What changed for the market while you were sleeping: Bonaz Capital
The Nifty is likely to open on a flat note on Tuesday, tracking muted handover from Wall Street. The index came under pressure on Monday and closed below its crucial short-term moving averages of 5-days exponential moving average (DEMA), and 10-DEMA
placed at 9,640 and 9,622 respectively.
The index made a bearish candle on the daily candlestick charts as the closing level was lower than the opening level. The index has already started to formed lower highs and lower lows which signify a loss of momentum. It closed 51 points lower at 9,616.
Crucial support for the index remains intact at 9,608, followed by 9,495 while the upsides for time being shall continue to remain capped around 9,700 levels till a fresh breakout is witnessed above the same level, suggest experts.
Stay tuned with Bonaz Capital to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
Wall Street ends flat
The US market closed flat on Monday weighed down by fall in technology shares.The S&P technology sector fell 0.8 percent after dropping 2.7 percent Friday for its largest two-day decline in nearly a year.
Mizuho Securities cut its rating on Apple to “neutral” from “buy” on Monday, saying the stock had outperformed this year and that the “upcoming product cycle is fully captured at current levels.” Apple shares, down 2.4 percent on Monday, are up about 26
percent so far in 2017, said a Reuters report.
The Dow Jones Industrial Average fell 36.3 points, or 0.17 percent, to 21,235.67, the S&P 500 lost 2.38 points, or 0.10 percent, to 2,429.39 and the Nasdaq Composite dropped 32.45 points, or 0.52 percent, to 6,175.47.
The Nifty futures on the Singapore Stock Exchange were trading 7 points higher at 9,631 indicating a flat opening for the domestic market.
Retail inflation falls to 2.18% in May
India’s retail inflation rate fell to 2.18 percent in May, lowest since 2012, mainly due to a fall in food prices. The inflation number is well in the range of the Reserve Bank of India’s (RBI) forecast for the current financial year, opening scope for a rate cut by the apex bank.Bonaz Capital
Consumer Price Index (CPI) inflation remained low in April touching 2.99 percent and 5.76 percent in May last year. Low inflation levels can indicate poor demand and weak economic activity.
India close to listing loans to resolve via bankruptcy rules
The Reserve Bank of India (RBI) is at an advanced stage of preparing a list of bad loans where resolution is required under the country’s insolvency and bankruptcy rules, Finance Minister Arun Jaitley said on Monday, said a Reuters report.
Speaking after meeting bank chief executives, Jaitley also said the government was working on consolidating state-run banks, although Monday’s meeting did not discuss the topic.
Azim Premji denies report of founders considering sale of business
Wipro Chairman Azim Premji has denied a report that promoters of the IT firm are considering selling partial or whole of the business.
The denial comes on the heels of a Moneycontrol report that said promoters had reached out to bankers to ascertain a price.
“Over the past 50 years, I have seen Wipro grow from a small regional player in vegetable oils to a global leader in technology. I continue to be incredibly excited about the potential of the IT industry and Wipro. I see enormous energy within the company to power the success of our clients and therefore the success of Wipro,” Premji wrote to employees.
Monsoon reaches Maharashtra, Odisha, & WB
The monsoon reached parts of Maharashtra, Odisha and West Bengal, triggering rain while hot weather conditions prevailed in Uttar Pradesh where some places recorded temperatures over 40 degrees Celsius on Monday.
Delhi witnessed a hot day with the maximum temperature hovering above 40 degrees Celsius. The minimum temperature was 25.9 degrees Celsius, two notches below the season’s average. The humidity level in the national capital oscillated between 75 and 25
Rupee closes weaker against US dollar
The US dollar ended higher against the rupee at 64.44/45 per dollar and the Pound sterling also finished lower at Rs 81.83/85 at the Interbank Foreign Exchange (forex) market here on Monday.
Oil rises on signs of U.S. inventory declines
Oil edged up on Monday on signs of inventory declines in the United States and news that Saudi Arabia will limit volumes of crude to some Asian buyers in July and deepen cuts to the United States, said a Reuters report.
Brent crude futures ended the session up 14 cents, or 0.3 percent at $48.29 a barrel, having risen as much as 2 percent to a session high of $49.15. U.S. West Texas Intermediate (WTI) crude futures gained 25 cents, or 0.6 percent, to settle at $46.08, having peaked at $46.71.
Relief for debt-laden telecom companies
An inter-ministerial panel led by a senior official in the telecom ministry started its hearings on a possible bailout of debt-laden telecom companies even as most telecom firms increased the pitch of their demand for one, said a Mint report.
India’s telcos are loaded with debt—around Rs4.85 trillion at the end of December 2016—and face the burden of payments due to the government for spectrum (close to Rs3 trillion), it said.
8 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Securities which are banned for trading today include names like GMR Infrastructure, HDIL, Infibeam, Indiabulls Real Estate, Jaiprakash Associates, Ujjivan, OBC and Kaveri Seed Company.