What changed for the market while you were sleeping; 15 things to know

The market closed a volatile session marginally higher on May 22, the day before the Lok Sabha election 2019 result on May 23.

India VIX moved up by 7.73 percent to 27.63 levels hitting a new record high of 30.18, the highest levels in 44 months since September 2015.

Traders turned cautious following fresh record highs on indices on Monday after exit polls indicated the ruling party may get a second term, experts said, adding wild swings on either direction are also expected on election results scheduled on May 23.

resembles a Doji kind of pattern on the daily scale.

According to the Pivot charts, the key support level is placed at 11,685.27, followed by 11,632.63. If the index starts moving upward, key resistance levels to watch out are 11,787.67 and 11,837.43.

The Nifty Bank index closed at 30,526.80, up 218.40 points on May 22. The important Pivot level, which will act as crucial support for the index, is placed at 30,305.23, followed by 30,083.67. On the upside, key resistance levels are placed at 30,711.73, followed by 30,896.67.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

Renewed US-China trade tensions push down Wall Street

Wall Street’s major indexes dipped on Wednesday as inflamed trade tensions between the United States and China weighed on investor sentiment. A day after Washington’s temporary easing of curbs against Huawei Technology Co Ltd provided respite to US stocks, reports that the White House could impose restrictions on another Chinese technology company rattled US stocks anew.

The Dow Jones Industrial Average fell 100.72 points, or 0.39 percent, to 25,776.61, the S&P 500 lost 8.09 points, or 0.28 percent, to 2,856.27 and the Nasdaq Composite dropped 34.88 points, or 0.45 percent, to 7,750.84.

Asia feels chill from Sino-US tech cold war

Asian shares were stuck in the red on Thursday amid worries the Sino-US trade conflict was fast morphing into a technology cold war between the world’s two largest economies.

Japan’s Nikkei slipped 0.5 percent in early trade, while South Korea lost 0.3 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.01 percent to hover just above a 16-week trough. E-Mini futures for the S&P 500 edged down 0.17 percent.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a gain of 25.5 points or 0.22 percent. Nifty futures were trading around 11,754-level on the Singaporean Exchange.

India prepares to count votes, with Modi looking at second term

India begins counting hundreds of millions of votes in its general election on Thursday, with a coalition led by Prime Minister Narendra Modi’s party already preparing to form the next government. The National Democratic Alliance (NDA), led by Modi’s Hindu nationalist Bharatiya Janata Party (BJP), is expected to surpass the 272 seats needed to command a majority in the lower house of parliament, six of seven exit polls showed on Sunday.

Their predicted margin of victory is larger than surveys indicated in the run-up to the vote, when most polls showed the NDA would be the largest alliance but would fall short of an overall majority.

Counting of votes begins at 0800 local time and trends are expected to be known by noon because of the use of computerised voting machines. Final results in the polls, in which around 900 million Indians were eligible to vote, are due by the evening.

Rupee edges 6 paise higher against USD ahead of election outcome

The Indian rupee May 22 saw a marginal 6 paise rise at 69.66 against the US dollar in line with uptrend in equities and easing crude prices, a day ahead of Lok Sabha polls outcome. However, foreign fund outflows dampened the sentiment of forex traders, the dealers said.

At the interbank foreign exchange, the domestic unit opened higher at 69.70 and further went to touch the day's high of 69.62.

Oil prices fall on surging US crude stockpiles, economic concerns

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at USD 70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 percent, from their last close. US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 percent, at USD 61.11 per barrel.

Sebi proposes review of buyback norms for companies with NBFC, HFC as subsidiaries

Regulator Sebi on May 22 proposed changes to share buyback norms for companies having non-banking financial companies and housing finance companies as subsidiaries. A discussion paper has been issued to seek suggestions relating to review of conditions for buyback of securities.

Sebi's Primary Markets Advisory Committee (PMAC) had made certain recommendations with respect to buyback of shares for companies having Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs).

