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Last Updated : Aug 13, 2019 07:35 AM IST | Source:

What changed for the market while you were sleeping? Top 15 things to know

Trends on SGX Nifty indicate a positive opening for the broader index in India, a with 0.32 percent gain or 35.5 points.

Sandip Das @Im_Sandip1

The market continued to rally for the second straight session on August 9, helping benchmark indices post their first weekly gains in the last five weeks. The uptrend seen was on the hope of measures to boost economic growth and revive dented sentiment on the FPI front.

The BSE Sensex trimmed gains from 480 points intraday to 254.55 points to close at 37,581.91, taking total weekly gains to over a percent. The Nifty 50 rose 77.20 points to 11,109.70 and formed bullish candle resembling a Shooting Star kind of pattern on daily charts. The index also formed a bullish candle on a weekly scale.


The broader markets also saw buying interest, with the Nifty Midcap index rising a percent on Friday and 1.5 percent for the week.

According to the pivot charts, the key support level is placed at 11,054.5, followed by 10,999.3. If the index starts moving upward, the key resistance levels to watch for out are 11,173.2 and 11,236.7.

The Nifty Bank closed at 28,431.90, up by 321.45 points on August 9. The important pivot level, which will act as crucial support for the index, is placed at 28,254.87, followed by 28,077.83. On the upside, key resistance levels are placed at 28,605.87 and 28,779.83.

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

US stocks dropped in a broad sell-off on Monday as simmering geopolitical tensions spooked equity investors and drove a bond market rally while the protracted US-China trade war stoked fears of impending recession.

All three major US stock indexes closed sharply lower in light trading, with little to soothe market jitters over Hong Kong protests, Argentine President Mauricio Macri’s primary election defeat, and the US-China tariff dispute that has rattled markets for months.

The Dow Jones Industrial Average fell 391 points, or 1.49 percent, to 25,896.44, the S&P 500 lost 35.96 points, or 1.23 percent, to 2,882.69 and the Nasdaq Composite dropped 95.73 points, or 1.2 percent, to 7,863.41.

Asian Markets

Asian shares fell on Tuesday as fears about a drawn out Sino-US trade war, protests in Hong Kong and a crash in Argentina’s peso currency drove investors to safe harbours like bonds, gold, and the yen.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.26 percent while Japan's Nikkei tumbled 1.28 percent. The selling in regional markets came as Wall Street stocks took a beating on Monday, with the S&P 500 losing 1.23 percent.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, a with 0.32 percent gain or 35.5 points. Nifty futures were trading around 11,125-level on the Singaporean Exchange.

Fears rise that US-China trade war leading to recession: Goldman Sachs

Goldman Sachs Group Inc said on August 11 that fears of the US-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election.

"We expect tariffs targeting the remaining USD 300 billion of US imports from China to go into effect," the bank said in a note sent to clients. Goldman Sachs said it lowered its fourth-quarter US growth forecast by 20 basis points to 1.8 percent on a larger than expected impact from the developments in the trade tensions.

Oil prices edge down as traders weigh slowing demand against supply curbs

Oil prices edged lower on Tuesday, offsetting narrow gains in the previous session, on the expectation major producers would continue to reduce global supplies due to a slowing economic growth outlook.

International benchmark Brent crude futures were down 11 cents or 0.2 percent, from the previous settlement, to USD 58.46 a barrel by 0108 GMT. US West Texas Intermediate (WTI) futures were USD 54.81 per barrel, down 12 cents, or 0.2 percent, from the last close.

Rupee declines by 9 paise to 70.78 against US dollar

The rupee declined by 9 paise to close at 70.78 against the dollar on August 9 as market participants were cautious ahead of a meeting between foreign investors and finance ministry officials regarding the higher tax surcharge. At the interbank foreign exchange, the rupee witnessed high volatility.

After opening on a strong note at 70.54, the local unit touched a high of 70.44 and a low of 70.82 against the American currency during the day. The domestic unit finally settled down 9 paise at 70.78 against the American currency. The rupee had settled at 70.69 against the US dollar on Thursday.

