Markets: Sensex settles 228 points higher at 36,701

Closing bell

The market benchmark BSE Sensex rebounded from early lows to close 228 points higher on Friday on expectations of an FPI tax roll back and some measures by the government to boost growth.

The 30-share barometer closed higher by 228.23 pts or 0.63 per cent at 36,701.16, hours ahead of a presser by Finance Minister Nirmala Sitharaman.

The broader NSE Nifty rose by 88 points or 0.82 per cent to settle at 10,829.35, with 41 of its 50 constituents closing with gains.

The two benchmark indices had declined up to 1 per cent in the early session due to heavy selling in banking, financials, auto and FMCG stocks.

However, reports of a roll back of FPI tax and announcement that the finance minister would address the media in the evening fuelled speculation that the government would announce measures to support the sagging economy.

Among major gainers, Vedanta rose the most by 6.55 per cent, snapping its five-day losing streak.

YES Bank rose by 5.24 per cent, ONGC 4.66 per cent and Mahindra and Mahindra by 4.26 per cent.

IndusInd Bank was the biggest loser among Sensex scrips, declining by 1.9 per cent. - PTI

Oil prices steady as markets await Fed chief's address

US refined product stocks build higher than expected. File Photo

Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by US Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world's largest economy.

Brent crude futures, the international benchmark for oil prices, fell 4 cents to $59.88 a barrel by 0813 GMT, but was up about 2.1 per cent on the week. US West Texas Intermediate (WTI) crude futures slipped by 5 cents to $55.30, up 0.8 per cent this week. Click here to read in full the oil markets report .

Euro weakens, dollar rises as market awaits Fed chief Powell's speech

Currency markets have in recent months been driven by global central banks' shift to much more accommodative policy settings. File Photo

The euro edged lower and the dollar strengthened broadly on Friday, awaiting a keynote speech by the head of the Federal Reserve after some of his fellow policymakers signalled a reluctance to cut US interest rates further.

Fed Chairman Jerome Powell is expected to address the Jackson Hole symposium of central bankers at 1400 GMT, and traders will be keen to see how closely he allies himself with the hawkish camp.

Currency markets have in recent months been driven by global central banks' shift to more accommodative policy settings as economic demand slows and trade disputes intensify. Click here to read in full the dollar report .

Asian stocks range-bound ahead of Fed chief Powell's speech

MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1 per cent lower. File Photo

Asian shares struggled to make headway on Friday as uncertainty over how much further the US Federal Reserve would cut interest rates added to investors' worries over slowing global growth.

With the US-China trade war dragging on, and political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly awaiting Fed Chair Jerome Powell's speech at a gathering of central bankers in Jackson Hole, Wyoming, later in the day (1400 GMT).

The pan-European Euro Stoxx 50 futures gained 0.7 per cent in late Asian trade, indicating European cash share markets will open higher on Friday. Click here to read in full the Asian markets report .

European shares edge higher ahead of Powell speech

European shares rose slightly on Wednesday after five straight says of losses. File Photo

European shares inched higher early on Friday, with all eyes on a speech by US Federal Reserve Chief Jerome Powell for signs that the central bank is on course to deliver another cut in interest rates next month.

With markets locked down ahead of the highly-anticipated address at the Jackson Hole symposium at 1400 GMT, a 30 per cent surge for Peppa Pig-owner Entertainment One was among the few major share moves.

That reflected a premium over the price agreed with US toy giant Hasbro in a deal announced overnight, and some analysts suggested it could point to some kind of counter-offer, possibly from UK broadcaster ITV, whose shares rose 4 per cent. Click here to read in full the European share markets report .

Gold set for worst week in nearly 5 months

Gold eased on Friday and was set for its worst week in nearly five months, as lack of clarity from the US Federal Reserve on the outlook for interest rate cuts triggered investors to cash in some gains ahead of Jerome Powell's speech at Jackson Hole.

