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Last Updated : Aug 22, 2019 07:33 AM IST | Source: Moneycontrol.com

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

Trends on SGX Nifty indicate a negative opening for the broader index in India, a with 0.11 percent loss or 12.5 points.

Sandip Das @Im_Sandip1

The BSE Sensex plunged 267.64 points to 37,060.37 while the Nifty 50 lost 98.30 points to close below 11,000 levels, at 10,918.70, forming a bearish candle on the daily charts.

Experts feel the bearish bias may continue in coming session also if the index breaks its August lows.

Close

Among sectors, Nifty Metal fell most with loss of nearly 3 percent followed by Bank and FMCG which declined nearly a percent each. The correction in broader markets was quite high compared to benchmarks as the Nifty Midcap index fell 1.6 percent and Smallcap index lost 1.9 percent.

According to the pivot charts, key support level is placed at 10,872.2, followed by 10,825.7. If the index starts moving upward, key resistance levels to watch out for are 10,999.7 and 11,080.7.

Nifty Bank closed at 27,719.05, down 263.40 points on August 21. The important pivot level, which will act as crucial support for the index, is placed at 27,557.24, followed by 27,395.37. On the upside, key resistance levels are placed at 27,989.94 and 28,260.77.

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.

US Markets

Wall Street’s main indexes rose on Wednesday as upbeat earnings from retailers pointed to strength in US consumer demand, and held gains after minutes from last month’s Federal Reserve meeting showed policymakers had debated a more aggressive interest rate cut.

The Dow Jones Industrial Average rose 240.29 points, or 0.93%, to 26,202.73, the S&P 500 gained 23.92 points, or 0.82%, to 2,924.43 and the Nasdaq Composite added 71.65 points, or 0.90%, to 8,020.21.

Asian Markets

Asian shares edged ahead on Thursday after Wall Street got a boost from strong retail results, while bonds retreated as US policy makers sounded conflicted on whether to cut interest rates as sharply as markets were wagering.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1%, continuing the see-saw pattern of recent sessions. Japan's Nikkei added 0.4% and Australian shares 0.3%, while E-Mini futures for the S&P 500 rose 0.2%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a with 0.11 percent loss or 12.5 points. Nifty futures were trading around 10,919-level on the Singaporean Exchange.

Oil prices rise after US crude stocks draw

Oil prices rose on Thursday following a drawdown in US crude inventories, but gains in fuel inventories and persistent concerns over the global economy and future demand outlook capped gains.

Brent crude futures climbed 27 cents, or 0.5%, to $60.57 a barrel by 0051 GMT on Thursday. West Texas Intermediate (WTI) crude futures rose 35 cents, or 0.6%, to $56.03 per barrel.

IMF warns Trump tariff, currency policy won't work

US tariffs on China will not fix the trade deficit, and neither will weakening the US dollar through interest rate cuts, International Monetary Fund economists said August 21.

In unusually blunt language, the IMF warned that US President Donald Trump's policy moves are counterproductive, won't achieve the desired results, and will slow the global economy, IMF chief economist Gita Gopinath said in a blog titled "Taming the Currency Hype."

Instead, tariffs "are likely to harm both domestic and global growth by sapping business confidence and investment and disrupting global supply chains, while raising costs for producers and consumers.

Rupee recovers 16 paise to close at 71.55 a dollar

The Indian rupee on August 21 clawed back some lost ground to close at 71.55, up 16 paise against the US dollar in line with stronger emerging market currencies. Starting off on a bullish note, the rupee surged to a high of 71.36 per dollar during the day before settling at 71.55, clocking a gain of 16 paise.

The recovery in the Indian unit was seen despite headwinds in form of economic uncertainties, FDI outflows and rise in global crude oil prices, according to forex traders. Besides, investors continued to fret over long-lasting US China trade war. Meanwhile, foreign investors pulled out Rs 770.81 crore from Indian equities on Wednesday, as per exchange data.

Weakening growth prompted RBI Guv to go for unconventional rate cut of 35 bps: MPC minutes

Weakening of domestic growth impulses prompted RBI Governor Shaktikanta Das to opt for an unconventional rate cut of 35 basis points to push economic activities early this month, said the central bank on Wednesday. Two of his RBI colleagues and an independent member in the rate-setting Monetary Policy Committee (MPC) had also favoured a 35-basis point reduction, against the normal practice of 25 or 50 basis points change, in the third bi-monthly monetary policy of 2019-20.

The other two members, both independent, in the six-member MPC had voted for a 25-basis point cut in the policy announced on August 7.

Government mulls 100% FDI in contract manufacturing

The government is planning to clearly define the contours of contract manufacturing and then allow 100 percent foreign direct investment (FDI) in the sector. "As it stands now, there is no proper definition of contract manufacturing in our policy. We'll have to first define it," a senior government official told Moneycontrol. In order to boost a sluggish economy, the government wants to attract investment by allowing FDI in contract manufacturing, the official said.

"Established names in the technology business are now opting for contract manufacturing and so we need to define our policy with respect to this," the official said. The Commerce and Industry ministry is working on a proposal that would be finalised soon and sent for cabinet approval.

SEBI currently not in favour of hike in minimum public shareholding to 35%

The Securities and Exchange Board of India (SEBI) is currently not in favour of minimum public shareholding for listed companies being hiked to 35 percent from the current 25 percent and has communicated its view to the Finance Ministry.

At a press conference following its board meeting, SEBI Chairman Ajay Tyagi said that there are some aspects on the issue that need to be further examined. “Our view is that liquidity [in the market] is good. The short and long term implications of the decision will have to taken into account, including how much money will come to the market. Also, the IPO market is not doing very well right now. We have communicated all of these viewpoints to the government for consideration and examination.”

Tyagi said that if public shareholding were to go up by itself, it would be welcome, pointing out that currently, the average public shareholding is anyway high at around 50 percent.

SEBI simplifies registration criteria for FPIs; amends insider trading prohibition norms

The Securities and Exchange Board of India (SEBI) has done away with the broad-based eligibility criteria for foreign portfolio investors (FPIs) to simplify and expedite the registration process for these entities. In its board meeting on August 21, SEBI also cleared the proposal to make Central Banks of other countries eligible for FPI registration. They have been recategorised into two categories, instead of the current three categories.

The SEBI board also approved the norms for migration of companies listed on the Innovators Growth Platform (IGP) to regular trade category on the main board.

2 stocks under F&O ban period on NSE

On August 22, DHFL and IDBI Bank are under F&O ban.

Securities under the ban period in the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

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First Published on Aug 22, 2019 07:33 am
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