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Last Updated : Jul 22, 2019 07:44 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 12 things to know

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 32.5 points or 0.28 percent.

Sandip Das @Im_Sandip1

The sharp fall for second consecutive session not only dragged the market to its two-month low on July 19, but also got it into negative territory for the week due to some disappointment over earnings, and unhappiness among FPIs after the Finance Minister refused to tweak the surcharge on the super-rich.

The BSE Sensex was down 560.45 points at 38,337.01, while the Nifty50 plunged 177.60 points to 11,419.30 on selling across sectors. Both benchmark indices fell a percent each for the week.

Close

The index formed a bearish candle on daily as well as weekly scale, indicating bears are having the upper-hand on the Street, which could drag the index below 11,300 level, if it decisively breaks 11,400, which it managed to hold while closing on Friday, experts feel.

The correction in broader markets was higher than benchmark indices as the Nifty Midcap and Smallcap indices fell around 2 percent each on Friday and around 4 percent each for the week.

According to the pivot charts, the key support level is placed at 11,332.23, followed by 11,245.27. If the index starts moving upward, the key resistance levels to watch for out are 11,573.23 and 11,727.27.

The Nifty Bank closed at 29,770.35, down 660.25 points on July 19. The important pivot level, which will act as crucial support for the index, is placed at 29,469.47, followed by 29,168.63. On the upside, key resistance levels are placed at 30,307.47, followed by 30,844.63.

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.

US Markets

Wall Street’s main indexes fell on Friday following a report that the Federal Reserve plans to cut interest rates by only a quarter-percentage point at the end of the month.

The benchmark S&P 500 erased earlier marginal gains after a Wall Street Journal report on the Fed’s plans. According to the report, while the US central bank is not prepared to make a bigger 50-basis-point cut, it may make further rate cuts in the future given concerns about a decline

in global economic growth and uncertainty about trade.

The Dow Jones Industrial Average fell 68.77 points, or 0.25 percent, to 27,154.2, the S&P 500 lost 18.5 points, or 0.62 percent, to 2,976.61 and the Nasdaq Composite dropped 60.75 points, or 0.74 percent, to 8,146.49.

Asian Markets

Asia stocks eased on Monday as investors reduced expectations of an aggressive interest rate cut by the Federal Reserve, while heightened Middle East tensions following an Iranian seizure of a British tanker lifted crude oil prices.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1 percent. South Korea's KOSPI shed 0.3 percent, Australian stocks lost 0.2 percent and Japan's Nikkei fell 0.5 percent.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 32.5 points or 0.28 percent. Nifty futures were trading around 11,397-level on the Singaporean Exchange.

Oil gains as Gulf tanker seizure raises tensions

Oil prices rose on Monday amid high tensions in the Middle East after a British tanker was seized by the Iranian military at the end of last week.

Brent crude futures were up 51 cents, or 0.8 percent, at USD 62.98 a barrel by 0042 GMT. The international benchmark rose to as high as USD 63.47 earlier. West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.3 percent, at USD 55.78.

Rupee spurts 17 paise to 68.80 against US dollar

The rupee snapped its three-day losing streak to close 17 paise higher at 68.80 against the US dollar July 19 as market participants pinned their hopes on an aggressive rate cut by the US Federal Reserve later this month.

Forex traders said the rupee along with most Asian currencies strengthened following dovish comments from New York Fed officials, offsetting the impact of soaring crude oil prices amid fresh geopolitical tensions in the Middle East.

At the interbank foreign exchange market, the local unit opened on a firm footing at 68.78, and shuttled between a high of 68.74 and a low of 68.95 during the day. The rupee finally closed at 68.80, up 17 paise over its previous close.

FPIs withdraw Rs 7,712 cr from stocks in July so far

Foreign portfolio investors pulled out around Rs 7,712 crore from Indian equities in this month so far following the 'super-rich' tax announced in the budget for 2019-20, according to analysts.

FPIs had been net investors in the equity segment in the previous five months. According to the latest data available with depositories, a net sum of Rs 7,712.12 crore has been pulled out from equities during July 1-19. However, foreign portfolio investors (FPI) pumped in Rs 9,371.12

crore in the debt segment during the period.

First time in a month, forex reserves fall by $1.11 bn

After touching record highs, the foreign exchange reserves declined by USD 1.113 billion to USD 428.797 billion in the week to July 12 - the first fall after four consecutive weeks of gains - due to a fall in foreign currency assets, show the latest weekly RBI data. In the previous reporting week, the reserves had surged by USD 2.236 billion to scale a new life-time high of USD 429.911 billion.

In the reporting week, foreign currency assets, which are a major component of the overall reserves, slipped by USD 1.11 billion to USD 399.697 billion, the central bank said July 19.

Expressed in dollar terms, foreign currency assets include the effect of appreciation/depreciation of non-US units like the euro, pound and yen held in the reserves.

Air traffic volume picks up again, inches up 6.2% in June

Domestic air passenger traffic rose 6.19 percent in June over the year-ago period, with local carriers flying 12.02 million passengers in the month, show the monthly data from regulator DGCA.

The uptick in June follows a marginal under 3 percent growth in May ferrying 112 million passengers. But this was after a 4.5 percent degrowth in April-the first time in six years--due to the grounding of Jet Airways and the resultant spike in ticket prices during the peak summer holidays.

The largest carrier Indigo continued its market leadership ferrying 5.77 million passengers in the month, followed by rival Spicejet with 1.86 million, and Air India carrying 1.55 million passengers, show the DGCA data released July 19.

RIL Q1 PAT grows 6.8%

Reliance Industries reported a consolidated profit after tax of Rs 10,104 crore for the June quarter, up 6.8 percent from a year ago. The net profit also beat a poll of analysts conducted by CNBC-TV18 which had pegged the profits at Rs 9,852 crore. The profit tax, however, was down

2.5 percent when compared to the March quarter number of Rs 10,362 crore.

Consolidated net revenue grew by 13.2 percent from a quarter ago to Rs 1.57 lakh crore, which was much higher than CNBC-TV18 poll estimates of Rs 1.43 lakh crore. On a year-on-year basis, consolidated profit grew 22 percent.

"First quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions," Mukesh D. Ambani, Chairman and Managing Director said.

HDFC Bank Q1 meets street estimates; profit jumps 21%

Private sector lender HDFC Bank's April-June quarter earnings matched analyst expectations with profit growing 21 percent year-on-year, though asset quality weakened slightly on sequential basis.

Profit in quarter ended June 2019 increased to Rs 5,568.2 crore, from Rs 4,601.44 crore in year-ago period, the lender said in its BSE filing on July 20. The growth was driven by healthy NII, non-interest income and operating profit.

Net interest income, the difference between interest earned and interest expended, grew sharply by 23 percent to Rs 13,294 crore in Q1 year-on-year (YoY) due to asset growth and a core net interest margin for the quarter of 4.3 percent.

32 companies to report June quarter numbers today

As many as 32 companies will declare their results for the quarter ended June which include names like Aptech, Can Fin Homes, ICICI Securities, Kotak Mahindra Bank, TVS Motor Company, OBC, and United Spirits among others.

Four stocks under F&O ban period on NSE

For July 22, DHFL, IDBI Bank, Reliance Capital and Reliance Infrastructure are under the F&O ban period. Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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First Published on Jul 22, 2019 07:44 am
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