Apr 17, 2017

What To Watch Out Today 17 April 2017 For Possible Market Action

Market News
The Nifty is likely to start on a flat note on Monday, tracking muted handover from Wall Street. The index closed below its crucial resistance level of 9,200 and its 5-days exponential moving average (DEMA), 10-DEMA, 13-(DEMA), and 20-DEMA.
Geopolitical tensions, along with Q4FY17 earnings, will continue weight its impact on the market sentiments this week. During the week, Tata Consultancy Services (TCS) will declare its numbers on Tuesday, while IndusInd Bank and Yes Bank will announce March 2017 quarter results on Wednesday.

Hindustan Zinc and MindTree will announce March quarter earnings on Thursday. Cement major ACC and private sector banking major HDFC Bank are scheduled to release Q4 results on Friday.
Here are top cues from domestic and international markets, which could have a bearing on D-Street.
Finance Ministry nod to to 8.65% interest on EPF
The Finance Ministry is believed to have permitted the Labour Ministry to go ahead with 8.65 percent rate of interest on employees' provident fund for 2016-17, which will benefit over four crore EPFO members.
The finance ministry in its communication to the labour ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund. This will enable the Labour Ministry to provide 8.65 percent rate as decided by the Employees' Provident Fund Organisation (EPFO) trustees.
SEBI set to block P-Note route for NRIs
The regulator plans to put in place a clear bar on non-resident Indians (NRIs) and entities owned by them and resident Indians subscribing to participatory notes, a move aimed at preventing possible round-tripping or laundering of black money, said a report.
The Securities and Exchange Board of India (SEBI) is set to tweak its regulations to this effect at its upcoming board meeting on April 26 after the finance ministry recently wrote to the regulator.
Wall Street ends lower
US stocks ended lower for a third straight day as investors weighed earnings reports from big US banks along with geopolitical tensions. Investors have turned to safe-haven assets like gold throughout the week due to geopolitical tensions and news of a massive bomb being dropped by the United States in eastern Afghanistan on Thursday added to uncertainty.
The Dow Jones Industrial Average fell 138.61 points, or 0.67 percent, to 20,453.25, the S&P 500 lost 15.98 points, or 0.68 percent, to 2,328.95 and the Nasdaq Composite dropped 31.01 points, or 0.53 percent, to 5,805.15.
SGX Nifty
The Nifty futures on the Singapore Stock Exchange were trading 5 points lower at 9,150 indicating a flat opening for the domestic market.
US Dollar falls
The US dollar fell Friday following remarks by US President Donald Trump that the currency was getting too strong and he would prefer the Federal Reserve to keep interest rates low.
The dollar shed 1.75 percent against the yen this week, its fourth week lower in five, as a rise in tensions in Asia and Europe prompted buying of the safe-haven Japanese currency, it said.
North Korean ballistic missile launch fails
North Korea has failed to launch a missile on its east coast, South Korean and US military officials say, a day after Pyongyang warned the US amid rising tension in the region, said a report.
The US said a ballistic missile exploded within seconds of the launch. Hours earlier, North Korea paraded what appeared to be long-range ballistic missiles at a major military display, it said.
China says a war on Korean Peninsula will be devastating
China warned that a war on the Korean Peninsula would have devastating consequences as the US threatened military retaliation against North Korea if it proceeds with a nuclear test this weekend, said a Bloomberg report.
A spokesman for North Korea’s military warned Friday that “the Trump administration’s serious military hysteria has reached a dangerous phase which can no longer be overlooked.”
Petrol & Diesel prices up
The price of petrol was tonight hiked by Rs 1.39 per litre and diesel by Rs 1.04 a litre in sync with firming international rates. The actual increase in price will be more after taking into account local VAT. Petrol in Delhi currently costs Rs 66.29 a litre while a litre of diesel is priced at Rs 55.61.
Centre, states taxmen to decide services rate in GST this week
Tax officials of the central and state governments will this week hold their maiden meeting on devising a formula for tax rate to be levied on services under the Goods and Services Tax (GST) regime from July 1.
While the GST Council had previously decided on a four- tier rate structure of 5, 12, 18 and 28 percent, its fitment committee will hold its first meeting this week on slotting different services in one of the slabs, a senior official told PTI.
Reliance Power, DCB Bank, RIIL in focus
Shares of Reliance Power will be in focus after the company reported a 250 per cent rise in consolidated net profit at Rs 215.90 crore for the fourth quarter ended March 31, 2017, against Rs 61.55 crore in the corresponding quarter last year.
Reliance Infrastructure Ltd on Saturday reported a net profit of Rs40.94 crore for the quarter ended 31 March. The company had recorded a consolidated net loss of Rs327.41 crore during the January-March quarter in 2015-16.
DCB Bank Ltd reported 24 percent drop in net profit for the fourth quarter on higher provisioning and higher tax expense. The net profit for the quarter was Rs 52.86 crore as compared to Rs 69.53 crore a year ago.
Rupee rebounds 26 paise to 64.41/USD
The rupee staged a smart rebound on Thursday and closed 26 paise higher at 64.41 against the US dollar on account of fresh selling of the American currency by exporters. The rupee opened higher at 64.45 as against yesterday's closing level of 64.67 per dollar at the Interbank Foreign Exchange market.
Gold near 5-month high
Gold on Friday hovered near the 5-month high hit in the previous session and was set for its biggest weekly percentage rise since June as a weaker dollar and geopolitical worries over the Middle East and North Korea stoked safe-haven demand, said a report.
Spot gold was down 0.1 per cent at $1,286.25 per ounce by 0820 GMT in thin trade due to a public holiday in many countries. Bullion prices hit their highest since early November at $1,288.64 an ounce the session before, it said.
Sebi wants stricter monitoring of IPO proceeds
To check any misuse of funds raised through IPOs, regulator Sebi plans to make it mandatory for all companies to appoint a monitoring agency to keep a tab on the use of the capital raised through a share sale.

Suspecting misuse of funds raised through smaller share sales of up to Rs 500 crore, the regulator is now mulling making it mandatory for all the companies to get the use of their IPO proceeds monitored, irrespective of the offer size, sources said.

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