The market paused its eight days winning streak on March 22 as benchmark indices closed lower with market breadth in favour of declines. The 30-share BSE Sensex fell 222.14 points at 38,164.61, and the Nifty was down 64.10 points at 11,456.90.
According to the Pivot charts, the key support level is placed at 11,403.33, followed by 11,349.77. If the index starts moving upward, key resistance levels to watch out are 11,541.63 and 11,626.37.
The Nifty Bank index closed at 29,582.50, down 249.7 points on March 22. The important Pivot level, which will act as crucial support for the index, is placed at 29,391.43, followed by 29,200.37. On the upside, key resistance levels are placed at 29,890.83, followed by 30,199.17.
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.
Wall Street tumbles on global economic slowdown fears
Wall Street stocks sold off sharply on Friday, with all three major US stock indexes posting their biggest one-day percentage declines since Jan. 3, as weak factory data from the United States and Europe led to an inversion of US Treasury yields, fuelling fears of a global economic downturn.
The Dow Jones Industrial Average fell 460.19 points, or 1.77 percent, to 25,502.32, the S&P 500 lost 54.17 points, or 1.90 percent, to 2,800.71 and the
Nasdaq Composite dropped 196.29 points, or 2.5 percent, to 7,642.67.
Stocks tumble, bonds rally as US recession risk flashes ‘amber’
Investors dumped shares on Monday and fled to the safety of bonds while the Japanese yen hovered near a six-week high as risk assets fell out of favour on growing worries about an impending US recession, sending global yields plunging.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6 percent to a one-week low. Japan’s Nikkei tumbled 2.9 percent, South Korea’s Kospi index declined 1.5 percent while Australian shares faltered 1.3 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 59 points or 0.51 percent. Nifty futures were trading around 11,411-level on the Singaporean Exchange.
Oil prices fall as markets brace for potential US recession
Oil prices dropped on Monday as concerns of a sharp economic slowdown outweighed supply disruptions from OPEC’s production cutbacks and US sanctions on Iran and Venezuela.
Brent crude oil futures were at USD 66.52 per barrel at 0102 GMT, down 51 cents, or 0.8 percent, from their last close. US West Texas Intermediate (WTI) futures were at USD 58.42 per barrel, down 63 cents, or 1.1 percent, from their last settlement.
MPC to meet six times during 2019-20: RBI
The Monetary Policy Committee (MPC), which decides on key interest rates, will meet six times during the next financial year, the Reserve Bank of India (RBI) said Friday. The first meeting of the six-member MPC to decide on the first bi-monthly monetary policy statement for 2019-20 will be held from April 2 to 4. The policy will be announced on April 4.
Headed by RBI Governor Shaktikanta Das, the committee also includes two representatives from the central bank and three external members.
Govt gets bids worth Rs 28,000 cr for CPSE ETF, to retain Rs 10K cr
The government has received bids worth Rs 28,000 crore in the fifth tranche of CPSE Exchange Traded Fund (ETF) and will retain Rs 10,000 crore. In a tweet, Secretary, Department of Investment and Public Asset Management (DIPAM) said, “CPSE ETF FFO4 oversubscribed by about 8 times so far against the base issue size of Rs 3,500 crores. Government has decided to retain Rs 10,000 crores.”
Anchor investors had put in bids worth Rs 6,072 crore on the first day of the issue on March 19. The issue, which closed on Friday, saw overall subscription of Rs 28,000 crore.
Rupee slips 12 paise to 68.95 against dollar
The rupee Friday declined by 12 paise to close at 68.95 against the US dollar on rise in demand for the greenback from importers and sell-off in domestic equities. Besides, strengthening of the greenback against key currencies and rising crude oil prices in the international market also kept the rupee under-pressure.
At the Interbank Foreign Exchange (forex) market, the domestic unit opened at 68.60. The local unit moved in a range of 69.10 to 68.53 before finally ending at 68.95, a drop of 12 paise over its previous close.
Forex kitty swells by over $3.6 bn to $405.6 bn
India’s foreign exchange reserves surged by a whopping $3.602 billion to $405.638 billion in the week to March 15, driven by rise in foreign currency assets, the Reserve Bank said Friday. Forex reserves had increased by $258.8 million to $402.035 billion in the previous week.
In the reporting week, foreign currency assets — a major component of the overall reserves — increased by a healthy USD 3.546 billion to USD 377.773 billion as foreign funds pumped in billions of dollars into domestic equities in a pre-election buying spree.
Govt exceeds disinvestment target this fiscal, proceeds touch Rs 85,000 cr
The Government Friday said it has exceeded its disinvestment target for the current fiscal by Rs 5,000 crore and the proceeds have touched Rs 85,000 crore.
“As against a target of Rs 80,000 crore for disinvestment for the current year, the divestment receipts have touched Rs 85,000 crores today,” Finance Minister Arun Jaitley tweeted.
The government has mopped up Rs 9,500 crore from the fifth tranche of CPSE ETF and Rs 14,500 crore from the REC-PFC deal. For next fiscal the
disinvestment target has been fixed at Rs 90,000 crore.
M&A deal value drops 34% to $1.24 bn in Feb
The value of merger and acquisition deals in February slumped 34 percent to USD 1.24 billion compared to the year-ago period, according to a report. Leading consultancy Grant Thornton’s report showed that number of M&A transactions last month rose marginally to 44 last month whereas the same was at 40 in February 2018.
In February last year, the total value of M&A transactions had touched USD 1.9 billion. “While February 2019 recorded same number of deals valued and estimated at over USD 100 million as witnessed in February 2018, the high valued deals totalled to only USD 0.9 billion compared to USD 1.5 billion in February 2018,” it said.
FPIs invest Rs 38,211 crore in March
Foreign investors have poured in a net amount of Rs 38,211 crore in the domestic capital markets in March so far, mainly on account of improved global liquidity. In February, foreign portfolio investors (FPIs) had put in a net amount of Rs 11,182 crore in the capital markets — both debt and equity.
Analysts attributed the increase in infusion to a shift in stance on monetary policy outlook by various central banks globally. According to depository data, foreign investors pumped in a net sum of Rs 27,424.18 crore in equities, while the debt market saw a net infusion of Rs 10,787.02 crore during March 1-22 — taking the total to Rs 38,211.20 crore.
Gold imports dip 5.5% during April-Feb to $29.5 bn
The country’s gold imports dipped about 5.5 percent in value terms to USD 29.5 billion during April-February 2018-19, which is expected to keep a lid on the current account deficit.
Total imports of the precious metal in the corresponding period of 2017-18 stood at USD 31.2 billion, according to commerce ministry data. Trade experts said softening prices of the yellow metal in the world markets could be the reason for the contraction in imports.
Sebi exempts govt from open offer for Union Bank after capital infusion
Markets regulator Sebi on Friday exempted the central government from making an open offer for the shareholders of Union Bank of India following capital infusion. In February, the government proposed a capital infusion of Rs 4,112 crore in the public sector lender through preferential allotment of shares.
After the preferential allotment, the shareholding of the central government is likely to increase from 67.43 percent to 73.98 percent, an increase of 6.55 percent, which is in excess of 5 percent during the current financial year 2018-19 thereby attracting takeover provisions.
Six 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 March 25, Adani Enterprises, Adani Power, IDBI Bank, Jet Airways, PNB and Reliance Power are present in this list.