India's industrial production grew 2% in June

India’s industrial output grew 2 percent in June, according to the Index of Industrial Production (IIP) data released by the government on August 9. Industrial output, or factory output, is the closest approximation for measuring economic activity in the country's business landscape.

Manufacturing output, which accounts for more than three-fourths of the entire index, grew 1.2 percent in June, against a growth  of 2.5 percent last month. For the April-June period, the eight infrastructure sectors averaged 3.6 percent growth. Exports contracted 1.7 percent during the same period.

The top announcements from Reliance Industries AGM 

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, country's second-largest company by market capitalisation, announced various plans and partnerships across businesses at 42nd Annual General Meeting on August 12. The company signed an agreement to sell 20 percent stake in oil to chemical business to Saudi Aramaco, one of the world's largest companies and also formed a partnership with BP for its KG-D6, Ambani announced.

Jio crossed 340 million subscribers, he said, adding the investment is almost complete. Mukesh Ambani said RIL is ready to kickstart four key engines this year—Internet of Things (IoT), Home Broadband, Enterprise & MSME Broadband—with annual revenue opportunity for Jio at Rs 20,000 crore from IoT only.

In FY19, RIL became India's largest and most profitable company among private and public sector companies.

  • Reliance Retail crossed the turnover of Rs 1.3 lakh crore to be the largest retail company

  • Jio & Retail have proved the sceptics wrong.

  • Reliance Retail is larger than all major retailers put together.

  • Consumer businesses contribute 32 percent to Reliance's earnings before interest, tax, depreciation and amortisation (EBITDA).

  • Consumer businesses to contribute 50 percent to Reliance's consolidated EBITDA soon.

  • RIL has the most comprehensive and integrated oil-to-chemicals (OTC) business.

  • Oil to chemicals business achieved revenue of Rs 5.7 lakh crore, exports of Rs 2.2 lakh crore.

  • Saudi Aramco & RIL agree to form long-term partnership. It will acquire 20 percent stake in oil-to-chemical business with an enterprise value of $75 billion.

  • JV with BP will invest Rs 35,000 crore in KG-D6. Focussing on augmenting production of methane; partnership with BP will help here.

  • Jio has been signing 10 million new customers every month; 500 million subscribers well within company's grasp. Jio has become the second-largest operator in the world.

  • Company has invested Rs 3.5 lakh crore to create state-of-the-art digital infrastructure. Can offer fixed broadband to homes & enterprises today.

  • Jio's wireless technology is already 4G+ & can be upgraded to 5G at minimal cost.

  • Jio's IoT platform to be available from January 1, 2020. It aims to connect 1 billion homes on Jio IoT platform. Annual revenue opportunity for Jio at Rs 20,000 crore from IoT.

  • Jio will complete the Jio Fiber rollout in the next 12 months.

  • RIL received 15 million registrations from 1,600 towns for home broadband service after launching in August 2018.

  • It plans to reach 20 million residences and 15 million business establishments. Jio Fiber trial ongoing with 5 lakh homes already. RIL aims to complete Jio GigaFiber within 12 months.

  • Designed Jio set-top box to accept broadcast signal from local cable operators (LCO) partners. All LCO partners will continue to have steady revenue for their broadcast TV business.

  • Jio Fiber aims to empower 2.4 million small and medium business. Jio Fiber to provide MSMEs cloud connectivity.FPIs remain in sell-off mode, pull out Rs 9,197 crore in August so far

    Continuing with their selling spree, foreign investors pulled out a net amount of Rs 9,197 crore in just seven trading sessions in August due to unconducive domestic and global factors. However, analysts said the trend may reverse if the government addresses the tax concerns of overseas investors.According to latest depositories data, foreign portfolio investors (FPIs) withdrew a net amount of Rs 11,134.60 from equities while pumping in Rs 1,937.54 into the debt segment during August 1-9, taking the total net withdrawal to Rs 9,197.06 crore. In the preceding month, FPIs were net sellers in the Indian capital markets (equity and debt) to the tune of Rs 2,985.88 crore.

