It was a mixed close for the US markets on Tuesday as investors stayed cautious ahead of the release of FOMC minutes. European markets closed in the red.
Indian equities fell for the third consecutive session yesterday, but closed off day’s low. The BSE Sensex crashed 336.54 points intraday trimmed losses to close at 18246.04, down 61.48 points and Nifty that touched an intraday low of 5306.35 also managed to close above 5400 level at 5401.45, down 13.30 points from previous close.
Asian markets were down in morning trade today. Emerging markets are expected to remain in focus after a brutal sell-off over the past two days.
Back home, the 10-bond yields also made a sharp recovery in trade yesterday. After hitting a five-year high of 9.4 percent, bond yields clawed back to end the day way below 9%.
Stocks to watch
The Reserve Bank swings into action with another set of measures to rescue the rupee, bonds, and bank stocks. The RBI said that it will purchase Rs 8,000 crore worth of bonds via open market operations on Thursday. It added that it will calibrate its purchases in the future, when needed.
It has allowed banks to shift a part of their AFS portfolio to HTM. The measures will restrict a sharp rise in long-term yields and reduce MTM losses on banks' investment portfolios banks will benefit more from the reduction in MTM losses, with OBC and Canara Bank the biggest beneficiaries of these measures. Lower wholesale rates will also benefit private banks.
The Reserve Bank has disallowed any further FII investment in the Federal Bank stock after the foreign institutional holding in the stock reached the trigger limit of 49 percent.
The Patiala house court is set to hear Tina Ambani's plea in the 2G spectrum case. This after Ambani filed a plea seeking deferral of her appearance as a CBI witness.
The JBF Industries board will consider buy-back of equity shares today.
In what will come as a positive trigger for Fortis Healthcare , it has announced the completion of the divestment of their subsidiaries in Singapore for USD 80 million.
Newspaper reports suggest that the Apollo Tyre cooper acquisition is facing opposition from Chinese workers.
US
Stocks eased off their highs in the final minutes of trading to close narrowly mixed with the Dow logging its fifth-straight day lower. But losses were limited owing to a handful of retailers and as bond yields receded from two-year highs. Investors also awaited further indications over the timing of the Federal Reserve’s widely expected reduction in asset purchases. The CBOE volatility index finished below 15.
The 10-year treasury yields recovered a tad but still remain at elevated levels of 2.82% as the market awaits details of the Fed's tapering programme.
In key data to watch out for - existing home sales are expected to rise to 5.15 million units. Also the Federal Reserve will be releasing the minutes of its last meeting today.
Europe
Markets closed broadly lower on Tuesday amid continuing concerns over a potential reduction in asset buying by the US central bank. BHP Bilton fell 2 percent after an earnings miss leading miners to exert pressure on markets.
Currency
Dollar weakened to trade sub 81 levels. The euro-dollar saw a smart upmove to a 6-month high of 1.34 levels as the yield premium that 10-year US treasury notes offer over German bunds narrowed.
Commodities
Brent continued to trade at USD110/barrel. However, Nymex has slipped to USD105/bbl levels ahead of the futures contract expiration and in reaction to halting of shipments to the Gulf coast.
From precious metals space, after falling as much as 1 percent in the session, gold settled higher above USD1370/oz as the dollar weakened ahead of the Fed minutes. Silver too recovered after initially tumbling 4 percent.
Indian equities fell for the third consecutive session yesterday, but closed off day’s low. The BSE Sensex crashed 336.54 points intraday trimmed losses to close at 18246.04, down 61.48 points and Nifty that touched an intraday low of 5306.35 also managed to close above 5400 level at 5401.45, down 13.30 points from previous close.
Asian markets were down in morning trade today. Emerging markets are expected to remain in focus after a brutal sell-off over the past two days.
Back home, the 10-bond yields also made a sharp recovery in trade yesterday. After hitting a five-year high of 9.4 percent, bond yields clawed back to end the day way below 9%.
Stocks to watch
The Reserve Bank swings into action with another set of measures to rescue the rupee, bonds, and bank stocks. The RBI said that it will purchase Rs 8,000 crore worth of bonds via open market operations on Thursday. It added that it will calibrate its purchases in the future, when needed.
It has allowed banks to shift a part of their AFS portfolio to HTM. The measures will restrict a sharp rise in long-term yields and reduce MTM losses on banks' investment portfolios banks will benefit more from the reduction in MTM losses, with OBC and Canara Bank the biggest beneficiaries of these measures. Lower wholesale rates will also benefit private banks.
The Reserve Bank has disallowed any further FII investment in the Federal Bank stock after the foreign institutional holding in the stock reached the trigger limit of 49 percent.
The Patiala house court is set to hear Tina Ambani's plea in the 2G spectrum case. This after Ambani filed a plea seeking deferral of her appearance as a CBI witness.
The JBF Industries board will consider buy-back of equity shares today.
In what will come as a positive trigger for Fortis Healthcare , it has announced the completion of the divestment of their subsidiaries in Singapore for USD 80 million.
Newspaper reports suggest that the Apollo Tyre cooper acquisition is facing opposition from Chinese workers.
US
Stocks eased off their highs in the final minutes of trading to close narrowly mixed with the Dow logging its fifth-straight day lower. But losses were limited owing to a handful of retailers and as bond yields receded from two-year highs. Investors also awaited further indications over the timing of the Federal Reserve’s widely expected reduction in asset purchases. The CBOE volatility index finished below 15.
The 10-year treasury yields recovered a tad but still remain at elevated levels of 2.82% as the market awaits details of the Fed's tapering programme.
In key data to watch out for - existing home sales are expected to rise to 5.15 million units. Also the Federal Reserve will be releasing the minutes of its last meeting today.
Europe
Markets closed broadly lower on Tuesday amid continuing concerns over a potential reduction in asset buying by the US central bank. BHP Bilton fell 2 percent after an earnings miss leading miners to exert pressure on markets.
Currency
Dollar weakened to trade sub 81 levels. The euro-dollar saw a smart upmove to a 6-month high of 1.34 levels as the yield premium that 10-year US treasury notes offer over German bunds narrowed.
Commodities
Brent continued to trade at USD110/barrel. However, Nymex has slipped to USD105/bbl levels ahead of the futures contract expiration and in reaction to halting of shipments to the Gulf coast.
From precious metals space, after falling as much as 1 percent in the session, gold settled higher above USD1370/oz as the dollar weakened ahead of the Fed minutes. Silver too recovered after initially tumbling 4 percent.
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