A list of important headlines from across news agencies that could help in your trade today.
The Nifty50 which started on a mildly positive note failed to gain momentum seen in previous three consecutive sessions and closed flat on Wednesday. This as despite sharp weakness in global peers after the United States issued a new list of Chinese products worth USD 200 billion for potential 10 percent tariffs.
The 50-share NSE Nifty index formed an indecisive pattern known as 'Doji' on the daily candlestick charts, which also resembles 'Spinning Top’ kind of pattern.
The Nifty50 after opening at 10,956.40 traded in a range of 54 points (10,976.65-10,923.00) before closing 1 points higher at 10,948.30.
This can be a healthy pause after a three-day gains but the index needs to close above 10,976 levels (which was today's intraday low) to resume upward trajectory and reclaim 11,100 levels, experts said.
India VIX moved up by 3.06 percent at 12.77 levels. Spurt in VIX after the decline of last five sessions have given a pause in positive momentum.
According to Pivot charts, the key support level is placed at 10,921.97, followed by 10,895.63. If the index starts moving upwards, key resistance levels to watch out are 10,975.67 and 11,003.03.
The Nifty Bank index closed at 26,816.20, down 78.35 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,747.59, followed by 26,679. On the upside, key resistance levels are placed at 26,911.79, followed by 27,007.40.
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 snaps four-day rally
US stocks fell on Wednesday, breaking a four-session streak of gains after Washington’s threat to impose tariffs on an additional USD 200 billion worth of Chinese goods fanned trade war fears, while a sharp drop in oil prices hit energy shares.
The Dow Jones Industrial Average fell 219.21 points, or 0.88 percent, to 24,700.45, the S&P 500 lost 19.82 points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite dropped 42.59 points, or 0.55 percent, to 7,716.61.
Asia stocks sag on trade war fears
Asian stocks remained under pressure on Thursday from fears of an escalation in the US-China trade war, while the dollar stood stall after rallying against its peers amid the turmoil in broader markets.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 percent. Australian stocks rose 0.35 percent, South Korea's KOSPI was flat and Japan's Nikkei gained 0.75 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 27 points or 0.25 percent. Nifty futures were trading around 10,974-level on the Singaporean Exchange.
China says will hit back after US proposes fresh tariffs on $200 bln in goods
China accused the United States of bullying and warned it would hit back after the Trump administration raised the stakes in their trade dispute, threatening 10 percent tariffs on USD 200 billion of Chinese goods.
China’s commerce ministry said on Wednesday it was “shocked” and would complain to the World Trade Organisation, but did not immediately say how it would retaliate. In a statement, it called the U.S. actions “completely unacceptable”.
Crude price rise after falling 6.9%, gains $1
Brent crude rose more than USD 1 on Thursday as focus turned to a big drawdown in US stockpiles, recouping some of the market’s heavy losses from the previous session that had been sparked by news that Libya would resume oil exports. On Wednesday, the contract slumped 6.9 percent in its largest one-day percentage decline since Februay 9, 2016
Brent crude was up 96 cents, or 1.31 percent, at USD 74.36 after earlier rising to USD 74.46. US crude rose 21 cents, or 0.3 percent, to USD 70.59, after falling 5 percent the previous session.
Dollar hits 6-month high against yen
The US dollar strengthened on Wednesday as the market put aside trade tension fears and focused on the Labor Department’s expectation-beating inflation report, which increased prospects that the Federal Reserve will raise interest rates another two times this year.
Against the Japanese yen, the dollar broke through the psychologically significant barrier of 112 yen for the first time since Jan. 10, rising as much as 1.3 percent to a top of 112.17 yen. Both the yen and the dollar act as safe-haven investments, but the strength of the greenback against the yen suggests investors are reflecting faith in the US economy rather than seeking safety.
Retail inflation hits 4 month-high in May, factory output jumps to 4.9% in April
India’s industrial production grew 4.9 percent in April, as compared with 4.4 percent jump in March, data released by statistics office on Tuesday showed. The factory output index growth rate moderated in March after consistently being above 7 percent between November and February. It expanded 6 percent a year ago.
