Benchmark indices extended rally on September 9 but failed to recoup in complete the losses seen the week before. Banking and financials, auto and FMCG stocks pushed indices higher. The broader markets participated in the move, with the Nifty Midcap index rising more than a percent.
The Sensex climbed 163.68 points to 37,145.45, while the Nifty rose 56.80 points to 11,003 and formed a bullish candle on daily charts.
Experts expect the momentum to continue and feel the closing above 11,150 could spark a sharp upside.
According to the pivot charts, key support level is at 10,918.93, followed by 10,834.87. If the index remains on the upward trajectory, key resistance levels to watch out for are 11,057.93 and 11,112.87.
The Nifty Bank closed at 27,504.65, up 0.94 percent on September 9. The important pivot level, which will act as crucial support, is placed at 27,143.87, followed by 26,783.04. On the upside, key resistance levels are at 27,715.57 and 27,926.43.
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 ended little changed on Tuesday, with a rally in energy and industrial shares countering a drop in the technology and real estate sectors as investors favoured value over growth.
The Dow Jones Industrial Average rose 73.92 points, or 0.28%, to 26,909.43, the S&P 500 gained 0.96 points, or 0.03%, to 2,979.39 and the Nasdaq Composite dropped 3.28 points, or 0.04%, to 8,084.16.
Asian Markets
Asian stock markets held firm and bond yields rose on Wednesday as hopes of diminishing US-China tensions and reduced risk of no-deal Brexit prompted investors to take profit in risk-off trade ahead of key central bank policy meetings.
In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.10% while Japan's Nikkei rose 0.32%.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 41 points gain or 0.37 percent. SGX closed at 10,959 on September 6. Nifty futures were trading around 11,012-level on the Singaporean Exchange.
Oil prices rise after data shows big drop in US inventories
Oil prices rose on Wednesday after an industry report showed that crude stockpiles in the US fell last week by more than twice the amount that analysts had forecast.
Brent crude futures rose 43 cents, or 0.7%, to $62.81 a barrel by 0053 GMT, while WTI futures were up 47 cents, or 0.8%, to $57.87 a barrel.
FM Sitharaman's explanation for auto slowdown: Millennials prefer Ola, Uber
Finance Minister Nirmala Sitharaman said that the "millennial mindset" of relying on taxi services, besides the upcoming stricter emission norms, are responsible for the auto sector slowdown. “The automobile and components industry has been affected by BS 6 [norms] and the mindsets of millennial, who now prefer to have Ola and Uber rather than committing to buying an automobile,” Sitharaman told reporters in Chennai, according to ANI.
She added that millennials do not want to commit to taking an equated monthly instalment. “The automobile industry in India did have its good time, at least till two years ago. There was definitely a good upward trajectory for the automobile sector.” Sitharaman said.
RBI flags frauds, asks banks to evaluate transitory account dealings: Report
The Reserve Bank of India (RBI) has told lenders to conduct internal appraisals of transitory accounts being misused to hide bad loans or money laundering and submit their findings by October 2019, The Economic Times reported.
The development follows several complaints of frauds where funds lie in a transitory account for one to two days before being credited to the actual beneficiary.
Rupee reverses gains to close nearly flat at 71.71 against US dollar
The rupee pared initial gains to settle almost flat at 71.71 against the US dollar on Monday as rising crude oil prices kept investors edgy. Rising crude oil prices and foreign fund outflows weighed on the domestic currency, forex dealers said.
Crude oil spurted 0.44 per cent to USD 61.81 per barrel in anticipation that new Saudi energy minister, Prince Abdulaziz bin Salman, would push for production cuts. At the interbank foreign exchange market, the local unit witnessed heavy volatility. During the day, the domestic unit shuttled between a high of 71.50 and low of 71.73.
PE/VC investments deal tally touches $36.7 billion in January-August
With transactions of over USD 4.4 billion, August 2019 witnessed a 39 percent jump in venture investing over the year-ago, but there was a 47 percent slide as compared to July 2019, a report said on September 10. Investments in January-August 2019 period have also reached a new high of USD 36.7 billion, surpassing the USD 36.5 billion witnessed in the whole of 2018, the report by the consultancy firm EY and IVCA, said.
"Given the deal momentum in various sectors, by the end of 2019, the total Indian private equity or venture capital investment could potentially be in the range of USD 48 billion to USD 50 billion," EY's national leader for private equity services Vivek Soni said.
India has limited room to ease fiscal policy due to high debt: Fitch
Fitch Ratings on Tuesday forecasted India's economic growth at 6.6 percent during the current year, down from 6.8 percent in the previous year, and said the government has only limited room to ease fiscal policy because of high debt. It said GDP (gross domestic product) growth is likely to rebound to 7.1 percent next year.
Keeping India's rating unchanged at BBB- with a stable outlook, it said the rating balances a strong medium-term growth outlook and relative external resilience with sturdy foreign reserve buffers, against high public debt, financial sector fragilities and some lagging structural factors.
In its Asia-Pacific Sovereign Credit Overview, Fitch said India's GDP growth decreased for a fifth consecutive quarter in the April-June quarter to 5 percent, the lowest in six years.
RBI mandate on floating rate benchmark rates is credit negative for banks: Moody's
The Reserve Bank of India mandating banks to link certain loans to the external benchmark-based interest rate from October 1 is credit negative to the lenders as it will limit their flexibility in managing risks, Moody's Investors Service said on Tuesday.
Last week, the RBI had stated that banks are not satisfactorily transferring the cuts in policy interest rates to borrowers as it asked lenders to mandatorily link all new floating rate personal or retail loans and floating rate loans to micro, small and medium enterprises (MSMEs) to an external benchmark.
The central bank has so far this year cut interest rate by 110 basis points but lenders have transmitted only a part of it to borrowers in the form of a lower cost of taking loans. "This is credit negative for India's banks as it will limit their flexibility in managing interest rate risk," Moody's said in a statement.
With inputs from Reuters & other agencies
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