US stocks surged on Monday on growing hopes that major economies would act to stymie the slowing economic effects of escalating global trade tensions, while technology stocks rose led by a nearly 3% gain in Apple's shares.
China's central bank unveiled a key interest rate reform on Saturday to help steer borrowing costs lower for companies, close on the heels of news of a potential German economic easing.
Evening Podcast: Is D-Street showing signs of revival?
FIIs net sell Rs 305.74 crore and DIIs net buy Rs 386.23 crore in equities today (provisional)
The short-term outlook for Nifty is positive, but a rangebound movement is likely. The 11,150 level as a key hurdle. The key overhead resistance of 11,125-150, as per the concept of change in polarity, was tested on Monday where Nifty failed sustain at higher levels, after moving above it in intraday trade
- Nagaraj Shetti, HDFC Securities
Monday’s high matched August 13’s high, which was followed by a panic selloff. Hence, it seems to be a stiff resistance which Nifty will need to take out on a closing basis to resume any uptrend
- Mazhar Mohammad, Chartviewindia.in
Nifty formed a long-legged Doji on daily scale and a Hammer pattern on the weekly chart, which suggested buying at lower levels. At the same time, followup buying was missing at the upper band of the falling channel. Nifty has been consolidating between 10,900 and 11,180 levels from past few sessions and it now requires a decisive hold above 11,111 to extend the gains towards 11,150 and then 11,200 levels, while on the downside, supports are seen at 10,950 and then 10,880 levels
While there are no key domestic triggers in the near-term, focus will now be on economic recovery and any stimulus/measures from the Indian government may boost sentiments. Moreover, positive global developments (stimulus announcement by Germany and interest rate reforms by China) have also infused positivity amongst the investors. However, we remain cautious on the markets in the near-term until there are visible signs of earnings recovery
The market closed flat with Nifty gaining 0.1%. Nifty corrected 93 points from the top on the back of the rise of usual fears of limited fiscal room available to the Government to announce any major stimulus
- Vishal Wagh, Head of Research, Bonanza Portfolio
Sebi to ease buyback norms for companies with housing finance, NBFC arms
Capital markets regulator Sebi is planning to ease its norms for buyback of shares by listed companies, especially those having subsidiaries in housing finance and NBFC sectors.
According to top officials, a proposal in this regard is expected to be discussed by Sebi's board at its meeting this week.
Trade war is favourable for China in long run: Marc Faber
These stocks defy market sentiment, crack up to 80%
Price as on 19 Aug, 2019 01:05 PM, Click on company names for their live prices.
Axis Bank cuts MCLR across all tenors
Private sector lender, Axis Bank, announced on Monday that it has cut its marginal cost-based lending rates (MCLR) across all tenors. The bank has cut its one-year MCLR 8.55 percent from 8.65 percent with effect from August 17, 2019.
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The Indian stock market does not have very many listed asset management companies, but it does have several good insurers and it is no surprise that as the insurance companies benefit from the financialisation of the country, the stock market has fallen in love with them. My reckoning is this love affair with insurance will continue for a prolonged period of time as the financialisation of the country continues.
Every one out of three global fund manager sees a likely recession in the next 12 months, as per the latest survey by Bank of America Merrill Lynch (BofAML).
Among global fund managers that BofA-ML surveyed, 34 per cent think a recession is likely in the next 12 months, the highest possibility of recession since October 2011.
Concerns over trade war rose by 15 percentage point with 51 per cent of investors saying it is the top “tail risk”, and topped the charts for 16 of the past 18 surveys.
At this juncture growth is matter of highest priority: Shaktikanta Das
UBI targets Rs 1,000 crore net profit in FY20
United Bank of India is aiming at a net profit of around Rs 1,000 crore for the 2019-20 fiscal, the state-owned lender's CEO and MD Ashok Kumar Pradhan said. The bank managed to be in the black in the fourth quarter of the last fiscal by posting a bottomline of Rs 95 crore, after reporting losses for seven straight quarters. In the April-June period, too, it achieved a net profit of Rs 105 crore.
Sandip Sabharwal on DHFL resolution plan
#DHFL resolution when finally approved is a significant market positive. Especially for stronger NBFCs which got beaten down excessively
Price as on 19 Aug, 2019 11:42 AM, Click on company names for their live prices.
CLSA slashes target price for Maruti Suzuki amid weak demand
Global brokerage firm CLSA slashed the target price of Maruti Suzuki citing weak demand. While maintaining a ‘Buy’ call on Maruti Suzuki, CLSA cut the target price to Rs 7,200 (from Rs 7,400 earlier). It also cut FY20-21 EPS by 8-10 per cent on lower volumes.
The scrip was trading almost flat at Rs 5971.55 in the early trade, while the benchmark BSE Sensex was up 245 points, or 0.66 per cent, at 37,595 at around 10.10 am (IST).
CLSA also added that Maruti Suzuki is the best way to play Indian auto recovery.
