing on the Dalal Street on Tuesday.

April 11, 2017 / 08:23 AM IST
Representative image

Representative image

The Nifty is likely to start on a flat-to-positive note on Tuesday after closing lower for the second consecutive session in a row. The index closed below its crucial support level of 9,200 and its 5-days exponential moving average placed at 9,204.

Here are top cues from domestic as well as international markets which could have a bearing on D-Street.

India, Australia sign 6 pacts

India and Australia inked six pacts including one aimed at boosting counter—terrorism cooperation after talks between Prime Minister Narendra Modi and his Australian counterpart Malcolm Turnbull.

The two sides inked a pact to boost counter—terrorism cooperation which was signed between the Ministry of Home Affairs and its counterpart Australian ministry said a report.

Close

Wall Street closed with positive bias

US stocks ended with slight gains amid geopolitical worries and ahead of quarterly corporate earnings later this week. The earnings of S&P 500 companies estimated to have risen 10.1 percent in the first three months of the year, according to Thomson Reuters data.

The Dow Jones Industrial Average was up 1.92 points, or 0.01 percent, to 20,658.02, the S&P 500 gained 1.62 points, or 0.07 percent, to 2,357.16 and the Nasdaq Composite added 3.11 points, or 0.05 percent, to 5,880.93.

SGX Nifty

The Nifty futures on the Singapore Stock Exchange were trading 4 points higher at 9,214 indicating a flat-to-positive opening for the domestic market.

Oil prices rise, treasuries fall

Oil futures rose on Monday due to uncertainty on the situation in Syria while US Treasury yields slipped in line with the US dollar.

Brent crude futures, the international benchmark for oil prices, settled up 1.3 percent at USD 55.98 per barrel and US crude futures settled up 1.6 percent at USD 53.08.

Jitters about the upcoming French presidential election, North Korea, and US-Syria tensions underpinned safe-haven demand for safer US government debt, said a report. The yield on the benchmark 10-year Treasury was 2.362 percent, down 1 basis point from Friday.

IT spending likely to grow at a lower pace in 2017

Global information technology (IT) services spend in 2017 is projected to grow 2.3% to $917 billion, estimates Gartner Inc., lower than its earlier estimate of 4.2% and the 3.6% growth recorded in 2016, on account of protectionist policies, especially in the US, said a report.

Worldwide IT spend in 2017 is projected to grow 1.4% to $3.46 trillion, down from Gartner’s earlier forecast of 2.7% on account of the strength of the US dollar.

US Dollar takes a knock

The dollar fell on Monday as US Treasury yields dipped to start the holiday-shortened US trading week, on geopolitical jitters about the French presidential election, escalating tensions in Syria and growing unease about North Korea, said a report.

The dollar index, which tracks the greenback against six major currencies, rose to 101.34 in Asian trading pared gains and closed 0.15 percent lower at 101.04.

Rupee slips 28 paise on buoyant dollar

Retreating after a three-session winning run, the rupee on Monday lost 28 paise to end at 64.56 against the dollar with simmering geopolitical tensions taking the centrestage at the global level.

This is the biggest single-day fall in the rupee in three months. The domestic currency was extremely volatile during the trading and touched an intra-day low of 64.58.

Tough norms for commodities spot market

The government is likely to introduce stringent norms for commodities spot markets to prevent payment crises such as the one that surfaced at National Spot Exchange Ltd (NSEL) in 2013 and was later exposed to be a case of fraud, said a media report.

The commodities spot market may also be integrated with the derivatives market to improve regulatory control. The government is planning to form an expert panel to recommend ways to integrate the two markets, the report added.

FY17 flows into MFs highest in 11 years

Mutual funds in 2016-17 received the highest net inflows in at least 11 years, led by income and liquid schemes. Net inflows in the fiscal year ended March rose 155.66% from a year before to Rs 3.43 trillion.

It is the highest since at least 2005-06 when the equity market was gaining traction, data from the Association of Mutual Funds in India (AMFI) showed. Income and liquid schemes received maximum net inflows during the period, AMFI data showed.

Nifty forms 'Bearish Belt Hold' kind of pattern

The Nifty closed below its crucial psychological level of 5-days exponential moving average (DEMA) of 9,204 on Monday and made a ‘Bearish Belt Hold’ kind of pattern on the daily candlestick charts.

The index closed below its 5-day exponential moving average but managed to hold around its 10-day exponential moving average (DEMA). But the next crucial support for the index is placed at its 13-DEMA placed at 9,165.35.

Any decisive breakdown could take the index towards its next crucial support of 9,000 levels, suggest experts. While resistance is placed at 9,250 and 9,280 levels.

More money flowing into real estate sector in 2017

The real estate companies and projects attracted 19 investments totaling an announced value of USD 3.41 billion in the first quarter ended March, said a report.

The value of investments in the March quarter was up 2.7 times from the year-ago period, which had seen investments worth USD 1.25 billion across 18 transactions, showed data from Venture Intelligence.

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