What changed for the market while you were sleeping? Top 15 things to know

What changed for the market while you were sleeping? Top 15 things to know

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 5 points loss or 0.04 percent.

Benchmark indices snapped a seven-day losing streak on March 3 after various central banks hinted policy initiatives to counter the economic slowdown in their respective countries.

Sensex rose 480 points to end at 38,623.70 while Nifty jumped 171 points to close at 11,303.30.

The Reserve Bank of India (RBI) said it is “monitoring global and domestic developments closely and continuously”.

According to the pivot charts, the key support level for Nifty is placed at 11,189.8, followed by 11,076.3. If the index moves up, key resistance levels to watch out for are 11,379.5 and 11,455.7.

Nifty Bank closed 1.07 percent up at 29,177.05. The important pivot level, which will act as crucial support for the index, is placed at 28,856.03, followed by 28,534.96. On the upside, key resistance levels are placed at 29,391.73 and 29,606.37.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

Global equity markets slid on Tuesday and the yield on 10-year US Treasuries fell below 1% for the first time after the Federal Reserve cut interest rates to shield the US economy from the impact of the fast-spreading coronavirus.

The Dow Jones Industrial Average fell 785.91 points, or 2.94%, to 25,917.41, the S&P 500 lost 86.86 points, or 2.81%, to 3,003.37 and the Nasdaq Composite dropped 268.08 points, or 2.99%, to 8,684.09.

Asian Markets

Asian shares wobbled on Wednesday and bonds held gains, as an emergency rate cut from the US Federal Reserve did little to soothe investor fears over the coronavirus’s widening fallout.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.2% higher, after easing hopes drove gains on Tuesday. Australia’s S&P/ASX 200 index fell 1.2% and Japan’s Nikkei was either side of flat in choppy trade.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the broader index in India, with a 5 points loss or 0.04 percent. The Nifty futures were trading around 11,265-level on the Singaporean Exchange.

Federal Reserve cuts rates by half a percentage point

The US Federal Reserve cut interest rates on March 3 in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus. In a statement, the central bank said it was cutting rates by a half percentage point to a target range of 1.00 percent to 1.25 percent.

“The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate,” the Fed said in a statement.

Reduction in Corporate Taxes likely to boost ‘Make in India Initiative’: Survey

Over 70% of industry respondents believe reduction in Corporate Taxes is likely to boost “Make in India Initiative,” reveals a survey by Duff & Phelps, the global advisor that protects, restores and maximizes value for clients. In September 2019, the finance minister announced reduction of corporate taxes to 22% from 30% for existing companies, and from 25% to 15% for companies with newly established manufacturing units.

Commenting on the findings, Santosh N, Managing Partner, D and P Advisory India LLP said, “Overall, the reduction of corporate taxes is encouraging, with long-term intrinsic value for enterprises and positive ramifications for investors. Sectors such as start-ups, manufacturing, auto-ancillary and initiatives such as ‘Make in India’ are expected to witness a fillip owing to the development.”

South Korea unveils $9.8 billion stimulus to fight coronavirus

South Korea announced a stimulus package of 11.7 trillion won ($9.8 billion) on Wednesday to cushion the impact of the largest outbreak of coronavirus outside China as efforts to contain the disease worsen supply disruptions and sap consumption. Finance Minister Hong Nam-ki said the supplementary budget, subject to parliamentary approval, will channel money to the health system, child care, and outdoor markets.

“As we understand that the economy is in a state of emergency, we are putting all our policy focus on minimizing the economic fallout, especially for the vulnerable sectors, small- to medium-sized businesses and self-employed people,” Hong told a news conference.

Japan services sector activity shrinks on coronavirus hit: PMI

Japan’s services sector shrank at the fastest pace in nearly six years in February as a jolt from the coronavirus threatens to push the economy into recession, dashing hopes of a domestic-led recovery.

The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) slumped to 46.8 in February from 51.0 in the previous month, its lowest reading since April 2014 when a nationwide tax hike jolted the economy.

Rating agencies see cement industry’s capacity utilisation likely to be below 70% in FY21

Even as infrastructure and affordable housing sectors are expected to drive demand for cement, the capacity utilisation is likely to be sub-70 per cent in the next financial year due to large capacity additions expected in 2019-20 and 2020-21, according to rating agencies. According to rating agencies ICRA, India Ratings and Crisil, the demand for domestic cement is expected to be muted as against the decade’s high growth of 13 per cent in the previous year.

