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Last Updated : Sep 18, 2019 07:57 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, with a 42.5 points gain or 0.39 percent.

Sandip Das @Im_Sandip1

Concerns over depreciating rupee and rising geopolitical tensions continued to keep investors on the edge as benchmark stock indices continued their freefall for the second straight day on September 17.

The Indian rupee weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices.

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Sensex closed the day 642 points lower at 36,481.09 while Nifty closed 186 points or 1.69 percent lower at 10,817.60. Among the 50 stocks in the Nifty index, 44 incurred losses.

Both Nifty and Nifty Bank turned negative for the calendar 2019. Nifty Bank index closed 723 points or 2.60 percent down at 27,131.75. India VIX climbed 7.12 percent to 16.02 level.

Nifty formed a bearish belt hold candle on the daily chart and has also broken its rising support trend line by connecting swing lows of 10,637, 10,746 then 10,880 levels. Experts feel the sentiments are expected to remain weak and if index remains below 10,880 levels then the weakness could continue in coming sessions.

According to the pivot charts, key support level for Nifty is placed at 10,742.7, followed by 10,667.8. If the index starts moving up, key resistance levels to watch out for are 10,946.3 and 11,075.

The Nifty Bank closed with a strong loss of 2.60 percent at 27,131.75 on September 17. The important pivot level, which will act as crucial support for the index, is placed at 26,836, followed by 26,540.2. On the upside, key resistance levels are placed at 27,639.5 and 28,147.2.

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 ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia’s biggest oil refinery faded and investors awaited a widely expected Fed interest rate cut on Wednesday.

The Dow Jones Industrial Average edged up 0.12% to end at 27,109.03 points, while the S&P 500 gained 0.26% to 3,005.61. The Nasdaq Composite added 0.4% to 8,186.02.

Asian Markets

Asian markets rose in the morning trade as investors await US Federal Reserve’s interest rate decision. Hang Seng index rose 0.36%. Nikkei was little changed while the Topix fell 0.36%.

South Korea’s Kospi gained 0.17%. The S&P/ASX 200 traded largely flat.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 42.5 points gain or 0.39 percent. Nifty futures were trading around 10,884-level on the Singaporean Exchange.

FM Nirmala Sitharaman working on fourth booster dose to re-energize economy

Finance Minister Nirmala Sitharaman will soon provide a fourth booster dose to re-energize the flagging economy that has hit over a six-year low of 5 percent, a senior finance ministry official told PTI. The blueprint of the revival package likely to be announced in the next few days is ready, the official said without giving further details.

The government has so far since the last week of August announced multiple measures including a mega bank consolidation drive, a special fund for real estate, export incentives, and sops for the ailing automobile and micro, small and medium enterprises (MSMEs) sectors.

Rupee furthers loss by 18 paise as crude worries hurt sentiment

The Indian rupee on September 17 weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices. Elevated crude oil prices have emerged as major fears for India -- the world's third largest oil importer -- in form of fiscal slippage and inflationary pressure.

At the Interbank Foreign Exchange, the rupee opened at 71.83 then lost further ground and fell to an intra-day low of 71.98 against the US dollar. The local unit finally settled for the day at 71.78, down 18 paise over its previous closing.

Oil recedes on Saudi supply reassurance

Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges.

Brent crude futures fell 0.64% to $64.14 a barrel while US West Texas Intermediate (WTI) crude lost 0.78% to $58.88 per barrel.

Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom has recovered supplies by tapping inventories, and lost oil output of 5.7 million barrels per day (bpd) by the end of September.

GST panel unlikely to favour tax rate cut for auto sector: Sources

India’s goods and services tax (GST) panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, two government officials said.

A government study, attached to the agenda of a September 20 GST panel meeting, has said the total annual revenue loss could be as much as 500 billion rupees ($6.95 billion), if the panel decided to lower tax rates for the auto sector to 18% from 28%.

The GST meeting will be closely watched as it could help investors gauge the government’s seriousness in reviving growth in Asia’s third-largest economy.

Japan's exports fall for 9th straight month as global demand falters

Japan’s exports slipped for a ninth straight month in August as international trade tensions ramped up risks for the world’s third-largest economy, although the decline was slightly smaller than expected.

The negative reading adds some pressure on the Bank of Japan to expand stimulus at its policy meeting on Thursday to prop up business sentiment and manufacturing activity, which have been hit by global economic weakness.

Exports in August slumped 8.2% from a year earlier, Ministry of Finance data showed on Wednesday, dragged down by autos, car parts and semiconductor production equipment.

Gold prices steady amid cautious mood, focus shifts to Fed

Gold prices were little changed on Wednesday as investors maintained a cautious stance ahead of the conclusion of US Federal Reserve’s two-day meeting, where policymakers are expected to cut interest rates.

Spot gold was steady at $1,501.91 per ounce, as of 0100 GMT. US gold futures were down 0.3% at $1,508.8 per ounce.

Dollar holds gains as oil shock eases

The dollar traded near a seven-week high versus the yen as oil markets recovered from a supply shock, but the focus is firmly on a US Federal Reserve meeting later on Wednesday that is widely expected to deliver an interest rate cut.

Major currencies are likely to trade in narrow ranges before the Fed’s meeting. Fed Reserve Chairman Jerome Powell has clearly broadcast his intention to cut rates, so some analysts warn that the dollar could actually bounce if the Fed eases policy as expected.

With inputs from Reuters & other agencies

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First Published on Sep 18, 2019 07:44 am
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