Spot gold was down 0.2 per cent to $1,495.80 per ounce, as of 0805 GMT. The metal has lost nearly 1.2 per cent so far this week, on track for its biggest weekly percentage decline since March 29.

US gold futures also slipped 0.2 per cent to $1,505.50 an ounce. Click here to read in full the gold report.

Maruti recalls 40,618 units of WagonR

Maruti Suzuki India on Friday said it is recalling 40,618 units of the WagonR with one litre engines to rectify issues with the fuel hose mechanism. The company is proactively and voluntarily undertaking a recall campaign for certain WagonR (1 litre) vehicles manufactured between November 15, 2018 and August 12, 2019, MSI said in a statement.

The auto major will inspect 40,618 units of the model for a possible issue of fuel hose fouling with metal clamp, it added.

Sensex, Nifty ride up

The benchmark indices traded firm in the afternoon session on Friday. The Sensex, which lost more than 300 points in early session, was up 274 points or 0.75 per cent higher at 36,746. The Nifty was up nearly 1 per cent at 10,843. This represented a gain of 102 points or 0.96 per cent on its overnight close.

The top gainers on the Sensex were YES Bank, Vedanta, ONGC, Tata Steel and M&M. The major losers were ITC, IndusInd Bank, Hindustan Unilever, L&T and Kotak Bank.

Among the BSE sectoral indices, FMCG was the only one in the red. Metals and oil and gas sector shares surged more than 3 per cent in the session, while basic materials, energy and utilities gained over 2 per cent. Among the other gainers were shares of the telecom, auto, realty and technology sectors.

Nifty call: Buy above 10,805 levels

Following a gap-down open, the Sensex and the Nifty began to trim their initial losses and began the trend upwards.

The Asian markets are trading marginally in the positive territory, the Nikkei 225 is up by 0.4 per cent to 20,710 and Hang Seng index has advanced 0.5 per cent to 26,190. While the Sensex trades flat wavering between red and green, the Nifty has advanced slightly higher and currently hovers in the positive zone. Click here to read in full the Nifty call report .

SBI offers some respite to savings bank depositors

Has the recent fall in deposit rates pinched you? Then, SBI’s decision to retain its savings deposit rate (for deposits over ₹1 lakh) at 3 per cent should offer you some respite.

The RBI lowered its key policy rate by 35 bps in August. Since then, banks have been lowering fixed deposit and lending rates. But depositors holding SBI savings accounts, had an additional burden to bear. Effective May this year, SBI linked the interest rate on its savings bank deposits (for balances above Rs 1 lakh) with the repo rate — 2.75 per cent below repo rate, retaining 3.5 per cent rate for deposits up to Rs 1 lakh.  Click here to read in full on SBI offers some respite to savings bank depositors .

SBI cuts deposit rates again

In view of the falling interest rate scenario and surplus liquidity, State Bank of India has decided to slash retail term deposit rates by 10-50 basis points (bps) and bulk term deposit rates by 30-70 bps across tenors.

India's largest bank had last cut interest rates on Retail Domestic Term Deposits ‘Below Rupees Two Crore ' and Domestic Bulk Term Deposits (Rs 2 crore and above) by 5-75 basis points across tenors on August 1.

However, SBI, in a statement, said it has decided not to reduce the savings bank (SB) interest rate further and would hold the same at the existing level of 3 per cent for customers with balances above Rs 1 lakh. Customers with SB balance up to Rs 1 lakh would continue to get a rate of interest of 3.50 per cent.

HDFC Bank remains bullish on cards business

The country’s largest private sector lender HDFC Bank remains bullish on its cards business and said it has not witnessed a slowdown in consumption.

“In consumer finance, we are seeing robust growth in all sectors. We expect to grow further with the festival season,” said Parag Rao, Country Head - Payments Business, Marketing, HDFC Bank, pointing out that some segments have shown a slowdown but it is cyclical and not systemic.

