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Last Updated : Aug 27, 2019 07:43 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 positive opening for the broader index in India, a with 0.57 percent loss or 62.5 points.

Sandip Das @Im_Sandip1

The market rallied sharply and posted biggest single day gain in last three months on August 26, driven by rally across sectors except metals. The measures to boost economy and possible trade talks between US-China lifted sentiment.

The BSE Sensex surged 792.96 points or 2.16 percent to 37,494.12 while the Nifty50 rose 228.50 points or 2.11 percent to close above psychological 11,000 levels, at 11,057.90 and formed bearish candle on daily charts.

Close

The market breadth remained in favour of bulls as more than two shares advanced for every share declining on the NSE. The Nifty Midcap index was up 1.6 percent and Smallcap index gained 2.3 percent.

According to the pivot charts, key support level is placed at 10,852.77, followed by 10,647.73. If the index starts moving upward, key resistance levels to watch out for are 11,166.57 and 11,275.33.

Nifty Bank closed at 27,951.35, up 992.70 points on August 26. The important pivot level, which will act as crucial support for the index, is placed at 27,208.66, followed by 26,466.03. On the upside, key resistance levels are placed at 28,344.56 and 28,737.83.

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

US Markets

US stocks rose on Monday, following a sharp sell-off in the prior session, after US President Donald Trump predicted a trade deal with China, cooling investor concerns after a ramp-up in rhetoric derailed markets last week.

The Dow Jones Industrial Average rose 269.93 points, or 1.05%, to 25,898.83, the S&P 500 gained 31.27 points, or 1.10%, to 2,878.38, and the Nasdaq Composite added 101.97 points, or 1.32%, to 7,853.74.

Asian Markets

Asian stocks tracked global peers higher on Tuesday while safe-haven bonds sold off as signs Sino-US trade hostilities might be easing helped restore investor confidence after the previous session’s rout.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2% after dropping 1.3% the previous day. South Korea's KOSPI added 0.8% and Japan's Nikkei rose 1%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, a with 0.57 percent loss or 62.5 points. Nifty futures were trading around 11,115-level on the Singaporean Exchange.

Oil rises after Trump says China trade deal likely

Oil prices rose on Tuesday after US President Donald Trump said he expected to sign a trade deal with China, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.

Brent crude was up by 27 cents, or 0.5%, at $58.97 a barrel by 0024 GMT, after falling 1% the previous session, dropping for a third day in a row. US crude was up by 23 cents or 0.4% at $$53.87 a barrel, having also dropped 1% on Monday for a fourth day of declines.

Rupee crashes below 72 mark against dollar on currency rout

The rupee on August 26 declined by 36 paise to close below the 72 level against the US currency for the first time in nine months, hit by a 'flash crash' in global currencies due to uncertainty over the trade front. The rupee settled down by 36 paise at 72.02 to the US dollar, the lowest closing level since November 14, 2018, even as equities spurted more than 700 points at close on stimulus measures.

The local currency had retreated to a low of 72.25 in day trade following a flash crash in currencies such as Turkish lira, Chinese yuan, and Australian dollar against the US dollar. The global currencies faced a meltdown in the overnight trade due to the escalation between the US and China over the weekend.

RBI to transfer Rs 1.76 lakh crore surplus to government

The Reserve Bank of India (RBI) will transfer a surplus of Rs 1.76 lakh crore to the government as it has approved the recommendations of Bimal Jalan committee at the central board meet held in Mumbai on August 26. The transfer sum comprises of Rs 1.23 lakh crore of surplus for the financial year 2018-19 and Rs 52,637 crore of excess provisions identified under the revised Economic Capital Framework (ECF) that was adopted at the central board meet.

"The Central Board accepted all the recommendations of the Committee and finalised the RBI’s accounts for 2018-19 using the revised framework to determine risk provisioning and surplus transfer," the RBI said.

The Central Board decided to maintain the realized equity level at 5.5 percent of the balance sheet as recommended by the committee, down from existing 6.8 percent. The resultant excess risk provisions of Rs 52,637 crore were written back, RBI said.

BSE launches interest rate options

The BSE on Monday started the trading of government bonds-based interest rate options, according to the exchange. "BSE launched interest rate futures in January 2014, which have an average market share of 40 per cent and has now expanded its offerings in interest rate derivatives with the launch of options," the bourse said in a release.

The bourse is the first and only exchange to provide trading of interest rate options, it said. "An interest rate option is a financial derivative contract whose value is based on rupee interest rates," it said.

Pessimism overdone, sees an attractive opportunity in midcap space: Rakesh Jhunjhunwala

Billionaire investor-trader Rakesh Jhunjhunwala says he has never seen such pessimism in the market and that it 'looks overdone', reports ETNow. He sees a 'buying opportunity' in this market, but feels expectations of an immediate rebound is 'way too much'.

Speaking on the measures rolled out by Finance Minister Nirmala Sitharaman on August 23, the Big Bull said: "There is no one thing that can revive sentiment. We need a series of measures to improve sentiment and the steps taken by the Finance Minister will revive sentiment in the economy."

Trump claims serious trade negotiations with China to begin

President Donald Trump, under pressure to scale back a US-China trade war partly blamed for a global economic slowdown, claimed on August 26 that the two sides will begin serious negotiations soon.

Trump said his trade negotiators had received two "very good calls" from China August 25, hours after Trump waffled on whether he regretted the one-upmanship on tariffs. Trump at first seemed to express regret over the escalating trade war, but the White House later said Trump's only regret was that he didn't impose even higher tariffs on China.

1 stock under F&O ban period on NSE

On August 27, IDBI Bank is 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 27, 2019 07:38 am
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