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Market Movers: 10 things to know before you make your opening trade on Thursday

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The Indian stock market on Wednesday ended the trading session on a negative note after a volatile start and a selling interest witnessed in metal and banking stocks. The S&P BSE Sensex saw a fall of around 200 points while the Nifty50 closed below 18250-level.

In the 50-share pack Nifty50, Asian Paints was the biggest gainer, up 4.20% per cent. UPL, Divis Labs and Cipla were among other gainers. Axis Bank was the top loser in the pack, down 6.46 per cent. Bajaj Finance, ONGC and Tata Motors were other losers in the pack.

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Mohit Nigam, Head – PMS, Hem Securities said, “Benchmark indices ended the day’s session on a negative note after a positive start and strong buying interest witnessed in PSU Banking Stocks with Nifty PSU Banks closed 2.05 percent up and Nifty 50 ended with 0.31 percent down.”

On global front, Japan’s Nikkei share average recovered from early declines to end Wednesday little changed as strong earnings supported the market despite overall caution ahead of a parliamentary election on the weekend, Nigam said. 

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or economy:  

Global Markets

Global equity markets gave up recent gains on Wednesday, while U.S. Treasury yields fell to a two-week low as traders weighed continued positive corporate results and a resurgence in U.S.-China tensions that could compound supply-chain worries.

The MSCI world equity index, which tracks shares in 50 countries, dropped 0.55%, while the pan-European STOXX 600 index fell 0.36%.

On the Wall Street, the Nasdaq was unchanged on Wednesday, while the Dow and the S&P 500 closed lower, dragged down by cyclical sectors including financial, healthcare, energy and industrials.

The Dow Jones Industrial Average fell 0.74% to 35,490.69, the S&P 500 lost 0.51% to 4,551.68 and the Nasdaq Composite was unchanged at 15,235.84.

U.S. benchmark 10-year Treasury yields dropped to a two-week low while the 2-year Treasury yields hit 19-month highs, further flattening the yield curve, as the possible timing of the Federal Reserve`s first interest rate rise came into sharper focus.

Asian Markets

The Nikkei 225 in Japan on Thursday opened with a negative bias and was trading lower by 0.88 per cent while the Hang Seng Index was trading flat with a positive bias at 7:30 AM IST.

SGX Nifty

SGX Nifty opened in the red and lost nearly 0.20% by 7.30 AM IST.

Oil drops more than 1% as U.S. stockpiles rise sharply

Oil prices fell on Wednesday after U.S. crude oil stockpiles rose more than expected, even as fuel inventories dropped and tanks at the nation`s largest storage hub emptied further.

The bigger-than-expected rise in U.S. crude stocks gave some investors an impetus to unload long positions after strong gains in recent weeks brought both the Brent and U.S. crude benchmarks to multi-year highs.

Brent oil futures were $1.31, or 1.5%, lower at $85.09 a barrel as of 11:04 a.m. EDT (1504 GMT), after ending at a seven-year high on Tuesday. U.S. West Texas Intermediate (WTI) crude lost $1.09, or 1.3%, to $83.56 a barrel.

Sebi eases eligibility criteria related to superior voting rights shares

Markets regulator Sebi has relaxed the framework governing the issue of shares with superior voting rights (SR shares), a move that will help new-age technology companies.

The Securities and Exchange Board of India (Sebi) said promoters who have a net worth of over Rs 1,000 crore can have superior voting rights in their companies, raising it from the current Rs 500 crore.

“The net worth of the SR shareholder, as determined by a registered valuer, shall not be more than Rs 1,000 crore,” Sebi said in a notification on Tuesday.

Explaining further, the regulator said while determining the individual net worth of the SR shareholder, his investment/ shareholding in other listed companies shall be considered, but not that of his shareholding in the issuer company.

Rupee recovers 6 paise

The Indian rupee depreciated by 6 paise to 75.02 against the US dollar in opening trade on Wednesday, weighed down by firm crude oil prices and a strong American currency in the overseas market.

At the interbank foreign exchange, the rupee opened on a weak note at 75.02, registering a decline of 6 paise from the last close. On Tuesday, the rupee had closed at 74.96 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell marginally by 0.06 per cent to 93.88.

Nykaa IPO heavily oversubscribed by anchor investors – source

Indian cosmetics to fashion startup Nykaa received bids for 40 times the number of shares it plans to sell to anchor investors in its initial public offering (IPO), a source with direct knowledge said on Wednesday, indicating strong interest in the sale.

Investment firm Blackrock Capital Group and asset manager Fidelity were among the top buyers in the 23.96 billion rupees ($319.68 million) sale of shares that FSN E-Commerce Ventures, the company which owns the Nykaa brand, offered to institutional investors, the source said, declining to be identified as the information was not public. The share sale to anchor investors will close later on Wednesday.

Sebi puts in place guiding principles for bringing uniformity of MF scheme

To standardise and bring uniformity to the benchmarks of mutual fund schemes, Sebi on Wednesday came out with a two-tiered structure for benchmarking certain categories of schemes.

The first tier benchmark will be reflective of the category of the scheme, and the second tier benchmark will be demonstrative of the investment style/strategy of the fund manager within the category, Sebi said in a circular. All the benchmarks followed should necessarily be Total Return Indices, it added.

“The second tier benchmark is optional and shall be decided by the AMCs according to investment style/strategy of the index,” it said.

Paytm raises IPO size to Rs 18300 crore

Indian digital payments leader Paytm has boosted the size of its initial public offering to 183 billion rupees ($2.44 billion) from 166 billion rupees, as existing shareholders look to sell more stake ahead of the country`s largest stock market listing.

Paytm was likely to target a price band of 2,080-2,150 rupees per share for the IPO for a likely valuation of around $20 billion, a source directly aware of the matter told Reuters.

The company increased the size of its IPO as it received increased investor demand, said the source, who did not wanted to be named as the information was not public. Paytm did not immediately respond to a Reuters request for comment.

FII & DII Data

Foreign portfolio investors (FPIs) remained net sellers for Rs 1913.36 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 472.48 crore, provisional data showed on the NSE.

Stocks under F&O…

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