The market rallied on the first day of March series and helped close the week ending March 1 on a positive note on de-escalation of India-Pakistan border conflict and hope of trade deal between the US and China.
The 30-share BSE Sensex climbed 196.37 points to 36,063.81 as the Nifty50 advanced 71 points to 10,863.50 and formed bullish candle on daily as well as weekly charts. For the week, the indices gained 0.5 percent and 0.7 percent, respectively.
The Nifty has been trading in a tight range of 10,930-10,600 for last three months, whereby it has to surpass crucial resistance of 10,930 for heading north on the closing basis, experts said. RSI is placed above 50, suggesting a better possibility of higher closing in the coming week.
All sectoral indices closed higher with PSU Bank (up 2.6 percent) and Metal (1.8 percent) rising the most. The Nifty Midcap (up 1.44 percent) and Smallcap indices (up 2.7 percent) outperformed benchmark indices.
According to Pivot charts, the key support level is placed at 10,831.77, followed by 10,800.03. If the index starts moving upward, key resistance levels to watch out are 10,886.57 and 10,909.63.
The Nifty Bank index closed at 27,043.90, up 254 points on March 1. The important Pivot level, which will act as crucial support for the index, is placed at 26,956.33, followed by 26,868.77. On the upside, key resistance levels are placed at 27,104.03, followed by 27,164.17.
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 drops after weak data, healthcare slump
Wall Street’s major indexes fell on Monday, weighed down by a weak US construction spending report and declines in healthcare shares, as an initial rally on optimism over a US-China trade deal faded.
The Dow Jones Industrial Average fell 206.67 points, or 0.79 percent, to 25,819.65, the S&P 500 lost 10.88 points, or 0.39 percent, to 2,792.81 and the Nasdaq Composite dropped 17.79 points, or 0.23 percent, to 7,577.57.
Asian shares retreat, China cuts growth target
Asian shares stepped back on Tuesday after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States.
Australian shares dropped 0.6 percent while South Korea’s Kospi lost 0.5 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent and Japan’s Nikkei dropped 0.3 percent. China cut its growth target for this year to 6.0 to 6.5 percent, in line with expectations, from around 6.5 percent last year.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 22.5 points or 0.21 percent. Nifty futures were trading around 10,825-level on the Singaporean Exchange.
China services growth eases to four-month low in further blow to economy: Caixin PMI
China’s services sector expanded at the slowest pace in four months in February, pressured by fewer new orders at home and abroad, a private survey showed on Tuesday, underlining growing strains on the economy and a challenging outlook for businesses this year.
The Caixin/Markit services purchasing managers’ index (PMI) fell to 51.1, the lowest since October and down sharply from January’s 53.6. The 50-mark separates growth from contraction.
Trump plans to end India's preferential trade treatment
US President Donald Trump said on Monday he intends to end India’s preferential trade treatment under a program that allows $5.6 billion worth of Indian exports to enter the United States duty free. Trump, who has vowed to reduce US trade deficits, has repeatedly called out India for its high tariffs.
“I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump said in a letter to congressional leaders.
China raises budget deficit to 2.8 percent of GDP: Policy report
China set a 2019 budget deficit target that’s higher than last year’s ratio and said its fiscal policy would be more “proactive and effective”. The Ministry of Finance said on Tuesday that it is targeting a budget deficit of 2.8 percent of gross domestic product (GDP) for this year, compared with 2018’s 2.6 percent target.
Policymakers have pledged to step up support for the cooling economy this year, following a raft of measures in 2018 including fast-tracked infrastructure projects and cuts in banks’ reserve requirements and taxes.
Rupee drops 20 paise to 70.92 vs USD
The rupee weakened by 20 paise to close at 70.92 against the US dollar Friday amid strengthening of the American currency and rising crude oil prices. Forex traders said slower GDP, higher crude oil prices, and faltering trade talks between the US and China weighed on the domestic currency.
At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 70.75 and fell further to touch the day's low of 70.99. It finally ended at 70.92 per dollar, down by 20 paise against its previous close. On a weekly basis, the domestic currency registered a gain of 22 paise.
Oil dips amid weak demand growth, but OPEC-led supply cuts support
Oil prices dipped on Monday amid tepid prospects for growth in fuel demand, but OPEC-led efforts to cut output offered some support. US West Texas Intermediate (WTI) crude oil futures were at $56.46 per barrel at 0136 GMT, down 13 cents, or 0.2 percent, from their last settlement. Brent crude futures were at $65.60 per barrel, down 7 cents, or 0.1 percent.
RBI norms to carve Rs.1.4 lakh cr headroom for bank credit: Crisil
The RBI's move to align risk weights of banks' exposure to non-banking finance companies (NBFCs) with their respective credit ratings will help banks to create a lending headroom of Rs 1.4 lakh crore, Crisil said in a report. "Firstly, the release of capital for banks should increase deployment opportunities for banks. Secondly, it enhances funding access for NBFCs," it said.
So far, banks used to set aside capital assuming 100 per cent risk weight uniformly for most NBFCs, barring specific categories such as asset finance
companies (AFCs), infrastructure finance companies (IFCs) – including infrastructure debt funds structured as NBFCs (IDF-NBFCs) – and housing finance companies, it said.
The rating based approach for assigning risk weights will lead to capital savings for banks of about Rs 13,000 crore, which will create additional lending headroom of about Rs. 1.4 lakh crore for the banking system, it said.
Sebi board approves lowering of fees for brokers, exchanges
Seeking to make it more cost-effective to trade in Indian stock markets, regulator Sebi's board on Friday approved lowering of fees charged from brokers, stock exchanges and the companies seeking to get listed. At a meeting here, the board approved reduction in fees payable by brokers by 33.33 per cent from Rs 15 per crore of transactions to Rs 10, while the same for agri-commodity derivative transactions would be reduced sharply by 93.33 per cent from Rs 15 to just Re 1.
The Sebi board also approved a proposal to grant permanent registration to custodians, instead of periodical renewal every year. Sebi said it would facilitate ease of doing business for custodians.
FPI net inflows in stocks hit 15 months high of Rs 17,220 crore in Feb
Foreign investors poured in close to Rs 17,220 crore on a net basis into Indian equities in February this year, the highest since November 2017, amid clarity on government spending plans and positive sentiments.
Foreign portfolio investors had pumped in a net amount of around Rs 19,728 crore into Indian stocks in November 2017. As per the latest data from the depositories, foreign investors pumped in Rs 1,17,899.79 crore into equities and pulled out Rs 1,00,680.17 crore in February, a net investment of Rs 11,183 crore into the stock market.
Forex reserves up by $944 mn to $399.21 bn
The country's foreign exchange reserves increased by $944.7 million to $399.217 billion in the week to February 22, due to increase in foreign currency assets, according to the RBI data.
In the previous week, the reserves had increased by $150.2 million to $398.272 billion.In the reporting week, foreign currency assets, a major component of the overall reserves, rose by $928.6 million to $371.99 billion.
MSTC gets SEBI nod for IPO
E-commerce company MSTC Ltd on Monday said it has got approval from the Securities and Exchange Board of India (SEBI) for the state-run firm's proposed IPO. The IPO would be by way of offer for sale by the Union government of 17,600,000 shares, equivalent to 25 per cent of the post-offer, paid-up equity share capital.
Equirus Capital Pvt Ltd is the sole book running lead manager to this offer and Alankit Assignments Ltd is the registrar. The mini-Ratna company, under the Ministry of Steel, has three main business verticals - e-commerce, trading and recycling.
With inputs from Reuters & other agencies
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