The lender is not seeing any stress in its credit card business and non-performing assets remain well within control. Click here to read in full the report on HDFC Bank bullish on cards business.

Capital gains: For FPIs, new SEBI norm is a tax-free ‘gift’

SEBI has allowed foreign portfolio investors (FPIs) to invest from Gujarat Gift city, in a move that could see FPIs heading to the international financial services centre (IFSC) in Gandhinagar.

Business units operating from GIFT City enjoy a 10-year tax holiday. The measure comes as a cushion for foreign investors, who were troubled by Finance Minister Nirmala Sitharaman’s tax proposals in her maiden Budget. Click here to read in full the report on why SEBI's new norm is a tax-free gift for FPIs .

Indices rebound on reports of rollback of higher taxes for FPIs

The benchmark indices, the BSE Sensex and the NSE Nifty, stood firmer in the mid-morning session on Friday. The Sensex was at 36,395, representing losses of 77 points or 0.21 per cent on its overnight close, while the Nifty was little changed at 10,735.

According to an agency report, the benchmarks rebounded from a sharp fall on Friday, following a media report that the government could soon announce a rollback of higher taxes for foreign portfolio investors (FPIs).

YES Bank Ltd was the top gainer on the NSE and BSE indexes, rising 6.7 per cent after a series of sharp declines in recent sessions.

The NSE index was still on course to end nearly 3 per cent lower for the week following three straight days in the red.

Other Asian markets also remained subdued, with uncertainty over how much further the US Federal Reserve would cut rates added to caution caused by global growth fears.

MSCI's broadest index of Asia-Pacific shares outside Japan was higher by 0.08 per cent.

A government official told Bloomberg News that India could announce a rollback of taxes for foreign portfolio investors (FPIs), BloombergQuint said in a tweet.

A poorly received Budget proposal on higher taxes for FPIs has contributed to a sell-off in Indian markets, which has worsened amid an economic slowdown that has hit demand for everything from cars to underwear.

A series of meetings this month between Finance Minister Nirmala Sitharaman and FPIs, and between Sitharaman and Prime Minister Narendra Modi had raised hopes of stimulus measures.

But markets fell on Thursday after comments from India's chief economic advisor suggested that companies should not depend on the government for a stimulus and need to change their mindset. (with inputs from Reuters)

S&P 500 stalls in economic data offset, ahead of Fed chair's speech

The benchmark S&P 500 ended little changed on Thursday as a fall in US jobless claims offset data showing a contraction in US manufacturing activity while investors awaited Federal Reserve Chair Jerome Powell's speech on Friday for clues on the central bank's monetary policy. Click here to read the US markets report .

Asian stocks shaky before Powell's speech

MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.1 per cent lower. File Photo

Asian shares struggled to make any headway on Friday as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears. Click here to read in full the Asian markets report .

Super-rich surcharge leaves financial sector poorer as FPIs pull out ₹6,700 cr

After investing around ₹10,700 crore in the first three months of the current financial year, foreign investors pulled out nearly ₹6,700 crore from the financial sector in July.

According to data available with depositories, foreign portfolio investors (FPIs) pulled out ₹6,468 crore from bank equities in July and ₹229 crore from other financial services which includes financial institutions, housing finance companies and non-banking financial companies (NBFCs). Click here to read in full how super-rich surcharge leaves financial sector poorer .

Sensex, Nifty recoup losses

The benchmark indices recovered from their opening lows to stand modestly negative to flat in the morning session on Friday.

The Sensex was quoting at 36,381, down 91 points or 0.25 per cent lower, while the Nifty was at 10,735, down 6 points.

Earlier, the Sensex declined by 345 points due to heavy losses in financial, FMCG and auto stocks amid fading hopes of a stimulus package for slowdown-hit sectors, an agency report said.

The broader NSE Nifty dropped 94.30 points or 0.88 per cent to 10,647.05 points, dragged down by losses in ICICI Bank, Cipla and auto major Maruti.

