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

Image result for What changed for the market while you were sleeping? Top 12 things to knowThe market snapped out of its six-day losing streak with the benchmark indices closing marginally higher amid volatility on July 26, which was partly led by short covering and long buildup. The pull-back rally seen on July 26 was after benchmark indices shed more than 3.5 percent over the previous six consecutive sessions, driven by banking and financials and auto stocks.

The BSE Sensex was up 51.81 points at 37,882.79, while the Nifty50 gained 32.10 points at 11,284.30 and formed a small bullish candle on daily charts.

 

The index fell 1.18 percent for the week and formed a bearish candle for the third consecutive week, which indicated that the bears still have the upper-hand on Dalal Street. Hence the pull-back rally seen on July 26 can be extended smartly only if the index closes decisively above its 11,300 levels in the coming sessions, experts feel.

The broader markets were mixed in trade once again with the Nifty Midcap index gaining 0.6 percent while the Smallcap index was down 0.05 percent. For the week, indices lost 1.6 percent and 2.5 percent respectively.

According to the pivot charts, the key support level is placed at 11,227, followed by 11,169.7. If the index starts moving upward, the key resistance levels to watch for out are 11,324.6 and 11,364.9.

The Nifty Bank closed at 29,325.30, up by 282.25 points on July 26. The important pivot level, which will act as crucial support for the index, is placed at 29,086.84, followed by 28,848.37. On the upside, key resistance levels are placed at 29,471.44, and 29,617.57.

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

Robust earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs on Friday, with support from data showing US economic growth slowed less than expected in the second quarter.

The Dow Jones Industrial Average rose 51.2 points, or 0.19%, to 27,192.18, the S&P 500 gained 22.19 points, or 0.74%, to 3,025.86 and the Nasdaq Composite added 91.67 points, or 1.11%, to 8,330.21.

Asian Markets

Asian shares got off to a cautious start on Monday as markets count down to a likely cut in US interest rates this week with much riding on whether or not the Federal Reserve signals yet more are in the pipeline. US and Chinese trade negotiators also meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough.

MSCI’s broadest index of Asia-Pacific shares outside Japan was all but flat in slow trade. Japan’s Nikkei dipped 0.1% and E-Mini futures for the S&P 500 lost 0.06%.

Oil falls after ‘constructive’ talks on Iran’s nuclear deal

Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as “constructive”, suggesting an easing of tensions in the Middle East.

Brent crude futures were up 23 cents, or 0.4%, at $63.23 a barrel by 0054 GMT. Prices rose 1.6% last week. US West Texas Intermediate crude was down by 12 cents, or 0.2%, at $56.08 a barrel. WTI gained 1% last week.

SGX Nifty

Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a with 0.08 percent loss. Nifty futures were trading around 11,319-level on the Singaporean Exchange.

Rupee settles 15 paise up at 68.89 vs US dollar

The rupee on July 26 rose by 15 paise to close at 68.89 against the US currency, snapping its four days of losses following a recovery in the domestic equity market. At the interbank foreign exchange market, the local unit opened lower at 69.12, and shuttled between a high of 68.85 and a low of 69.14 during the day. The rupee finally closed at 68.89, up 15 paise over its previous close.

The rupee had settled at 69.04 against the US dollar on Thursday.

US economic growth slows less than expected in second quarter

US economic growth slowed less than expected in the second quarter as a surge in consumer spending blunted some of the drag from declining exports and a smaller inventory build, which could further allay concerns about the economy’s health.

The fairly upbeat report from the Commerce Department will probably not deter the Federal Reserve from cutting interest rates next Wednesday for the first time in a decade, given rising risks to the economy’s outlook, especially from a trade war between the United States and China.

Despite the better-than-expected GDP reading, business investment contracted for the first time since early 2016 and housing contracted for a sixth straight quarter. Fed Chairman Jerome Powell early this month flagged business investment and housing as areas of weakness in the economy.

Dollar near 2-month top after US GDP boosts yield appeal

The dollar held firm on Monday, staying near a two-month high against a basket of currencies after better-than-expected US GDP data last week boosted its yield attraction against rival currencies.

