Markets closed on account of Bakri Id

Indian equity, forex, money and commodity markets will remain closed today on account of Eid ul Adha, also known as Bakri Id

On Monday, markets posted their biggest decline since the Brexit day over rate hike fears by the US Federal Reserve later this month. European Central Bank (ECB) President Mario Draghi's comments over additional stimulus support also hurt investor sentiment and raised doubts over how long the central bank's loose monetary stance to support economic growth would continue.

The S&P BSE Sensex slipped 444 points to end at 28,354 and the Nifty50 dropped 151 points at 8,716. The Sensex and the Nifty witnessed biggest one day loss in percentage terms since June 24.

Sacchitanand Uttekar, Equity Technical Analyst, MOSL says, "Nifty breaches immediate support level of 8,820. Appearance of shooting star on weekly scale and breach of 8,820 turns short term positive trend to Neutral. Next support level for Nifty comes at 8,640. On higher end resistance is at 9,000".

Post the market hours on Monday, official data showed that India's annual retail inflation eased by 100 basis points to 5.05% in August, but factory output again dipped to a negative growth of (-)2.4% in July from an expansion of 1.95% in the month before.

Globally, US stock prices rose on Monday after Federal Reserve policymakers expressed caution about the need to raise US interest rates, sharply cutting into losses in European equities, but Asia finished lower, tracking Wall Street's large decline on Friday. The US dollar fell as the Fed was seen less likely to raise rates next week.

Federal Reserve officials had raised the chances of another interest rate rise this year in the past few weeks and the European Central Bank and Bank of Japan also refrained from further monetary policy easing recently, culminating in Friday's broad stocks sell-off and rise in bond yields.

The Dow Jones industrial average rose 193.26 points, or 1.07%, to 18,278.71, the S&P 500 gained 25.56 points, or 1.2%, to 2,153.37 and the Nasdaq Composite added 68.37 points, or 1.33%, to 5,194.28.

Back home, the rupee continued its downtrend for the second-straight day on Monday, depreciating by 24 paise to end at 66.92 against the US dollar on sustained demand for the American currency amid nervousness over the outlook for the US monetary policy.  

Further, Securities and Exchange Board of India (Sebi) is considering allowing some categories of Foreign Portfolio Investors (FPIs) to directly trade in Indian markets, starting with debt segment.

The Cabinet on Monday cleared a proposal to set up the Goods and Services Tax (GST) Council, which would recommend on draft model GST Bill, tax rate and contentious issues of dual control over assessment, scrutiny over assesses so that the new indirect tax system could be introduced from April 1, 2017.

ASIAN MARKETS

Asian stocks rose on Tuesday, boosted as Wall Street rallied overnight after Federal Reserve governor Lael Brainard calmed markets with remarks that appeared to reduce the prospects of a near-term interest rate hike.

The dollar, on the other hand, nursed losses against its peers after Brainard reiterated her dovish views.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.6%. Japan's Nikkei erased earlier gains to stand little changed as the yen advanced.

South Korea's Kospi rose 0.5% and Australian stocks advanced 0.3%. Hong Kong's Hang Seng rose 1.1% and Shanghai was flat.

 

With Reuters inputs