Moneycontrol
Last Updated : Jan 07, 2019 07:30 AM IST | Source: Moneycontrol.com

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

A collection of important stories from across news agencies.

Moneycontrol News @moneycontrolcom

It is likely to be a strong start to the market on Monday morning, tracking good moves in Asian markets as well as on the SGX Nifty.

After a volatile session, the Nifty 50 managed to close above the 10,700 levels on January 4, tracking positive sentiment in global peers ahead of trade talks between the US and China next week.

The 30-share BSE Sensex rose 181.39 points to 35,695.10 while the Nifty 50 climbed 55.10 points to close at 10,727.40. For the week, indices fell 1 percent and 1.2 percent, respectively, and formed 'Bearish Engulfing' pattern on the weekly charts.

The Hammer candle on a daily scale followed by Bearish Engulfing Body on the weekly scale indicates both the bulls and bears are having a tug of war. Formation of Hammer in daily charts suggests a bounce back move while the formation of a Bearish candle on the weekly scale suggests multiple barriers at higher zones.

A Bearish Engulfing pattern consists of two candles. One candle is usually a small candle which is followed by a large black or red candlestick pattern that engulfs the short one or the previous candle.

India VIX fell by 3.74 percent at 16.16 levels. VIX needs to hold below 16 zones to again get a bounce back move in the market.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a gist of important stories from across news agencies.

Asian markets

Asian shares got off to a rousing start on Monday as a dovish turn by the Federal Reserve and startlingly strong U.S. jobs data soothed some of the market’s worst fears about the global outlook, Reuters reported.

Investors are keen to see how Chinese markets react to the central bank’s policy easing announced late on Friday, which frees up around $116 billion for new lending.

Chinese officials also meet their U.S. counterparts for trade negotiations starting later Monday, the first face-to-face talks of the year.

US Markets

The Dow Jones Industrial Average closed 746.94 points higher at 23,433.16, or 3.3 percent, and briefly rose more than 800 points, CNBC reported. The S&P 500 rallied 3.4 percent to 2,531.94, with the tech sector gaining more than 4 percent. The Nasdaq Composite climbed 4.26 percent to 6,738.86. This was a rebound from Thursday's plunge, which was triggered by a massive drop in Apple's stock.

Stocks took off after Powell hinted the central bank could pause its rate hikes, something this beaten-down market was waiting for. "As always, there is no preset path for policy," Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

SGX Nifty

A gap-up opening is likely as Nifty Futures on Singaporean Exchange were trading over 100 points higher. The futures traded around 10,890-odd levels.

Rupee

The Indian rupee Friday rebounded by 48 paise to settle at 69.72 against the US dollar in line with smart gains in domestic equities and uptrend in other emerging market currencies, PTI reported.

Also, sustained selling of the American currency by exporters and banks propped up the rupee after two successive sessions of fall, traders said.

Oil prices rise on trade talks and supply cuts, but global economy concerns linger

Oil prices rose by around 1 percent on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market, Reuters reported.

Brent crude futures LCOc1 were at $57.61 per barrel at 0111 GMT, up 55 cents, or 1 percent, from their last close.

US West Texas Intermediate (WTI) crude oil futures CLc1 were at $48.49 per barrel, up 53 cents, or 1.1 percent.

Financial markets were being lifted early on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, due to start on Monday, would lead to an easing in tensions between the two biggest economies in the world.

FPI outflow at Rs 83,000 crore in 2018 on crude price rise, rupee depreciation

Overseas investors pulled out over Rs 83,000 crore from the capital markets in 2018, after pouring in a record Rs 2 lakh crore in the preceding year, on the back of rate hikes in the US, rise in global crude prices and rupee depreciation, according to a PTI report.

Moreover, the flows are expected to be range-bound in 2019 as FPIs may continue with a cautious stance until there are concrete signs of economic recovery and certainty over the formation of a stable government after the general elections, said Himanshu Srivastava, a senior analyst at Morningstar Investment Adviser.

Foreign portfolio investors (FPIs) made a net withdrawal of about Rs 83,146 crore from the Indian markets in 2018. This comprises Rs 33,553 crore from equities and Rs 49,593 crore from the debt market, according to data available with depositories.

6 of top-10 companies lose Rs 38,153 crore in m-cap

The combined market valuation of six of the 10 most valued companies slumped by Rs 38,152.86 crore last week, with Reliance Industries Ltd (RIL) taking the steepest hit, PTI reported.

While Tata Consultancy Services (TCS), RIL, HDFC Bank, HUL, ITC and HDFC suffered losses in their market capitalisation (m-cap) for the week ended Friday, Infosys, State Bank of India (SBI), Kotak Mahindra Bank and ICICI Bank made gains.

RIL's market valuation tumbled by Rs 16,955.65 crore to Rs 6,96,639.64 crore.

The m-cap of Hindustan Unilever Ltd (HUL) dropped Rs 8,626.12 crore to Rs 3,85,361.63 crore and that of TCS dived Rs 8,198.96 crore to Rs 7,03,178.13 crore.

Ministerial panel approves Kerala's request for additional disaster cess under GST

A ministerial panel on January 6 allowed Kerala to levy an additional calamity cess of 1 percent under the Goods and Services Tax (GST) regime.

"Kerala will be permitted to have 1 percent cess on the value of goods and services across all or select items for two years," said Thomas Isaac, the state's Finance Minister, after meeting a group of ministers in the national capital.

According to BloombergQuint report, the items that will bear the additional tax will be decided by the state.

Govt to launch delayed second round of oil block auction on January 7

After months of delay, India will on January 7 launch the second auction of 14 blocks for prospecting of oil and gas in an attempt to raise domestic output to cut imports, according to a PTI report.

Officials said the Open Acreage Licensing Policy (OALP) bid round-II, with 14 blocks measuring 29,333 square kilometres in aggregrate area on offer, will be launched by Oil Minister Dharmendra Pradhan on January 7.

India had in July 2017 allowed companies to carve out blocks of their choice with a view to bringing about 2.8 million sq km of unexplored area in the country under exploration.

MFs add Rs 1.24 lakh crore to asset base in 2018 on SIP flows

Mutual funds have added a staggering Rs 1.24 lakh crore to their asset base in 2018 assisted by consistent increase in SIP flows and a robust participation of retail investors despite volatile markets, PTI reported.

The asset under management (AUM) of the industry grew by 5.54 per cent or Rs 1.24 lakh crore to Rs 23.61 lakh crore at the end of December 2018, up from Rs 22.37 lakh crore at the end of December 2017, latest data available with the Association of Mutual Funds in India (Amfi) showed.

The year 2018 also marked the sixth consecutive yearly rise in the industry's AUM after a drop in the two preceding years.

The pace of growth, however, declined for the asset size in 2018 as compared to the previous year. The industry saw a surge of 32 per cent in the AUM or an addition of over Rs 5.4 lakh crore in 2017.

 
First Published on Jan 7, 2019 07:30 am
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