What changed for the market while you were sleeping? Top 10 things to know

Image result for What changed for the market while you were sleeping? Top 10 things to knowThe much-warranted market pull back was seen on August 6 after a sharp sell-off in last few sessions. The optimism about a likely rate cut by Reserve Bank of India’s Monetary Policy Committee on August 7 and short covering lifted benchmark indices.

The BSE Sensex climbed 277.01 points to 36,976.85, while the Nifty50 rallied 85.70 points to 10,948.30 and formed strong bullish candle which resembles a Bullish Engulfing kind of pattern on daily charts after a Hammer pattern formation in previous session.

All sectoral indices (except IT) participated in the rally with bank, auto, metal gaining more than 1 percent. The broader markets outperformed frontliners as the Nifty Midcap index gained 2 percent and Smallcap index rose 1.8 percent.

According to pivot charts, the key support level is placed at 10,835.17, followed by 10,722.13. If the index starts moving upward, the key resistance levels to watch out for are 11,039.87 and 11,131.53.

The Nifty Bank closed at 28,022.10, up by 374.05 points on August 6. The important pivot level, which will act as crucial support for the index, is placed at 27,634.53, followed by 27,246.97. On the upside, key resistance levels are placed at 28,279.03 and 28,535.97.

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 jumped more than 1 percent on Tuesday, bouncing back from a sharp sell-off the previous day as China stepped in to stabilize the yuan, easing concerns that currencies would be the next weapon in the US-China trade war.

The Dow Jones Industrial Average rose 311.78 points, or 1.21%, to 26,029.52, the S&P 500 gained 37.03 points, or 1.30%, to 2,881.77 and the Nasdaq Composite added 107.23 points, or 1.39%, to 7,833.27.

Asian Markets

Asian shares steadied slightly on Wednesday as investors caught their breath from a searing week-long selloff, with steps taken by Chinese authorities to contain a sliding yuan helping calm fears of a full-blown Sino-US trade and currency war.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05% in early trade after tumbling 8.26% in the previous eight sessions. Japan’s Nikkei bucked the trend to slip 0.26%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a with 0.47 percent loss or 51.5 points. Nifty futures were trading around 10,911-level on the Singaporean Exchange.

Oil prices drop as US-China trade dispute stokes demand worries

Oil fell on Wednesday as the intensifying Sino-US trade dispute stoked worries over demand, although a drop in U.S. crude inventories offered some support to prices.

International benchmark Brent crude futures were at $58.70 a barrel by 0039 GMT, down 24 cents, or 0.41%, from their previous settlement and trading near seven-month lows. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.37%, from their last close to $53.43 per barrel.

Rupee logs 4th straight loss, down 8 paise at 70.81 against USD

The Indian rupee extended losses for a fourth session on Tuesday, dropping 8 paise to 70.81 against the US dollar ahead of the RBI’s monetary policy decision. Unabated foreign fund outflows and higher crude oil prices have taken a toll on the domestic currency’s health.

At the interbank foreign exchange (forex) market, the domestic currency opened at 70.80 a dollar and touched a high of 70.47 and low of 70.89 during the day. The local unit finally closed at 70.81 against the American currency, down 8 paise over its previous close.

NSE IFSC-SGX Connect gets regulatory nods, aims to launch by end 2020

The National Stock Exchange International Financial Service Centre (NSE IFSC) and Singapore Exchange (SGX) on Tuesday said they have received all approvals from their respective regulators, Securities and Exchange Board of India (SEBI) and the Monetary Authority of Singapore (MAS), for the proposed NSE International Financial Service Centre (IFSC)-SGX Connect.

The proposed NSE International Financial Service Centre (IFSC)-SGX Connect aims to bring together the trading of Nifty products in the Gujarat International Finance Tec-City (GIFT) and create a larger pool of liquidity comprising international and home market participants.

“This is a great opportunity to build vibrant markets in GIFT City. We are working on varied product offerings to make GIFT City the hub of activity for all India access products across asset classes for international investors and a gateway for home investors to access international markets,” NSE managing director and chief executive officer Vikram Limaye said.

MSMEs seeks differential interest rates from FM

In the second sectoral meeting with the micro, small, and medium enterprises (MSMEs), the stakeholders demanded differential rates of interest for the sector, a senior government official said. “We have discussed issues relating to GST (goods and services tax), working capital. We have also discussed the issue of delayed payments that the sector faces from both big corporates and PSU (public sector undertakings),” the official said.

Finance minister Nirmala Sitharaman is holding a series of meetings with stakeholders from various sectors to take stock of the present economic slowdown.

Sebi mulls tighter norms to ensure full disclosure on loan defaults with rating agencies

Amid concerns over banks citing ‘client confidentiality’ to resist sharing of information on delayed loan repayments and possible defaults by their borrowers, capital market regulator Sebi is planning to tighten its norms to make it mandatory for companies to provide these details to credit rating agencies.

Amid numerous cases of huge loan defaults by corporates, including in cases like Infrastructure Leasing and Financial Services Ltd (IL&FS), credit rating agencies have also come under the scanner for failing to flag potential credit risks of the securities and entities rated by them.

However, the rating agencies have often sought to shift the blame to the companies and lenders by claiming that they find it difficult to get information about delay in meeting bank obligations and payment failures which are considered early indicators of a default.

Sterling & Wilson Solar IPO subscribed 9% on first day of bidding

The initial public offer of Sterling & Wilson Solar Ltd was subscribed 9 percent on the first day of bidding on Tuesday. The IPO through which the company plans to raise about Rs 3,125 crore received bids for 21,06,264 shares against the total issue size of 2,21,77,418 shares, as per NSE data.

The category for qualified institutional buyers (QIBs) was subscribed 6 percent, non-institutional investors 19 percent and retail individual investors 6 percent. Its price range has been fixed at Rs 775-780 per share. The issue will close on August 8, 2019.

146 companies to report June quarter numbers today

As many as 146 stocks will report their results for the quarter ended June which incluide names like Adani Power, Aurobindo Pharma, Cipla, Cummins India, Gravita India, HCL Technologies, India Cements, KEC International, Lupin, M&M, OFSS, Petronet LNG, PTC India, Siemens, Tata Steel and Voltas among others.

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