It is our endeavour to see there is no collapse of any large NBFC
- Shaktikanta Das
Liquidity has been in surplus since 1st June: Shaktikanta Das
Various banks have now announced measures to link their new loans to repo rate; positive trend that banks have responded
- Shaktikanta Das, RBI Guv
Apart from banks and non-banks, headwinds to financial stability can also come from financial markets
- Shaktikanta Das, RBI Governor
RBI is keeping close watch on inter-connectedness of banks and non-banks: RBI Governor
Current state of global banking system also points to uncertainty: Shaktikanta Das, RBI Guv
Weaker than expected growth with signs of a slowdown in many economies are key risks to global financial stability
- Shanktikanta Das, RBI Governor
The banking system globally, as of today, is more resilient to shocks
- Shaktikanta Das, RBI Governor
It is important to look at issues of financial stability; the global approach yo Financial stability changed after 2008
- Shaktikanta Das, RBI Guv
We are all aware there are challenges which business entities are dealing with in real economy: RBI Governor
Delay in receipt of appointed dates impacts topline performance during Q1 FY20. Operating margin at ~19% levels as certain projects near completion.
Order book stands robust at ~Rs.65 bn (3x FY19 Revenues).
Receipt of appointed dates critical. Targeting order inflows of Rs.15bn during the remaining part of FY20.
Pessimism is increasing on the Street along with cash levels, which is precursor to bottoming formation. Even auto companies have started recovering from lower levels on week on week basis. It may be too early to say but it would be an opportunity to invest in few large companies with a long term view. For the week focus should be on Banks, Auto and Metal companies. Avoid pharmaceuticals and Technology companies for trading. Nifty would remain in the range of 10,900 and 11,200. Expect technical price break out above 11,200.
- Ashish Nanda EVP & Business Head - PCG, Commodities and Currency Business, Kotak securities
Coffee Day shares hit upper circuit on debt reduction plan
Shares of Coffee Day Enterprises hit upper circuit on Monday after the company said its total debt is expected to reduce to around Rs 1,000 crore after adjusting the proceeds from the sale of its Global Village Tech Park in Bengaluru to Blackstone.
"The company has already announced the divestment of Global Village Tech Park held by its subsidiary Tanglin Developments Ltd for an aggregate consideration of Rs 2,600-3,000 crore. On receipt of the consideration for the sale of Global Village after payment of required Statutory payments, the debt position of Coffee Day Group will reduce around by Rs 2,400 crore,” Coffee Day Enterprises said in a regulatory filing.
Sensex jumps 150 pts, Nifty nears 11,100; rupee trades at 71.88 against dollar.
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange were trading 27.50 points, or 0.25 per cent, higher at 11,081.50, indicating a positive start for Dalal Street.
Tech view: Hammer on Nifty chart suggests consolidation
Nifty50 formed a Hammer-like candle on the weekly chart, as the bulls fought back to dislodge the bears. “Nifty is in for consolidation with a near-term bottom in place around 10,900,” said Mazhar Mohammad of Chartviewindia.in
Asian shares edge higher
Japan's benchmark Nikkei 225 rose 0.6 per cent in early trading to 20,532.95. Australia's S&P/ASX 200 gained 0.8 per cent to 6,454.40, while South Korea's Kospi was 0.4 per cent higher at 1,934.78. Hong Kong's Hang Seng rose 0.9 per cent to 25,734.22. The Shanghai Composite added 0.3 per cent to 2,823.82.
US stocks settled higher on Friday
On Friday, the S&P500 index rose 41.08 points, or 1.4 per cent, to 2,888.68. The Dow, which had an 800-point drop earlier in the week, added 306.62 points, or 1.2 per cent, to 25,886.01. The Nasdaq climbed 129.38 points, or 1.7 per cent, to 7,895.99. Each index still finished with a third-straight weekly decline, AP reported.
Spandana to make market debut today
Spandana Sphoorty Financial, whose Rs 1,200 crore IPO received ran from August 5 to August 7, will list on stock exchanges on Monday.The issue price for the IPO, which received 1.05 times subscription, is set at Rs 856 per share.
Broader weakness led to earning cuts: CLSA
Weak economic conditions triggered broad-based cuts among Indian corporates following the June quarter results, said foreign brokerage CLSA. The brokerage said earnings downgrades were nearly thrice those of the upgrades, which were done for 19% of the companies.
Donald Trump says US doing well with China
President Donald Trump said the US is doing very well with China and but suggested he was not ready to sign a trade deal. In a tweet early Monday, he said: “Our economy is the best in the world, by far. Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!”
China unveils interest rate reforms
China’s central bank unveiled a key interest rate reform to help steer borrowing costs lower for companies and support a slowing economy that has been hurt by a trade war with the US. PBOC said it will improve the mechanism used to establish the loan prime rate (LPR) from this month, in a move to further lower real interest rates for companies.
FPIs sell Rs 1,339 cr worth equities
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,339 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 1,058 crore, data suggests.
Sensex on Friday
BSE Sensex closed 38.80 points, or 0.10 per cent, higher at 37,350.33, while NSE Nifty ended at 11,047.80, up 18.40 points or 0.17 per cent.
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