The recovery in afternoon helped market close moderately higher on August 16 as traders await government's act to revive slowing economy. The sectoral trend was mixed with Nifty Bank and Auto indices gaining 0.7 percent and 1.15 percent respectively while Pharma, IT and Metal closed in red.
The BSE Sensex gained 38.80 points to close at 37,350.33 while the Nifty50 rose 18.40 points to 11,047.80 and formed Doji kind of pattern on daily charts as opening and closing values are almost equal.
For the week, the index lost 0.56 percent and saw Hammer kind of candle formation on weekly scale, which is bullish reversal candle by nature so there could be some upside in coming session. The broader markets gained 0.2 percent on Friday, but lost more than half a percent for the week.
According to the pivot charts, key support level is placed at 10,958.5, followed by 10,869.2. If the index starts moving upward, key resistance levels to watch out for are 11,102.9 and 11,158.
Nifty Bank closed at 28,217.00, up 0.71 percent on August 16. The important pivot level, which will act as crucial support for the index, is placed at 27,874.9, followed by 27,532.8. On the upside, key resistance levels are placed at 28,405.1 and 28,593.2.
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 stocks rebounded on Friday as an ebbing bond rally and news of potential German economic stimulus brought buyers back to the equities market, closing the book on a tumultuous week.
While all three major US stock averages ended the session higher, they still logged their third consecutive weekly losses, having been rattled since Monday by growing US-China trade animosity, simmering geopolitical tensions and signals from the bond market that sparked fears of impending recession.
The Dow Jones Industrial Average rose 306.62 points, or 1.2%, to 25,886.01, the S&P 500 gained 41.09 points, or 1.44%, to 2,888.69 and the Nasdaq Composite added 129.38 points, or 1.67%, to 7,895.99.
Asian stocks rose on Monday as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors’ fears of a sharp global economic slump.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a with 0.23 percent loss or 25 points. Nifty futures were trading around 11,079-level on the Singaporean Exchange.
Rupee settles 13 paise up at 71.14 against dollar despite outflows
The rupee recovered from early lows to close higher by 13 paise at 71.14 against the US currency on August 16 in line with firm local equities, defying gains in the greenback overseas and foreign capital outflows. The rupee opened on a weak note and fell to a day's low of 71.47 due to gains in the dollar and crude oil in global markets.
Foreign investors pulling out Rs 1,339 crore from equities on a net basis also weighed on the local unit. However, a recovery in equity markets amid hopes of a sector-specific stimulus package by the government to arrest the slowdown in the economy helped the rupee pare losses and touch a high of 70.50 to the US dollar.
The local unit finally settled at 71.14 against the US dollar, showing a gain of 13 paise over the previous close. On Wednesday, the rupee had settled at 71.27 against the US dollar.
Forex reserves at new life-time high of $430.57 bn
India's foreign exchange reserves surged by $1.620 billion to $430.572 billion in the week to August 9 on rise in foreign currency assets, according to the latest RBI data released on August 16. In the previous reporting week ended on August 2, the reserves had declined by $697.2 million to $428.952 billion.
In the reporting week, foreign currency assets, a major component of the overall reserves, increased by $15.2 million to $398.739 billion, the apex bank said on August 16. Expressed in dollar terms, foreign currency assets include the effect of appreciation/depreciation of non-US units like the euro, pound and yen held in the reserves. The country's gold reserves surged by $1.591 billion to $26.754 billion, according to data.
Uncertainty in Indian equity market likely to dry up IPOs
Having declined in both numbers and valuations this year, initial public offerings may shrink to a trickle in the second half, hit by continuing volatility in the markets on account of domestic and global issues, investment bankers said.
After a lacklustre first half, three IPOs hit the markets in the last fortnight—those of Affle Ltd, Spandana Sphoorty Financial Ltd and Sterling and Wilson Solar Ltd. But while Affle’s IPO was heavily subscribed, the other two deals barely managed to cross the finish line.
The number of IPOs more than halved in the first six months of 2019 to eight from 18 in the first half of 2018— touching its lowest in the last three years. “The current market conditions are quite challenging and it is difficult to see a significant recovery in the IPO markets in this calendar year,” said Mukund Ranganathan, executive director at Motilal Oswal Investment Banking.
Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists, although price gains were capped by an unusually downbeat OPEC report that stoked concerns about demand growth.
FPIs pull out Rs 8,319 crore so far in August
Foreign investors pulled out Rs 8,319 crore on a net basis from capital markets in the first half of August, continuing their selling spree in the Indian market amid uncertainty over FPI tax and global trade worries.
According to the depository data, foreign portfolio investors (FPIs) sold equities worth Rs 10,416.25 crore on a net basis during August 1-16 period.
FPIs, however, invested a net Rs 2,096.38 crore in the debt securities during the period.
India's holding of US govt securities jumps to $162.7 billion
India's exposure to the US government securities rose by nearly $6 billion to $162.7 billion at the end of June, the highest level in at least one year.
Latest data from the US Treasury Department showed that Japan was the largest holder, with holdings of American government securities worth $1.122 trillion, followed by Mainland China whose exposure stood at $1.112 trillion. These are figures at the end of June 2019.
One stock under F&O ban period on NSE
On August 19, DHFL is under F&O ban.
Securities under the ban period in the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.