A list of important headlines from across news agencies that could help in your trade today.
The sell-off in the last hour of trade wiped all gains from the opening and the market closed lower for the session on January 25. Zee Entertainment that crashed over 26 percent and weak earnings by Maruti Suzuki that fell over 7 percent weighed on sentiment.
The 30-share BSE Sensex fell 169.56 points at 36,025.54 and the Nifty50 shed 69.25 points to 10,780.55. Both indices formed bearish candle on the daily and weekly charts. For the week, benchmark indices declined 1 percent each.
The market has not broken its range of 10,700-10,980 yet for last many sessions and the same trend is expected to continue in coming F&O expiry week as well, experts said, adding any unexpected announcement in Interim Budget 2019 could move the index sharply on either side.
The broader markets fell more than frontliners as the Nifty Midcap and Smallcap indices were down 1.6 percent each. All sectoral indices closed in the red barring IT (up 0.45 percent). Auto and realty lost the most, down 3 percent and 4 percent, respectively.
According to Pivot charts, the key support level is placed at 10,714.1, followed by 10,647.7. If the index starts moving upward, key resistance levels to watch are 10,889.3 and then 10,998.1.
The Nifty Bank closed at 27,115.3. The important Pivot level, which will act as crucial support for the index, is placed at 26,962.46, followed by 26,809.63. On the upside, key resistance levels are placed at 27,350.86, followed by 27,586.43.
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 end higher on Washington temporary shutdown deal
Wall Street gained ground on Friday in a broad-based rally as investors were heartened by news that Washington would move to temporarily end the longest US government shutdown in history.
All three major US stock indexes advanced, with the Dow and the Nasdaq eking out their fifth straight weekly gains. But the S&P 500 posted its first weekly loss of the year, snapping a four-week run.
The Dow Jones Industrial Average rose 183.96 points, or 0.75 percent, to 24,737.2, the S&P 500 gained 22.43 points, or 0.85 percent, to 2,664.76 and the Nasdaq Composite added 91.40 points, or 1.29 percent, to 7,164.86.
Asian stocks rise after US government reopens for now
Asian stocks advanced on Monday as Wall Street rallied after a deal was announced to reopen the US government following a prolonged shutdown that had shaken investor sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.2 percent. South Korea’s KOSPI edged up 0.2 percent, New Zealand stocks were up a touch, while Japan’s Nikkei bucked the trends and eased 0.2 percent. Australian financial markets were shut for their ‘Australia Day’ holiday
Oil prices fall on rising US rig count, economic slowdown
Oil prices fell on Monday after US energy firms added rigs for the first time this year in a sign that crude production there will rise further. US spot crude oil futures were at $53.37 per barrel at 0027 GMT, down 32 cents, or 0.6 percent, from their last settlement. International Brent crude oil futures were at $61.37 a barrel, down 27 cents, or 0.4 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 16 points or 0.15 percent. Nifty futures were trading around 10,811-level on the Singaporean Exchange.
Donald Trump strikes deal to end government shutdown
US President Donald Trump has announced a deal with the Democrats to temporarily open the government for three weeks till mid-February, ending the longest-ever partial shutdown and enabling over 800,000 federal workers to resume their job.
"I am very proud to announce today that we have reached a deal to end the shutdown and re-open the federal government," Trump said at the White House on Friday. "After 36 days of spirited debate and dialogue, I've seen and heard from enough Democrats and Republicans that they're willing to put partisanship aside, I think, and put the security of the American people first."
Govt empowers PSU banks to seek lookout circulars against wilful defaulters
In a bid to prevent big economic offenders like Vijay Mallya and Nirav Modi from fleeing the country, the government has empowered PSU banks to request lookout circulars (LOCs) against wilful defaulters and fraudsters, officials said on Sunday. The Home Ministry has also authorised the Serious Fraud Investigation Office (SFIO), a statutory corporate fraud investigation agency, to request LOCs if it feels the suspect may escape from India.
The ministry issued two circulars recently, authorising chairman-cum-managing directors or chief executive officers of public sector banks and the SFIO to request designated authorities to issue LOCs against any wilful defaulter or fraudster if they think the person may flee the country.
Finance minister Piyush Goyal to meet heads of PSU banks today
Finance Minister Piyush Goyal will meet the CEOs of public sector banks January 28 to take a stock of the banking sector, and discuss ways to improve their financial health, sources said. The meeting assumes significance as it comes just three days ahead of the Budget 2019-20, the last from this government before the general elections expected to be held in April-May.
The full-day meeting is likely to be attended by Reserve Bank of India Governor Shaktikanta Das, who is going to announce his first monetary policy review on February 7.