India’s retail inflation hit a four-month high after jumping to 4.87 percent in May from April’s 4.58 percent driven by costlier food and fuel, data released by statistics office showed. It had fallen to 2.18 percent in May 2017. May’s data is an indication that inflation, which is close to 5 percent, is inching towards the apex bank’s upper tolerance level of 6 percent. Consumer food price inflation grew 3.10 percent in May from 2.80 percent in April, as compared with (-) 1.05 percent a year ago.
Three-tier GST structure possible: Chief Economic Adviser
Chief Economic Adviser Arvind Subramanian Wednesday said a three-tier structure under Goods and Services Tax (GST) is possible, ruling out a single-rate tax system. “In India, we can never have one rate. I had recommended a standard rate and one for demerit good, one for...I think in India the debate should be about why can't we have three rather than why not one?” Subramanian said at the India Policy Forum, 2018.
Currently, GST has four broad tax slabs- 5, 12, 18 and 28 percent-- and three percent tax on gold and other precious stones. “I think over time we will see simplification. For example, once the revenue stabilises, 28 percent can (go away). Cesses can be simplified, but the broader point I want to make is that can't we have at three. That's what we should ask for,” he said.
Sebi says no proposal received on NSE-MCX merger
Sebi yesterday said though the country needs more exchanges, it does not mean that existing bourses cannot merge or consolidate. Earlier this year Sebi had allowed merger of equity and commodity exchanges under its proposed universal exchanges plan from October this year.
"More players are required, but if economics demands there should be consolidation, then so be it," Tyagi told reporters on the sidelines on event on corporate bond market organised by industry body Assocham.
India cuts Iranian oil imports in June ahead of US sanctions
Indian refiners cut imports of Iranian oil last month as they started weaning their plants off crude from the country to avoid sanctions by the United States that are set to take effect in November. India's monthly oil imports from Iran declined to 592,800 barrels per day (bpd) in June, down 16 percent from May, according to data from industry and shipping sources.
Overall, India's oil imports in June rose 10.1 percent from a year ago to 4.82 million bpd, the data showed. Overall purchases climbed on a higher intake of crude from Mexico, the United States and Azerbaijan. Imports from other Middle East suppliers also increased. Lower purchases by private refiners dragged down India's June imports from Iran although state refiners stepped up purchases.
PE investments in India fall 29% in Jan-Jun on 50% drop in deals under $10 mn
Private equity investments in India have declined 29 percent in terms of deal volume in the six months ended June 30, according to Bain & Co. The slowdown was mainly caused by an approximately 50 percent drop in the number of deals valued under USD 10 million. Deals in this category fell to 108 in the first half of 2018 from 210 in the year earlier.
Overall, 224 private equity deals were reported in the six-month period compared with 318 in the year earlier. The first half of the year also witnessed a 22 percent decline in overall deal value to USD 9.2 billion from USD 11.7 billion in the year-ago period, Mint reported.
Rupee stays afloat ahead of key macro data, up 5 paise
The rupee ended higher by 5 paise at 68.77 against the US currency yesterday on the back of some stray dollar selling by exporters and banks. A fall in global crude prices buoyed sentiment in the domestic currency market despite intensifying trade tensions between the US and China.
Traders also remained wary ahead of IIP and retail inflation data. The rupee opened virtually unchanged at 68.82 against the US dollar at the Interbank Foreign Exchange (forex) market. Having posted a session high level of 68.75, the local unit finally settled at 68.77, showing a gain of 5 paise, or 0.07 percent.
Indian logistics sector to grow at 8-10% over medium term: ICRA
The Indian logistics sector is expected to grow at 8-10 percent over the medium term, domestic ratings agency ICRA said today. "ICRA maintains a stable outlook for the Indian logistics industry, expecting it to grow at 8-10 percent over the medium term," the ratings agency said in a statement.
The demand growth would continue to be buoyed by pick up in industrial activity and consumption-led sectors, while increasing preference for outsourcing logistics activities would provide further impetus to organised players," it added. Additionally, supply side factors like improvement in logistics infrastructure and emergence of logistics start-ups would offer further impetus to growth, it said.
1 stock under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For July 12, IDBI is present in this list.With inputs from Reuters & other agencies