Bears continued to dominate Dalal Street for the second consecutive session on August 13 as the Nifty50 fell sharply, closing far below the psychological 11,400-mark following the Turkey crisis and further weakness in the rupee against the dollar.
The Nifty closed below the five-day EMA as well as nine-day EMA, which offered major support to Nifty in earlier corrections. The index formed a small bearish candle on the daily charts.
The Nifty50 after opening sharply lower and breaking 11,400 levels extended losses as the day progressed and hit an intraday low of 11,340.30. It did manage to claw back above 11,400 in afternoon trade, but failed to hold the same level and closed 73.70 points lower at 11,355.80.
India VIX moved up by 4.08 percent at 13.37 levels. Spurt in VIX suggests that upside is going to be capped on immediate basis.
According to Pivot charts, the key support level is placed at 11,328.63, followed by 11,301.47. If the index starts moving upwards, key resistance levels to watch out are 11,394.63 and 11,433.47.
The Nifty Bank index closed at 27,794.40, down 329.85 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 27,718.67, followed by 27,642.93. On the upside, key resistance levels are placed at 27,890.97, followed by 27,987.54.
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 dragged down by fall out from Turkey's plunging lira
US stocks dropped on Monday as global jitters from Turkey’s plummeting currency spread to Wall Street, with the S&P 500 and the Dow falling for the fourth session in a row. Financial stocks bore the brunt of Turkey contagion fears, with shares of Citigroup Inc, Bank of America Corp, Wells Fargo & Co and JPMorgan Chase & Co closing down between 0.8 percent and 2.2 percent.
The Dow Jones Industrial Average fell 125.44 points, or 0.5 percent, to 25,187.7, the S&P 500 lost 11.35 points, or 0.40 percent, to 2,821.93 and the Nasdaq Composite dropped 19.40 points, or 0.25 percent, to 7,819.71.
Asia tries to find its footing after Turkish tremors
Asia share markets tried to regain their footing on Tuesday as tremors from the collapse of the Turkish lira ebbed a little and Wall Street proved resilient to the shockwaves. Japan's Nikkei led the early running with a gain of 1.0 percent, while Australia added 0.4 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat having found support above the July low of 525.52.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 8 points or 0.07 percent. Nifty futures were trading around 11,382-level on the Singaporean Exchange.
Retail inflation at 9-month low; cools to 4.17% in July
India’s retail inflation fell to 4.17 percent in July, lowest in nine months, driven by cheaper food items, data released by the statistics office showed. Retail inflation, measured by Consumer Price Index (CPI) had hit a five-month high of 5 percent in June. It came in at 2.36 percent in July 2017.
“Sharp decline in retail inflation to 4.17 percent, closer to RBI’s 4 percent inflation target will give a lot of comfort to monetary authorities and we expect RBI to stay in pause mode in rest of 2018-19,” Devendra Pant, Chief Economist at India Ratings said.
Oil prices edge up as Saudi cuts output
Oil prices rose on Tuesday after a report from OPEC confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply. Front-month Brent crude oil futures were at USD 72.87 per barrel at 0111 GMT, up 26 cents, or 0.4 percent, from their last close. US West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.5 percent, at USD 67.52 per barrel.
Fund raising via preferential allotment jumps 11-fold to Rs 1 lakh cr in Q1 FY19
Indian companies garnered nearly Rs 1,00,000 crore crore through issuance of shares on preferential basis in April-June quarter of the current fiscal, registering 11-fold rise over the year-ago period. The firms had mopped up Rs 9,037 crore in the corresponding period previous fiscal.
The funds mobilised during the June 2018 quarter were also higher than what the companies had raised during the entire 2017-18, when they could manage only Rs 59,500 crore. The data available with the Securities and Exchange Board of India showed that funds raised by listed firms through preferential allotment stood at Rs 99,811 crore during the first quarter of 2018-19.
