What changed your markets while you were sleeping

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Foreign portfolio investors (FPIs) sold Rs 809.95 crore worth of domestic stocks on Wednesday.

Asian markets have kicked of the day on a cautious note following an expected rate hike by the US Fed. This, along with the F&O expiry-related volatility may keep the domestic market on edge.

Let’s check out what all might matter to Dalal Street on Thursday:

Nifty Singapore trading signals positivity
Nifty futures on the Singapore Exchange were trading 12.50 points, or 0.11 per cent, higher at 11,115.50, indicating a positive start for the Nifty50.

Tech view: Nifty50 forms higher high-higher low pattern
The Nifty50 witnessed selling pressure from the word go on Wednesday, but managed to stage a smart comeback from sub-11,000 level. The index eventually settled above the 11,050 mark, down just 14 points. In the process, the NSE barometer formed a bearish candle on the daily chart, but reversed its lower high, lower low formation. A bearish candle with a lower shadow indicated buying support at lower levels, said Rajesh Palviya of Axis Securities.

Market-wide F&O rollovers at 60 per cent
Market-wide rollovers on till Wednesday stood at 60 per cent, which is lower than the average rollovers of 62 per cent seen in the last three series. Nifty futures rollover at 43 per cent too were lower than average rollovers of 49 per cent seen in the last three series.

 

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Fed hikes policy rate by 25 basis points
Federal Reserve officials raised interest rates for a third time this year and reaffirmed their outlook for further gradual hikes well into 2019, risking fresh criticism from President Donald Trump, Bloomberg reported. The quarter-point increase boosted the benchmark federal funds rate to a target range of 2 per cent to 2.25 per cent.

Asian markets mixed after Fed hike
MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.05 per cent lower in early trade, while Japan’s Nikkei fell 0.45 per cent. South Korea’s Kospi and Hong Kong’s Heng Seng were trading marginally higher; Shanghai Composite index declined 0.3 per cent in early trade.

Oil prices move higher
Oil prices gained on an impending fall in Iranian exports, Reuters reported. Brent futures rose 0.9 per cent to $82.10 per barrel, near the four-year high of $82.55 set on Tuesday. West Texas Intermediate (WTI) crude futures gained 1.2 per cent to $72.45 a barrel.

US stocks settled lower
The Dow Jones Industrial Average index ended down 0.4 per cent at 26,385.28 points, while the S&P500 lost 0.33 per cent to 2,905.97. During the session, the S&P 500 traded up as much as 0.53 per cent, Reuters reported. The Nasdaq Composite dropped 0.21 per cent to 7,990.37.

Import duty hiked on 19 products
India raised import duty on a range of items including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware besides imposing it on aviation turbine fuel (ATF) as the government seeks to rein in the current account deficit and shore up the rupee. The move follows an announcement to this effect by finance minister Arun Jaitley earlier this month after a meeting with Prime Minister Narendra Modiin the wake of the slump in the rupee against dollar.

Titan to rally as govt holds duty on gold
The Titan shares could rally as the government has not increased the import duty on gold from the existing 10 per cent as was being speculated by the trade. The government has instead raised the import duty on jewellery to 20 per cent from 15 per cent and on cut and polished diamonds to 7.5 per cent from 5 per cent, which is unlikely to affect the company

Garden Reach IPO extended
State-owned Garden Reach Shipbuilders & Engineers on Wednesday extended its initial public offer by three days to October 1 and also revised the price band. The Rs 345-crore offer, scheduled to close Wednesday, was subscribed 67 per cent till 1700 hours, according to data available with the NSE. The price band of the issue revised to Rs 114-118 per equity share against Rs 115-118 apiece earlier.

Aavas Financiers issue subscribed 29%
The initial public offer of housing finance company Aavas Financiers was subscribed 29 per cent on the second day of bidding Wednesday. The IPO to raise Rs 1,734 crore received bids for 43,17,174 shares against the total issue size of 1,47,85,027 shares, data available with the NSE showed.

Rupee recovers 9 paise to 72.60
The rupee bounced back after a two-day downtrend and ended higher by 9 paise at 72.60 against the American unit on bouts of dollar selling by exporters with the FOMC rate decision firmly in the spotlight. Overall, currency market witnessed lethargic trading activity with investors seemingly unwilling to commit to a directional bias before the much-anticipated FOMC monetary policy announcement.

SBI’s Rs 15,000 cr redemption added to bond pain
The State Bank of India (SBI) last Friday redeemed at least ?15,000 crore of mutual fundinvestments, which also put pressure on asset managers to sell their holdings in the secondary market, multiple people familiar with the matter told ET. While the purpose of the SBI redemptions is not clear, some market participants linked the timing of the sale to a planned accumulation of cash that could be subsequently used to fund either equity or debt at the struggling financier, IL&FS.

DIIs buy Rs 1,555 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 809.95 crore worth of domestic stocks on Wednesday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 1,555.44 crore, data suggested.

[“Source-economictimes”]