Moneycontrol
Last Updated : Jan 08, 2019 07:28 AM IST | Source: Moneycontrol.com

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

A gist of important stories from news agencies across the globe.

Moneycontrol News @moneycontrolcom

Equity benchmarks are likely to see a subdued start, amid mixed global cues, with the SGX Nifty pointing at a 10-point cut.

The market started off the week on a positive note, though it failed to hold on to 10,800 levels at close on the Nifty on January 7.

The BSE Sensex rallied 155.06 points to 35,850.16, driven by technology stocks and positive Asian cues amid a new round of trade talks between the US and China. Dovish comments from the Federal Reserve and strong US jobs data also lifted sentiment.

The Nifty surged in the morning to hit an intraday high of 10,835.95, but a bit of profit booking in late trade erased nearly half of its gains. The index closed 44.40 points higher at 10,771.80 and formed a bearish candle on the daily charts that resembles a 'Spinning Top' kind of pattern.

One needs to keep a close eye on this development and should position accordingly, he advised.

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.

Wall Street

Stocks rose in choppy trading on Monday as investors bet on US-China talks on trade.

The Dow Jones Industrial Average climbed 98.18 points to 23,531.35 after briefly falling 131.57 points. The Nasdaq Composite advanced 1.26 percent to 6,823.47, posting its seventh positive session in eight, as Amazon shares rose more than 3 percent.

Asian shares extend rebound on hopes for trade deal, cautious Fed

Asian shares rose for the third straight session on Tuesday as investors bet that Washington and Beijing are inching towards a trade deal and that U.S. Federal Reserve would halt its tightening if economic growth slows further

Japan's Nikkei rose 1.0 percent while MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 percent.

SGX Nifty

Nifty Futures on Singaporean Exchange were trading mildly lower on Tuesday morning. They were trading a tad below 10,800-mark.

Rupee

The rupee pared early gains but managed to end 4 paise higher at 69.68 against the US dollar Monday following dovish stance by the Federal Reserve and rising hopes of a thaw in ongoing US-China trade tiff, PTI reported.

Besides, smart gains in domestic equities and weakening of the greenback in overseas markets propped up the Indian currency

GDP first advance estimate: CSO pegs FY19 growth at 7.2%

The Indian economy will likely grow at 7.2 percent in 2018-19, faster than the previous year’s 6.7 percent expansion, but is set to moderate to below 7 percent during October-March this year, signaling a slowdown amid festering rural distress.

According to the first advanced estimates, India's real or inflation-adjusted Gross Domestic Product (GDP) will grow at 7.2 percent in 2018-19, implying an average growth of 6.75 percent between October and March, data released by the Central Statistics Office (CSO) showed on January 7.

India's GDP—the total value of goods and services produced in the country—grew 8.2 percent and 7.1 percent during April-June and July-September quarter respectively in 2018-19.

Bandhan Bank acquires Gruh Finance

Bandhan Bank, the youngest bank in India, is set to acquire Gruh Finance, a housing finance subsidiary of HDFC. It will be an all share-swap merger with shareholders of Gruh Finance getting 568 shares of Bandhan Bank for every 1,000 shares held.

The merger would result in a reduction in promoter’s stake in Bandhan Bank from 82.2 percent to 61 percent. HDFC, which owns 57.86 percent in Gruh Finance as on September 30, 2018, will end up having around 14.96 percent in Bandhan Bank. Since the bank ownership norms stipulated by RBI caps single entity holding at 10 percent, HDFC will have to offload the additional stake in Bandhan.

At the stated swap ratio, the deal seems to be fairly valued and will be a win-win situation for the shareholders of Bandhan Bank as well as Gruh Finance. The swap ratio values Gruh Finance more or less in lines with its current market capitalization of Rs 22,000 crore. The swap ratio doesn’t imply any premium as Gruh is already trading at very rich valuations. The move will help Bandhan in getting closer to regulatory compliance while acquiring a top quality housing finance company.

RBI to inform about interim dividend 'as and when decision is taken': Governor Shaktikanta Das

The apex bank will inform about its decision to transfer interim dividend to the government "as and when it is taken", Reserve Bank of India (RBI) Governor Shaktikanta Das said on January 7.

"As and when the RBI takes decision on the matter, we will inform," Das said while addressing the media.

The statement comes after media reports suggested that the central bank was planning to transfer Rs 30,000-40,000 crore as interim dividend to the government.

NSE announces weekly Nifty Options from February 11

The National Stock Exchange, in a circular, said that Weekly Options contracts on Nifty shall be made available for trading in Future & Options segment w.e.f. February 11, 2019.

The following weekly options contracts shall be available for trading from February 11, 2019 onwards:

The settlement procedure and details shall be intimated separately by NSE Clearing, the exchange further added.

Trump, Modi discuss trade, Afghanistan: White House

Reuters reported that US President Donald Trump and Indian Prime Minister Narendra Modi discussed reducing the U.S. trade deficit with India and increasing their cooperation in Afghanistan in a telephone call on Monday, the White House said.

“The leaders agreed to strengthen the U.S.-India strategic partnership in 2019 and exchanged perspectives on how to reduce the U.S. trade deficit with India, expand security and prosperity in the Indo-Pacific, and increase cooperation in Afghanistan,” the White House said in a statement.

Oil prices rise on trade talk optimism, OPEC cuts

Oil prices rose on Tuesday on hopes that U.S.-Chinese talks in Beijing would bring a halt to trade disputes between the world’s biggest economies, while OPEC-led supply cuts tightened markets.

International Brent crude futures LCOc1 were at $57.77 per barrel at 0113 GMT, up 44 cents, or 0.8 percent from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $48.85 per barrel, up 33 cents, or 0.7 percent.

U.S. Commerce Secretary Wilbur Ross said late on Monday that Beijing and Washington could reach a trade deal that “we can live with” as dozens of officials from the world’s two largest economies held talks in a bid to end their trade dispute that has roiled global markets since last year.
First Published on Jan 8, 2019 07:28 am
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