RBI asks Visa to halt commercial card payments over breach of rules : Daily Market Update -16 Feb 2024 | Globe Capital Market LTD.
RBI asks Visa to halt commercial card payments over breach of rules : Daily Market Update -16 Feb 2024

The Reserve Bank of India has asked Visa to temporarily suspend commercial card-based payments. Visa has received communication from the RBI asking to halt these payments being made by corporations and businesses, according to an official statement by the company. The regulator on Feb 8 asked Visa to ensure that all Business Payment Solution Provider transactions are kept in abeyance until further notice, Visa said. RBI also sought information on the role of BPSP in commercial and business payments.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.3% to 1%.
  • European equity markets were up in range nearly 0.5% to 1%.
  • Asian equity markets are trading in green.
  • GIFT Nifty is up by 60 points, Nifty futures are likely to open around 22100 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading with positive bias, boosted by overnight gains on Wall Street as U.S. Retail Sales data declined more than expected in January, giving some relief to investors after hotter-than-expected inflation print.
  • With the U.S. CPI, and retail sales data erased from the list of data releases, market participants now await for U.S. Producer Price Index print for January, scheduled for release today. This data going to be crucial for fresh cues on the Federal Reserve’s monetary policy going ahead.
  • Brent crude was trading 1.54% higher at $82.86 a barrel.


Important news updates from the domestic front

  • Axis Bank, Max Financial Services: Axis Bank clarified that there is no material impact of the allegations made regarding the Rs 5,100 crore unjust gains in Max Life Insurance share deals.
  • UPL: The rating agency Fitch downgraded UPL Corp’s long-term issuer default rating to ‘BB+’, from ‘BBB-‘ on lower global crop protection industry demand and production overcapacity in China.
  • Bharat Petroleum Corp commenced a pilot project to gain experience in handling hydrogen for the automobile sector.
  • TVS Motors  has acquired a 28.57% stake in the Indian Foundation for Quality Management for Rs 2.5 crore.
  • Dilip Buildcon with its joint venture Vijay Kumar Mishra Construction, received a contract worth Rs 412.92 crore from the Water Resources Department, Madhya Pradesh for the construction of the Machhrewa irrigation project dam and pressurised pipe irrigation network on a turnkey basis.
  • Medplus Health Services’s unit received a suspension order for its drug licence for its store situated in Andheri, Mumbai.
  • B.L. Kashayap and Sons received an order worth Rs 208 crore from Manyata Promoters for the construction of Blocks D1 and D2 at the Embassy Manyata Business Park Campus, Bangalore.


Nifty Overview & Outlook

Tracking positive cues from the global peers, benchmark Nifty index opened with a gap on the higher side and settled higher above 21900 level after adding 70 points to its previous closing values after a highly volatile trading session.

Broader markets outperformed the benchmark as Small & Mid cap index settled higher, up over 1% each against flat to positive closing of the frontline index, resultant strong market breadth.

All the sectoral indices, barring Nifty FMCG & HealthCare, tracked at NSE settled higher. Amongst them, Nifty PSU Bank index was at the top of the tally, rose over 3% followed by Nifty Auto, Realty and Oil & Gas indices that were up in range 1% to 2.5%.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we expect it to trade with to positive bias and suggest traders to maintain buy on dips trading approach till it is trading above 21800 level on a closing basis.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty and Banknifty futures with decrease in open interest by 1.4% and 8.1% respectively. Long buildup was seen in Finnifty futures with increase in open interest by 8.3%.

On the sectoral front, long buildup was observed in infrastructure, Metals, Capital Goods and Power shares. Fresh short was observed in Media stocks, whereas long unwinding was seen in Textile stocks.

On options front, Nifty will start new weekly series contract with maximum positions at 22000 CE and 21000 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3064 Cr in the cash segment, sold stocks futures worth Rs 1780 Cr and bought index future worth Rs 492 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2277 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22080-22200; Supports 21800-21680

Banknifty – Resistances 46600-46980; Supports 45700-45200

Finnifty – Resistances 20550-20740; Supports 20300-20130




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