What changed for the market while you were sleeping? 12 things you should know

The Nifty50 corrected sharply for second consecutive session and broke the psychological 11,300-mark on Tuesday, forming bearish candle on the daily candlestick charts. Rising crude oil prices, weakening rupee and escalated trade war tensions between world's largest economies US & China caused selling pressure in the market.

All sectoral indices closed in the red with Nifty PSU Bank falling the most (down 5.44 percent) followed by Bank, Auto, Metal and Realty which lost between 1-3 percent. The broader markets also caught in bear trap with the Nifty Midcap index losing 1.4 percent.

The Nifty50 after opening flat tried to rebound and hit an intraday high of 11,411.45, but could not sustain for long and corrected further as the day progressed.

The index fell up to 11,268.95 intraday in late trade but managed to hold its crucial support of 11,250 levels.

It lost 98.90 points to close at 11,278.90. And also closed below its 50-DEMA which indicates that bears are holding the tight grip in the market, experts said.

According to Pivot charts, the key support level is placed at 11,228.1, followed by 11,177.3. If the index starts moving upwards, key resistance levels to watch out are 11,370.6 and 11,462.3.

The Nifty Bank index closed at 26,441.45, down 378.85 points on Tuesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,265.5, followed by 26,089.6. On the upside, key resistance levels are placed at 26,759.2, followed by 27,077.

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 rebounded on Tuesday in a broad-based rally as investors brushed aside intensifying trade rhetoric between the United States and China. All three major US indexes closed higher following Monday’s sell-off. Tech stocks were bolstered by news that Apple Inc and fitness gadget-maker Fitbit Inc would escape the tariffs. Apple shares closed up 0.2 percent while Fitbit shares rose 6.4 percent.

The Dow Jones Industrial Average rose 184.84 points, or 0.71 percent, to 26,246.96, the S&P 500 gained 15.51 points, or 0.54 percent, to 2,904.31 and the Nasdaq Composite added 60.32 points, or 0.76 percent, to 7,956.11.

Asian stocks rose and US Treasury yields hovered near four-month highs on Wednesday, as investors looked past the latest escalation in the US-China trade conflict, seen by some market participants as less severe than expected.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15 percent. Australian stocks added 0.35 percent, South Korea’s KOSPI climbed 0.1 percent and Japan’s Nikkei rose 1.45 percent.

Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 8 points or 0.07 percent. Nifty futures were trading around 11,307-level on the Singaporean Exchange.

China will levy tariffs on about $60 billion worth of US goods in retaliation for new US tariffs, as previously planned, but has reduced the volume of tariffs that it will collect on the products. The tariff rates will be levied at 5 and 10 percent, instead of the previously proposed rates of 5, 10, 20 and 25 percent, the Finance Ministry said on its website.

China will impose a 10 percent tariff on US products it previously designated for a rate of 20 and 25 percent. Liquefied natural gas (LNG), for example, was previously under the 25 percent tariff category but now will be subject to a tariff of 10 percent.

The new tariff measures will take effect on September 24, the date when the Trump administration says it will begin to levy new tariffs of 10 percent on $200 billion of Chinese products.

Oil prices on Wednesday pulled back from gains racked up the previous day, pushed down amid a surprise climb in US crude stockpiles. Brent crude futures had dropped 22 cents, or 0.28 percent, to $78.81 per barrel by 0042 GMT, chipping away at Tuesday’s 1.26 percent gain. US West Texas Intermediate (WTI) crude fell 0.20 percent, or 14 cents, to $69.71 a barrel.

To ease the pressure on the rupee and keep the widening Current Account Deficit (CAD) on check, the finance ministry on September 18 asked ministries to shortlist commodities and goods for import curbs by increasing customs duty, said people familiar with the matter. “Import duty hike may be considered on specified commodities for a limited period of time to keep CAD under control,” the sources said.

India’s current account deficit widened to a four-quarter high at 2.4 percent of gross domestic product (GDP) in the April-June period from 1.9 percent in the January-March quarter of 2017-18. The rising trend in oil prices this year has also sparked concerns about India’s ability to finance its widening CAD.

The Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi on 18 September made a string of announcements after the conclusion of its board meeting. Tyagi said that the regulator will soon release a revised circular on KYC requirements and eligibility norms for foreign portfolio investors (FPIs). He added that the SEBI Board considered proposed amendments of the Khan Working Group, which were discussed and agreed upon.

The cutting down on total expense ratio of mutual funds will save investors money between the range of Rs 1,300-1,500 crore.

Selloff in the last couple of hours ensured that the rupee ended the session at a record low. The currency closed at 72.97 per US dollar on Tuesday, according to Reuters. It fell to 72.98 per US dollar mark on an intraday basis, data further revealed. The rupee had opened marginally lower at 72.55 per dollar versus Monday's close 72.51.

“The weakening started around mid-afternoon. Oil prices spiked based on reports that Saudi Arabia was comfortable with Brent trading above USD 80 per barrel. Additionally, China also spoke about retaliatory tariffs to US imposing import tariffs on USD 200 billion Chinese goods and services. These were the major factors that dragged the rupee today,” Anindya Banerjee, Deputy Vice-President, Currency Derivatives, at Kotak Securities told Moneycontrol.

Investment bank, Morgan Stanley, on September 18 said India is on a growth recovery path and that will translate in to better earnings for the companies. In an interview to CNBC-TV18, Ridham Desai, India equity strategist, said that over the next two years, Indian stocks would move higher.

According to Desai, there will be a meaningful improvement in earnings for the corporate banks ahead compared to non-banking financial companies (NBFCs).

The Securities and Exchange Board of India (SEBI) on September 18 said that it will reduce the listing timeline after an initial public offering (IPO) to T+3 from T+6 at present. SEBI chairman Ajay Tyagi announced the decision in a press conference after a board meeting in Mumbai.

Currently, a company has to wait for six days after the closure of IPO to get listed on exchanges. The new regulation is expected to further bring down investors exposure to market volatility.

Large listed companies will soon be required to raise at least 25 percent of their long-term borrowings through corporate bonds, with Sebi board approving a revised regulatory framework Tuesday. The board of Sebi has cleared the framework for enhanced market borrowings by large corporates and it would come into force from April 1, 2019.

Large corporates would have to raise "25 per cent of their incremental borrowings" for a particular year through the bond market, Sebi said. Under the new framework, companies, other than scheduled commercial banks, that meet certain criteria would be categorised as large corporates.

Finance Minister Arun Jaitley will meet the heads of public sectors banks (PSBs) next week as part of the annual financial performance review exercise. The meeting scheduled for September 25 would discuss a host of issues, including progress made with regard to reduction in non-performing assets, sources said.

The meeting will happen against the backdrop of the 'Alternative Mechanism' (AM) to merge three public sector banks Bank of Baroda, Vijaya Bank and Dena Bank with a view to create a global-size lender which will be stronger and sustainable.

The initial public offer (IPO) of railways engineering and construction firm Ircon International was subscribed 1 time on the second day of bidding on September 18. The Rs 470.49-crore IPO received bids for 1,01,10,000 shares against the total issue size of 99,05,157 shares, as per NSE data.

The IPO is of 9,905,157 shares and at the upper end of the price band, the offer would raise about Rs 470.49 crore. IDBI Capital Markets & Securities Ltd, Axis Capital Ltd, SBI Capital Markets Ltd are managing the issue.

Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

For September 19, Adani Enterprises and Balrampur Chini are present in this list.