Sebi mulls measures to prevent misuse of clients' securities
To strengthen the supervision of stock brokers, markets regulator Sebi is mulling additional measures to prevent misuse of client's securities. Besides, the regulator plans to initiate technology-based measures to streamline the sharing of information among the stock exchanges, depositories and Sebi to enhance the inspection of intermediaries.
The move comes amid several instances have been reported about misuse of clients' securities by stock brokers. "To strengthen the supervision of stock brokers, additional measures to prevent misuse of client's securities are under consideration," the Securities and Exchange Board of India (Sebi) said in its annual report for 2017-18.
OPEC trims 2019 demand for its oil, says Saudi Arabia cuts output
OPEC on Monday forecast lower demand for its crude next year as rivals pump more and said top oil exporter Saudi Arabia, eager to avoid a return of oversupply, had cut production. In a monthly report, the Organization of the Petroleum Exporting Countries said the world will need 32.05 million barrels per day (bpd) of crude from its 15 members in 2019, down 130,000 bpd from last month's forecast.
OPEC said its oil output in July rose to 32.32 million bpd, above the demand forecast, despite a surprise cut in output by Saudi Arabia just weeks after OPEC and its allies had agreed to boost supplies.
Rupee crashes to all-time low of 69.91 on Turkish Lira shock
The rupee yesterday crashed by Rs 1.08 or 1.57 percent to end at historic low of 69.91 against the US currency amid a global rout in currencies following fears that Turkish economic crisis could engulf world economy. The US dollar strengthened against the world currencies after the Turkish Lira dived almost 8 percent, sparking a sell-off in global markets.
The rupee had opened strong by 41 paise at 68.42 against the US dollar in early trade, helped by revived sentiments following optimistic macroeconomic outlook. However, it soon plunged to a low of 69.62 in line with weakening domestic equities and meltdown in global markets.
BSE investors base crosses 4 cr mark
BSE has achieved yet another milestone with its registered investors base crossing the four-crore mark yesterday. The bourse saw its investor base increasing by 14.25 percent over the previous year, 2.75 percent over previous quarter and 1.03 percent over previous month, BSE said in a statement.
Ashishkumar Chauhan, managing director and chief executive officer, BSE, said over the years, the exchange has taken several initiatives aimed at adding value to the investors and four crore registered investors is a testimony of the success of these initiatives.
Mazgon Dock Shipbuilders gets Sebi go ahead for IPO
State-owned Mazgon Dock Shipbuilders has received markets regulator Sebi's go ahead to float an initial public offering. The public sector undertaking had filed draft papers with the Securities and Exchange Board of India (Sebi) in April seeking its clearance to launch an IPO and obtained its "observations" on August 10, according to the latest update with the markets watchdog.
Going by the draft papers, Mazagon, a lead shipyard of India serving the nation's strategic requirements, will see sale of over 2.24 crore equity shares by the government. The IPO is part of the government's target to garner Rs 80,000 crore through stake sales in state-owned companies in 2018-19.
1093 companies to report June quarter numbers today
On the earnings front, 1093 companies will report their results for quarter ended June later today which include names like Allahabad Bank, Bharat Dynamics, Emkay Global, Essar India, Finolex Cables, Gayatri Projects, GMR Infra, DB Realty, Dilip Buildcon, GVK power, Hathway Cable, Indiabulls Real Estate, IVRCL, JBF Industries, La Opala, MMTC and SpiceJet among others.
Gold stabilises as dollar pulls back from 13-month high
Gold prices traded steady on Tuesday, but hovered close to an 18-month low, as the US dollar pared gains after posting a 13-month high in the previous session. Spot gold was up 0.1 percent at USD 1,194.13 an ounce, as of 0106 GMT. In the previous session, the bullion hit USD 1191.35, its lowest since January 30, 2017. US gold futures were up 0.1 percent at USD 1,200.5 an ounce.
4 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For August 14, Adani Enterprises, Adani Power, Jet Airways and Punjab National Bank are present in this list.
With inputs from Reuters & other agencies
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