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Market Movers: What changed for D-Street while you were sleeping

Check out what all might matter on Dalal Street all through the day.

ETMarkets.com|
Jul 19, 2019, 07.59 AM IST
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Hope springs for the auto industry which has been going through a long slump.
NEW DELHI: Overnight comments by two Fed officials have raised hope of rate cuts going ahead. This, along with what Reliance Industries delivers for June quarter, probably post market hours, will keep the market busy on Friday.

Here is breaking down the pre-market actions.


Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 40.50 points, or 0.35 per cent, lower at 11,642.50, indicating a positive start for Dalal Street.

Tech view: Nifty forms ‘Bearish Belt Hold’
Nifty50 witnessed profit taking on Thursday after three days of consecutive rise. The index formed a Bearish Belt Hold candle on the daily chart, following relentless selling through the session. The index would head for the 11,461 level if it fails to take support from its 100-day simple moving average at 11,560 in the coming days.

Asian shares jump on Fed official comment
Asian stocks gained, and the dollar sagged on Friday after a top Federal Reserve official all but cemented expectations of a US interest rate cut later this month. Australian stocks added 0.4 per cent, South Korea's KOSPI rose 0.8 per cent and Japan's Nikkei advanced 1 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, squaring the previous day's losses.

Oil prices climb 1% on US-Iran tensions
Oil prices rose more than 1 per cent after the US Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East. Brent crude futures were up 82 cents, or 1.3 per cent, at $62.75. They closed down 2.7 per cent, falling for a fourth day.

US stocks settled higher
US stocks closed higher as the market sentiment was lifted by a central bank official’s remark. The Dow Jones Industrial Average index rose 3.12 points, or 0.01 per cent, to 27,222.97. The S&P500 index was up 10.69 points, or 0.36 per cent, to 2,995.11. The Nasdaq Composite index gained 22.04 points, or 0.27 per cent, to 8,207.24.

Fed officials make case for aggressive rate cuts
John Williams, vice chairman of the Fed’s rate-setting committee and head of the regional Fed bank in New York that implements those policies, said when rates and inflation are low, policymakers cannot afford to keep their “powder dry” and wait for potential economic problems to materialise, Reuters reported. Fed Board of Governors Vice Chair Richard Clarida, meanwhile, said policymakers might need to act early to stimulate the U.S. economy as an insurance policy against rising risks.

FPIs sell Rs 1,405 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,405 crore on Thursday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 329 crore, data suggests.

MONEY MARKETS

  • Rupee: The rupee depreciated by 15 paise to close at 68.97 against the US dollar Thursday, amid heavy selling in domestic equities and rising crude oil prices.

  • 10-year bonds: India 10-year bond yield rose 0.61 cent to 6.38, after trading in 6.30-6.40 range.

  • Call rates: The overnight call money rate weighted average was 5.56 per cent, according to RBI data. It moved in a range of 4.40-5.75 per cent.

The Day Planner:


  • India July bank deposit growth data

  • India July forex reserve data

  • Japan June inflation data

MACROS

Fed rate cut almost cemented
A top Fed official on Thursday all but cemented expectations of a US interest rate cut later this month. New York Fed President John Williams said policymakers need to add stimulus early to deal with too-low inflation and cannot wait for economic disaster to unfold

ADB cuts India's growth forecast
The Asian Development Bank has trimmed India’s growth forecast for the current financial year to 7% from 7.2% estimated earlier, as the fiscal 2018 outturn fell short. In April, the bank had lowered India’s growth forecast for 2019-20 to 7.2% from 7.6%, owing to moderation in global demand and likely shortfall in revenue on the domestic front.

FM says firm no to tax relief for FPIs
Finance minister Nirmala Sitharaman stuck to her budget proposals and declined to relent on the demand by foreign portfolio investors (FPIs) structured as trusts that they be exempted from a higher surcharge. She said they should adopt a company structure in order to avoid the surcharge. She also said the government believed that the richest should contribute more to society and nation building.

Silver lining for auto industry
Hope springs for the auto industry which has been going through a long slump. Even as carmakers witnessed a 10% decline in sales between January and June this year, SUV sales have shrunk by a much more modest at 1.8 per cent. New launches of MG Hector, Hyundai Venue, Kia Seltos, Mahindra XUV 300 and Tata Harrier have been greeted with enthusiasm by prospective customers.

Sebi says difficult to enforce public float rule
The Securities and Exchange Board of India (Sebi) has told the government that recent budget proposals could undermine its role as regulator, particularly with respect to the recommendation that the minimum public shareholding be raised to 35% from 25%. Already, government-owned companies are laggards in raising this level to the current 25% norm, said a senior Sebi official.

Sebi tightens auditors' disclosure norms
The Securities and Exchange Board of India (Sebi) on Thursday issued a consultative paper on policy proposals with respect to resignation of statutory auditors from listed entities. Under the proposed norms, if the auditor of a listed entity/material unlisted subsidiary of the listed entity proposes to resign, if the individual has signed the audit report for all the quarters (limited review/ audit) of a financial year, except the last quarter, then the auditor shall finalise the audit report for the said financial year before such resignation.

Direct Tax Code report by July 31
Finance Minister Nirmala Sitharaman on Thursday said that a task force on the new Direct Tax Code will submit its report by month end. The new direct tax code is set to replace the existing Income Tax Act. The aim is to reform the complex income tax laws into simpler tax codes with reduced rates, fewer exemptions, and tax slabs. Earlier, the task force was supposed to submit its report by May 31, but the then finance minister Arun Jaitley gave two months extension to complete the exercise.
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