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The market continued its southward journey for third consecutive day on Friday and closed in the red for eight out of last nine sessions. The Nifty50 attempted positive opening again but failed to hold the upside and remained lower for major part of the session on last trading day of September month, dragged by metals, IT and auto stocks.
The index closed far below 11,000 levels, forming bearish candle on the daily charts.
In fact, the month of September was like a nightmare for the market as the Nifty lost 6.4 percent, forming a long bearish candle which resembles a Bearish Engulfing pattern on the monthly charts. IL&FS-led liquidity fears in NBFC segment, rising crude oil prices and rupee volatility caused selling pressure in the market.
The Nifty50 managed to open higher above psychological 11,000 levels but wiped out all gains in first few minutes of trade. The index managed to rebound and hit an intraday high of 11,034.10 but that recovery again sold into and it a day's low of 10,850.30, which is the crucial support for next week, experts said.
The index finally closed 47 points lower at 10,930.50.
India VIX moved down by 1.24 percent to 16.71 levels. It has spiked by 9.36 percent in this week while up by 35 percent in this month. Rising volatility suggests that bears are holding the tight grip on the market, experts said, adding option band signifies a wider trading range in between 10,800 to 11,171 zones.
According to Pivot charts, the key support level is placed at 10,842.5, followed by 10,754.5. If the index starts moving upwards, key resistance levels to watch out are 11,026.3 and 11,122.1.
The Nifty Bank index closed at 25,119.85, up 77.70 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 24,907.77, followed by 24,695.73. On the upside, key resistance levels are placed at 25,343.27, followed by 25,566.73.
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 flat; Italy budget woes hit Europe, boost dollar
The US dollar rose on Friday as the euro fell on deepening worries about an Italian budget with a higher-than-expected deficit target, which also slammed European stocks. Wall Street ended flat, pulling back from early gains after Facebook disclosed a security breach. Tesla shares lost 13.9 percent after US regulators sued Chief Executive Officer Elon Musk in a fraud complaint that seeks to remove him as CEO.
The Dow Jones Industrial Average rose 18.38 points, or 0.07 percent, to 26,458.31, the S&P 500 lost 0.02 point to 2,913.98 and the Nasdaq Composite added 4.39 points, or 0.05 percent, to 8,046.35.
Asian markets trade mixed
Asia markets are trading mixed this Monday morning led by data released on Sunday showing a slowdown in China's manufacturing sector. The Nikkei 225 was 0.39 percent higher while the Topix declined by 0.13 percent in the early hours. In South Korea, the Kospi was higher by around 0.1 percent in the morning.
SGX Nifty
Trends on SGX Nifty indicate a flat opening for the broader index in India, a fall of 2 points or 0.02 percent. Nifty futures were trading around 10,957-level on the Singaporean Exchange.
Brent oil near four-year high ahead of Iran sanctions
Oil prices opened firmly on Monday, with Brent hovering close its highest in nearly four years ahead of US sanctions against Iran that kick in next month. Brent crude oil futures were trading at $83.04 per barrel at 0057 GMT, up 31 cents, or 0.4 percent, from their last close and near the $83.07 level reached during the last session - the highest since November 2014.
US West Texas Intermediate (WTI) crude futures were up 23 cents, or 0.3 percent, at $73.48 a barrel.
Rupee ends at 1-week high of 72.48 against US dollar
Continuing its healthy recovery momentum for the third-straight day, the rupee on September 28 gained 11 paise to end at a one-week high of 72.48 against the US dollar on sustained selling of the American currency by exporters. However, the domestic for the week finished lower by 28 paise, posting its fifth straight weekly loss. Ongoing global trade war concerns and surging global crude prices caused some discomfort for the rupee and restricted the gains.
After extending a rally to hit a session of high of 72.39 in late afternoon deals, the local currency finally settled the day at 72.48, showing a gain of 11 paise, or 0.15 percent.
US economic growth, rupee fall to boost Indian exports: Assocham
India's exports hold a promising outlook with the US economy growing at its best in four years, coupled with the rupee depreciation leading to enhanced net revenue realisations, according to a report by Assocham. The US emerged as the top export destination for India, with $47.9 billion worth of shipments in the last fiscal ended March, followed by the UAE and Hong Kong, the commerce ministry data showed.
The US economic growth accelerated by 4.2 percent in the second quarter of this year, its fastest pace in about four years despite the ongoing tariff war with China. "The US accounted for about a good chunk of 16 percent of India's total merchandise exports of $303 billion in the fiscal 2017-18 with the annual growth of 13.42 percent,” the report said.
