The market wiped out the two-day gains from the previous sessions and saw the biggest single-day fall in the past 30 days on August 13, dented by weak domestic and global cues. Reliance Industries’ 10 percent rally, however, restricted the losses to some extent.
The BSE Sensex plunged 623.75 points or 1.66 percent to 36,958.16, while the Nifty50 lost 183.80 points or 1.65 percent to 10,925.90 and formed a large bearish candle, resembling a Long Black Day-kind of formation on daily charts.
The broader market also saw heavy selling pressure with Nifty Midcap and Smallcap indices falling 2.17 percent and 1.6 percent, respectively. Among sectors, Nifty Bank, Auto, FMCG and IT were hit hard, losing between 2 and 4 percent.
According to the pivot charts, key support level is placed at 10,836.3, followed by 10,746.8. If the index starts moving upward, key resistance levels to watch out for are 11,080.6 and 11,235.4.
Nifty Bank closed at 27,729.10, down 702.80 points. The important pivot level, which will act as crucial support for the index, is placed at 27,488.8, followed by 27,248.5. On the upside, key resistance levels are placed at 28,164.1 and 28,599.1.
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 stocks closed higher on Tuesday after an announced delay of planned tariffs on some Chinese imports brought buyers back to the equities market in a broad-based rally. Tech stocks, headed up by Apple Inc led all three major US indexes into the black following the announcement, which calmed fears over the US-China trade war and growing signs of imminent recession.
The Dow Jones Industrial Average rose 372.54 points, or 1.44%, to 26,279.91, the S&P 500 gained 42.48 points, or 1.47%, to 2,926.23 and the Nasdaq Composite added 152.95 points, or 1.95%, to 8,016.36.
Asian shares joined a global equities rally and safe-haven government bonds pulled back on Wednesday, after Washington delayed tariffs on some Chinese imports in much-needed relief for markets gripped by political and economic turmoil.
The surge in US stocks lifted MSCI’s broadest index of Asia-Pacific shares outside Japan by 0.4%. Australian stocks gained 0.4%, South Korea’s KOSPI
advanced 1.2% and Japan’s Nikkei rose 0.8%.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a with 0.27 percent gain or 30 points. Nifty futures were trading around 10,950-level on the Singaporean Exchange.
Oil prices drop as data shows surprise climb in US inventories
Oil prices fell on Wednesday after industry data showed US crude inventories unexpectedly rose last week, erasing some gains from the last session that were stoked after Washington said it would delay tariffs on some Chinese goods.
Brent crude was down 35 cents, or 0.6%, at $60.95 a barrel at 0116 GMT, after rising 4.7% on Tuesday, the biggest percentage gain since December. US oil was down 46 cents, or 0.8%, at $56.64 a barrel, having risen 4% the previous session, the most in just over a month.
Rupee hits 6-mth low of 71.40 against USD
The rupee plunged 62 paise on Tuesday to close at a nearly six-month low of 71.40 against the US dollar in line with battered equities as global market turmoil and Argentine currency crash drove investors to safe havens. At the interbank foreign exchange, the rupee opened at 71.15 and touched a high of 71.02 and low of 71.40 against the American currency during the day.
The domestic unit finally settled 62 paise lower at 71.40 against the US dollar. The rupee had closed at 70.78 against the American currency on Friday. The domestic currency has lost 71 paise in the past two sessions.
US to delay China tariffs on some products, including laptops, cell phones
The Trump administration will delay imposing a 10% tariff on certain Chinese products, including laptops and cell phones, that had been scheduled to start next month, the Office of the US Trade Representative said on August 13. The USTR’s action was published just minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with US trade officials.
Other products whose tariffs will be delayed until Dec. 15 include “computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the USTR said in a statement.
India’s retail inflation eases marginally to 3.15% in July
India’s retail inflation rate in July grew 3.15 percent, remaining comfortably within Reserve Bank of India’s (RBI) target level of 4 percent, latest price data released by the Central Statistics Office (CSO) on August 13 showed. Retail inflation for June came in at an eight-month high of 3.18 percent.
Food prices, which is a gauge to measure changes in kitchen budgets, stood at 2.33 percent in July compared to 2.37 percent in June. Inflation rate in cereals and products saw no change and stood at 1.3 percent. Vegetables inflation stood at 2.82 percent in July versus 4.66 percent in June.
Centre amends National Housing Bank Act to bring HFCs under RBI’s ambit: Report
The government has activated two Budget proposals laid out to provide relief to the Non-Banking Finance Companies (NBFCs). The National Housing Bank Act has been amended to bring housing finance companies (HFCs) under the Reserve Bank of India’s (RBI) ambit, according to a CNBC-TV18 report.
Among the other proposals, the implementation of the partial credit guarantee scheme to public sector banks (PSBs) for buying high-rated pool assets of financially sound NBFCs is now operational. Also, banks can now classify the credit provided to NBFCs (for example, HFCs) for on-lending as priority sector lending.
RBI allows fintech cos, financial institutions to set up regulatory sandbox
The RBI on August 13 permitted startups, banks and financial institutions to set up regulatory sandbox (RS) for live testing of innovative products in areas like retail payments, digital KYC and wealth management. RS usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain relaxations for the limited purpose of the testing. The RS allows the regulator, innovators, financial service providers and customers to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks.
Releasing the ‘enabling framework for regulatory sandbox’, the RBI said the RS fosters ‘learning by doing’ on all sides and regulators obtain first-hand empirical evidence on the benefits and risks of emerging technologies and their implications.
This will enable authorities to take a considered view on the regulatory changes or new regulations that may be needed to support useful innovation, while containing the attendant risks.
981 companies to report June quarter numbers today
As many as 981 stocks will report their results for the quarter ended June later today which onclude names like Autoline Industries, CESC, Cox & Kings, Eveready Industries, Finolex Cables, GTL Infra, HDIL, HEG, Indiabulls Real Estate, IDBI Bank, IDFC Ltd, Kitex Garments, MMTC, Omaxe, Prabhat Dairy, Suzlon Energy, Unitech, Zee Learn, and Zuari Global among others.
One stock under F&O ban period on NSE
On August 14, DHFL is under F&O ban. Securities under the ban period in the F&O segment include companies in whose security has crossed 95 percent of the market-wide position limit.
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