Published on 22/08/2019 9:58:07 AM | Source: HDFC Securities Ltd

More Rate Cuts Are On The Way - HDFC Securities

Posted in Market Outlook| #Market Outlook #HDFC Securities

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US markets were cheered by Boeing’s hope to get its grounded 737 Max jets back into the air and solid earnings from retailers showed that the segment was doing well despite the sanctions. President Donald Trump backtracked on a comment he had made about fiscal stimulus, saying he no longer thought cutting payroll taxes was a good idea.

The minutes of the last US FOMC meeting released Wednesday showed that its rate cut was a recalibration of current policy and not a signal of a major round of rate cutting. On the contrary, our RBI Governor Shaktikanta Das worried that the weakening of domestic growth impulses and unsettled global macroeconomic environment saw the need to bolster dwindling domestic demand and support investment activity. Expect more interest rate cuts from MPC going forward.

A petition filed by the Indian Steel Association for safeguard duty on steel importshas been rejected. This will impact steel stock prices today. NMDC got some relief from the Mines Tribunal from withdrawing extension of the mining lease of Donimalai mine. Stock may not recover all of the lost ground as product price cut will weigh on sentiments.

Metals stocks are getting oversold and they will start getting attention from value investors at lower levels. An institutional shareholder of LIC housing finance has sought to raise around $200million at a steep discount to current market prices, stock will remain under pressure on opening.

Nifty violated the support of 10970 and closed below an important trend line. Immediate Support now comes in at 10782.


SEBI removes broad-based criteria for FPIs, eases KYC norms

SEBI approved several recommendations made by the HR Khan Committee to simplify and rationalize the existing regulatory framework for foreign portfolio investors (FPIs) by easing operational constraints and compliance requirements.


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