Stock Market News
The market is expected to open in a positive note as trends in the SGX Nifty indicate a firm opening for the broader index in India with a gain of 131.50 points.
The BSE Sensex rallied 300 points to 59,141, while the Nifty50 climbed 92 points to 17,622 and formed a decent bullish candlestick pattern on the daily charts at the close on Monday.
As per the pivot charts, the key support level for the Nifty is placed at 17,479, followed by 17,335. If the index moves up, the key resistance levels to watch out for are 17,716 and 17,810.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Wall Street’s main indices ended a seesaw session higher on Monday, as investors turned their attention to this week’s policy meeting at the Federal Reserve and how aggressively it will hike interest rates.
The Dow Jones Industrial Average rose 197.26 points, or 0.64 percent, to 31,019.68, the S&P 500 gained 26.56 points, or 0.69 percent, to 3,899.89 and the Nasdaq Composite added 86.62 points, or 0.76 percent, to 11,535.02.
Asian Markets are trading higher with Hang Seng, Taiwan Weighted, Straits Times gained 0.5 percent each.
Trends in SGX Nifty indicate a positive start for the broader index in India with a gain of 131.50 points. The Nifty futures were trading around 17,755.50 levels on the Singaporean exchange.
India spending forex reserves at quicker pace than during taper tantrum
India’s central bank is using up its foreign exchange reserves at a quicker pace than during the taper-tantrum period of 2013 as it tries to prevent an overshoot in the rupee, but a larger pool of reserves may allow it to support the currency for some more time, economists said.
The Reserve Bank of India has sold a net of $38.8 billion from its forex reserves between January and July this year, data released on Friday showed. A net of $19 billion was sold in July alone, the most recent data available, and intervention remained heavy in August when the rupee fell below 80 against the dollar, traders said.
Alongside its intervention in the spot market, the central bank’s forward dollar holdings have fallen to $22 billion from $64 billion in April.
Capital markets regulator Sebi has kept in “abeyance” the proposed initial share sale of Canada-based Fairfax Group-backed Go Digit General Insurance Ltd. However, the Securities and Exchange Board of India (Sebi) did not clarify further.
Go Digit had filed preliminary IPO papers with the capital markets regulator on August 17. Cricketer Virat Kohli and his wife Anushka Sharma are among the investors in the firm.
Oil prices steady as prospect of Fed hikes may curb fuel demand
Oil prices were little changed on Tuesday, after rising in the previous session, on concerns that interest rate hikes in the United States to tame inflation will curb economic growth and fuel demand in the world’s biggest crude consumer.
Brent crude futures for November settlement fell 7 cents, or 0.1%, to $91.93 a barrel by 0136 GMT.
US West Texas Intermediate crude for October delivery was at $85.59 a barrel, down 14 cents, or 0.2 percent. The October contract will expire on Tuesday and the more active November contract was at $85.20, down 16 cents, or 0.2 percent.
Benchmark 10-year US Treasury yields jumped to their highest level since 2011 on Monday as investors adjusted for the likelihood that the Federal Reserve will hike rates higher and for longer than previously expected as inflation remains near multi-decade highs.
Data last week showed higher-than-expected consumer prices in August, dashing hopes that the worst of rising price pressures may be in the past.
The Central Bureau of Investigation (CBI) on September 19 filed a charge sheet against Yes Bank co-founder Rana Kapoor in a Rs 466.51 crore bank fraud case, officials of the investigating agency told PTI.
Notably, Kapoor was not named a suspect in the FIR registered on June 2 last year in the Yes Bank fraud case. His role in the case surfaced during the investigation, CBI officials said.
In its charge sheet filed before the special CBI court in Mumbai, the probe agency has also named Avantha Group promoter Gautam Thapar, the officials added.
FII and DII data
Foreign institutional investors (FIIs) have net bought shares worth Rs 312.31 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 94.68 crore on September 19, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Six stocks – Delta Corp, Escorts, Indiabulls Housing Finance, India Cements, PVR, and RBL Bank – are on the NSE F&O ban list for September 20. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies