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Market may see soft start

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Capital Market
Last Updated : Aug 20 2019 | 9:04 AM IST

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 20 points at the opening bell. Shares of Sterling & Wilson Solar will debut on the bourses today, 20 August 2019.

Investors are awaiting any measures the government might announce to spur growth. Finance minister Nirmala Sitharaman last week said that discussions on a possible stimulus package for industry are going on at the highest level and an announcement will come at a right time. Sitharaman held several meetings this month with industry executives, who have called for stimulus measures, including tax rebates, to support consumer demand and private investment.

Overseas, Asian stocks traded higher Tuesday as the People's Bank of China published its new loan prime rates under a new mechanism that was unveiled over the weekend. The new 1-year LPR was set at 4.25%, as compared to 4.31% previously. The 5-year LPR was at 4.85%.

U.S. stocks rallied Monday, lifted by encouraging comments from President Donald Trump and other officials on trade talks, along with a move by China over the weekend to lower borrowing costs for companies.

The Commerce Department said Monday that it has given Chinese telecom giant Huawei Technologies Co. Ltd. another 90-day reprieve during which it can continue to do business with American companies, without the granting of case-by-case licences that would otherwise be needed, after the Commerce Department added it to its entity list in May. At the same time, the Commerce Department added another 46 Huawei subsidiaries to the list that will be subject to the full sanctions after 19 November.

Back home,key equity benchmarks wiped off majority of the gains in last hour of session to end marginally higher yesterday, 19 August 2019. The Nifty struggled to hold the 11,100-mark and ended below that level. The S&P BSE Sensex rose 52.16 points or 0.14% to 37,402.49 and the Nifty 50 index rose 6.10 points or 0.06% to 11,053.90.

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The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 305.74 crore yesterday, 19 August 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 386.23 crore yesterday, 19 August 2019, as per provisional data.

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First Published: Aug 20 2019 | 7:49 AM IST

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