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 market closed in the red after four straight sessions on August 28 due to profit booking and fears of a global recession. Banks, auto, metals and pharma stocks pulled the market down while IT outperformed, rising over a percent.

The BSE Sensex was down 189.43 points at 37,451.84 while the Nifty 50 fell 59.30 points to 11,046.10 ahead of the expiry of August futures & options contracts, forming a bearish candle on daily charts.

But, the expected decline is unlikely to damage the recent uptrend status of the Nifty, he said, adding important supports to be watched are around 10,900-10,850 levels, where one may expect a reliable upside bounce from the lows.

The broader markets were also caught in a bear trap with the Nifty Midcap index falling 1 percent and Smallcap index losing 0.65 percent.

According to the pivot charts, key support level is placed at 10,979.3, followed by 10,912.5. If the index starts moving upward, key resistance levels to watch out for are 11,121.3 and 11,196.5.

Nifty Bank closed at 27,804.30, down 1.14 percent on August 28. The important pivot level, which will act as crucial support for the index, is placed at 27,594.13, followed by 27,383.96. On the upside, key resistance levels are placed at 28,055.03 and 28,305.77.

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

US Markets

US stocks climbed on Wednesday, recovering from early declines on gains in energy and financial shares, but investors remained leery about the potential for another flare-up in the US-China trade war.

The Dow Jones Industrial Average rose 258.2 points, or 1%, to 26,036.1, the S&P 500 gained 18.78 points, or 0.65%, to 2,887.94 and the Nasdaq Composite added 29.94 points, or 0.38%, to 7,856.88.

Asian Markets

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade while Japan’s Nikkei rose 0.14%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 0.32 percent loss or 35 points. Nifty futures were trading around 11,013-level on the Singaporean Exchange.

Oil prices hold gains after US inventory drawdown

Oil prices clung to gains on Thursday after official data confirmed a big drop in US crude inventories, helping ease concerns about weakening demand, but worries about wider economic growth held prices in check.

US crude was up by 6 cents, or 0.1%, at $55.84 a barrel, while Brent crude was down 7 cents, or 0.1%, at $60.42 a barrel by 0011 GMT after rising for two days.

Rupee slips 29 paise against US dollar to 71.77

The rupee declined by 29 paise to close at 71.77 against the US dollar on Wednesday as fears of an impending global recession prompted investors to stick to safe-haven assets like the Japanese yen. Rising crude oil prices and weakness in the equity market put further pressure on the domestic currency, forex dealers said.

At the interbank foreign exchange market, the rupee opened on the back foot at 71.50 a dollar and went on to touch the day’s low of 71.87. It finally pared some losses to settle at 71.77, down by 29 paise against its previous close.

Govt relaxes FDI norms: 100% FDI in coal mining, contract manufacturing; 26% in digital media

The government on August 28 announced that it has approved 100 percent Foreign Direct Investment (FDI) through the automatic route in coal mining, its sale and all its associated infrastructure.

The government has also approved 100 percent FDI through the direct route in contract manufacturing, said Commerce Minister Piyush Goyal at the Cabinet briefing.

Goyal also announced that the Cabinet has also expanded the definition of local sourcing for single brand retail. These outlets should now locally source 30 percent of their procurements, irrespective of whether their product is marked for export or domestic sale, and will be reviewed for a block of five years, and not a year-on-year basis.

Johnson to suspend parliament before Brexit, opposition denounces ‘coup’

Prime Minister Boris Johnson will suspend Britain’s parliament for more than a month before Brexit, enraging opponents and raising the stakes in the country’s most serious political crisis in decades.

Known as the Queen’s Speech, the formal event will be held on Oct. 14 and be preceded by a suspension of the House of Commons, meaning parliament will not sit between mid-September and mid-October.

The move, which had to be approved by Queen Elizabeth, limits the time opponents have to derail a disorderly Brexit, but also increases the chance that Johnson could face a vote of no-confidence in his government, and possibly an election.

India’s crude steel output rises 1.7% to 9.2 MT in July: Report

India’s crude steel output increased by 1.7 per cent to 9.215 million tonne in July 2019, according to World Steel Association’s report. The country had produced 9.059 MT of crude steel during the same month a year ago, the global steel industry body said in its latest report.

Global steel production for the 64 countries reporting to the association stood at 156.697 MT in July 2019, registering 1.7 per cent increase over 154.009 MT in July last year, the report said. “India produced 9.215 MT of crude steel in July 2019, an increase of 1.7 per cent compared to 9.059 MT in July 2018,” the report said.

MFs cut investment to NBFCs but hike exposure to G-secs, T-bills in April-July

Due to the NBFC crisis, fund houses have become cautious in their debt investment strategy and are investing majorly in safe instruments. The exposure of mutual funds into the various debt instruments of the NBFC sector has declined while the exposure of government securities saw a notable increase in the four-month period (April-July 2019).

A slew of credit default cases, including at IL&FS and DHFL groups, have led to MFs suffering huge losses.

According to data from CARE Ratings, total exposure to NBFCs fell to 14 percent from 14.9 percent while exposure to government securities went up to 5.1 percent in July 2019 from 3.7 percent in April 2019.

Gold eases as investors book profits

Gold eased on Wednesday as the US dollar strengthened and as investors locked in profit following a more than 1% jump in the last session, but uncertainty over the US-China trade dispute and the global economy kept safe-haven bullion near a multi-year peak.

Spot gold fell 0.1% to $1,541.20 per ounce. On Monday, it touched $1,554.56, its highest since April 2013. US gold futures settled down 0.2% at $1,549.10 per ounce.

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