Let’s take a look at what might matter on Dalal Street today:
Nifty futures hint at flat start
Nifty futures on the Singapore Exchange were trading flat at 10,607.50, up 7.50 points or 0.07 per cent, indicating a flat to positive start for Nifty50 back home.
Tech view: Nifty forms strong bullish candle
Nifty50 registered a Long White Day kind of formation, as the huge gap-down opening triggered buying by market participants, and it resulted in a long bullish candle and raised the intraday range to 234 points. Monday’s bearish gap in the 10,558-10,599 zone remained unfilled. “For initial signs of strength, the bulls need to bridge this gap first. In such a scenario, Nifty can test its 200-day moving average at 10,750,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.
Asia stocks up on Sino-US peace hope
Asian stock markets edged ahead on Wednesday as U.S. President Donald trump sounded upbeat about a trade deal with China, while sterling struggled with talk of an imminent party coup against British Prime Minister Theresa May. Markets were careful to not get too optimistic and MSCI’s broadest index of Asia-Pacific shares outside Japan firmed a modest 0.27 per cent
S&P 500, Dow edged lower
The S&P 500 and the Dow closed marginally lower after volatile trading on Tuesday as investors swiveled their focus between China-US trade talks, President Donald Trump’s threat to shut down the US government and political uncertainty in Britain. The Dow Jones Industrial Average fell 53.02 points, or 0.22 percent, to 24,370.24, the S&P 500 lost 0.94 points, or 0.04 percent, to 2,636.78 and the Nasdaq Composite added 11.31 points, or 0.16 percent, to 7,031.83.
Shaktikanta Das to helm Reserve Bank
Former economic affairs secretary Shaktikanta Das was named the 25th governor of the Reserve Bank of India to succeed Urjit Patel, who quit abruptly on Monday amid a bitter dispute over the regulator’s autonomy. The appointment means that the central bank will once again be headed by a former Indian Administrative Services (IAS) officer. Patel, who had said he was resigning for personal reasons, and his predecessor Raghuram Rajan are economists.
Rupee tumbles 53 paise to 71.85
The rupee staged a late rebound after plunging 110 paise in early trade Tuesday but still ended 53 paise lower at 71.85 against the US dollar following RBI Governor Urjit Patel’s shock exit coupled with the loss of the ruling BJP in key state elections.
Election years bring bonanza for Street
Election years have been fruitful for stock investors in the past. Out of seven general elections in the last three decades, markets have risen five times during the election year. For instance, in 2014, the Sensex gained 18% in the six months prior to elections and 16% in the six months after the event. Similarly, in 2009, the index gained 30% in the six month period before elections and 23% six months after the elections. Analysts said investors tend to be optimistic before the event as the markets expect the best outcome in the elections.
Congress halts BJP juggernaut
Congress wrested two key Hindibelt states from BJP on Tuesday and staked claim to form the government in the third, thus registering its first major victories against the saffron party since the 2014 rout, besides shoring up its challenge for the upcoming general election.
RBI bought $3.4b of US T-bills in Sept
Snapping its five-month selling streak, the central bank buys securities anticipating a softening of US sovereign
The Reserve Bank of India was a net buyer of US treasury securities in September, snapping a five-month selling streak. RBI may have sought to earn higher interest income from the world’s safest debt investment, anticipating a softening of US sovereign yields that rose to a seven-year high this year.
FIIs net sellers while DIIs buy big
Foreign institutional investors offloaded shares worth Rs 2421.06 crore on Tuesday whereas domestic institutional investors were net buyers to the tune of Rs 2255.68 crore, NSE data showed.