What changed for the market while you were sleeping? Top 12 things to know


A few cues from the market in India and abroad that could help you with your trade today.
Sandip Das
The bulls turned up on D-Street as benchmark indices logged in gains, largely in line with global markets, which rallied after US Federal Reserve Chair Jerome Powell raised hopes of a rate cut.
The broader markets also traded in line with frontliners as the Nifty Midcap index gained 0.7 percent, but breadth was not so strong. About 930 shares advanced against 839 declining shares on the BSE.
According to Pivot charts, the key support level is placed at 11,535.27, followed by 11,487.63. If the index starts moving upward, the key resistance levels to watch out are 11,614.77 and 11,646.63.
Nifty Bank closed at 30,716.55, up 194.45 points on July 11. The important Pivot level, which will act as crucial support for the index, is placed at 30,591.9, followed by 30,467.2. On the upside, key resistance levels are placed at 30,814.7, followed by 30,912.8.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
The Dow and S&P 500 rose on Thursday to close at record highs as health insurers gained after the Trump administration scrapped a plan designed to rein in prescription drug prices, while financial shares climbed with bond yields.
The Dow Jones Industrial Average rose 227.88 points, or 0.85 percent, to 27,088.08, the S&P 500 gained 6.84 points, or 0.23 percent, to 2,999.91 and the Nasdaq Composite dropped 6.49 points, or 0.08 percent, to 8,196.04.
Asian shares pulled back on Friday as worries over renewed Sino-U.S. trade tensions weighed on sentiment ahead of the release of June trade data from China, though expectations of a Federal Reserve rate cut later this month kept losses in check.
On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan as down 0.05 percent in early deals, with Australian shares dipping 0.16 percent and Japan’s Nikkei stock index trimming 0.11 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 12.5 points or 0.11 percent. Nifty futures were trading around 11,569-level on the Singaporean Exchange.
Oil prices rise amid Gulf of Mexico storm, Middle East tensions
Oil prices rose on Friday as US oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued in the Middle East.
Brent crude futures were up 37 cents, or 0.6 percent, at $66.89 per barrel by 0115 GMT. US West Texas Intermediate (WTI) crude futures were up 34 cents, or 0.6 percent, at $60.54 a barrel.
Rupee advances 14 paise to 68.44 against USD
The rupee darted up 14 paise to finish at 68.44 against the US dollar July 11 after dovish comments by US Federal Reserve chair Jerome Powell boosted emerging market currencies. However, firming oil prices capped the gains, traders said.
At the interbank foreign exchange market, the local unit opened on a firm footing at 68.31, and shuttled between a high of 68.30 and a low of 68.48 during the day. The rupee finally closed at 68.44, down 14 paise over its previous close.
The rupee had declined by 7 paise to close at 68.58 against the greenback Wednesday, pressured by persistent foreign fund outflows and firming crude oil prices.
RBI net buyer of US Dollar in May too, snaps up $2.54 bn
The Reserve Bank has continued to remain a net buyer of the greenback for the second consecutive month in FY20, buying a net of $2.538 billion in May from the spot market, according to the latest central bank data. During the month, the central bank has bought $5.118 billion and sold $2.580 billion from the spot market.
In April, the RBI had net purchased $4.901 billion. In May 2018, the central bank had net sold $5.767 billion of the US currency after buying $4.101 billion and selling $9.868 billion. In FY19, the apex bank was a net seller of the dollar offloading $15.377 billion in the spot market. It had bought $40.804 billion and sold $56.181 billion in the year to March 2019.
FDI hike in insurance likely to take 6-8 months to be finalised
The hike in the foreign direct investment (FDI) in the insurance sector is likely to take six to eight months to be finalised. While the quantum of the increase has not yet been disclosed, it is likely that it could be raised to 74 percent matching the cap in the banking sector. The FDI limit is presently 49 percent, but in Budget 2019 Finance Minister Nirmala Sitharaman proposed 100 percent FDI in insurance intermediaries.
Sitharaman also said that the government was looking into the possibility of hiking the FDI limit in the insurance sector which includes companies. “The proposal will first be taken to the Cabinet for its approval. Post their nod, the Insurance Act will have to be amended in both houses of Parliament,” an industry official said.
US weekly jobless claims fall to three-month low
The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labour market strength that could help support a slowing economy. Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on July 11. Data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 223,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.
Infosys to declare June quarter numbers on July 12
Analysts expect Infosys to deliver a constant currency revenue growth of around 2-3 percent for the quarter, with around 30-50 basis points cross currency headwinds, backed by financial services segment and Stater NV deal.
“We expect constant currency revenue growth of 3.1 percent and cross-currency headwind of 45 bps. We expect the financial services vertical to report robust growth. Revenues include one month of revenues from the Stater acquisition,” Kotak Institutional Equities said.
Prabhudas Lilladher expects the constant currency revenue growth of 2.5 percent and cross currency headwind of 40 bps and said revenue growth will also be aided by Starter NV deal.
IndusInd Bank to report Q1 numbers today
Private sector lender IndusInd Bank is expected to report a double digit growth in net interest income as well as pre-provision operating profit, but its bottomline could be subdued due to higher credit costs for the quarter ended June 2019.
“IndusInd Bank would be reporting the merged numbers. We thus expect IIB to report strong loan growth of around 33 percent YoY in Q1 FY20. Deposit growth is estimated to remain strong at around 28 percent YoY. Margins are likely to expand to 4.3 percent, driven by high-yielding book of Bharat Financial,” said Motilal Oswal which expects net interest income growth at 38 percent and profit 1.7 percent YoY.
22 companies to report June quarter numbers today
As many as 22 companies will declare their results for the quarter ended June which include names like Infosys, IndusInd Bank, Hathway Cable, Karnataka Bank, and Unitech among others.
Four stocks under F&O ban period on NSE
For July 12, DHFL, IDBI Bank, Reliance Capital and Reliance Infrastructure are under the F&O ban period.
Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.


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