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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, with a 15.5 points gain or 0.14 percent.

September 09, 2019 / 07:39 AM IST

The positive global sentiment, amid signs of an ebb in US-China trade war, and hopes of government measures to prop up the auto sector, helped equity benchmarks Sensex and Nifty end in the green on September 6.

However, on a weekly basis, Sensex fell 0.94 percent while Nifty retreated 0.70 percent, as concerns on the deteriorating health of domestic and global economy dented investors' risk appetite.

Data released last week showed that US job growth slowed in August, while retail hiring declined for the seventh straight month. Poor sets of macroeconomic data from major economies of the world have fanned hopes of government stimulus and rate cuts by central banks.

According to the pivot charts, the key support level is placed at 10,890.13, followed by 10,834.07. If the index starts moving upward, key resistance levels to watch out for are 10,979.63 and 11,013.07.

The Nifty Bank index closed at 27,247.90, up 1.22 percent on September 6. The important pivot level, which will act as crucial support for the index, is placed at 27,028.63, followed by 26,809.37. On the upside, key resistance levels are placed at 27,389.13 and 27,530.37.

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

The S&P 500 and Dow industrials closed slightly higher on Friday as investors digested a mixed US jobs report and bet on a Federal Reserve interest rate cut this month, while China's stimulus plan helped ease some concerns around global growth. US job growth slowed more than expected in August, with retail hiring declining for a seventh straight month, but this was countered by strong wage gains which are expected to support consumer spending and keep the economy expanding moderately amid rising threats from trade tensions.

The Dow Jones Industrial Average rose 69.45 points, or 0.26%, at 26,797.6, the S&P 500 gained 2.72 points, or 0.09%, to 2,978.72 and the Nasdaq Composite dropped 13.75 points, or 0.17%, at 8,103.07.

Asian Markets

Asian stocks eked out modest gains on Monday, amid a cautious market mood as investors pinned expectations on likely stimulus to support growth in the world’s major economies, which showed further signs of struggle.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1%. Australian stocks edged up 0.1%, South Korea's KOSPI rose 0.8% and Japan's Nikkei was up 0.5%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 15.5 points gain or 0.14 percent. Nifty futures were trading around 10,975-level on the Singaporean Exchange.

Oil rises as Saudi Arabia signals OPEC cuts to continue

Oil rose on Monday after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend.

Global benchmark Brent was up 7 cents at $61.61 a barrel by 0106 GMT, while US West Texas Intermediate was 20 cents, or 0.3%, higher at $56.72 a barrel.

Rupee logs 3rd straight gains, up 12 paise at 71.72 a dollar

The Indian rupee continued its winning momentum for a third session in a row on September 6, rising 12 paise to settle at 71.72 against the US dollar as signs of easing trade tensions between the US and China enthused investors. On a weekly basis, the domestic currency, however, lost 30 paise to the US dollar.

The Indian currency has appreciated by 67 paise in the last three trading sessions. At the interbank foreign exchange market on Friday, the local unit opened on a strong note at 71.87 and finally closed at 71.72, higher by 12 paise over its previous close.

18 PSBs hit by 2,480 cases of fraud of Rs 32,000 cr in Q1: RTI

A total of 2,480 cases of fraud involving a huge sum of Rs 31,898.63 crore rattled 18 public sector banks in the first quarter of this fiscal, an RTI query has revealed. The country's largest lender State Bank of India (SBI) remained the biggest prey to frauds with 38 percent share, Neemuch-based activist Chandrashekhar Gaur told PTI on September 8 quoting an official of the RBI who furnished him replies to his RTI application.

As many as 1,197 cases of cheating involving Rs 12,012.77 crore were detected in SBI in the first quarter, according to the RTI reply.

A total of 75 cases of fraud involving Rs 2,297.05 crore were reported in Bank of Baroda in the first quarter, while 45 cases of fraud amounting to Rs 2,133.08 crore in Oriental Bank of Commerce, 69 cases worth Rs 2,035.81 crore in Canara Bank, 194 cases worth Rs 1,982.27 crore in Central Bank of India, 31 cases of fraud of Rs 1,196.19 crore in United Bank of India were witnessed.

China's exports fall in August as US trade war rumbles

China's exports fell by 1.0 percent on-year in August, official data showed on September 8, amid a bruising trade war with the US that has roiled markets in the world's top two economies. The drop comes after a surprise 3.3 percent rebound in July despite the year long battle with Washington and weakening global demand.

China's trade surplus also dropped sharply in August to $34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6 percent on-year, matching the July figure.

FPI pull out Rs 1,263 cr from capital markets in 1st week of Sept

Continuing their selling spree, foreign investors withdrew a net sum of Rs 1,263 crore from the Indian capital markets in the first week of September amid global headwinds even as the government rolled back enhanced surcharge on FPIs.

As per latest depositories data, foreign portfolio investors (FPI) pulled out a net amount of Rs 4,263.79 crore from equities but infused a net Rs 3,000.86 crore into the debt segment during September 3 - 6, translating into a net outflow of Rs 1,262.93 crore.

FPIs have remained net sellers for the previous two months, pulling out Rs 5,920.02 crore in August and Rs 2,985.88 crore in July from the domestic capital markets (both equity and debt).

Japan's 2nd quarter GDP grows at slower pace on weaker capital spending

Japan’s economy grew at a slower pace than initially estimated in the second quarter on the back of softer capital spending, signaling strains on the economy from weaker global growth and the US-China trade war.

The economy grew an annualized 1.3% in April-June, weaker than the preliminary reading for 1.8% annualized growth, Cabinet Office data showed Monday. The reading was in line with the economists’ median forecast for a 1.3% gain.

Forex reserves fall by $446 mn to $428.6 bn

The country's foreign exchange reserves fell by $446 million to $428.604 billion in the week to August 30, mainly on account of a drop in foreign currency assets, RBI data showed on Friday. In the previous week, the reserves declined by a steep $1.45 billion to $429.050 billion. The reserves had touched a life-time high of $430.572 billion in August this year.

In the week to August 30, foreign currency assets, a major component of overall reserves, declined by $1.124 billion to $396 billion, the Reserve Bank said. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and the yen held in the foreign exchange reserves.

Act now to get ready for recession, think-tank urges Britain

Britain is not ready for its next recession and must consider changes to the way it manages its economy to see off the downturn when it comes, the Resolution Foundation, a think-tank, said on Monday.

British gross domestic product shrank in the second quarter of this year and the economy is struggling to pick up momentum as Brexit approaches, meaning it could already be in a technical recession before it leaves the European Union.

The Resolution Foundation said the Bank of England could muster only a quarter of the firepower needed in a typical recession because its key interest rate is so low and its bond-buying program is likely to prove less effective now.

With inputs from Reuters & other agencies

Sandip Das
first published: Sep 9, 2019 07:35 am