What changed your markets while you were sleeping
Sebi’s decision to review FPI norms is positive, but concerns that Sino-US trade war will not resolve soon, a sharp depreciation in rupee and worries over broader weakness in emerging markets, may weigh in on the market on Thursday.
Let’s check out what all might matter to Dalal Street on Thursday:
Singapore trading sets stage for firm start
Nifty futures on the Singapore Exchange were trading 31 points, or 0.27 per cent, higher at 11,534.50, indicating a strong start for the Nifty50.
Tech view: Nifty forms Hammer-like pattern
Analysts said late buying seen on Wednesday could just be short-coverings and follow-up buying is required for any shift in the ongoing weak trend. Chart patterns indicated weak bias and buying seen in the last hour could just be due to short coverings after a sharp drop, said Nagaraj Shetti of HDFC Securities, who sees no indication of a trend reversal as yet.
Asian shares extend slide
Global equities remained under pressure with stocks in Asia down for the sixth straight day on Thursday amid fragile investor confidence in the wake of turmoil in emerging markets and anxiety about a major escalation in the US-China trade conflict, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.26 per cent to hit its lowest since mid-August. Japan’s Nikkei slipped 0.58 per cent while Australian shares fell
US not ready for trade deal with China: Trump
US President Donald Trump said on Wednesday that the United States was not yet ready to come to an agreement over trade disputes with China but he said talks would continue, Reuters reported. The world’s two largest economies have slapped tariffs on $50 billion of each other’s goods in a tit-for-tat trade war, and Trump is considering imposing tariffs on another $200 billion in Chinese imports.
Oil prices hit on EM woes
Oil prices fell on Thursday as emerging market woes weighed on sentiment, while a deadline neared for a potential new round of US tariffs on another $200 billion of Chinese goods. International Brent crude futures for October delivery fell 27 cents, or 0.4 per cent, to $77 a barrel, Reuters reported.
US stocks settle mixed
The Dow Jones Industrial Average index rose 22.51 points, or 0.09 per cent, to 25,974.99. The S&P500 index lost 8.12 points, or 0.28 per cent, to 2,888.60. The Nasdaq Composite index dropped 96.07 points, or 1.19 per cent, to 7,995.17.
Re at new low, bond yield at 4-year high
On Wednesday, the rupee hit a new record low at 71.97 a dollar in the morning before suspected intervention by the central bank lifted the local unit. It pared some of its early losses to close at 71.76 on Wednesday, still a 0.27 per cent fall from a day earlier.
Sebi to review FPI proposed norms
The Securities and Exchange Board of India (Sebi) on Wednesday said it would review the norms on foreign portfolio investors and take a holistic view. The committee will also look at the concerns raised on the circular which was put out by Sebi in April which said non-resident Indian (NRIs), persons of Indian origin (PIOs) and overseas vehicles set up by Indian financial services groups cannot be ‘beneficial owners’ of foreign portfolio investors (FPIs).
Angel Broking files draft papers with Sebi
Retail broking firm Angel Broking filed draft papers with the Securities and Exchange Board of India on Wednesday for an IPO worth up to Rs 600 crore. The IPO comprises a fresh issue of shares aggregating up to Rs 300 crore and an offer for sale of shares worth up to Rs 300 crore.
FPIs sell Rs 384 cr worth equities
Foreign portfolio investors (FPIs) sold Rs 385 crore worth of domestic stocks on Wednesday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 176.95 crore, data suggested.
