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

The market gained for the third consecutive session with the Nifty closing above 11,100 levels on August 27, driven by banking & financials, auto, FMCG and metal stocks. Positive global cues and RBI's decision to transfer Rs 1.76 lakh crore to the government, aided sentiment.

The BSE Sensex climbed 147.15 points to 37,641.27 while the Nifty 50 rose 47.50 points to 11,105.40 and formed a Doji kind of candle on the daily charts, which generally signals indecisiveness among the bulls and bears.

The gains in broader markets were higher than benchmarks as the Nifty Midcap rose 0.74 percent and Smallcap index was up 1.8 percent.

According to the pivot charts, key support level is placed at 11,055.93, followed by 11,006.57. If the index starts moving upward, key resistance levels to watch out for are 11,148.23 and 11,191.17.

Nifty Bank closed at 28,126.15, up 0.63 percent on August 27. The important pivot level, which will act as crucial support for the index, is placed at 27,965.44, followed by 27,804.67. On the upside, key resistance levels are placed at 28,282.34 and 28,438.47.

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

Wall Street slipped on Tuesday, weighed down by financial stocks as a deepening of the Treasury yield curve inversion raised US recession worries and uncertainty over any progress in trade negotiations between the United States and China took a toll.

The Dow Jones Industrial Average fell 124.66 points, or 0.48%, to 25,774.17, the S&P 500 lost 9.53 points, or 0.33%, to 2,868.85, and the Nasdaq Composite dropped 26.79 points, or 0.34%, to 7,826.95.

Asian Markets

Asian shares eked out meager gains on Wednesday, as higher Wall Street futures provided some relief for investors after an overnight US selloff, though deeper worries about the global economy are likely to keep a lid on sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.03%, Japan's Nikkei rose 0.04% and Australia's shares rose 0.07%.

SGX Nifty

Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a with 0.05 percent loss or 6 points. Nifty futures were trading around 11,116-level on the Singaporean Exchange.

Oil gains as inventory build eases recession concerns

Oil prices rose on Wednesday, with US crude gaining 1% after an inventory report showed US stockpiles fell more than expected, helping ease worries about economic growth from the Sino-US trade war.

Brent crude was up by 41 cents, or 0.7%, at $59.92 a barrel by 0121 GMT. West Texas intermediate crude was up by 57 cents, or 1.0%, at $55.50 a barrel.

RBI releases report on Bimal Jalan panel review of Economic Capital Framework

The Reserve Bank of India (RBI) August 27 released the report compiled by an expert committee headed by Bimal Jalan, formed to review the Economic Capital Framework of the Central Bank.

"The Committee noted that while there may occasionally arise a difference of views in the conduct of the central bank’s operations, there always needs to be harmony in the objectives of the Government and the RBI," the panel noted in the report.

Some of the recommendations of the committee included maintaining the RBI’s Contingency Risk Buffer (CRB), which is the country’s fund to handle a financial stability, to be maintained at a range of 5.5 percent to 6.5 percent of the RBI’s balance sheet, which is above the available level of 2.4 percent of balance sheet as on June 30, 2018.

"Application of these recommendations to RBI’s 2017-18 balance sheet is seen to result in RBI’s risk equity levels in a range of 25.4 per cent to 20.8 per cent of the balance sheet which will enable the RBI to retain one of the highest levels of financial resilience among central banks globally," according to the report.

The report recommended a review of the Economic Capital Framework every five years. However, in case of a significant change in the RBI’s risks and operating environment, an intermediate review may be considered. It suggested that an interim dividend to the government must only be made in exceptional circumstances.

Rupee posts biggest single-day gain in 5 months on RBI dividend

The rupee on August 27 spurted by 54 paise, its biggest single-day gain in more than five months, to close at a one-week high of 71.48 against the US dollar, boosted by positive sentiment over the fiscal situation. The Reserve Bank's decision to transfer a record Rs 1.76 lakh crore dividend and surplus reserves to the government revived the rupee, forex traders said.

At the interbank foreign exchange market, the rupee opened higher at 71.70 a dollar. It gained further to touch the day's high of 71.45. The local unit finally settled at 71.48, up by 54 paise -- the biggest single-day gain since March 18, 2019.

Mutual fund industry eyes Rs 100 lakh cr AUM, 10 cr investor base in next decade: AMFI

The mutual fund industry is eyeing a four-fold rise in AUM to Rs 100 lakh crore from existing Rs 25 lakh crore and increase in investor base to 10 crore from current 2 crore over the next decade, according to AMFI-BCG vision document.

The document, targeting penetration in B30 (beyond the top) cities, was released in Mumbai in the presence of Sebi Chairman Ajay Tyagi and mutual fund industry officials.

Diversifying the distribution outreach by leveraging the wide network of banks, post offices across the country, significantly augmenting the distribution base by another 4 lakhs, strengthening direct and digital channels and offering simple savings solutions would be key to Indian mutual fund industry adding 80 million new investors and accomplishing the Rs 100 lakh crore Assets Under Management (AUM) opportunity, AMFI said.

Stimulus measures to support sentiment but headwinds to drag growth to 6.4%: Moody's

The raft of measures announced by the government to boost the sagging economic growth will provide some support to investor and business sentiments, but domestic and external headwinds will continue to persist through the year, resulting in a 6.4 per cent GDP growth, Moody's Investors Service said on August 26.

Commenting on the measures announced by Finance Minister Nirmala Sitharaman last week, William Foster, Vice President, Sovereign Risk Group, Moody's Investors Service said GDP growth rate will pick up next fiscal year to 6.8 per cent.

Cabinet to consider relaxing FDI norms in single brand retail, digital media on August 28

The Union Cabinet August 28 will consider relaxing foreign direct investment (FDI) norms in several sectors, including single-brand retail and digital media, to attract overseas players, sources said. Other sectors where FDI rules would be eased are coal mining and contract manufacturing.

The government may approve proposal to allow 100 percent FDI in contract manufacturing, they said. In the existing foreign investment policy, 100 percent foreign direct investment is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without the government's approval.

Bank recapitalisation unlikely to deliver much, says S&P

Given the weak credit demand from corporates and the lingering NBFC crisis, just announced recapitlisation of state-run banks will not deliver on the key objectives of higher lending and a recovering in their fortunes, warns a report.

It can be noted that fixed capital formation by the corporates, which indicates the investment to create durable assets, has been lagging far behind historical averages for almost a decade now, leading to poor overall credit demand across industries.

The overall improvement in asset quality will take a few more years and significantly hinges on the resolution of large NPAs, global rating agency S&P said in a note Tuesday while assessing the impact of the Rs 70,ooo-crore upfront capital infusion into state-run banks announced last Friday.

With inputs from Reuters & other agencies