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 knowBenchmark stock indices Sensex and Nifty suffered strong losses on September 19 due to widespread selling across sectors as the concerns over rising geopolitical tension, crude oil prices and the deteriorating macroeconomic environment continued to keep the risk appetite of investors low.

Moreover, uncertainty over US Fed’s future rates trajectory added to investors anxiety. On the technical charts, the market breached crucial support at 10,800, seen as a reason for a steep fall.

The Nifty index closed at 10,704.80, down 136 points, or 1.25 percent, with 7 stocks in the green and 43 in the red. The index managed to hold 10,700-mark but ended at its lowest level since February 19.

Closing at its lowest level since March 1, the BSE Sensex plunged for 470 points or 1.29 percent to settle at 36,093.47 with only four stocks – Tata Motors, HDFC Bank, Bharti Airtel and Asian Paints – in the green.

Nifty formed a bearish candle – which resembles a ‘Bearish Belt Hold’ kind of pattern on daily charts – for the second time this week.

The index still traded in a range of 10,650-11,150 levels, but as it went near to August lows intraday, the sentiments look to be weak. experts say if the index breaks August lows in the coming sessions, then a steep fall can’t be ruled out.

According to the pivot charts, key support level for Nifty is placed at 10,634.93, followed by 10,565.07. If the index starts moving up, key resistance levels to watch out for are 10,809.93 and 10,915.07.

The Nifty Bank closed with a loss of 1.53 percent at 26,757.65 on September 19. The important pivot level, which will act as crucial support for the index, is placed at 26,541.99, followed by 26,326.3. On the upside, key resistance levels are placed at 27,074.39 and 22,7391.1.

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

Wall Street dropped on Friday, and also finished the week lower, after a Chinese agriculture delegation cancelled a planned visit to Montana, dampening optimism about US-China trade talks. The delegates, who had been set to visit US farm states next week, will return to China sooner than originally scheduled, the Montana Farm Bureau said.

The Dow Jones Industrial Average fell 0.59% to end the week at 26,934.46 points, while the S&P 500 lost 0.49% to 2,991.99. The Nasdaq Composite dropped 0.8% to 8,117.67. For the week, the S&P 500 fell 0.52%, the Dow lost 1.05% and the Nasdaq declined 0.72%.

Asian Markets

Asian shares started higher on Monday on hopes of an interim Sino-US tariff deal after the two countries described their talks as “productive” and “constructive”, while oil gained more than 1% as Middle East tensions remained elevated.

Japan’s Nikkei opened on a firm note, rising 0.2% while Australian shares added 0.5%. New Zealand’s benchmark index was 0.1% higher. South Korea’s Kospi was a touch weaker after disappointing trade data. MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.5% at 511.3 points.

SGX Nifty

Trends on SGX Nifty indicate a robust opening for the broader index in India, with a 143 points gain or 1.26 percent. Nifty futures were trading around 11,483-level on the Singaporean Exchange.

Middle East tensions lift oil prices more than 1%

Oil prices gained more than 1% to hit their highest levels in two sessions at the start of Monday’s trade as Middle East tensions remained elevated, supporting prices. The Pentagon has ordered additional troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defences following an attack on Saudi oil facilities.

Brent crude futures touched an intraday high of $65.50 a barrel, but eased to $64.97, up 69 cents by 2323 GMT. US West Texas Intermediate crude futures were at $58.78 a barrel, up 69 cents, after earlier hitting a high of $59.39.

FPIs withdraw Rs 4,193cr from capital markets in Sept so far

Foreign investors have pulled out a net sum of Rs 4,193 crore from the Indian capital markets in September so far, but the trend is expected to reverse on the back of fiscal relief measures announced by the government, experts said.

The Centre on September 20 slashed corporate tax rates by around 10 percentage points and said the enhanced tax surcharge will not to apply on capital gains arising from sale of any security including derivatives in the hands of FPIs.

As per latest depositories data, foreign portfolio investors (FPI) withdrew a net amount of Rs 5,577.99 crore from equities while infusing Rs 1,384.81 crore into the debt segment. This translates into a cumulative net outflow of Rs 4,193.18 crore between September 3-20.