Nomura sees GDP slowing to 6.6% in H1 on polls, global slowdown
The economy is likely to lose steam and may clip at 6.6 percent in the first half of 2019 from 7.4 percent a year ago, on account of the global slowdown and the uncertainty about the outcome of the forthcoming general elections, a report has warned.
"We expect the slowdown to worsen in the first half of 2019 to around 6.2 percent (from a peak of 8.2 percent in Q2 of 2018) before staging a recovery to 7.2 percent in the fourth quarter of 2019," Japanese brokerage Nomura said.
"The factors that will affect growth in 2019 are global slowdown, which will impact exports, manufacturing, and the overall investment climate; tight financial conditions and election uncertainty," Nomura India economist Aurodeep Nandi said.
Rupee settles 10 paise lower at 71.17 against US dollar
The rupee Friday weakened by 10 paise to close at 71.17 against the US dollar amid increasing demand for the greenback from exporters and heavy selling in domestic equities. On a weekly-basis, however, the Indian currency registered a marginal gain of 2 paise. The rupee had registered losses in the previous two successive weeks.
Forex traders said concerns related to fiscal slippage weighed on the local unit. At the Interbank Foreign Exchange (forex) market, the rupee opened higher at 71.03, but during the day it came under selling pressure. It finally finished at 71.17 per dollar, down by 10 paise against its previous close.
Govt set to miss fiscal deficit target by a full 40 bps: BofAML
The government is set breach the fiscal deficit target yet again by 40 bps for 2018-19, and raise the target to 3.5 percent for next fiscal in the forthcoming budget that may be skewed towards the rural economy, says a foreign brokerage report.
In a note Friday, Bank of America Merrill Lynch, however, said the fiscal "risks are overdone". "We expect the government to target a fiscal deficit of 3.5 percent for FY20, after ending FY19 at 3.7 percent, 0.40 percent higher than the target," the note said.
Cabinet likely to approve agri-package for farmers today
The cabinet on January 28 is likely to approve a package for farmers to boost their income and address distress in the farm sector, sources said, adding that the move will come ahead of the general elections.
"The cabinet meeting is scheduled today and the agriculture ministry's proposal on addressing income deficit syndrome of small and marginal farmers is on the agenda," a highly placed source said.
The agriculture ministry has recommended several options to provide both short and long term solutions to address agrarian distress. However, a final call will be taken in the cabinet meeting as a huge cost is involved, the sources said.
FPI outflows at nearly Rs 6,000 crore in January
Foreign investors have pulled out close to Rs 6,000 crore so far from the Indian stock markets in January and experts believe this trend will continue in the coming months as well. This comes following a collective net inflow of Rs 8,584 crore in the equity markets by Foreign Portfolio Investors (FPIs) during November and December 2017. Prior to that, they had pulled out a massive Rs 28,900 crore in October.
According to data available with the depositories, FPIs withdrew a net amount of Rs 5,880 crore during January 1-25. However, they invested a net Rs 163 crore in the country's debt markets during the period under review.
Sebi proposes easier rules for REITs, InvITs to increase access to investors
To make REITs and InvITs more attractive, markets regulator Sebi on Friday came out with a new set of proposals to provide flexibility to the issuers in terms of fund raising and increasing the access of these investment vehicles to investors.
Under the proposal, minimum allotment and trading lot for publicly issued REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will be reduced. Besides, it has been proposed that the leverage limit for InvITs should be increased from existing 49 per cent to 70 percent.
54 companies to report Q3 numbers today
As many as 54 companies will be announcing their results for the December quarter which include names like Bank of India, Canara Bank, CEAT, City Union Bank, Escorts, Ramco Systems, Shriram Transport Finance, Tata Power, Wockhardt, and Vaibhav Global among others.
Chalet Hotels launches Rs 1600-cr IPO
Chalet Hotels, which owns, develops and manages high-end hotels in the key metros, Friday announced a Rs 1,600-crore initial public offering which includes issue of fresh equity and also sale by promoters. The IPO consists of equity shares of face value of Rs 10 aggregating up to Rs 950 crore and an offer-for-sale of up to 2.46 crore equity shares.
The issue is priced at Rs 275-280 and will open January 29 through 31. The selling shareholders include 55.50 lakh shares each by Ravi C Raheja and Neel C Raheja, 1.07 crore shares by K Raheja Corp, 8 lakh by Palm Shelter Estate and 20 lakh by Ivory Properties & Hotels. JM Financial, Axis Capital and Morgan Stanley India are the lead managers to the issue.
3 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For January 28, Jain Irrigation Systems, Adani Enterprises and Jet Airways are present in this list.With inputs from Reuters & other agencies