The S&P BSE Sensex closed above 40,000 levels for the first time since June 4 while the Nifty50 closed comfortably above 11,800 level on Wednesday.
Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 220 points to 40,051 while the Nifty50 closed 57 points higher at 11,844 on Wednesday.
The S&P BSE Public Sector index rose 1.6 percent, followed by the S&P BSE IT index which was up 1.4 percent, and the S&P BSE Oil & Gas index added 1.3 percent.
On the losing front, the S&P BSE Consumer Durables index fell nearly 1 percent, followed by the BSE Realty index which was down 0.92 percent, and the S&P BSE Metal index fell 0.32 percent.
On the broader market front, the S&P BSE Midcap index rose 0.65 percent, and the S&P BSE Small-cap index gained 0.36 percent.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
S&P closes at a record on Fed bump
Overnight, US markets ended higher with the S&P 500 closing at a record for the second time in three sessions, after the U.S. Federal Reserve decided to cut interest rates by a quarter of a percentage point.
The Dow Jones Industrial Average rose 115.54 points to 27,186.96, the S&P 500 gained 9.92 points, to 3,046.81 and the Nasdaq Composite added 27.12 points to 8,303.98.
Most of the Asian markets were trading with a positive bias after the US Federal Reserve decided to cut rates for the third time this year but signaled its rate-cut cycle might be at a pause.
The dollar index rose to 98.00 as Fed Chairman Jerome Powell spoke about its decision, the highest since Oct. 17, before slipping. The index was last down 0.3 percent at 97.37, its lowest level in a week.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with an 44 points gain or 0.38 percent. The Nifty futures were trading around 11,895-level on the Singaporean Exchange.
US Fed cut rates:
The Federal Reserve slashed interest rates for the third time this year to help sustain U.S. growth despite a slowdown in other parts of the world but signaled that there would be no further reductions unless the economy takes a turn for the worse.
The U.S. central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50 percent and 1.75 percent.
China October factory activity shrinks:
Factory activity in China shrank for the sixth straight month in October, official data showed, pointing to further pressure on its manufacturers as they grapple with the weakest economic growth in nearly 30 years.
The official Purchasing Managers’ Index (PMI) was at 49.3 in October, dipping from 49.8 in September, the survey from the statistics bureau showed. The 50-point mark separates expansion from contraction on a monthly basis, said a Reuters report.
Japan September factory output rebounds:
Japan’s industrial output rebounded in September to 1.4 percent to log its fastest gain in four months, offering some relief to manufacturers amid a slowdown in global demand and rising pressure on the country’s exports from the U.S.-China trade war, said a Reuters report.
The Bank of Japan is likely to stand pat at its two-day rate review that ends on Thursday as stable markets, a truce in U.S.-China trade talks and robust domestic demand give it room to save its limited ammunition.
Hurdles for Trade Deal:
Leaders from the United States and China encountered a new obstacle in their struggle to end a damaging trade war, when the summit where they were supposed to meet was canceled because of violent protests, said a Reuters report.
U.S. President Donald Trump said this week he hoped to sign an interim trade deal with Chinese counterpart Xi Jinping during the Nov. 16-17 Asia-Pacific Economic Cooperation summit in Chile. Chilean officials said they cancelled the summit to focus on restoring law and order in the country.
Oil prices extend fall
Crude Oil prices fell for the fourth day, extending losses after a surge in U.S. inventories surprised investors, overshadowing an interest rate cut by the Federal Reserve. Brent crude futures were down 6 cents at $60.55 a barrel by 0033 GMT, having fallen by 1.6% on Wednesday.
Rupee slips 6 paise to 70.90
The Indian rupee settled 6 paise lower at 70.90 to the US dollar on Wednesday as participants exercised caution ahead of the Federal Reserve's monetary policy decision.
September Quarter Earnings:
On the earnings front, as many as 41 companies will declare their results for the September quarter which include names like BF Utilities, Blue Dart, IOC, Jindal Saw, Syndicate Bank, Tube Investment, and Vaibhav Global.
Government unlikely to opt for a cut in personal income tax rates
The government is unlikely to accept the recommendations of the Direct Tax Code (DTC) panel for cut in personal income tax rates this year.
"A cut in personal income tax is unlikely in this year due to lack of fiscal space," a senior official told Moneycontrol.
Top global sovereign, pension funds book Rs 500 cr PVR QIP:
The world’s largest sovereign wealth fund, Norway’s Government Pension Fund Global which manages $1 trillion of the country’s assets and the Kuwait Investment Authority with assets exceeding $590 billion are amongst top global investors who have subscribed to the qualified institutional placement of PVR, the nation’s largest multiplex operator.
On the institutional front, FPIs were net buyers in Indian markets for Rs 7,192 cr while the DIIs were net sellers to the tune of Rs 185 cr, provisional data showed.With inputs from Reuters & other agencies