US Fed may tweak key 'reverse repo' rate - Minutes

The Federal Reserve may consider tweaking how much it pays mortgage agencies, money market funds and other non-banks in certain Treasury-backed transactions, the US central bank’s minutes released on Wednesday showed.

The minutes also showed that the Fed’s current patient approach to setting monetary policy could remain in place “for some time.” The Fed uses what is known as a reverse repurchase agreement (repo) program to control interest rates.

Over 80% Indian firms plan divestment in next 2 years: Report

Majority of companies in India plan to undertake divestments in the next two years, according to a report by consulting firm EY. According to the report, titled 'India Divestment Study', 81 per cent of the companies surveyed expect to divest in the next two years, while 67 per cent expect large-scale transformational divestments in the next 12 months.

Evolving customer preferences, macro-economic uncertainties, technological changes, shareholder pressure and geopolitical instability are some of the key factors that are driving companies to consider divestments, the report added. The study is based on responses from over 40 organisations in India across sectors to gauge the success factors, challenges, collaboration landscape and growth areas for divestments in India.

RBI may not increase age limit for bank CEOs over 70 years: Report

The Reserve Bank of India may not increase the age limit for the Chief Executive Officers (CEOs) of banks from the current 70 years, according to a CNBC-TV18 report. There were expectations that RBI will increase the CEO age limit to 75 years, with a special resolution that could make the needed change in the Companies Act.

If RBI retains the age cap then it would mean the CEOs of IndusInd Bank and HDFC Bank, Ramesh Sobti and Aditya Puri, respectively, may be serving their final term. Sobti’s term ends in March 2020, while Puri’s term ends in October 2020.

M&A deal value drops 96% to $735 mn in April

The value of merger and acquisition deals announced in April stood at USD 735 million (over Rs 5,100 crore), a decline of 96 per cent from the year-ago period, as per a report. According to a report by consultancy Grant Thornton, in April last year, the total M&A deal value stood at USD 19,142 million. The report said the total number of deals announced last month stood at 35. Of this, two were billion-dollar deals, while 18 were valued at or above USD 100 million, together contributing 91 percent of total M&A deal value.

When compared to March 2019, M&A transactions value plummeted 92 per cent despite a 17 percent increase in the deal volumes. "Absence of large ticket merger transactions and/or non-closure of IBC transactions impacted the overall M&A transaction values," Grant Thornton India LLP Director Pankaj Chopda said.

Sebi, bourses step up surveillance measures for markets on election results day

Sebi and stock exchanges have enhanced their surveillance measures to curb possible manipulative practices as well as excessive volatility in the market on Thursday when the general election results will be announced. Markets are likely to witness significant movements on May 23, especially after a rally on May 20 following exit polls showed that the BJP-led NDA is expected to come back to power.

Surveillance and monitoring of markets have been beefed up by Sebi and stock exchanges for the trading session on May 23, according to a senior official.

103 companies to report March quarter numbers today

On the earnings front, as many as 103 companies will declare their results for the quarter ended March later today which include names like IGL, Ramco Industries, Sun Tv, and Religare Enterprises among others.

Sebi allows portfolio managers to invest in commodity derivatives segment

Markets regulator SEBI on May 22 allowed portfolio managers to invest in exchange traded commodity derivatives (ETCDs) on behalf of their clients with an aim to deepen the participation in the segment. The move comes after the regulator on May 21 permitted mutual funds to participate in the same segment.

The participation of portfolio managers however is subject to certain conditions, SEBI said. "Portfolio managers may participate in ETCDs on behalf of their clients and such participation shall be in compliance with all rules, regulations including SEBI (Portfolio Managers) regulations, 1993 and circulars/guidelines and position limit norms as may be applicable to clients, issued by SEBI and exchanges from time to time," the regulator said in a circular.

Three stocks under ban period on NSE

For May 23, Adani Power, IDBI Bank and Reliance Capital are under a ban period. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.