Equity benchmarks closed with healthy gains on September 13, on hopes of fresh stimulus from the government amid positive global cues.
In a bid to arrest the current economic slowdown, Finance Minister Nirmala Sitharaman on September 14 announced further relief measures with a focus on reviving the housing and export sectors.
After range-bound trade for most part of the day, markets recovered sharply in the late afternoon session and gained nearly a percent amid volatility on September 13.
The Nifty index closed 93 points, or 0.85 percent, higher at 11,075.90, with 41 stocks up and 9 down. BSE Midcap (up 0.41 percent) underperformed Sensex whereas BSE Smallcap (up 0.82 percent) outperformed the equity benchmark.
Among the sectoral indices on BSE, only BSE Telecom and BSE Healthcare settled with losses, falling 0.53 percent and 0.38 percent, respectively. The breadth of the market remained in the favour of gainers as 1,513 stocks logged gains against 960 that suffered losses on BSE.
On a weekly basis, both Sensex and Nifty advanced by over a percent. Analysts say the market is expected to undergo profit booking from the current levels and any upmove could be a bull trap as it is unlikely that bourses will move substantially higher in the short term.
According to the pivot charts, key support level for Nifty is placed at 10,986.3, followed by 10,896.7. If the index remains on upward trajectory, key resistance levels to watch out for are 11,125.0 and 11,174.1.
The Nifty Bank closed at 11,075.90, up 0.85 percent on September 13. The important pivot level, which will act as crucial support for the index, is placed at 27,739.2, followed by 27,379.6. On the upside, key resistance levels are placed at 28,292.6 and 28,486.4.
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 the day down slightly on Friday but less than 1% below its all-time high as a drop in Apple stock countered cooling US-China trade tensions. Tariff-vulnerable industrials helped keep the blue-chip Dow in positive territory, which has now gained in eight straight sessions, its longest winning streak since May 2018.
The Dow Jones Industrial Average rose 37.07 points, or 0.14%, to 27,219.52, the S&P 500 lost 2.18 points, or 0.07%, to 3,007.39 and the Nasdaq Composite dropped 17.75 points, or 0.22%, to 8,176.71.
Asian Markets
Markets in Asia were mixed with Japan shut for a public holiday. MSCI’s broadest index of Asia-Pacific shares outside Japan was a tick lower at 515.4.
Australian shares were down 0.1% while South Korea’s KOSPI was a tad higher. E-Minis for the S&P 500 were off 0.4% while those for the Dow eased 0.3%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 99.5 points loss or 0.90 percent. Nifty futures were trading around 11,011.50-level on the Singaporean Exchange.
FM Nirmala Sitharaman announces Rs 10,000cr fund to revive stuck affordable housing projects, new scheme to boost exports
Finance Minister Nirmala Sitharaman September 14 returned with a fresh set of relief measures, this time to boost exports and the flagging housing sector. This is her fourth such address since mid-August.
In the latest press conference, FM Sitharaman announced two major measures. The first one is a new export promotion scheme for the remission of duties or taxes on export products. This scheme will completely replace Merchandise Exports from India Scheme (MEIS) and Rebate of State Levies (ROSL).
Oil prices soar 10% after attack on Saudi facilities hits global supply
Oil prices retreated on Monday after hitting their highest since May at the open, on fears over supply disruptions following an attack on Saudi Arabia’s oil facilities on Saturday that cut more than 5% of global oil supply.
International benchmark Brent crude futures rose $7.06 a barrel or 11.7% from their New York close on Friday to stand at $67.28 per barrel by 0108 GMT, after soaring more than 19% to a session high of $71.95 per barrel at the opening.
US West Texas Intermediate (WTI) futures climbed $5.76 a barrel or 10.5% to $60.60 a barrel, after jumping more than 15% to a session high of $63.34 a barrel.
FPIs turn net buyers, infuse Rs 1,841cr in first half of Sept
Foreign portfolio investors turned net buyers in the first half of September, pumping in Rs 1,841 crore into the capital markets, after remaining sellers for the previous two months. The latest inflows have been triggered by improving investor sentiment on the back of easing US-China trade war and supporting macroeconomic data, experts said.
According to the latest depositories data, foreign portfolio investors (FPIs) withdrew a net amount of Rs 2,031.02 crore from equities but put in Rs 3,872.19 crore in the debt segment during September 3-13, translating into a total net inflow of Rs 1,841.17 crore into the capital markets.
August exports decline 6% to $26.13 bn; trade deficit narrows
India's exports dropped by 6.05 per cent to $26.13 billion in August compared to the year-ago month, official data released on Friday showed. Imports too declined by 13.45 per cent to $39.58 billion, narrowing trade deficit to $13.45 billion in August. The deficit was $17.92 billion in August last year.
Export sectors that recorded positive growth in the last month include iron ore, electronic goods, spices, and marine products. Shipments of gems and jewellery, engineering goods, petroleum products recorded negative growth, according to the data.
Forex reserves soar $1 bn to $429.60 bn
The country's foreign exchange reserves increased by $1.004 billion to $429.608 billion in the week to September 6, helped by a rise in foreign currency assets, RBI data showed on Friday. In the previous week, the reserves had fallen by $446 million to $428.604 billion.
The reserves had touched a life-time high of $430.572 billion in August this year. In the week to September 6, foreign currency assets, a major component of overall reserves, and risen by $1.200 billion to $397.205 billion, the Reserve Bank said.
Rupee extends winning run, rises 22 paise to 70.92 vs USD
The rupee marched higher for the seventh straight session on Friday to close at 70.92 per US dollar, up 22 paise, as softening crude oil prices and easing US-China trade tensions bolstered investor sentiment. Most Asian currencies gained following signs of rapprochement between US and China over their trade dispute.
At the interbank foreign exchange market, the rupee opened at 70.94 a dollar. It shuttled between a high of 70.86 and low of 71.15, before finally settling at 70.92, up 22 paise over its previous close.
'Very difficult' for China's economy to grow 6% or faster: Premier Li
Chinese Premier Li Keqiang said it is “very difficult” for China’s economy to grow at a rate of 6% or more because of the high base from which it was starting and the complicated international backdrop.
The world’s No.2 economy faced “certain downward pressure” due to slowing global growth as well as the rise of protectionism and unilateralism, Li said in an interview with Russian media which was published on the Chinese government’s website, gov.cn.
Govt mulls measures to improve financial health of STC
The government is considering measures to improve the financial health of State Trading Corporation (STC), a public sector unit under the commerce ministry, according to sources. The measures, which are under consideration, include provision of adequate time for STC to repay bank loans and sale of immovable assets.
"The steps have been discussed among commerce ministry, finance ministry and banks," the sources said. As per the proposal, STC could be given a five-year time for repayment of Rs 500 crore. With inputs from Reuters & other agencies
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