What changed market while you were sleeping
Benchmark equity indices are seeing strong resistance at higher levels. Analysts believe there could be more consolidation on the indices and investors should rather focus on stock-specific opportunities.
Let’s check out what all might influence Dalal Street all through Thursday:
Singapore trading sets stage for weak start
At 6.30 am, Nifty futures on the Singapore Stock Exchange were trading 31 points, or 0.30 per cent, down at 10,437, indicating a weak start for the Nifty50 in India.
Nifty50 makes ‘Bearish Belt Hold’ candle
Nifty50 on Wednesday hit an all-time high in early trade, but faced strong resistance thereafter and pared gains. At close, the index ended in the red. In the process it formed a ‘Bearish Belt Hold’ candle on the daily chart. Experts feel if the index extends its decline below 10,430 on a closing basis, it could trigger more profit booking.
US Senate approves tax bill
The US House of Representatives gave final approval on Wednesday to a sweeping, debt-financed tax bill in a midday vote. It will now go to President Donald Trump for his signature, which can make it a law, although the timing of that remains unclear, Reuters reported.
Asian markets start weak
Asian markets offered a muted reaction on Thursday to the passage of US tax cuts as benefits to company bottom lines were already baked into stock prices, while bonds were spooked by the blowout in government debt needed to fund the giveaways, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 per cent in thin trade, while Australian stocks lost 0.3 per cent. Japan’s Nikkei eased 0.3 per cent
US stocks settled lower
The Dow Jones Industrial Average index declined 28.1 points, or 0.11 per cent, to settle at 24,726 in overnight trade. The S&P500 index edged 2.22 points, or 0.08 per cent, lower at 2,679. The Nasdaq Composite index inched 2.89 points, or 0.04 per cent, lower at 6,960.
More changes to IBC in Budget
The government will fix a few urgent problem areas in the insolvency ordinance when it is brought to Parliament in the ongoing session, but is likely to make substantive changes to the law in the forthcoming Union Budget after the panel looking into the Insolvency and Bankruptcy Code (IBC) makes its recommendations.
RBI action on BoI, United Bank
The Reserve Bank of India has imposed certain restrictions on Bank of India and United Bank of India due to a sharp rise in non-performing loans and erosion in capital. On Wednesday, both banks said that RBI triggered prompt corrective action (PCA) wherein the regulator monitors their performance.
Kacholia sells stake in Lokesh Machines
Ashish Kacholia on Wednesday sold 1.5 lakh shares or 0.9 per cent stake in Lokesh Machines at Rs 73.8 per share. Kacholia held 2 lakh shares, or 1.17 per cent stake, in Lokesh Machines at the end of the September quarter, while Sushmita Ashish Kacholia held 7.75 lakh shares, or 4.55 per cent stake, in the company. Pankaj Jawaharlal Razdan also sold 3.62 lakh shares on Wednesday at Rs 80.25 per share.
IVRCL to sell stake in 2 tollway arms
Infrastructure company IVRCL on Wednesday said it had entered a pact with Singapore-based Cube Highways and Infrastructure to sell its entire stake in two subsidiaries for Rs 726.18 crore.
Wipro buyback receives 341 per cent response
Wipro said it received 341 per cent higher response than the reserved number of equity shares in its buyback process. The company had in September said it would buy back up to 343.75 million fully paid-up equity shares of representing 7.06 per cent of the total paid-up equity share capital at a price of Rs 320 ($4.971) totalling up to Rs 11,000 crore.
HDFC sells 6.3 per cent in CAMS
Housing Development Finance Corporation sold a 6.3 per cent stake in Computer Age Management System (CAMS) to Warburg Pincus for Rs 210 crore as part of the American private equity fund’s deal to purchase a significant minority stake from all the shareholders of the company. In a stock exchange filing, HDFC said it received Rs 209.5 crore in cash for the stake.