OnsiteGo aims revenue to rise eightfold to Rs 2,500 crore in 4 years, plans IPO

After-sales services firm OnsiteGo expects its revenue to grow about eightfold to over Rs 2,500 crore in four years and launch an initial public offering (IPO) during the same period on account of foray into the business-to-consumer segment, a top company official said.

The company provides extended warranty on mobile phones, consumer electronics and appliances products and claims to have scaled up its revenue to around Rs 190 crore last year following a fund infusion of around Rs 13 crore in 2015 from venture capital firm Accel. Currently, the firm is in the business-to-business segment.

“This year, we are looking at Rs 340 crore. We hope to get around Rs 600 crore next year, Rs 1,200 crore in the year after that and Rs 2,500 crore in the subsequent year,” OnsiteGo Chief Executive Officer Kunal Mahipal told PTI.

Corporate tax cut to have ‘minor’ impact on fiscal deficit: Niti Aayog

The Rs 1.45-lakh crore tax giveaway is unlikely to widen the fiscal deficit much, as the shortfall will be met through increased tax collections due to higher growth , Niti Aayog Vice Chairman Rajiv Kumar said on September 21. On September 20, the government had announced tax cuts for corporates by 10-12 percentage points, bringing down the effective corporate tax to 25.17 percent inclusive of all cess and surcharges for domestic companies.

The new tax rate will be applicable from April 1, involving a revenue loss of Rs 1.45 lakh crore this fiscal. “I don’t think tax cuts will leave a gaping hole in the fiscal numbers. There will be some, which will be minor,” Kumar said at an ‘India Today’ event.

The budget had estimated fiscal deficit at 3.3 percent of the GDP for the current fiscal but many analysts have pegged it overshooting by at least 70 basis points to 4.1 percent as the quantum of the giveaways is worth 0.7 percent of the GDP.

Rupee rallies 40 paise on corporate tax cut

The Indian rupee on Friday rose by 40 paise to settle at 70.94 to the US dollar after forex market sentiment was buoyed by the government decision to slash corporate taxes. The news of lowering corporate tax rejoiced the equity market as well, but the bond market did not take the announcement very well.

Finance Minister Nirmala Sitharaman slashed corporate tax by almost 10 percentage points as the government looked to pull the economic growth out of six-year low. At the interbank foreign exchange market, the local unit opened on a strong note at 71.19 and shuttled between a high of 70.68 and a low of 71.19 during the day.

Corporate tax cut positive but growth faces headwinds: Moody’s

Moody’s Investors Service on September 21 said the cut in corporate tax increases the government’s fiscal risks while headwinds from cyclical factors such as rural stress, weak corporate sentiment and slow credit pose threat to near-term growth. On September 20, the Centre announced a reduction in the base corporation tax rate to 22 percent from 30 percent as part of stimulus measures to revive slowing economic growth.

The rating agency said it does not expect the corporate tax rate cut to revive growth to the extent that stronger tax buoyancy compensates for the loss of revenue.

“While the reduction brings India’s corporate tax rate closer to peers throughout Asia and will support the business environment and competitiveness, a host of cyclical factors, including rural financial stress, weak corporate sentiment, and a slow flow of credit in the financial sector, remain headwinds to near-term growth,” it said.

Sebi tightens rules for debt mutual fund

Tightening the norms for mutual funds, markets regulator Sebi on Friday made it mandatory for liquid schemes to hold at least 20 per cent in liquid assets like cash and government securities in the wake of recent credit crisis. The new rule, applicable from April 1 next year, is aimed at improving risk management and ensuring sufficient liquidity, the Securities and Exchange Board of India (Sebi) said in a circular.

Besides, Sebi said that an asset management company (AMC) will not be permitted to charge investment management and advisory fees for the parking of funds in short-term deposits of scheduled commercial banks. This norm will be applicable after a month.

Forex kitty slips $649 mn to $428.96 bn

The country’s foreign exchange reserves declined by $649 million to $428.96 billion in the week to September 14, mainly on account of a drop in the value of foreign currency assets and gold holdings, as per the weekly RBI data released on Friday. In the previous reporting week, total reserves had increased by $1 billion to $429.608 billion. The reserves had touched a life-time high of $430.572 billion in August.

Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and the yen held in the forex exchange reserves. During the week, value of gold reserves declined by $249 million to $27.103 billion, according to the data.