FPI outflow hits 4-month high of Rs 21K cr in Sept
Overseas investors pulled out a massive Rs 21,000 crore (USD 3 billion) from the capital markets in September, making it the steepest outflow in four months, on widening current account deficit amid global trade tensions. The latest withdrawal comes following a net infusion of close to Rs 5,200 crore in the capital markets (both equity and debt) last month and Rs 2,300 crore in July.
According to the latest depository data, foreign portfolio investors (FPIs) withdrew a net sum of Rs 10,825 crore from equities in September and Rs 10,198 crore from the debt market, taking the total to Rs 21,023 crore (USD 3 billion).
India's 2018 monsoon rainfall below average and forecast
Rainfall in India’s annual monsoon season was below average and less than forecast, with key crop-growing northern states among areas that received less rain than needed, weather office said on Sunday. Rains were 91 percent of the long-term average at the end of the July-September monsoon season, compared with a forecast of 97 percent, marking the fifth straight year in which the weather office has overestimated the likely rainfall.
India, in its annual economic survey for 2017/18, said that the proportion of extremely dry or wet weather conditions has increased steadily because of climate change, with rain-dependent areas suffering a 14.3 percent fall in agricultural revenue owing to “extreme rainfall shocks”.
China to cut import tariffs on wide range of products
China will cut import tariffs on textile products and metals, including steel products, to 8.4 percent from 11.5 percent, effective November 1, the finance ministry said on Sunday. Import tariffs on wood and paper products, minerals and gemstones will be cut to 5.4 percent from 6.6 percent, the ministry also said in its statement.
Average import tariffs on over fifteen hundred products will be lowered to 7.8 percent from 10.5 percent, the ministry said. “Reducing tariffs is conducive to promoting the balanced development of foreign trade and promoting a higher level of opening up to the outside world,” the ministry said.
NSE to launch commodity derivatives segment on Oct 12
The National Stock Exchange (NSE) will launch its commodity derivatives segment from October 12 following representations received from several trading and clearing members, according to a release.
Both the NSE and the BSE were to launch the segment from October 1. In a release, the NSE said that several members suggested that more time be given to market intermediaries to put in place appropriate systems at their end for trading in commodity derivatives.
"We have also received suggestions that the launch of a new segment should be done after the ‘Pitru-Paksha' in the auspicious period of Navratri. "Respecting members' feedback and sentiment, we have decided to launch its commodity derivative segment on October 12," it said.
BSE to launch commodity derivatives trading on October 1
BSE is set to launch trading in commodity derivatives from October 1 and has decided to waive off the transaction charges for the first year of commodities market operations, the exchange said. The exchange will begin trading in commodity derivatives with non-agriculture commodities like metals initially, followed by agri commodities subsequently, BSE said in a statement.
Narmada Bio-Chem files DRHP with SEBI for IPO
Ahmedabad-based chemical and organic fertilizer company Narmada Bio-Chem has filed its Draft Red Herring Prospectus (DRHP) with market regulator SEBI for seeking permission for initial public offering (IPO) of 72 lakh equity shares. The IPO comprises a fresh issue of upto 54 lakh shares and an offer for sale of upto 18 lakh shares by Narmada Organics Private Limited.
Equity shares are proposed to be listed on the BSE and the NSE. Pantomath Capital Advisors is the book running lead manager and Karvy Computershare Private Limited is the registrar to the Issue.
Neccon Power, Narmada Bio-Chem file IPO papers with SEBI
Assam-based Neccon Power and Infra has filed draft papers with capital markets regulator SEBI to float an initial public offering (IPO). Apart from Neccon Power, Ahmedabad based Narmada Bio-Chem has also filed draft red herring prospectus with the regulator to launch IPO.
PL Capital Markets Private will manage Neccon's IPO, while that of Narmada Bio-Chem, Pantomath Capital Advisors Ltd is the Book Running Lead Manager.
Stove Kraft files draft papers for IPO
Kitchen appliances maker Stove Kraft has filed initial papers with Sebi for an initial public offer. The initial issue comprises fresh issuance of equity shares worth up to Rs 145 crore and an offer of sale for up to 7,163,721 shares, according to the Draft Red Herring Prospectus (DRHP). Edelweiss Financial Services Ltd,
IDFC Bank and JM Financial Ltd would manage the company's initial public offer.
Chartered Speed files Rs 273 crore IPO papers with SEBI
Fleet bus operators Chartered Speed has filed draft papers with markets regulator SEBI to raise an estimated Rs 273 crore through an initial public offering.
The IPO comprises fresh issuance of equity shares worth up to Rs 225 crore, besides, an offer of sale of around Rs 48 crore, according to the draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (SEBI).
Equirus Capital Private will manage the issue and the equity shares will be listed on BSE and NSE.
With inputs from Reuters & other agencies
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