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

Bears managed to regain control of Dalal Street after a rollercoaster ride. The Nifty50 closed mildly in the red as globally investors remained cautious ahead of the implementation of tariffs by the US and China on Friday.

The index failed to hold on to 10,750 levels and formed a bearish candle pattern on the daily charts which also resembles a small Bearish Belt Hold kind of pattern.

The 50-share NSE Nifty after opening at 10,786.05, which was also an intraday high, traded in a range of 60 points throughout the session and hit a day's low of 10,726.25, before closing 20.10 points lower at 10,749.80.

The consolidation indicates that index could move on either side but today's positive move in the Bank index suggested that banks may help Nifty reclaim 10,800 soon, experts said.

India VIX fell 0.41 percent to 12.60 levels. Lower volatility indicates limited downside and decline is being bought in the market.

According to Pivot charts, the key support level is placed at 10,722, followed by 10,694.2. If the index starts moving upwards, key resistance levels to watch out are 10,781.8 and 10,813.8.

The Nifty Bank index closed at 26,503.30, up 69.35 points. The important Pivot level, which will act as crucial support for the index, is placed at 26,412.87, followed by 26,322.43. On the upside, key resistance levels are placed at 26,596.07, followed by 26,688.84.

Stay tuned to 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’s major indexes rose on Thursday as reports that the United States and the European Union may agree to withdraw auto tariffs fostered optimism on international trade relations among investors.

The Dow Jones Industrial Average rose 181.92 points, or 0.75 percent, to 24,356.74, the S&P 500 gained 23.39 points, or 0.86 percent, to 2,736.61 and the Nasdaq Composite added 83.75 points, or 1.12 percent, to 7,586.43.

Asian share markets were set for a bumpy ride on Friday just hours ahead of a US deadline to impose tariffs on Chinese imports, which has rattled financial markets in recent weeks as investors feared it could trigger a full-blown global trade war.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent, with some support from early gains in Korean and Australian shares. Japan's Nikkei stock index was 1.1 percent higher after closing at a three-month low on Thursday, while Australian shares gained 0.2 percent. Seoul's Kospi index edged up 0.2 percent.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 26.5 points or 0.25 percent. Nifty futures were trading around 10,731-level on the Singaporean Exchange.

President Donald Trump said on Thursday the United States may ultimately impose tariffs on more than a half-trillion dollars’ worth of Chinese goods as the world’s two largest economies hurtled toward the start of a trade war.

Trump confirmed that the United States would begin collecting tariffs on USD 34 billion in Chinese goods at 0401 GMT on Friday and warned that subsequent rounds could see tariffs on more than USD 500 billion of goods, or roughly the total amount that the United States imported from China last year.

Oil markets opened cautiously lower on Friday ahead of a raft of import tariffs set to be imposed later in the day by the world’s two biggest economies, the United States and China.

International Brent crude oil futures were at USD 77.18 per barrel down 21 cents, or 0.3 percent, from their last close. US West Texas Intermediate (WTI) crude futures were down 6 cents, or 0.1 percent, at USD 72.88 per barrel.

US central bankers discussed whether recession lurked around the corner and expressed concerns global trade tensions could hit an economy that by most measures looked strong, minutes of the Federal Reserve’s last policy meeting on June 12-13 released on Thursday showed.

Fed policymakers discussed flattening of yield curve. Most Fed policymakers said trade policy risks had intensified and were concerning. A number of Fed policymakers said might soon be appropriate to change part of policy statement that refers to policy being accommodative. Many policymakers said gradual hikes could take fed funds rate above neutral level sometime next year.

With a view to fast track NPA resolution, bankers today finalised the inter-creditor agreement (ICA) framework that envisages effective communication among lenders. The ICA mechanism is expected to be enforced this month itself.

The non-performing assets (NPAs) in the banking sector crossed Rs 9 lakh crore at end-December 2017 and the RBI has warned of further worsening of the situation. The agreement, a part of Project Sashakt, will be taken to boards of respective banks and would be cleared in couple of days, said PNB non-executive chairman Sunil Mehta after the meeting.

Markets regulator Sebi on Thursday reviewed the mechanism of dividend adjustment for stock options and allowed alteration in strike price. According to the regulator, adjustment in strike price will be carried out in case dividend declared by a company is above 5 percent of the underlying stocks.

Besides, adjustment in strike price will be done in all other cases of dividend, wherein listed company has sought exemption from the timeline prescribed under listing and disclosure regulations, the Securities and Exchange Board of India (Sebi) said in a circular. The decision has been taken after several stakeholders had requested to review the framework.

Bank credit grew by 12.84 percent to Rs 86,16,408 crore in the fortnight ended June 22, according to RBI data. In the year-ago fortnight, bank loans stood at Rs 76,35,689 crore.

The growth in advances was slightly higher than the growth registered in the previous fortnight ended Jun 8. It had risen by 12.67 percent to Rs 85,98,703 crore. During the fortnight ended June 22, bank deposits had risen by 7.59 percent to Rs 113,53,525 crore, compared with Rs 105,51,910 crore in the period ended June 23, 2017, the RBI data showed.

The Indian rupee tumbled for the second straight session to hit a fresh closing low of 68.95, sliding by 21 paise following a panic demand for the US dollar coupled with savage capital flight worries.

A sudden outrush of foreign investors triggered by the US Federal Reserve signalling of a tighter monetary policy further complicated the challenges of managing currency markets. Escalating trade tensions, triggered by tariffs and counter-tariffs too weighed on the trading front. At the Interbank Foreign Exchange (forex) market, the domestic unit opened sharply lower at 68.80 from Wednesday's close of 68.74 on steady dollar unwinding by exporters and banks.

India’s outgoing chief economic advisor Arvind Subramanian said in a recent interview that the Indian rupee should be allowed to depreciate in sync with currencies of the world, as the ongoing trade war may change into currency wars. “If oil prices rise and other currencies depreciate, the rupee depreciating has to be part of the adjusting mechanism. To say that the rupee should not depreciate when all these shocks are happening is just bad economics,” he said.

“We have a stable macro-policy, growth is coming back and we have foreign exchange reserves to cushion this disruption. There is not a whole lot we can do to change what is happening in the world. But the two things we can do is to allow the adjustment to be gradual and non-disruptive for which we have the capability.”