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

The Indian stock market is expected to open flat following mixed Asian cues amid continuous rise in COVID-19 cases. Trends on SGX Nifty indicate a flat opening for the index with a 4 points loss.

On July 21, Sensex ended the day with a gain of 511 points, or 1.37 percent, at 37,930.33 and Nifty closed 140 points, or 1.27 percent, higher at 11,162.25.

According to pivot charts, the key support level for the Nifty is placed at 11,123.77, followed by 11,085.33. If the index moves up, the key resistance levels to watch out for are 11,190.07 and 11,217.93.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:

US Markets

The S&P 500 edged higher on Tuesday, as investors rotated into economically sensitive cyclical stocks, optimistic that Washington will deliver a new round of stimulus to sustain the U.S. economic recovery from a pandemic-induced recession.

The Dow Jones Industrial Average rose 159.53 points, or 0.6%, to 26,840.4, the S&P 500 gained 5.46 points, or 0.17%, to 3,257.3 and the Nasdaq Composite dropped 86.73 points, or 0.81%, to 10,680.36.

Asian Markets

Asia shares were set to open lower on Wednesday after U.S. President Donald Trump’s comments regarding the country’s surge in novel coronavirus cases outweighed a slight rally on Wall Street.

Australian S&P/ASX 200 futures lost 1.06% in early trading. Japan's Nikkei 225 futures added 0.24%, while Hong Kong's Hang Seng index futures lost 0.34%.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the index in India with a 4 points loss. The Nifty futures were trading at 11,160 on the Singaporean Exchange around 07:30 hours IST.

Oil prices up on virus vaccine hopes, EU stimulus deal

Oil prices rose about $1 a barrel on Tuesday, hitting the highest level in more than four months with a boost from a European Union stimulus deal and hopeful news about coronavirus vaccine trials.

Brent crude futures settled at $44.32 barrel, rising $1.04, or 2.4%. West Texas Intermediate (WTI) settled at $41.96 a barrel, gaining $1.15, or 2.8%.

Japan's July factory activity extends declines into third quarter: PMI

Japan’s factory activity contracted for a 15th straight month in July, indicating the economic pain from the coronavirus crisis extended into the third quarter of the year as hopes for a quick global recovery fade.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 42.6 from a final 40.1 in June, as broader conditions remained fragile though the pace of decline was the slowest in four months.

NCDEX to launch 'Options on Goods' contracts of 3 commodities from July 27

The National Commodity and Derivatives Exchange (NCDEX) on Tuesday said it will launch the 'Options in Goods' contracts on rapeseed, wheat and maize from July 27. The contracts of the three commodities, expiring in October and November 2020, would be available for trading from July 27 onwards, the exchange said in a statement.

Options in Goods provide a settlement mechanism where contracts settle on spot price and all open positions convert into physical settlement at expiry. With Options in Goods, the contracts will be completed only through compulsory delivery on the day of the settlement.

Equity raising beefs up Yes Bank's capital buffers, lowers creditors' risks: Moody's

The Rs 15,000-crore equity capital raising by Yes Bank is credit positive for the lender as it strengthens the core capital and loss-absorbing buffers, besides reducing default risks for creditors, a report by global ratings agency Moody's said on Tuesday.

"Successful equity raising reflects Yes Bank's regained access to external market funds, which in turn shows its improving financial strength and will help support depositor confidence," Moody's said in its note.

Measures to contain high volatility in market to be in force until August 27: SEBI

Capital markets regulator Sebi on Tuesday said stricter surveillance measures to tackle market volatility amid coronavirus pandemic will continue till August 27. On March 20, the regulator had come out with various measures, including revision of market wide position limit, to ensure orderly trading and settlement to contain high market volatility.

On review of COVID-19 pandemic related situation, it has been decided that the regulatory measures introduced on March 20, 2020, shall continue to be in force till August 27, 2020, Securities and Exchange Board of India (Sebi) said in a statement.

Nomura sees India's FY21 GDP contracting 6.1%

Economic activity continues to remain weak and will lead to a 6.1 percent contraction in India's GDP in the current fiscal, foreign brokerage Nomura said on July 21. The Reserve Bank is likely to pause at the upcoming policy review in August and cut rates by 25 basis points each in the October and December reviews, the Japanese brokerage said.

All the analysts expect a contraction in the GDP due to the COVID-19 pandemic, which has impacted both supply and demand forces in the economy since March. Official data also suggests a surge in inflation, which will further drag down the GDP in real terms.

SEBI reviews stress testing methodology for commodity derivatives

Markets regulator Sebi on Tuesday reviewed stress testing methodology for commodity derivatives to address the concern regarding high stress loss figures on positions with early pay-in.

While calculating the residual losses, for positions on which early pay-in are given by the clients/brokers, and margin exemption are granted on such positions, CCs have been permitted to consider the 'margin exemption granted' or 'value of early paid-in goods', whichever is lower, as 'margins supporting those positions, it added.

Results on July 22

Larsen & Toubro, Bajaj Auto, Alembic Pharmaceuticals, Astec Lifesciences, Bajaj Holdings, Heidelbergcement India, ICICI Securities, Jindal Steel & Power, etc.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 2,265.88 crore, while domestic institutional investors (DIIs) sold shares worth Rs 727.39 crore in the Indian equity market on July 21, provisional data available on the NSE showed.

10 stocks under F&O ban on NSE

Adani Enterprises, Bharat Heavy Electricals, Century Textiles & Industries, Escorts, Glenmark Pharmaceuticals, Jindal Steel & Power, L&T Finance Holdings, Mahindra & Mahindra Financial Services, National Aluminium Company and Sun TV are under the F&O ban for July 22. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.