What changed for the market while you were sleeping? Top 10 things to know

A strong wave of selloff enveloped the Indian equity market on September 3, dragging key indices Sensex and Nifty down by over 2 percent. Investor sentiment received a blow after official data on August 30 showed India's gross domestic product (GDP) slowing to 5 percent in April-June 2019. The GDP growth was at 8 percent in the same quarter of 2018-19.

Other than worrisome macroeconomic indicators, the rupee's fall against the dollar, weak global sentiment and sustained capital outflow of foreign funds continued weighing on market sentiment.

Nifty50 finished 225 points, or 2.04 percent down at 10,797.90, with 48 stocks in the red.

Nifty broke multiple support levels on intraday charts and closed below 10,800. The index is trading below its crucial short-term moving averages such as 20-day moving average (DMA), 5-day exponential moving (EMA), and 13-day EMA, which is not a positive sign.

According to the pivot charts, the key support level for the index is placed at 10,724.57, followed by 10,651.23. If the index starts moving upward, key resistance levels to watch out for are 10,919.37 and 11,040.83.

The Nifty Bank index closed at 26,824.15, down 2.20 percent on September 3. The important pivot level, which will act as crucial support for the index, is placed at 26,628.83, followed by 26,433.47. On the upside, key resistance levels are placed at 27,133.33 and 27,442.47.

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

US Markets

US stocks fell on Tuesday as investors worried about global growth prospects after data showed US factory activity shrank in August for the first time since 2016 and the United States and China imposed new tariffs on each other over the weekend.

The Dow Jones Industrial Average fell 285.26 points, or 1.08%, to 26,118.02, the S&P 500 lost 20.19 points, or 0.69%, to 2,906.27 and the Nasdaq Composite dropped 88.72 points, or 1.11%, to 7,874.16.

Asian Markets

Asian stocks dipped early Wednesday after poor US economic data stoked global recession fears and further soured investor sentiment already hurt by heightened trade war concerns.

MSCI’s broadest index of Asia-Pacific shares outside Japan was a shade lower after losing 0.85% the previous day. Australian stocks lost 0.8% and Japan’s Nikkei fell 0.3%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 32.5 points gain or 0.3 percent. Nifty futures were trading around 10,852-level on the Singaporean Exchange.

Trump warns China against dragging its feet in trade talks

US President Donald Trump on Tuesday warned he would be “tougher” on Beijing in a second term if trade talks dragged on, compounding market fears that ongoing trade disputes between the United States and China could trigger a US recession.

Trump, ignoring recent negative US economic data, said in a posting on Twitter that the United States was “doing very well in our negotiations with China,” and played up the damage US tariffs were doing to the Chinese economy.

Oil sinks as manufacturing data feeds global economy worries

Oil prices fell on Tuesday, with US crude futures down 2% after manufacturing data raised concerns about a weakening global economy, while the US-China trade dispute continued to drag on investor sentiment.

US West Texas Intermediate (WTI) crude futures fell $1.16, or 2.1%, to settle at $53.94 a barrel. Brent crude futures lost 40 cents, or 0.7%, to settle at $58.26 a barrel. It sank as low as $57.23 a barrel.

Rupee tanks 97 paise to 9-month low on weak macro data, strong dollar

The rupee on September 3 dropped sharply by 97 paise to more than nine-month low of 72.39 against the US dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy. The Indian currency came under pressure after official data released on Friday showed that India's GDP growth fell to an over six-year low of 5 percent in the June quarter.

The rupee opened lower at 72 to the US dollar at the interbank foreign exchange market and lost further ground to touch a low of 72.40 against the dollar. he domestic currency settled down by 97 paise at 72.39 per dollar, logging its worst single-day fall since August 5 and the lowest closing level since November 13, 2018.

NPAs may come down to Rs 9.1 lakh cr by FY20: Report

The gross bad loans of banks are expected to come down marginally to Rs 9.1 lakh crore by the end of the current financial year, according to a report. Indian banks' gross non-performing assets (NPAs) stood at Rs 9.4 lakh crore as on March 31, 2019, said a joint study by ASSOCHAM-Crisil.

"There is a significant potential opportunity for stressed-assets investors, given around Rs 9.4 lakh crore NPAs in the banking system as on March 31, 2019. Of this, the corporate segment, which has seen active interest from most investors, is estimated to account for 70 percent,” the report 'Bolstering ARCs' said.

RBI's task force recommends moves to ease credit markets

A task force set up by India's central bank on Tuesday recommended a slew of measures for developing a secondary market for corporate loans, including easing of regulations to allow foreign portfolio investors (FPIs) to directly purchase distressed loans from banks.

These moves are aimed at developing India's credit markets and come at a time when the country is facing a liquidity crisis among its shadow banks after the collapse of IL&FS, one of the biggest shadow banks, last year.

FPIs, who so far were allowed to invest in stressed assets through asset reconstruction companies (ARCs), can directly participate in the bad loan market within an annual limit set by the Reserve Bank of India (RBI) in consultation with the government, the task force recommended.

Pound hits 3-year low as election threat adds to Brexit jeopardy

Sterling sank to a three-year low below $1.20 on Tuesday as Prime Minister Boris Johnson’s implicit threat to lawmakers to support him on Brexit or face an election sent investors rushing to dump British assets.

The pound sat near its multi-year troughs late Tuesday after a cross-party alliance defeated Johnson in parliament in an effort to block a “no-deal” Brexit. The vote led Johnson to push for a snap election.

Bajaj Energy gets Sebi's go ahead for Rs 5,450-cr IPO

Bajaj Energy has received capital markets regulator Sebi's go ahead to raise an estimated Rs 5,450 crore through an initial share-sale offer. The company, which filed its IPO papers with Sebi in April, obtained the regulator's "observations" on August 30, latest update available with the capital markets watchdog showed.

According to draft papers, Bajaj Energy's initial public offer (IPO) comprises fresh issuance of shares aggregating up to Rs 5,150 crore and an offer for sale of scrips up to Rs 300 crore by Bajaj Power Ventures.