The Indian stock market is expected to open flat despite US markets and its Asian peers trading in the green after the US Fed maintained its dovish stance. Trends on SGX Nifty indicate a flat opening for the index in India with a 8 points gain.
The Sensex closed with a strong loss of 422 points, or 1.10 percent, at 38,071.13 on July 29 and Nifty settled at 11,202.85, down 98 points, or 0.86 percent. According to pivot charts, the key support level for the Nifty is placed at 11,121.27, followed by 11,039.73. If the index moves up, the key resistance levels to watch out for are 11,312.87 and 11,422.93.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
U.S. stocks closed higher on Wednesday, adding to gains after the Federal Reserve repeated a pledge to use its “full range of tools” to support the economy but cautioned that the outlook “will depend significantly on the course of the virus.”
The Dow Jones Industrial Average rose 160.29 points, or 0.61%, to 26,539.57, the S&P 500 gained 40 points, or 1.24%, to 3,258.44 and the Nasdaq Composite added 140.85 points, or 1.35%, to 10,542.94.
Asian stocks were set to track an upbeat Wall Street session on Thursday after the Federal Reserve kept interest rates at ultra-low levels, while the U.S. dollar fell to a two-year low.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.28%, while its global stock index rose 0.81%. Australian S&P/ASX 200 futures were up 0.9% while Japan's Nikkei 225 futures were down 0.04%. The Nikkei 225 index closed down 1.15% at 22,397.11 on Wednesday.
Trends on SGX Nifty indicate a flat opening for the index in India with a 8 points gain. The Nifty futures were trading at 11,233 on the Singaporean Exchange around 07:30 hours IST.
Federal Reserve keeps rate unchanged
The Federal Reserve is expressing concern that the viral outbreak will act as a drag on the economy and hiring in coming months and that it plans to keep its benchmark short-term interest rate pegged near zero.
In a statement at the end of its policy-making meeting Wednesday, the Fed acknowledged that the economy has rebounded from the depths of March and April, when nearly all states closed down nonessential businesses. But it said the ongoing coronavirus pandemic “will weigh heavily on economic activity, employment and inflation."
The Fed announced no new policies in its statement. The central bank said it will also continue to buy about $120 billion in Treasury and mortgage bonds each month, which are intended to inject cash into financial markets and spur borrowing and spending.
SEBI allows acceptance of client securities as collateral by way of title transfer till August 31
Markets regulator Sebi on Wednesday allowed co-existence of the current title transfer collateral mechanism and the new pledge and re-pledge process till August 31. The decision has been taken in view of the prevailing situation due to the COVID-19 pandemic and partial lockdowns in various areas of the country.
In a circular, the Securities and Exchange Board of India (Sebi) said the mechanism of pledge and re-pledge will be implemented with effect from August 1. Trading members (TMs) or clearing members (CMs) need to align their systems and accept client collateral and margin-funded stocks by way of creation of pledge and re-pledge in the depository system.
Dollar hits two-year lows as Fed affirms dovish stance
The U.S. dollar fell to a two-year low on Wednesday after the Federal Reserve repeated a pledge to use its “full range of tools” to support the U.S. economy and keep interest rates near zero for as long as it takes to recover from the fallout from the coronavirus outbreak.
The dollar index against a basket of currencies fell 0.44% to 93.42 after getting as low as 93.17, the weakest since June 2018.
Oil edges up after sharp U.S. crude inventory drop
Oil prices rose on Wednesday after a steep drop in U.S. crude inventories, but another record day for coronavirus cases worldwide kept gains in check.
Brent crude futures settled at $43.75 a barrel, up 53 cents, or 1.2%. U.S. West Texas Intermediate crude futures settled at $41.27 a barrel, gaining 23 cents, or 0.6%.
Telecom industry loses 82 lakh subscribers in April, pressure to continue: Report
Telecom industry has lost 82 lakh subscribers during the complete lockdown in April, and COVID-19 pandemic will continue to keep customer additions under pressure, according to a report. The decline in subscriber base during April was preceded by a loss of 28 lakh connections in March, which saw the lockdown being imposed towards the end, India Ratings and Research said in note.
