A look at top cues from domestic and international cues that could have a bearing on D-Street.
Bulls failed to keep the momentum going as Nifty came under pressure as soon as it came close to its crucial resistance level of 10,080 and made a ‘Bearish Engulfing Pattern’ on the daily candlestick charts on Wednesday. The Nifty opened at 10,042.60 and made a high of 10,067.25 which resulted in small upper shadow. It pared gains and corrected below 9,900 to record its intraday low of 9,984.80 which resulted in small lower shadow.
The Nifty closed at 9,984.8 on Wednesday. According to Pivot charts, the key support level is placed at 9,938.0, followed by 9,891.2. If the index starts to move higher, key resistance levels to watch out are 10,049.4 and 10,114.
The Nifty Bank closed at 24,107.4. Important Pivot level, which will act as crucial support for the index, is placed at 23,954.33, followed by 23,801.27. On the upside, key resistance levels are 24,360.33, followed by 24,439.73.
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 posts record close
Major stock indexes edged up to post record closing highs on Wednesday with sector moves in the S&P 500 showing preference towards so-called defensive stocks.
The Dow Jones Industrial Average rose 42.21 points, or 0.18 percent, to end at 22,872.89, the S&P 500 gained 4.6 points, or 0.18 percent, to 2,555.24 and the Nasdaq Composite added 16.30 points, or 0.25 percent, to 6,603.55, Reuters reported.
Asia stocks near decade-high on global equity surge
Asian stocks were near a decade high on Thursday, riding the bull run in global equity markets. Japan's Nikkei was up 0.4 percent after brushing 20,980.92, its highest since December 1996. South Korea's KOSPI added 0.1 percent to mark a fresh record high, Reuters reported.
The Nifty50 futures on the Singapore Stock Exchange were trading 32 points higher at 10020 indicating a flat to positive opening for the domestic market.
Trump has 'lit the wick of war': North Korea
US President Donald Trump has "lit the wick of war" with North Korea, Russia's TASS news agency quoted North Korean Foreign Minister Ri Yong Ho as saying on Wednesday. "With his bellicose and insane statement at the United Nations, Trump, you can say, has lit the wick of a war against us," TASS quoted Ri as saying. "We need to settle the final score, only with a hail of fire, not words", Reuters reported.
Sensex, Nifty earnings to triple in next 5 years: Morgan Stanley
The Indian stock market is expected to triple in the next 5 years, believes Ridham Desai, Head-India Equity Research & India Equity Strategist, Morgan Stanley. According to Desai, compounded Nifty earnings will be around 20 percent in the next 5 years.
He also talked about the big digitisation push that is leading to a huge surge in GDP, which will reach USD 6 trillion with the equity market cap rising to USD 6.1 trillion.
General Insurance IPO subscribed 80% on Day 1
The initial public offer (IPO) of state-owned General Insurance Corporation of India was subscribed 80 percent on the first day of the bidding on Wednesday. GIC Re's Rs 11,370-crore IPO received bids for 9,93,04,384 shares against the total issue size of 12,47,00,000 shares, PTI reported.
TCS to announce Q2 earnings on October 12
Tata Consultancy Services will announce its July-September quarter earnings on October 12 after market hours. Profit after tax for the quarter is expected to increase 4 percent sequentially to Rs 6,183 crore and revenue may grow 2.6 percent to Rs 30,356 crore, according to average of estimates of analysts polled by CNBC-TV18.
Revenues in dollar terms are likely to register a 3 percent at USD 4,731 million in the quarter ended September 2017, compared with USD 4,591 million in previous quarter, CNBC-TV18 reported.
Direct tax collections jump 16% in April-September
India's direct tax collections for April-September rose 15.8 percent to Rs 3.86 lakh crore, buoyed by a healthy growth in advance tax mop-up, the finance ministry said. The net direct tax collections constitute 39.4 percent of the total budget estimate of direct taxes at Rs 9.8 lakh crore for the current fiscal, PTI reported.
Petrol pump dealers call off Friday's strike
Petrol pump dealers called off their planned nationwide strike on October 13 after state oil companies rejected their demands and warned them against closure, PTI reported.
Govt extends 7th pay panel benefits to teachers
The Union Cabinet on Wednesday cleared revised pay scales for nearly eight lakh teachers and academic staff of higher educational institutions following the implementation of the Seventh Pay Commission, PTI reported.
Bibek Debroy-led council admits to slowdown in Indian economy
Prime Minister's Economic Advisory Council (PMEAC) on Wednesday chalked out the major priorities for accelerating economic growth and employment while accepting that the country is witnessing a slowdown. "There is a consensus among us about the various reasons that have contributed to the slowdown in the growth rate," Chairman of PMEAC Bibek Debroy said.
The council has identified ten themes around which a report will be structured in the next few months. These themes are economic growth, employment and job creation, informal sector and integration, fiscal framework, monetary policy, public expenditure, institutions of economic governance, agriculture and animal husbandry, patterns of consumption and production and social sector.
