15 things you should know | Ideal Stock :-
Bears ruled the D-Street for the third consecutive day in a row and pushed the Nifty below its crucial long-term moving an average of 200-DEMA for the first time on Monday for the first time since November 2016. The Nifty has also registered its fresh low for the year 2018 as it made a strong bear candle.
The Nifty which opened with a positive bias failed to hold on to the momentum as bears took control of D-Street as it reclaimed 10,200 levels. The index slipped below its crucial 200-DEMA placed around 10,114 and now a closed below 10,000 could take Nifty towards 9700.
Traders should not hurry in creating long at the current juncture as long as Nifty trades below its 200-DEMA. A close above 10,200 could signal some short-term strength in the index.
The Nifty which opened at 10,215 rose to an intraday high of 10,224 before bears took control of D-Street. The index hit an intraday low of 10,075 before closing the day at 10,094, down 100.90 points or 0.99 percent.
The Nifty closed at 10,094.2 on Monday. According to Pivot charts, the key support level is placed at 10,038.17, followed by 9,982.13. If the index starts moving upwards, key resistance levels to watch out are 10,187.37 and 10,280.53.
The Nifty Bank index closed at 24,245.1 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,091.97, followed by 23,938.83. On the upside, key resistance levels are placed at 24,493.17, followed by 24,741.23.
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 markets end lower, Dow down 1.3%
US stocks dropped on Monday, with the S&P and Nasdaq suffering their worst day in just over five weeks, as concerns over increased regulation for large tech companies was spearheaded by a plunge in Facebook shares, Reuters reported.
The Dow Jones Industrial Average fell 335.6 points, or 1.35 percent, to close at 24,610.91, the S&P 500 lost 39.09 points, or 1.42 percent, to 2,712.92 and the Nasdaq Composite dropped 137.74 points, or 1.84 percent, to 7,344.24.
Asian stocks slump as Japan slides more than 1%
Asian markets were weaker on Tuesday, as the pullback on Wall Street overnight weighed on sentiment early in session. The Nikkei 225 fell 1.04 percent, or 223.21 points, tracking the declines seen stateside overnight while the broader Topix index edged lower by 0.8 percent as all but two sectors slipped into negative territory, CNBC reported.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 26 points or 0.26 percent. Nifty futures were trading around 10,089-level on the Singaporean Exchange.
US expected to impose up to $60 bn in China tariffs by Friday: Sources
The Trump administration is expected to unveil up to USD 60 billion in new tariffs on Chinese imports by Friday, targeting technology, telecommunications and intellectual property, two officials briefed on the matter said Monday, Reuters reported.
China runs a USD 375 billion trade surplus with the United States and when President Xi Jinping’s top economic adviser visited Washington recently, the administration pressed him to come up with a way of reducing that number.
Sebi may tell exchanges to raise fees for trading in illiquid stocks
Sebi has asked stock exchanges to raise transaction fees for trading in illiquid stocks in their recent discussions, two people aware of the matter said. The regulator feels some of these may be shell companies that could expose small investors to high risks, the people said on condition of anonymity.
Most illiquid stocks are listed on BSE Ltd, which is already charging more for trading in such stocks. However, the regulator feels even this isn’t enough, Mint reported.
Trump issues action blocking Venezuela cryptocurrencies within US
President Donald Trump issued an executive order Monday banning any transactions within the United States involving any digital currency issued by, for, or on behalf of the Government of Venezuela, CNBC reported.
The order applies to US citizens as well as anyone within the United States, and includes cryptocurrency issued on or after January 9. President Trump's order is in response to recent attempts by Venezuelan President Nicolas Maduro's regime to "circumvent U.S. sanctions by issuing a digital currency," the White House said in a statement.
Hindustan Aeronautics IPO subscribed 45% on Day 2
State-owned Hindustan Aeronautics' initial public offer was subscribed 45 percent on the second day of bidding on Monday. The IPO, through which the Bengaluru-based firm aims to raise Rs 4,229 crore, received bids for 1,53,96,864 shares against the total issue size of 3,41,07,525 shares, data available with the NSE showed.
The IPO is of 34,107,525 shares and is scheduled to close today. The price band for the issue has been fixed at Rs 1215-1240. SBI Capital Markets and Axis Capital are managing the issue.
UK wins Brexit transition deal in return for Irish vow
Britain and the European Union agreed on Monday to a transition period to avoid a “cliff edge” Brexit next year — though only after London accepted a potential solution for Northern Ireland’s land border that may face stiff opposition at home, Reuters reported.