FMCG, auto, banking and financial sector stocks came under heavy selling pressure after government officials virtually ruled out a stimulus package to arrest a slowdown and boost growth.

Among Sensex stocks, ICICI fell the most by 2.62 per cent. HDFC Bank, Kotak Bank, Axis Bank, SBI and IndusInd Bank also dropped up to 1.7 per cent.

Maruti lost 2.27 per cent, ITC 1.83 per cent, Bajaj Finance 2.17 per cent and Reliance Industries by 1.40 per cent.

The rupee breached the 72 mark in early trade which also hit the market sentiment.

Meanwhile, Asian markets were trading firm on a cautious note ahead of US Fed Chair Jerome Powell key address which is expected to throw a light of the central bank’s plan on the rate cut.  (with inputs from PTI)

Rupee falls below 72 mark against US dollar on fund outflows

Rupee pared some gains and was trading at 71.57 against the dollar.

The rupee on Friday declined below the 72 mark against the US currency in opening session due to continued foreign fund outflows and losses in the equity markets.

The rupee fell by 22 paise to trade at a nine-month low of 72.03 against the US dollar in early session. The rupee traded in a range of 71.93 to 72.05 to the US dollar in early session.

A strong dollar in the overseas markets and continued foreign fund outflows weighed on the domestic currency, according to forex traders.  Click here to read in full the rupee report .

Sundaram Mutual writes off ₹52-cr worth investment made in DHFL

Sundaram Mutual Fund has withdrawn the proposal to side-pocket its ₹52-crore investment in the debt papers issued by distressed Dewan Housing Finance Corporation (DHFL) as the move does not meet SEBI norms.

Side-pocketing is a process which allows mutual funds to separate the stressed investment separately for recovery at a later stage while allowing investments and redemptions based on the value of the remaining assets. Click here to read in full about Sundaram Mutual writes off Rs 52-cr investment in DHFL .

EPFO to invest equally in ETFs of Sensex, Nifty

BSE’s benchmark index Sensex will now be considered on an equal footing to Nifty index of the NSE by Employee Provident Fund Organization (EPFO). The EPFO fund will now invest their corpus equally in Sensex and Nifty-linked exchange traded funds (ETFs). Click here to read in full the report on EPFO to invest equally in ETFs of Sensex, Nifty .

Why YES Bank can remain under pressure, even after its sharp fall

Stocks of YES Bank to remain under pressure.

It was a nerve-wrecking week for investors of YES Bank . The stock fell by an eye-watering 26 per cent this week, as irregularities and unauthorised transactions at CG Power and Industrial Solution , came to light. YES Bank holds 12.8 per cent stake in CG Power, which it acquired in May on invocation of pledged shares of its promoter, due to default of loan by Oyster Buildwell, a group company of Avantha Group (CG Power is part of Avantha Group). Click here to read in full the report on why YES Bank could remain under pressure .

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened in the red on Friday. The Sensex was down 216 points or 0.59 per cent lower at 36,256. The Nifty was at 10,685, down 55 points or 0.52 per cent lower.

Trading Guide for Friday, August 23, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2173 • HDFC Bank

₹795 • Infosys

₹240 • ITC

₹116 • ONGC

₹1246 • Reliance Ind.

₹268 • SBI

₹2214 • TCS

10732 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick: Persistent Systems (₹569.4): Buy

Investors with a short-term perspective can buy the stock of Persistent Systems at current levels.

In the current market volatility and down trend, IT stocks could provide shield to the portfolio as a defensive sector. The stock jumped 4.7 per cent accompanied by above average volume breaking above a key long-term resistance at ₹550 on Thursday.

After registering a multi-year low at ₹472 in late July, the stock began to trend upwards from the oversold territory. Since then, the stock has been in a short-term uptrend. While trending up, the stock has decisively breached a key resistance at ₹550 and also the 21-day moving average recently, showing signs of bullish momentum. Click here to read in full Today's Pick on Persistent Systems .

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