The Nifty 50 closed a rangebound session mildly lower on September 26 as traders turned cautious ahead of Federal Reserve's interest rate decision tonight and expiry of September futures & options contracts on Thursday. The index failed to extend previous day's gains.After a gap-up opening, the Nifty slipped into the red and remained rangebound with a negative bias for rest of the session. The index closed marginally in the red, forming bearish candle on the daily charts.
The sectoral trend was mixed with Nifty FMCG (down 1.5 percent), IT (1.9 percent) and PSU Bank (1.9 percent) indices falling the most and the Nifty Midcap index outperforming benchmark indices, rising third of a percent.
The Nifty50 opened sharply higher at 11,145.55, which was also an intraday high, but slipped below 11,000 to hit the day's low of 10,993.05. It managed to recover some losses in late trade to close 13.70 points lower at 11,053.80.
According to Pivot charts, the key support level is placed at 10,982.7, followed by 10,911.6. If the index starts moving upwards, key resistance levels to watch out are 11,135.2 and 11,216.6.
The Nifty Bank index closed at 25,376.30, up 45.95 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 25,207.37, followed by 25,038.44. On the upside, key resistance levels are placed at 25,535.17, followed by 25,694.03.
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.
Wall Street rally disintegrates shortly before the close
A Wall Street rally collapsed and stocks turned negative shortly before the market close on Wednesday after investors reassessed the Federal Reserve’s policy statement and reduced their risk as they weighed how long the US central bank would continue to raise interest rates.
The Dow Jones Industrial Average ended down 0.4 percent at 26,385.28 points, while the S&P 500 lost 0.33 percent to 2,905.97. During the session, the S&P 500 traded up as much as 0.53 percent.
Asian markets trade lower
Global equities ran out of steam and US bond yields fell after the Federal Reserve raised interest rates as expected, sticking to its script of gradual policy tightening with forecasts of five more rate hikes by 2020.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.05 percent in early trade while Japan's Nikkei fell 0.45 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 24.5 points or 0.22 percent. Nifty futures were trading around 11,076-level on the Singaporean Exchange.
Fed raises US interest rates, sees at least three more years of growthThe US Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth.
In a statement that marked the end of the era of “accommodative” monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent.
The U.S. central bank still foresees another rate hike in December, three more next year, and one increase in 2020.
Oil prices rise 1 percent ahead of US sanctions against Iran
Oil prices rose by 1 percent on Thursday as investors focused on the prospect of tighter markets due to US sanctions against major crude exporter Iran, which are set to be implemented in November.
Front-month Brent crude futures were at $82.17 per barrel at 0133 GMT, up by 83 cents, or 1 percent from their last close, just off Tuesday’s four-year highs. US West Texas Intermediate (WTI) crude futures were at $72.41 a barrel, up 84 cents, or 1.2 percent from their last settlement.
With an eye on faltering rupee, RBI to raise rates next week: Reuters poll
The Reserve Bank of India (RBI) is likely to raise interest rates in early October, despite relatively tame inflation, to prop up a retreating rupee, according to a Reuters poll of economists who also trimmed their near-term growth forecasts.
In an abrupt change from the previous survey conducted two months ago, which predicted rates would stay on hold until this quarter next year, over two-thirds of 61 economists polled Sept. 19-25 said the RBI would lift the repo rate at least once by the end of 2018.
While in the July poll, only 11 of 56 respondents expected the repo rate to rise to 6.75 percent by the end of this year, the proportion of economists with that view has jumped to 44 of 61, including 17 who expect it to end the year at 7.00 percent.
Govt may consider advancing recapitalisation programme of public sector banks
The Finance Ministry on September 26 said it would “examine” the capital demands raised by public sector banks including Punjab National Bank and Central Bank. “Government is examining demands raised by PSBs for the advancement of recapitalisation of banks,” said Rajeev Kumar, Secretary, Department of Financial Services (DFS) adding that PSBs have asked the government to “advance the recapitalisation programme”.
The statement assumes importance as two PSBs – PNB and Central Bank of India – have informed the stock exchange (BSE) of their respective proposals to the government to infuse more capital.
China to cut tariffs on imports including machinery, textiles
China will cut import tariffs on goods including machinery, paper, textiles and construction materials from November 1, in a move that would lower costs for consumers and companies as a trade war with the US deepens. The decision will lower tariffs for 1,585 products, state radio reported, citing a meeting of the State Council. The combination of these and other tariff cuts this year will lower the tax burden on consumers and companies by about Yen 60 billion ($8.7 billion), the radio reported.
The Chinese government has yet to detail how the general tariff cut will apply to US goods affected by retaliatory tariffs in the trade war.
ACs, refrigerators, washing machines to get costlier, import duty hiked on over 19 items
The government on Wednesday hiked customs duties on as many as 19 items, including jet fuel, ACs and refrigerators, effective midnight as it aims to curb imports of non-essential goods. Total import bill on account of shipment of these items into the country last fiscal was Rs 86,000 crore, the Finance Ministry said in a statement.
The other items include washing machines, speakers, radial car tyres, jewellery items, kitchen and tableware, certain plastic gods, and suitcases. “The central government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items. These changes aim at narrowing the current account deficit (CAD). In all the customs duty has been increased on 19 items,” the ministry said. The import duty was doubled to 20 percent on ACs, refrigerators and washing machines (less than 10kg).
Aavas Financiers IPO subscribed 29% on Day 2
The initial public offer of housing finance company Aavas Financiers was subscribed 29 percent on the second day of bidding on September 26. The IPO to raise Rs 1,734 crore received bids for 43,17,174 shares against the total issue size of 1,47,85,027 shares, data available with the NSE showed.
The IPO comprises fresh issue of up to Rs 400 crore and an offer for sale of up to 1,62,49,359 shares, including anchor portion of 63,36,439 shares. Price band for the offer has been fixed at Rs 818-821 per share. Aavas Financiers on September 24 raised Rs 520 crore from anchor investors. ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services, Spark Capital Advisors (India) and HDFC Bank are managing the issue.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For September 27, Adani Power, PNB and Jet Airways are present in this list.
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