Indian Energy Exchange IPO gets oversubscribed over 2.23 times
The initial public offer of Indian Energy Exchange elicited good response from investors, with the issue getting oversubscribed 2.23 times on the last day of bidding on Wednesday. The company aims to raise up to Rs 1,001 crore. On the final day, the offer received total bids for 11,776,518 shares against 52,75,889 shares on offer, data available with the NSE till 1900 hours showed.
OPEC again raises demand forecast for its oil
OPEC forecast higher demand for its oil in 2018 on Wednesday and said its production-cutting deal with rival producers was getting rid of a glut, pointing to a tighter market that could move into a deficit next year, Reuters reported.
Net profit of listed private firms contracted 21.2 % in Q1: RBI
Net profits of listed private sector companies in non-financial businesses contracted sharply by 21.2 percent in the first quarter of 2017-18 due to a high cost of raw material, power and fuel, RBI data showed on Wednesday, PTI reported.
8 companies to report results for quarter ended September
As many as eight companies on the BSE will be declaring their results for the quarter ended September later on Thursday which include names like Bajaj Corp, Cyient, IndusInd Bank, NiNtec Systems Ltd, Reliance Industrial Infrastructure and TCS.
6 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit. Securities which are banned for trading today include names like BEML, DHFL, Indiabulls Real Estate, JSW Energy, Reliance Communications, and Reliance Capital.
Cabinet clears pact with Japan for setting up flexible LNG market
The Union cabinet has approved signing of an agreement with Japan to enable swapping of liquefied natural gas (LNG) supplies from overseas so as to save on transportation costs, and to build a gas trading platform in the country, PTI reported.
Global financial stability has improved, but risks ahead: IMF
The global economic recovery has strengthened financial stability but easy monetary and financial conditions against a backdrop of sluggish inflation is elevating medium-term risks, the International Monetary Fund said on Wednesday, Reuters reported.
SEBI to fine cos, freeze promoter rights for flouting minimum public holding norms
As part of its move to bring about reforms in shareholding pattern, Securities and Exchange Board of India (SEBI) will be imposing a penalty on a company if it doesn't adhere to the minimum public shareholding (MPC) norms. The promoters of such companies will also have their decision-making rights curtailed.
Lakshmi Poojan, Muhurat Trading to be held on October 19
The special ‘Muhurat Trading’ session, held every year on the day of Diwali, will take place on October 19 this year. The exchange said that the trade would begin at 6:30 pm, which will be preceded by a pre-opening session at 6:15 pm and the trade would last for one hour.
Cos raise Rs 3.24 lakh cr via debt placement in April-Sep FY18
Indian companies raised Rs 3.24 lakh crore in April-September 2017 through private placement of corporate bonds, an increase of four percent from the year-ago period. These funds have been raised mainly for expansion of business plans, retire debt and to support working capital requirements, PTI reported.
Iran warns of tough response if Trump scuttles nuclear deal
Iran on Wednesday warned of a tough response if President Donald Trump presses ahead with his threats to scuttle the landmark 2015 nuclear deal. The nuclear agreement required Iran to curb its nuclear program in exchange for the lifting of international sanctions, PTI reported.
‘Many’ US Fed members favour Dec rate hike, minutes show
US Federal Reserve bankers are sharply divided over whether to increase interest rates again this year amid persistently weak inflation, but many still favour a rate hike, minutes of the Federal Open Market Committee (FOMC) released Wednesday showed, AFP reported.
LIC makes Rs 8,000 crore bid in GIC Re IPO
Life Insurance Corp. of India (LIC) has put in a major bid for shares of reinsurer General Insurance Corp. of India Ltd (GIC Re), in the latter’s ongoing initial public offering (IPO), said two people aware of the development, on the condition of anonymity, Livemint reported.
NPA-laden banks looking to avoid bankruptcy courts
Banks are planning to seek regulatory exemption from taking the second lot of defaulters to bankruptcy courts as such proceedings tend to erode value of assets, said three bankers familiar with the discussions. About 30 companies with loans amounting to Rs 1.25 lakh crore are set to be referred to bankruptcy courts by December 31 if a resolution is not found, The Economic Times reported.
Higher input costs may crimp profit margins in Sept quarter
Profit margins of Indian companies are likely to narrow in the quarter ended September 30 on higher input costs and rise in competitive intensity in sectors such as telecom and demand slowdown in real estate and other industries, Livemint reported.
Oil prices drop on rising US crude inventories
Oil prices eased on Thursday as US fuel inventories rose despite efforts by OPEC to cut production and tighten the market. Brent crude futures, the international benchmark for oil prices, were at USD 56.65, down 29 cents, or 0.5 percent, from the previous close, Reuters reported.
Rupee gains 14 paise to end at 65.14The rupee continued its recovery trend for a third day on Wednesday ending higher by 14 paise at 65.14 against the US currency after steady dollar unwinding by exporters and corporates. A weak dollar in overseas markets also bolstered the domestic currency, a forex dealer said. The dollar extended its decline on the back of lower Treasury yields, PTI reported.