"The industry-wide subscriber base declined month-on-month by 2.8 million and 8.2 million in March and April 2020, respectively. The decline was attributable to a reduction in the subscriber base of Vodafone Idea Limited (VIL) and Bharti Airtel Limited, which has more than offset the growth in the subscriber base of Reliance Jio Infocomm Limited.
SEBI relaxes time till September 15 for filing June quarter results
Markets regulator SEBI on Wednesday gave relaxation of one month till September 15 to listed companies for submitting their June quarter results amid coronavirus pandemic. The move comes after SEBI received requests for extension of time for submission of financial results for the quarter or half year ended June 30, due to the shortened time gap between the extended deadline for filing financial results for the period ended March 31 and the quarter or half year ended June 30.
"After consideration, it has been decided to extend the timeline for submission of financial results...for the quarter or half year or financial year ended June 30, 2020, to September 15, 2020," SEBI said in a circular.
Bharti Airtel Q1 loss widens to Rs 15,933 crore
Telecom major Bharti Airtel on July 29 has reported a consolidated loss of Rs 15,933.1 crore for the quarter ended June 2020, which widened considerably from Rs 5,237 crore in March quarter and Rs 2,866 crore in June quarter 2019. The loss was much higher than the average of estimates of analysts polled by CNBC-TV18 which was pegged at Rs 500 crore loss in Q1FY21.
"The net exceptional charge of Rs 11,745.7 crore during the quarter ended June 2020 comprises of a charge on account of incremental provision and interest on license fee and spectrum usage charges (adjusted gross revenue provision) of Rs 10,744.4 crore and net charge pertaining to re-assessment of levies of Rs 1,001.3 crore," it reasoned.
SEBI extends regulatory norms compliance timeline for RTAs, depository participants, brokers
Amid the coronavirus pandemic, regulator SEBI on Wednesday gave extension till September 30 to depository participants, share transfer agents and brokers for compliance with various regulatory requirements.
Under the norms, processing of demat request forms by issuer or RTA needs to be done within 15 days, while the same for depository participants is within seven days. The period from March 23 till September 30 shall be excluded for computing the existing timelines for compliance, SEBI said in the circular.
Mindspace Business Parks REIT IPO subscribed 13 times on final day
The Rs 4,500-crore IPO of Mindspace Business Parks REIT has been received very well by investors as the bidding ended July 29. The public issue has been subscribed 12.96 times, receiving bids for 87,78,24,600 units against an offer size of 6,77,46,400 units, data available on exchanges showed.
The offer size has been reduced to Rs 1,856.26 crore as the K Raheja Corp and Blackstone Group-backed company has already garnered Rs 2,643.74 crore from strategic and anchor investors. Mindspace REIT public issue consists of a fresh issue of Rs 1,000 crore and an offer for sale of Rs 3,500 crore.
Results on July 30
Reliance Industries, HDFC, Dabur India, 8K Miles Software, A2Z Infra Engineering, Aegis Logistics, Ajanta Pharma, LT Foods, Dhampur Sugar Mills, Dredging Corporation of India, Eros International Media, Essel Propack, Gujarat Fluorochemicals, Gateway Distriparks, GMR Infrastructure, ITDC, Jain Irrigation Systems, JM Financial, Jaypee Infratech, Lakshmi Vilas Bank, Laurus Labs, Mahindra Logistics,, Max Financial Services, National Fertilizers, Piramal Enterprises, Reliance Infrastructure, Reliance Power, Sequent Scientific, SRF, Sundaram-Clayton, Tata Communications, Tata Steel BSL, Torrent Pharmaceuticals, Westlife Development, etc.
FII and DII data
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) sold shares worth Rs 352.62 crore and Rs 505.62 crore, respectively, in the Indian equity market on July 29, provisional data available on the NSE showed.
1 stock under F&O ban on NSE
Vodafone Idea is under the F&O ban for July 30. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies