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Shares may correct after recent rally

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Capital Market
Last Updated : Aug 18 2017 | 12:01 AM IST

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 9.50 points at the opening bell.

Overseas, most Asian markets edged higher after a rally in the dollar was halted on political turbulence while investors digested the release of the Federal Reserve's minutes.

In US, shares closed slightly higher on Wednesday, 16 August 2017, but backlash from the business community against President Donald Trump kept gains in check. The S&P 500 gained 0.14% to close at 2,468.11. The Dow Jones industrial average closed 0.12% higher at 22,024.87. The Nasdaq composite advanced 0.19% to 6,345.11.

US President Donald Trump unexpectedly said on Wednesday, 16 August 2017, he was disbanding two advisory councils comprising prominent business executives. The move came after several members of Trump's Strategic and Policy Forum and Manufacturing Jobs Initiative councils stepped down following the president's Tuesday press conference in which the president blamed "both sides" for violence at a white nationalist rally in Virginia.

Minutes from the Federal Open Market Committee's July meeting released on Wednesday, 16 August 2017, also supported the move lower in the greenback. While some Fed members said they were worried over the tightening labor market, others voiced their concern over low inflation rates in the US. The minutes also showed the central bank was prepared to trim its massive balance sheet, although the announcement of a start date was left for an upcoming meeting.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1090.10 crore yesterday, 16 August 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1090.10 crore yesterday, 16 August 2017, as per provisional data.

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Among corporate news, Infosys announced that the board of directors of the company will consider a proposal for buyback of equity shares at its meeting to be held on 19 August 2017. The announcement was made after market hours yesterday, 16 August 2017.

Strong gains in metals and FMCG shares pushed the key benchmark indices higher for second day in a row yesterday, 16 August 2017. The barometer index, the S&P BSE Sensex, gained 321.86 points or 1.02% to settle at 31,770.89. The Nifty 50 index gained 103.15 points or 1.05% to settle at 9,897.30.

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First Published: Aug 17 2017 | 8:00 AM IST

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