Asian equities climb as US record high lifts mood
Shares in Japan, South Korea and Australia climbed while Hong Kong equity futures also rose. An index of US-listed Chinese companies fell in New York trading, following the biggest drop in more than four years for mainland China’s benchmark index on Wednesday.
‘Substantial majority’ of Fed favoured large cut in Sept
Supporters of the half-point cut “observed that such a recalibration of the stance of monetary policy would begin to bring it into better alignment with recent indicators of inflation and the labour market”, said the minutes of the September 17-18 session, at which the Fed lowered the benchmark policy rate to a range of 4.75% […]
Domestic FIs stock up even as FPIs keep selling
NSE’s Nifty ended 31.2 points or 0.12% lower to close at 24,981.95. BSE’s Sensex declined 167.71 points or 0.21% to end at 81,467. Both the indices had risen as much as 0.8% to 0.9% earlier in the trading session.
No foreclosure, pre-payment charges on loans to MSEs
“While positive for customers, the RBI’s move will have a negative impact on the profitability of lenders, and could also potentially increase the loan prepayments and balance transfer.”
RBI keeps repo rate unchanged, shifts to neutral policy stance
The RBI maintained the repo rate at 6.5% for the 10th consecutive policy review but shifted the monetary policy stance to ‘neutral’ from ‘withdrawal of accommodation’. This allows flexibility in future rate decisions as inflation remains within the target range. CPI inflation forecasts remain at 4.5%, with GDP growth at 7.2% for FY25.
Client spends, margin outlook crucial for TCS
“Expect sequential weakness in the September quarter due to slowdown in the UK business. BSNL deal ramp-up continues to provide support to growth, but overall growth will be weak in the quarter,” said HSBC Securities and Capital Markets (India) in a preview report.
RBI shifts to neutral policy, Bond Street ‘accommodates’ the stance
The yield on the most liquid 10-year government bond closed at 6.77% on Wednesday, five basis points lower than the previous close. Bond prices and yields move inversely. A fall in government bond yields brings down the cost of borrowing across the economy as sovereign debt is the benchmark used to price corporate debt.
Commerce, shipping ministries to discuss trade and shipping-related tax issues tomorrow
Officials from Commerce, Industry, and Finance ministries, along with shipping and industry stakeholders, are to meet on Friday to discuss critical tax issues in the maritime sector. This comes as exporters face high freight rates amid the West Asia conflict, impacting India’s exports which saw a significant decline recently.
Tech view: Nifty faces resistance at 25,250, short-term trend still positive. How to trade tomorrow
A small negative candle with long upper shadow indicates rejection of bulls. Nifty’s short-term trend remains positive, but weakness is likely near recent lows. Resistance at 25,250. Highest OI on the call side at 25,100 and 25,000, on the put side at 25,000 and 24,900
UBS buys 81 lakh shares of IDFC for Rs 88 crore via block deal ahead of stock’s suspension from Thursday
UBS bought 81 lakh shares in IDFC Limited for Rs 88 crore. IDFC Limited will be suspended from trading on Thursday, the record date for its merger with IDFC First Bank. Post-merger, IDFC First Bank’s weightage in Bank Nifty will increase, attracting $39 million in passive funds.