What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a negative opening for the broader index in India, a with 0.1 percent loss or 10.5 points.

The volatile market ended lower for the second consecutive session amid the expiry of futures and options contracts on August 29, which was dragged by banking and financial services and auto stocks.

The BSE Sen-sex was down 382.91 points at 37,068.93, while the Nifty fell below its psychological 11,000 levels down 97.80 points at 10,948.30 and formed a bearish candle on daily charts.

Volatility was remained high today, especially in F&O counters, due to unwinding and rollover of the positions, while the broader indices remained under pressure with the Nifty Mid-cap index losing 0.4 percent and Small-cap index shedding 0.9 percent.

The market closed in the red for the third consecutive series, with the Nifty losing 2.7 percent in August series amid consistent FII outflows, slowdown worries and fears of a global recession.

According to the pivot charts, the key support level is placed at 10,906.77, followed by 10,865.23. If the index starts moving upward, key resistance levels to watch out for are 11,005.47 and 11,062.63.

The Nifty Bank index closed at 27,305.20, down 1.8 percent on August 29. The important pivot level, which will act as a crucial support for the index, is placed at 27,123.7, followed by 26,942.2. On the upside, key resistance levels are placed at 27,602.9 and 27,900.6.

Stay tuned to Money-control to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news:

US Markets:

US stocks rallied more than 1% on Thursday, buoyed by gains in the trade-sensitive technology and industrial sectors as China expressed hope on trade negotiations with the United States, easing concerns that rising tensions could stoke a recession.

The Dow Jones Industrial Average rose 326.15 points, or 1.25%, to 26,362.25, the S&P 500 gained 36.63 points, or 1.27%, to 2,924.57 and the Nasdaq Composite added 116.51 points, or 1.48%, to 7,973.39.

Asian Markets:

Asian shares rose on Friday as China struck a hopeful tone on trade with the United States but continued fears about a global growth slowdown, or even a recession, capped sharp rallies.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.6%. Japan’s Nikkei jumped 1% while South Korea’s KOSPI index gained 1.5% and Australian shares rose 0.9%

SGX Nifty:

Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 0.1 percent loss or 10.5 points. Nifty futures were trading around 10,997-level on the Singaporean Exchange.

India to woo foreign firms like Apple to capitalize on US-China trade war:

India is targeting companies including Apple, Foxconn and Wis-tron Corp with a charm offensive aimed at encouraging them to shift business out of trade war-hit China, according to a source and a document seen by Reuters.

Several Indian officials met on August 14 and discussed a list of “target companies” that also include Taiwan-headquartered contract manufacturer Pegatron Corp, a source with direct knowledge said.

It is not clear whether the government will dole out new incentives or just detail existing ones, but the document shows India wants to explore opportunities and move swiftly, even as some fear it has missed the bus. 

Oil dips after three days of gains:

Oil prices eased on Friday after three days of gains, with concerns about the state of the global economy amid the US-China trade war keeping prices in check.

US oil fell 6 cents, or 0.1%, to $56.65 a barrel by 0050 GMT. The contract is heading for a gain of more than 4% this week. Brent crude was down 10 cents, or 0.2%, at $60.98, after adding 1% on Thursday. 

Signs of new US-China trade discussions emerge as increased tariffs loom:

The United States and China gave signs on Thursday that they will resume trade talks as the two economic superpowers discussed the next round of in-person negotiations in September ahead of a looming deadline for additional US tariffs.

A new round of US tariffs on some Chinese goods is scheduled to take effect on Sunday, threatening to escalate an already bitter trade war.

“There is a talk scheduled for today at a different level,” Trump said in an interview with Fox News Radio, without giving details. A spokesman for the United States Trade Representative could not immediately be reached for comment on the planned call.

Rupee slips to 71.80 against dollar on fund outflows:

The rupee gave up most of its losses to close down by 3 paise at 71.80 against the US currency on August 29 even as uncertainty over the US-China trade talks and recession fears kept investors on edge. Losses in domestic equity markets and unabated foreign fund outflows hit the rupee sentiment, Forex dealers said. 

At the inter bank foreign exchange, the rupee opened lower at 71.96 and fell further to the day's low of 72.09 against the US dollar after inverted US yields fuelled fears of a possible recession.

Banks contain gross NPAs at 9.1% in FY19: RBI:

Early recognition and resolution of stressed assets have helped banks contain their gross non- performing loans ratio at 9.1 percent in FY19 down from 11.2 percent a year before, says the monetary authority. 

Fresh slippages have also come down and as a result, the system-level provision coverage ratio has jumped to 60.9 percent during the period. 

"Steadfastly pursued recognition, repair and resolution resulted in the gross NPA ratio declining to 9.1 percent in FY19 from 11.2 percent in FY18," RBI said in the annual report for 2019 released Thursday.

Bank fraud affected funds worth Rs 71,543 cr in FY19: RBI annual report:

The number of cases of frauds reported by banks went up by 15 percent on a year-on-year basis from 2018-19, according to the RBI’s annual report for FY19. The banking sector reported 6,801 frauds in FY19, which led to a loss Rs 71,542.93 crore as against 5,916 cases involving Rs 41,167.04 crore reported in FY18.

 FY 19 saw Public sector banks (PSBs) having reported 3,766 cases of fraud worth Rs 64,509.43 crore as against 2,885 cases involving Rs 38,260.8 crore. Among bank groups, PSBs, which constitute the largest market share in bank lending, have accounted for the bulk of frauds reported in 2018-19. It was followed by private sector banks and foreign banks.

US second-quarter GDP growth revised to 2.0%:

The US economy slowed a bit more than initially thought in the second quarter as the strongest growth in consumer spending in 4-1/2 years was offset by declining exports and a smaller inventory build. 

Gross domestic product increased at a 2.0% annualized rate, the Commerce Department said in its second reading of second-quarter GDP on August 29. That was revised down from the 2.1% pace estimated last month. The economy grew at a 3.1% rate in the January-March quarter. It expanded 2.6% in the first half of the year.

China hints may not retaliate for latest US tariff hike:

Beijing hinted on Thursday it may break the cycle of retaliation in the trade war with the United States, as the punishing tariff battle threatens global economic growth.

 Last week China and the US exchanged the latest blows in the year-long trade dispute, with Beijing announcing it would hit $75 billion worth of US goods in retaliation for Washington taking aim at about $300 million of its goods.

RBI to review minimum balance requirements for savings a/cs:

The Reserve Bank of India (RBI) will review guidelines on minimum balance requirements for savings accounts as well as the penalty charged by banks for its non-maintenance, the central bank said in its annual report.

 Currently, the minimum balance requirement and penalties for non-maintenance vary from bank to bank. Typically, foreign and private lenders charge as high as Rs 600 while their public sector peers charge much less. The average monthly balance also varies for branches in metro, urban, semi-urban and rural areas. 

As per existing norms, banks must notify the account holder through SMS/email or a letter and allow a month's time to restore the balance. The bank should also notify the account holder if the monthly balance requirement is changed.

 Source by: Moneycontrol

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