    IMF warns increasing US tariffs could cut China growth sharply

    China's economy already is slowing amid the trade conflict with the United States, but if Washington were to ramp up tariffs even further it could cut Chinese growth sharply, the IMF warned on August 9. The International Monetary Fund trimmed its growth forecast for China to 6.2 percent this year, assuming no new tariffs are imposed, but additional US tariffs of 25 percent on remaining Chinese goods would cut GDP growth in the following year, the IMF said in a report.

    The annual review of China's economy -- known as the Article IV report -- was completed before President Donald Trump announced plans to impose 10 percent punitive tariffs on USD 300 billion in imports, which means that starting September 1 all products from China will be subject to duties in the intensifying trade war.

    The Washington-based global crisis lender once again called for a quick resolution to the trade conflict between the world's economic superpowers. "A further escalation of the trade tensions, for example the US raising tariffs to 25 percent on remaining imports from (China), could reduce growth by around 0.8 percentage points over the following 12 months," the IMF said.

    Forex reserves drop by $697 million due to fall in currency assets

    The country's foreign exchange reserves declined by USD 697.2 million to USD 428.952 billion in the week to August 2, due to fall in foreign currency assets, the latest weekly RBI data showed. In the previous reporting week, the reserves had declined by USD 727.1 million to USD 429.649 billion.

    The reserves had touched a life-time high of USD 430.376 billion in the week to July 19, 2019. In the reporting week, foreign currency assets, which are a major component of the overall reserves, reduced by USD 633 million to USD 398.724 billion, the Central bank said on Friday. 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.

    SEBI to relax norms to allow smart cities issue funds through 'Muni Bonds'

    Capital market regulator SEBI is planning to ease its norms for 'Muni Bonds' to help smart cities and other registered entities working in areas of city planning and urban development work, like municipalities, raise funds through issuance and listing of their debt securities.

    The Securities and Exchange Board of India (SEBI) had issued its Issue and Listing of Debt Securities by Municipalities (ILDM) Regulations nearly five years ago and since then seven municipalities have raised nearly Rs 1,400 crore by issuing their debt securities, which are commonly known as 'Muni Bonds'.

    Officials said that the regulator is now proposing to allow this route for a larger number of entities including special purpose vehicles set up under the central government's ambitious 'Smart Cities Mission'.

    Govt may permit 100% FDI in contract manufacturing: Sources

    The government is working on a proposal to allow 100 percent FDI in contract manufacturing with a view to attract overseas investments, sources said. According to the existing foreign investment policy, 100 percent foreign direct investment (FDI) is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without government's approval.

    "The current policy does not talk about contract manufacturing and it is not clearly defined in the policy. Big technology companies across the world are going for this, so there is a need for a clarification on the matter which government is considering positively," they said.

    SEBI expresses concerns over 35% minimum shareholding plan: Report

    Majority members of a SEBI committee have expressed concerns over the government's plan to raise minimum public shareholding, according to a report in The Economic Times. Finance Minister Nirmala Sitharaman in the Budget had proposed that the minimum public shareholding for listed companies be raised to 35 percent from 25 percent.

    The 24-member committee, led by former Infosys CFO Mohandas Pai, is yet to take a final decision, the report said. "There were numerous thoughts on the proposal. There have to be more discussions before forming any view," a source told the paper.

    369 companies to report June quarter numbers today

    As many as 369 companies will declare their results for the June quarter which include names like Aban Offshore, Alkem Laboratories, Ballarpur Industries, Caplin Point, Eros International, Graphite India, Bharti Infratel, JBM Auto, Orchind Pharma, Rolta India, Reliance Power, Timkin India, Whirlpool of India, Zuari Agro etc. among others.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
With inputs from Reuters & other agencies

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First Published on Aug 13, 2019 07:35 am
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