Sunday, May 20, 2018

What changed your markets while you were sleeping

Easing China-US trade war has pushed Asian shares higher on Monday, but rising crude oil prices and a fluctuating rupee may pose a threat to the domestic market. The BJP’s failure to prove majority in Karnataka trust vote may not hurt sentiment much, say analysts.

Let’s check out what all might matter to Dalal Street on the day:

Singapore trading sets stage for flat start 
Nifty futures on the Singapore Stock Exchange were trading 4.50 points, or 0.04 per cent, lower at 10,61.50, indicating a flat start for the Nifty50. 

Nifty50 forms 'Bearish Engulfing' patternThe Nifty50 fell for the fourth straight session on Friday to settle below the 10,600 mark. The index formed a robust bearish candle on the daily chart and made lower highs and lower lows for the third straight session. The index made a bearish engulfing formation on the weekly chart, suggesting the possibility of further downside. Analysts say the 50-day moving average around the 10,550 level should act as a major support for the index for now. 

BJP’s loss in K'taka not to hurt Street 

Experts believe that BJP’s loss in the state has been factored in, but believe the country has more pressing issues like oil prices and a weakening rupee. "The market may open on a weak note but may recover early on of the day. We believe, now market focus may return to its fundamentals, corporate earnings, domestic macros & events. Investors’ should take any correction as a buying opportunity and keep focus on stock specific and stay invested on the companies, which are fundamentally strong and sound management," said Sanjeev Jain, AVP - Equity Research at Ashika Stock Broking. 

Easing trade war lifts US futures, Asian stocksUS stock futures jumped on Monday as US Treasury Secretary Steven Mnuchin said the US trade war with China is “on hold” after the world’s two largest economic powers agreed to drop their tariff threats while they work on a wider trade agreement, Reuters reported. Japan's Nikkei index ticked up 0.1 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.1 per cent in early trade, the report suggested. 

Oil prices near $79 a barrel markBrent crude futures were at $78.87 per barrel at 0045 GMT, up 36 cents, or 0.5 percent, from their last close, Reuters reported. Brent broke through $80 for the first time since November 2014 last week. US West Texas Intermediate (WTI) crude futures were at $71.68 a barrel, up 40 cents, or 0.6 per cent, from their last settlement.  .. 

Indostar Capital to make market debutNBFC Indostar Capital Finance, which recently concluded its initial public offer, will make stock market debut on Monday. The Rs 1,844-crore IPO was subscribed 6.80 times during May 9-11. The price band of the offer was fixed at Rs 570–572 with a face value of Rs 10 per share. Indostar is mainly into offering structured term financing solutions to companies and loans to SME borrowers. 

Key Q4 earnings todayDLF, Colgate-PalmoliveNSE 3.92 % , Future Retail , Just Dial, Petronet LNGNSE 0.05 %, TK Prestige, Usha Martin, Safari Industries would be among the companies scheduled to report their quarterly numbers during the day. 

FPIs sold Rs 166 cr worth of equities on Friday 
Foreign portfolio investors (FPIs) sold Rs 166 crore worth of domestic stocks on Friday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 150 crore, data suggested. 

Hindalco to raise Rs 5,000 cr to repay loansLeading aluminium producer Hindalco Industries is set to raise about Rs 5,000 crore by selling corporate bonds to repay bank loans, a move that is expected to reduce its credit costs. “We want to pay back at least Rs 5,000 crore this year and probably refinance it with a bond in the Indian market,” Satish Pai, MD at Hindalco, told ET. The company’s current net debt stands at Rs 15,000 crore. 

UltraTech to acquire Century’s cement bizAditya Birla Group-owned UltraTech on Sunday approved the reorganisation of the cement business of Century Textiles and Industries and its absorption into UltraTech, giving itself the leadership in all regional markets in a deal that has long been in the works involving Kumar Mangalam Birla and his grandfather BK Birla. 

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