What changed for the market while you were sleeping? Bonaz Capital
Bonaz Capital The Nifty is likely to open on higher on Wednesday tracking positive handover from Wall Street. The Nifty slipped below its crucial short-term moving averages but took support at 13-days exponential moving average above 9,600.
The index formed an inverted hammer kind of pattern on daily candlestick charts which often signals a reversal in trend. The pattern will be confirmed if Nifty closes with a bullish candle in Wednesday’s session.
The index took support at its 13-DEMA placed at 9605 and if history is something to go by then this moving average has always lent support to the index many times. A breach of 13-DEMA and 9,600-9,580 will open up possibilities for a further decline towards 9,500.
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 at record highs
US stocks closed at record closing highs, as technology stocks bounced back and investors positioned for an expected Federal Reserve interest rate hike.
The S&P 500 technology sector rose 0.9 percent, recovering from its biggest two-day decline in nearly a year that also weighed on the broader market. Big tech names, such as Microsoft and Facebook, pushed the S&P 500 higher, said a Reuters report.bonaz capital
The Dow Jones Industrial Average rose 92.8 points, or 0.44 percent, to 21,328.47, the S&P 500 gained 10.96 points, or 0.45 percent, to 2,440.35 and the Nasdaq Composite added 44.90 points, or 0.73 percent, to 6,220.37.
The Nifty futures on the Singapore Stock Exchange were trading 8 points lower at 9,607 indicating a flat opening for the domestic market.
US Fed set to raise interest rates
The US Federal Reserve which will end its two-day meet later on Wednesday is expected to raise interest rates by 25 bps, due to a tightening labor market.
The US central bank will also provide detail on its plans to shrink the mammoth bond portfolio it amassed to nurse the economic recovery, said a report.
Economists polled by Reuters overwhelmingly see the Fed raising its benchmark rate to a target range of 1.00 to 1.25 percent this week.
RBI selects 12 accounts, accounting for 25% NPAs
The Reserve Bank of India on Tuesday identified 12 non-performing accounts or assets (NPAs), totalling 25 percent of India’s gross NPAs, which can be immediately taken up under the Insolvency and Bankruptcy Code (IBC).
An Internal Advisory Committee (IAC) comprising majorly of central bank’s independent board members held its first meeting on June 12 to consider cases under the new IBC that was passed last year to resolve bad loans through the legal route.
Some of the large stressed accounts that could be a part of the 12 are Essar Steel with Rs 44,000 crore stressed assets, Bhushan Power (Rs 35,000 crore), Bhushan Steel (Rs 35,000 crore), Alok Industries (Rs 24,000 crore) and Electrosteel Steels (Rs 10,000 crore), according to a CNBC-TV18 report.
Tejas Networks’ IPO opens on June 14
The latest entrant to the IPO (initial public offering) market, Tejas Networks, is set to hit the Street on June 14. Ahead of its IPO, Tejas Networks on Tuesday raised nearly Rs 350 crore through issuance of shares to 17 anchor investors.
The maker of optical and data networking products’ IPO will close on June 16, 2017. The price band has been set between Rs 250 and Rs 257 per share and plans to issue fresh equity shares worth Rs 450 crore and an offer for sale of up to 12,711,605 equity shares.
Bids can be made for a minimum of 55 equity shares and in multiples of 55 equity shares thereafter.
Indian drug regulator tightens quality norms
The Indian government, which is under pressure to implement uniform quality standards before it moves ahead with generics-only prescription, is said to have upped its ante in terms of regulatory scrutiny.
The domestic regulator has made an inspection of products that the companies file compulsory.The regulator’s expectations have heightened in last 2-3 months since reports on the quality of Indian drugs started.
More than 10 percent of drugs in the government supply chain were found to be Not of Standard Quality (NSQ), according to the largest-ever survey by the Ministry of Health and Family Welfare, while the estimated percentage of NSQ drugs from samples taken from retail outlets across the country stood at 3 percent.
Rupee gains 11 paise on easing inflation
Staging a smart recovery after yesterday’s plunge, the rupee today rebounded by 11 paise to close at 64.33 per US dollar on easing retail inflation.
The domestic unit resumed virtually steady at 64.44 at the forex market but soon drifted to a fresh low of 69.49 owing to renewed dollar demand from importers.
Dollar hits three-and-a-half-month low vs loonie
The US dollar fell to its lowest against the Canadian dollar since late February on Tuesday after hawkish comments from Bank of Canada Governor Stephen Poloz, said a Reuters report.
Speculators have more than 120,000 short contracts on the Canadian dollar, with net short bets remaining near a record high, according to data from the Commodity Futures Trading Commission and Reuters.
The U.S. dollar fell to C$1.3209, its lowest since Feb. 28. The dollar fell 0.15 against a basket of currencies to a five-day low ahead of the start of the Federal Open Market Committee’s June policy meeting, as the euro edged higher, staying just above $1.12.
Crude oil inches higher
Oil prices settled higher after OPEC detailed supply cuts around the world, but the cartel also said overall production rose in May, said a report.
Crude prices slipped after industry group the American Petroleum Institute said crude stocks rose by a surprising 2.8 million barrels for the week to June 9, counter to forecasts for a 2.7 million-barrel drawdown, it said.
Benchmark Brent crude settled 43 cents higher at $48.72 a barrel while U.S. light crude settled up 38 cents to $46.46 a barrel.
8 stocks under ban period on NSE bonaz capital
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 HDIL, Infibeam, Indiabulls Real Estate, Jaiprakash Associates, Ujjivan, OBC, Reliance Communications and Kaveri Seed Company.