What changed for market while you were sleeping: Bonaz Capital
A look at top cues from domestic and international markets that could have a bearing on D-Street on Monday.
The Nifty is likely to open on a flat-to-negative note on Monday tracking muted handover from Wall Street. The Nifty made a smart comeback on Friday after it breached its crucial short-term moving averages, namely 5-days exponential moving average (DEMA) and 10-DEMA.
The index closed above its crucial psychological level of 9,650 on Friday and the upside momentum will continue once it breaks above 9,700 convincingly. But, till then, the market is likely to remain rangebound.
The index has to cross and hold above 9,680 zone to extend its upmove towards 9,750 and 9,800 while on the downside supports are seen at 9,620 and 9,580 levels.
Stay tuned to Bonaz Capital to find out what happens in the 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 Friday after touching record highs earlier in the trading session. Investors were also digesting major political events such as results from the UK elections, but the focus has now turned towards the upcoming US Federal Reserve meet this week.
The Nasdaq Composite dropped 113.85 points, or 1.8 percent, to end at 6,207.92. The Dow Jones Industrial Average rose 89.44 points, or 0.42 percent, to 21,271.97, while the S&P 500 lost 2.02 points, or 0.08 percent, to 2,431.77.
The Nifty futures on the Singapore Stock Exchange were trading 33 points lower at 9,648, indicating a flat-to-negative opening for the domestic market.
GST rates cut on 66 items
The Goods and Services Tax (GST) Council on Sunday reduced tax rates on 66 items including ketchup, instant food mixes, pickles, tractor components, computer printers and insulin as the Centre and the states sought to iron out rough edges ahead of GST’s roll out from July 1.
Finance Minister Arun Jaitley-headed GST Council will again meet on July 18 to take stock of the preparedness of the new tax system that promises to stitch together a common national market, said a report.
Aadhaar mandatory for filing I-T returns
The government has made it clear that the linking of the Aadhaar and the Permanent Account Number (PAN) will be a “must” for filing Income Tax Returns (ITRs) and obtaining PAN from July 1.
The assertion comes a day after the Supreme Court upheld the validity of an I-T Act provision making Aadhaar mandatory for allotment of PAN cards and for ITR filing, but had put a partial stay on its implementation till a Constitution bench addressed the issue of a right to privacy.
Foreign investors pour in USD 2 billion
Foreign investors have pumped in nearly USD 2 billion in the country’s capital market in the last seven trading sessions due to finalisation of GST rates for the bulk of the items and forecast of a normal monsoon.
Interestingly, most of the funds have been invested in debt markets by foreign portfolio investors (FPIs). According to latest depository data, FPIs have pulled out Rs 289 crore from equities between June 1-9, while they poured in Rs 11,734 crore in debt markets during the period under review, translating into a net inflow of Rs 11,445 crore (USD 1.77 billion).
Arun Jaitley to meet PSU bank chiefs on Monday
Finance Minister Arun Jaitley will meet heads of Public Sector banks on Monday to discuss the issue of non-performing assets (NPAs) and the steps being taken by them to expedite the recovery of bad loans which have crossed Rs 6 lakh crore.
Besides, the minister will review the financial performance of all the Public Sector Banks (PSBs) at the meeting, the first between Jaitley and them in the current fiscal, said a report.
Donald Trump willing to testify over Comey conversations
Donald Trump has said he was “100 percent” willing to testify over his conversations with James Comey after the sacked FBI chief made explosive revelations to Congress, alleging that the President tried to stop a probe into the Russian interference in the US polls.
Trump’s assertion came after he branded Comey as a “leaker” and claimed “total and complete vindication” after ousted FBI director’s testimony before a Senate Committee, it said.
White House, Congress Republicans nearing tax overhaul deal
The Trump administration and top Republicans in US Congress are within a few weeks of agreeing on central aspects of a tax overhaul plan that will determine the contours of legislation now expected in September, an administration official told Reuters this week.
Under pressure from business groups and rank-and-file Republicans, Trump officials and Congressional leaders still need to decide how much to slash tax rates and if the package should increase the federal budget deficit, administration and congressional sources said.
Oil prices rise
Oil prices rose on Friday after a pipeline stoppage in Nigeria, but crude still ended the week down nearly 4 percent on persistent worries about global oversupply, said a report.
Brent crude oil settled up 29 cents at USD 48.15 a barrel. US crude futures rose 19 cents to USD 45.83 a barrel. Both benchmarks posted weekly declines of nearly 4 percent, pressured by big U.S. inventories and heavy worldwide flows, it said.
Dollar gains as sterling falls on election shock
The dollar rose against a basket of currencies on Friday, helped by a sharp drop in the British pound after Prime Minister Theresa May’s Conservative Party lost its parliamentary majority in national elections, said a Reuters report.
The dollar index, which tracks the greenback against six major rivals, was up 0.37 percent at 97.273, after rising to a 10-day high of 97.5 earlier in the session.
UK’s May seals deal to prop up government
British Prime Minister Theresa May secured a deal on Saturday to prop up her minority government but looked increasingly isolated after a botched election gamble plunged Britain into crisis days before the start of talks on leaving the European Union, said a Reuters report.
Her Conservatives struck an outline deal with Northern Ireland’s Democratic Unionist Party (DUP) for support on key legislation. It was a humiliating outcome after an election that May had intended to strengthen her ahead of the Brexit push, it said.
6 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 percent of the market-wide position limit.
Securities which are banned for trading today include names like GMR Infrastructure, HDIL, Infibeam, Jaiprakash Associates, OBC and Kaveri Seed Company.