“Incremental supplies are not fully integrated and most of it is backed by old limestone mining leases. Also, given that the grinding capacity addition is higher in relation to the clinker capacities for new units, the actual production from new capacities could be lower,” ICRA Assistant Vice-President Anupama Reddy said.

S&P cuts US growth forecast again as virus spreads

A rapidly spreading coronavirus outbreak will likely be a “material headwind” for the US economy with the hit expected to be longer and deeper than previously anticipated, S&P Global Ratings said on Tuesday as it cut its growth forecast.

In a bid to shield the world’s largest economy from the coronavirus, the US Federal Reserve on Tuesday cut interest rates by half a percentage point to a target range of 1.00% to 1.25%. Also on Tuesday, Australia’s central bank cut interest rates to a record low 0.5%.

SEBI revises compensation, penalty norms under regaining of matched book rule

Markets regulator SEBI on Tuesday revised norms of compensation and penalty applicable on termination of contracts under the regaining matched book regulations for commodity derivatives segment. The regulator in September 2016 had come out with risk-mitigating tools, christened as regaining matched book rule, for the commodity market.

A Sebi circular on Tuesday said that the norms related to compensation and penalty applicable on tear-up of positions have been revised following feedback from Clearing Corporations and stakeholders. The revised norms call for voluntary tear-up at last mark-to-market price along with compensation equal to 10 per cent of last mark-to-market price and penalty equal to 1 per cent of last mark-to-market price.

Banks, select FIs report frauds worth Rs 1.43 lakh crore during Apr-Dec 2019

The government on March 3 said banks and select financial institutions have reported frauds of over Rs 1.43 lakh crore during the April-December period of the current financial year. Replying to a question on banking frauds and action taken against fraudsters, Finance Minister Nirmala Sitharaman said the government in 2015 issued a framework for timely detection, reporting and investigation related to large-value bank frauds to public sector banks (PSBs).

“While this is reflected in the increased amount involved in frauds of Rs 1 lakh and above, reported by scheduled commercial banks (SCBs) and select financial institutions, increasing from Rs 10,171 crore in the financial year 2013-14 to Rs 1,43,068 crore in first three quarters of FY2019-20,” Sitharaman said in a written reply in Rajya Sabha.

SEBI revises investment manager eligibility norms for InvITs; allows fast-track rights issuance

Markets regulator Sebi has revised its investment manager eligibility norms for Infrastructure Investment Trusts (InvITs) and also permitted fast-track rights issue by REITs and InvITs without filing draft offer document with the regulator.

The investment manager needs to have an experience of at least five years in fund management or advisory services or development in the infrastructure sector, Sebi said. Alternatively, Sebi has also allowed a combined relevant experience of at least 30 years of directors, partners and employees of the investment manager, even if it is a newly created entity.

Rupee breaches 73-mark, dives 47 paise against US dollar

Falling for the third consecutive session, the rupee on Tuesday slumped 47 paise to 73.23 (provisional) against the US dollar, as investor sentiment remained fragile amid concerns over the impact of coronavirus. Forex traders said the Indian rupee which started the day on a positive note witnessed heavy volatility during the session and finally settled below 73 per US dollar level as uncertainty over coronavirus spooked investors.

At the interbank foreign exchange market, the local currency opened at 72.50. During the day it saw a high of 72.43 and a low of 73.34 against the American currency. The domestic unit finally settled at 73.23 against the greenback, down 47 paise over its previous closing price.

Indian Railway Finance Corporation gets SEBI nod for IPO

Indian Railway Finance Corporation (IRFC) has got markets regulator Sebi’s approval for its initial public offer (IPO). The IPO comprises a fresh issue of 93.8 crore equity shares and an offer for sale of 46.9 crore equity shares by the Government of India.

IDFC Securities, HSBC Securities and Capital Markets, ICICI Securities and SBI Capital Markets are managing the offer. The company’s equity shares are proposed to be listed on BSE and NSE.

FDI inflow dips 1.4% to $10.67 bn in October-December

Foreign direct investment into India dipped marginally by 1.4 per cent to $10.67 billion (about Rs 76,800 crore) during October-December period of 2019-20, according to government data. Inflow of foreign direct investment (FDI) during October-December of 2018-19 stood at $10.82 billion.

FDI inflows in July-September period of the current financial year stood at $9.77 billion. During April-December period 2019-20, foreign investments into the country grew 10 per cent to $36.76 billion as against $33.49 billion in the same period of 2018-19, according to the data.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 2,415.8 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 3,135.24 crore in the Indian equity market on March 3, provisional data available on the NSE showed.

With inputs from Reuters & other agencies