It means solving outstanding issues, notably how to avoid a “hard border” that could disrupt peace in Northern Ireland. Britain says an EU-UK free trade deal to be sealed by 2021 can do that. But Dublin insists the Brexit treaty must lock in a “backstop” arrangement in case that future pact does not work.
India's net exports not doing well: Bibek Debroy
India's net exports are not doing well even as the global economy is on the recovery path, Bibek Debroy, the head of Economic Advisory Council to the Prime Minister (EAC-PM) and Niti Aayog Member, said on Monday.
"Net exports is not doing well. During high growth years, net exports performed much better ... That world economy has not been doing that bad," he said at an event organised by industry body FICCI. Debroy also noted that ideally the central bank should intervene in the market but intervention by the RBI in the market is not without its cost side.
India most vulnerable country to climate change: HSBC
India is the most vulnerable country to climate change, followed by Pakistan, the Philippines and Bangladesh, a ranking by HSBC showed on Monday. The 67 nations represent almost a third of the world‘s nation states, 80 percent of the global population and 94 percent of global gross domestic product.
Of the four nations assessed by HSBC to be most vulnerable, India has said climate change could cut agricultural incomes, particularly unirrigated areas that would be hit hardest by rising temperatures and declines in rainfall.
India's CAD likely at 1.7% this fiscal: BofAML
India's current account deficit is expected to be around 1.7 per cent of GDP in this financial year, largely owing to higher oil prices, says a BofAML report. The global financial services major has raised its CAD forecast by 10 bps to 1.7 percent of GDP in 2017-18 and by 20 bps to 1.9 percent of GDP in 2018-19.
According to data released by the Reserve Bank on Friday, the CAD rose to 2 percent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 percent in the year-ago period, on the back of higher trade deficit.
Sebi exempts govt from open offers for 6 PSBs post capital infusion
Sebi on Monday exempted the central government from making an open offer for the shareholders of Punjab National Bank, Canara Bank and four other state-owned lenders following capital infusion.
The exemption has been given with regard to Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India also. Following capital infusion in these listed public sector banks, the government's respective stakes would rise in them.
Manufacturing cos' sales improve in Q3, profit subdued: RBI
The country's manufacturing sector witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net profit has remained subdued due to lack of support from other income, says a RBI data on performance of private corporate sector.
The RBI data released today said the information technology (IT) sector recorded a modest improvement in sales growth, although lower than a year ago. The services (non-IT) sector showed signs of revival as reflected by positive sales growth, it added. It is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) companies for third quarter of 2017-18.
Rupee slides 23 paise to 1-week low
The rupee on Monday slid by 23 paise to close at one-week low of 65.17 against the US currency due to concerns over widening current account deficit and a strong dollar ahead of a crucial US Federal Reserve meet.
Vinod Nair, Head of Research, Geojit Financial Services Ltd said the "rupee weakened due to widening current account deficit" and rising bond yields. The yields on US government bonds rose to multi-year high ahead of the Federal Open Market Committee meet.
Bandhan Bank IPO oversubscribed 14.60 times on final day
The initial public offer (IPO) of Bandhan Bank has been oversubscribed 14.59 times so far on the final day of bidding Monday. The Rs 4,473-crore IPO has received bids for 121.81 crore equity shares against the total offer size of 8.35 crore shares, as per data available on the NSE website.
The IPO also consists of an offer for sale of up to 1,40,50,780 equity shares by IFC and up to 75,65,804 equity shares by IFC FIG. The bank is aimed to raise Rs 4,413.4 crore - Rs 4,473 crore at a price of Rs 370-375 per share, respectively.
MCX plans 3 spot exchanges for base metals, gold and natural gas
Multi Commodity Exchange of India (MCX) is planning to set up three separate spot exchanges for gold, base metals and natural gas, a source familiar with the development told Moneycontrol. The exchange is talking to government bodies, including GAIL, for the spot exchange for natural gas.
MSME credit to grow at 12-14% over next 5 years: ICRA
The credit to micro, small and medium enterprises (MSMEs) is expected to grow at 12-14 percent over the next five years, helped by higher lending by non banking finance companies (NBFC) to the segment, says an ICRA report.
NBFC and housing finance companies are expected to expand at about 20-21 per cent compounded annual growth rate (CAGR) in this space during the period, while bank credit to this segment, which accounted for about 84 percent of total MSME credit, is estimated to grow at a lower CAGR of 9-11 percent, it said.
7 stocks under ban period on NSE
Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
Securities which are banned for trading include names such as BEML, DHFL, HDIL, IDBI, JP Associates, Reliance Communications, and SAIL.