The US Federal Reserve is widely expected to cut interest rates for the first time in more than a decade this week, but such a move is being widely seen as a pre-emptive one to protect the economy from global uncertainties and trade pressures.

FPI outflow crosses Rs 3,700 crore in July

Reversing their five-month buying trend, overseas investors have pressed the exit button in July and pulled out a net Rs 3,758 crore from the Indian capital markets on account of multiple headwinds, including the super-rich tax announced in Budget 2019-20.

As per the latest depositories data, foreign portfolio investors (FPIs) pulled out a net sum of Rs 14,382.59 from equities during July 1-26, but invested Rs 10,624.15 crore in the debt segment, taking the total net outflow to Rs 3,758.44 crore. Prior to this, FPIs infused a net Rs 10,384.54 crore in June, Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February into the Indian capital markets (both equity and debt).

RBI report on development of secondary market for corporate loans likely by next month

The Reserve Bank is expected to come out with a report next month on facilitating development of secondary market for corporate loans. The central bank had set up a task force to suggest policy and regulatory interventions required for development of secondary market in corporate loans, including loan transaction platform for stressed assets.

The secondary loan market in India is largely restricted to sale to asset reconstruction companies and ad hoc sale to other lenders including banks, but there is no formalised mechanism to deepen the market. As part of efforts to further deepen the capital market, the central bank is also likely to release another report on housing finance securitisation by August-end.

ICICI Bank posts Q1 profit at Rs 1,908 cr with 27% NII growth

ICICI Bank, posted a profit of Rs 1,908 crore in June quarter (Q1) over lower provisioning and healthy NII growth. It was against a loss of Rs 119.55 crore reported in the year-ago period and a profit of Rs 969.06 crore in the previous quarter. The profit was partly impacted by lower other income.

Net interest income grew (NII) by 26.8 percent year-on-year to Rs 7,737.43 crore for quarter that ended on June 2019 with healthy loan growth of 15 percent YoY, which beat analyst expectations. NII was expected at Rs 7,427.1 crore, according to a poll of analysts conducted by CNBC-TV18.

Sebi eases rules for new exchanges to provide incentives under LES

Markets watchdog Sebi on July 26 eased the conditions for exchanges to provide incentives under liquidity enhancement schemes (LES) in the first five years of operation. Under the scheme, brokers and other market intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in securities, which have limited trading activity.

The move comes after the regulator noted that “an exchange in early years of its formation or commencement of business may not be able to generate profits or have free reserves from business operations”. Laying down the conditions for such exchanges, Sebi in a circular said the yearly incentive that an exchange can earmark for LES will not exceed 25 per cent of its audited net-worth as on the last day of the previous financial year.

Affle India IPO to open today

Mobile marketing firm Affle India will open its initial public offering for subscription on July 29. This is the sixth company launching an IPO in the current financial year 2019-20. ICICI Securities, and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the offer. Equity shares after public issue are proposed to be listed on the National Stock Exchange of India and BSE.

The IPO comprises of a fresh issue aggregating up to Rs 90 crore and an offer for sale of up to 49,53,020 equity shares by Affle Holdings Private Limited. The company is aimed to raise Rs 456.52 crore at the lower end of the price band and Rs 459 crore at the higher end of the price band of Rs 740-745 per share.

Sebi fixes minimum staggered delivery period of 5 days for commodity futures

Capital markets regulator Sebi on July 26 fixed the minimum duration of the staggered delivery period at five working days for all commodity futures in order to bring uniformity in the timeline across exchanges. Staggered delivery period is the duration during which sellers or buyers having open position may submit an intention to give or take the delivery of the contract.

At present, there is no uniformity in the length of staggered delivery period for commodity futures contracts across exchanges even for the same commodities, according to the Sebi circular. “All compulsory delivery commodity futures contracts (agriculture commodities as well as non-agriculture commodities) shall have a staggered delivery period,” the circular mentioned.

72 companies to report June quarter numbers today

As many as 72 stocks will declare their results for the quarter ended June which include names like Castrol India, Cochin Shipyard, Dr Reddy’s, DLF, Orient Cement, Sanofi India, SPARC, Tata Sponge, and Bank of Maharashtra among others.

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