What changed for the market while you were sleeping? 12 things to know

What changed for the market while you were sleeping? 12 things to know

The Nifty is likely to open higher on Thursday, tracking positive handover from Wall Street. The Nifty closed 30 points higher at 9,816 on Wednesday.

The index formed a small bullish candle and negated negative pattern of shooting star formed in the previous session.

The index moved in the trading range of the previous session, but the bulls managed to save the day for Nifty. Traders can retain their long positions with a stop loss below 9,700.

Despite moving in a narrow range of 37 points, Wednesday’s price action in Nifty should certainly give a sigh of relief to the bulls as there was no follow through to the weakness exhibited around 9800 levels.

Stay tuned with Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies:

Dow sets record-high close

The US stocks ended higher with Dow hitting a fresh record high close following Federal Reserve Chair Janet Yellen’s congressional testimony to gradually raise interest rates, said a Reuters report.

Yellen’s speech was a nod to Wall Street as the Fed signalled it will gradually tighten policy and gradually unwind its massive balance sheet, it said. Investors cheered Yellen’s dovish tone, alleviating some concerns over the recent dip in inflation.

The Dow Jones Industrial Average rose 123.07 points, or 0.57 percent, to close at 21,532.14, a record high. The Dow also hit an intraday record. The S&P 500 gained 17.72 points, or 0.73 percent, to 2,443.25 and the Nasdaq Composite added 67.87 points, or 1.10 percent, to 6,261.17.

SGX Nifty

The Nifty futures on the Singapore Stock Exchange were trading 46 points higher at 9,882 indicating a positive opening for the domestic market.

TCS Q1 results:

Don’t expect any surprises from Tata Consultancy Services Ltd (TCS) which is scheduled to report its results for the quarter ended June 30 post market hours on Thursday.

According to an average of estimates of analysts polled by CNBC-TV18, profit is likely to fall by 6.2 percent sequentially to Rs6,195 crore and revenue may decline by 0.2 percent to Rs 29,580 crores compared with previous quarter.

Investors cheer dovish Fed

The US economy is healthy enough for the Fed to raise rates, but she also noted that given current estimates, the federal funds rate “would not have to rise all that much further” to reach a neutral level that neither encourages nor discourages economic activity, said a Reuters report.

The Fed still feels the economy needs loose, or accommodative, monetary policy, so a lower neutral rate means the Fed may feel compelled to slow the pace of rate hikes down the road, it said.

Dollar slips vs Yen

The dollar eased against the yen, after Federal Reserve Chair Janet Yellen said interest rates hikes would be gradual and that the U.S. central bank may not be able to raise rates by “all that much”, said a Reuters report.

The dollar index, which tracks the greenback against six major rivals, was up 0.08 percent to 95.748, after falling to 95.511, its lowest since June 30.

Against the yen, the greenback was 0.64 percent lower at 113.19 yen following a decline in short-term US interest rates after Yellen’s testimony.

Oil rises as US crude stocks drop

Oil futures rose as a report showing hefty drawdowns in U.S. crude inventories was offset by data pointing to lackluster gasoline demand, said a Reuters report.

U.S. crude inventories fell 7.6 million barrels last week, its biggest weekly plunge in 10 months, the U.S. Energy Information Administration (EIA) said.

Brent crude futures rose 22 cents, or 0.5 percent, to settle at $47.74 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 45 cents, or 1 percent, to settle at $45.49.

Trump says son is ‘innocent’

The US President Donald Trump on Wednesday defended his eldest son as “innocent” following emails that showed Donald Trump Jr. welcomed Russian help against his father’s rival in the 2016 presidential election, said a Reuters report.

“He was open, transparent and innocent. This is the greatest Witch Hunt in political history. Sad!” Trump wrote on Twitter.

June retail inflation at record low

India’s retail inflation hit a record low of 1.54 percent in June, lowest since 1999, raising hopes of an interest rate cut, with the Finance Ministry obliquely nudging the central bank to reduce lending rates in the monetary policy next month.

Retail inflation, measured by Consumer Price Index (CPI) remained low in May touching 2.18 percent and 5.77 percent in June last year, owing to a sustained dip in food prices. Low inflation levels can indicate poor demand and weak economic activity.

India’s factory output falls to 1.7% in May

India’s factory output witnessed a tepid growth of 1.7 percent in May from 3.1 percent in April, mainly due to subdued mining and manufacturing output.

Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country’s business landscape.

Rupee recovers 5 paise against dollar

The rupee on Wednesday recovered by 5 paise to close at 64.54 against the US currency on fresh dollar selling by banks and exporters.

A bearish greenback tone overseas largely aided the rupee recovery. The rupee had fallen by 6 paise on Tuesday. A spectacular bull-run in local stock markets along with robust capital flows further brightened the rupee sentiment, forex dealers said.

OPEC sees lower demand for its oil in 2018

World demand for OPEC’s crude will decline next year as U.S. shale producers and other rivals pump more, OPEC said on Wednesday.

In the report, OPEC said its oil output rose by 393,000 bpd in June to 32.611 million BPD led by a rebound Nigeria and Libya – which are exempt from the supply cut, plus extra barrels from Saudi Arabia and Iraq.

4 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% of the market-wide position limit.

Securities which are banned for trading today include names like HDIL, Indiabulls Real Estate, Jaiprakash Associates, and JSW Energy.

[“Source-moneycontrol”]