Indian market hit fresh records on August 28 supported by positive global cues. The Nifty50 hit a new high of 11,760, but witnessed profit booking at higher levels and closed near its opening level forming a ‘Doji’ type of candle on the daily candlestick charts.
Although the Nifty50 surpassed 11,750, it witnessed profit booking near 11,760 which pushed the index towards 11,700 levels. However, bulls managed to pull the index near its opening level of 11,731. The index finally closed 46 points higher at 11,738.
According to Pivot charts, the key support level is placed at 11,712, followed by 11,686. If the index starts moving upwards, key resistance levels to watch out are 11,762 and 11,786.
The Nifty Bank index closed at 28,269, up 5 points. The important Pivot level, which will act as crucial support for the index, is placed at 28,152, followed by 28034. On the upside, key resistance levels are placed at 28,388, followed by 28,506.
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 agencies.
Wall Street ekes out gains as Canada takes trade spotlight
The S&P 500 and the Nasdaq edged up to record closing highs for the third consecutive session as investors struggled over whether to take profits following a rally on positive developments in trade disputes which have vexed the markets. Technology companies led the advance, offset by declines in energy, telecom and materials sectors, among others.
The Dow Jones Industrial Average rose 14.38 points, or 0.06 percent, to 26,064.02, the S&P 500 gained 0.78 points, or 0.03 percent, to 2,897.52 and the Nasdaq Composite added 12.14 points, or 0.15 percent, to 8,030.04.
Asian markets trade flat, Nikkei marginally up
Asian share markets were left in limbo on Wednesday as optimism over the US-Mexico trade deal was quickly replaced by caution ahead of a looming deadline on tariffs with China. A flat finish on Wall Street and a dearth of major economic data across the region pointed to a quiet session ahead. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up just 0.02 percent in early trade.
Japan's Nikkei rose 0.3 percent, while EMini futures for the S&P 500 added 0.11 percent.
SGX Nifty
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 10 points or 0.09 percent. Nifty futures were trading around 11,749-level on the Singaporean Exchange.
North Korea tells US denuclearisation talks may fall apart: Report
North Korean officials have warned in a letter to the United States that denuclearization talks were "again at stake and may fall apart", CNN reported on Tuesday, citing people familiar with the matter. The letter was delivered directly to US Secretary of State Mike Pompeo, and stated that North Korean leader Kim Jong Un's government felt that the process could not move forward.
"The US is still not ready to meet (North Korean) expectations in terms of taking a step forward to sign a peace treaty," CNN reported, citing sources.
Canada rejoins NAFTA talks as US autos tariff details emerge
Canada’s top trade negotiator praised Mexico’s trade concessions on autos and labor rights on Tuesday as she rejoined NAFTA talks, while US lawmakers warned that a bilateral US-Mexico trade deal would struggle to win approval in Congress.
Canadian Foreign Minister Chrystia Freeland said that Mexico’s “difficult” concessions to the United States on Monday would pave the way for productive talks this week as all three countries race toward a Friday deadline for a deal to modernize the 24-year-old North American Free Trade Agreement.
ICRA pegs PSU bank losses for FY19 at up to Rs 1.02 lakh crore
Losses for public sector banks (PSBs) in the financial year ending March 2019 could be in the range of Rs 41,900 crore and Rs 1.02 lakh crore, according to ICRA Ltd. As per the rating agency's report, the losses before tax for PSBs for FY2019 are estimated at Rs 419-1016 billion depending on the credit provisioning on stressed assets undergoing resolution.
This is compared to a loss before tax of Rs 24,000 crore during Q1 FY19 (April to June 2018) and Rs 1.30 lakh crore that PSBs reported in FY2018. The cumulative loss after tax for PSBs had crossed Rs 87,357 crore in the 2017-18 fiscal, with Punjab National Bank (PNB) topping the list followed by IDBI Bank.
These losses surpassed the capital infusion of Rs 90,000 crore by the Government of India during FY18 and can likely surpass the budgeted capital infusion of Rs 65,000 crore for FY19.
Oil prices inch up on Iran sanctions, but rising global supply caps market
Oil markets were stable on Wednesday, buoyed by falling supplies from Iran ahead of US sanctions but held in check by rising production outside the Organization of the Petroleum Exporting Countries.
International Brent crude oil futures were at USD 75.98 per barrel at 0102 GMT, up 3 cents from their last close. US West Texas Intermediate (WTI) crude futures were up 3 cents at USD 68.56 a barrel.
Widening CAD to increase borrowing costs, dull forex borrowings
The widening current account deficit (CAD), which is projected to cross 2.6 percent of GDP this year, coupled with the rupee plunge, is likely to increase borrowing costs for corporates and bring down the overall volume of fresh forex loans, says a India Ratings report. By losing over 9 percent year to date, the rupee is the worst performing among major emerging markets currencies. The currency plumbed a new closing low yesterday at 70.15 against the American dollar.
The rising CAD and crude prices and the falling rupee have spiked the June quarter CAD to 1.9 percent against 0.9 percent in the year-ago period, and the same is projected to scale 2.6 percent by March.
Rupee ends up 6 paise at 70.10 against dollar
The rupee yesterday bounced back in tepid fashion from the record closing low, gaining 6 paise to end at 70.10 against the US currency largely tracking bearish dollar cues overseas. Most Asian currencies also recouped early losses against the greenback. Forex trading mood was upbeat after the US and Mexico agreed on a new trade deal to revamp the North American Free Trade Agreement (NAFTA) weakening demand for the safe haven US dollar worldwide.
The local unit, finally settled the day at 70.10, revealing a modest gain of 6 paise, or 0.09 per cent. The Indian unit hit a life-time closing low of 70.16 yesterday due to surging crude prices.
4 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For August 29, DHFL, IDBI, Jain Irrigation Systems and Punjab National Bank are present in this list.
With inputs from Reuters & other agencies
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