The benchmark Sensex and Nifty indices are likely to open marginally lower on December 7 as trends in the GIFT Nifty indicate a negative start for the broader index with a gain of 50 points.
Domestic equity indices logged seventh straight day of gains on December 6, as the bullish momentum continued with buying in information technology and power names and continuous foreign inflow took the benchmarks to a new high for a third day.
The Sensex ended 357.59 points, or 0.52 percent, higher at 69,653.73, and the Nifty 82.60 points, or 0.40 percent, at 20,937.70, a new closing high for both the indices. Intraday, the Sensex rose to 69,744.62 and the Nifty 20,961.95.
The pivot point calculator indicates that the Nifty is likely to see immediate resistance at 20,959, followed by 20,985 and 21,027, while on the lower side, it can take support at 20,875 followed by 20,849 and 20,808 levels.
Stay tuned to Moneycontrol to find out what happens in the 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.
GIFT Nifty
Trends in the GIFT Nifty indicate a negative start for the broader index in India, with a loss of 50 points or 0.24 percent. The Nifty futures were trading around the 21,046.50level.
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US Markets
U.S. stocks ended down on Wednesday, pulled lower by megacaps and energy shares as signs of a cooling jobs market reinforced expectations that the Federal Reserve could start cutting interest rates early next year.
The S&P 500 declined 0.39% to end at 4,549.34 points.
The Nasdaq Composite Index (.IXIC) fell 0.58% to 14,146.71, while the Dow Jones Industrial Average (.DJI) slid 0.19% to 36,054.43.
Asian Markets
Asian markets were trading lower, mirroring moves on Wall Street as investors assessed trade data from China and Australia.
Japan's Nikkei down 1.2 percent, While Kospi down 0.5 percent.
RBI unlikely to cut rates before June: Deutsche Bank
The Reserve Bank-led Monetary Policy Committee (MPC) is unlikely to tweak repo rates till June next year, according to a foreign brokerage report.
The bi-monthly MPC meeting started on December 6 and the decision on rates will be announced on December 9.
According to the report by Deutsche Bank, the interest rate cycle appears to have peaked and the Reserve Bank of India (RBI) is unlikely to go for further hikes, unless absolutely necessary. The rate is likely to be cut in June, it said.
The RBI hiked the repo rate last on February 23, when it was raised to 6.5 percent.
BSE, NSE GIFT City units to be merged by Jan 2024; direct listing by April
The two operational international exchanges at GIFT City — BSE's India INX and NSE's International Exchange — will be merged by January end, said IFSCA chairperson K Rajaraman on December 6.
"The process is in the advanced stage and the merger should be completed in a month," he said while talking to the media on the sidelines of the event.
The move is expected to bring more volumes in Gifty City exchanges.
Shree Cement plans to bid in lithium auction
Shree Cement plans to bid for lithium mining rights under a government plan to secure critical minerals production through auctions that are expected to raise more than $5 billion.
A source with direct knowledge of the matter told Reuters the company would apply for the rights to lithium mining blocks in Jammu and Kashmir, the federally administered region where an estimated 5.9 million tonnes of deposits were found in February. Shree Cement, India's second biggest cement company by market capitalisation, will also bid for blocks in the eastern state of Chhattisgarh, said the source, who asked not to be identified due to the commercial sensitivities.
Dollar Index
The U.S. dollar touched a two-week high on Wednesday, while the euro was weak across the board as markets ramped up bets that the European Central Bank (ECB) will cut interest rates as early as March.
Although markets are still pricing at least 125 basis points of interest rate cuts from the U.S. Federal Reserve next year, the dollar was able to hold steady as rate cut bets for other central banks intensified.
The dollar index, which measures the currency against six other majors, was last down 0.01% at 103.95, having touched a two-week high of 104.10 earlier.
The euro was down 0.09% to $1.0785 after hitting a three-week low.
Gold Prices
Gold firmed on Wednesday as Treasury yields eased, stabilizing after a rapid retreat from a record high hit earlier this week, while investors braced for the U.S. jobs report for further clues on how soon interest rates may materialize.
Spot gold rose 0.3% to $2,025.09 per ounce by 10:13 a.m. ET (1513 GMT). U.S. gold futures gained 0.3% to $2,043.10.
FII and DII data
Foreign institutional investors (FIIs) turned net sellers for the first time in last 10 consecutive sessions, offloading shares worth Rs 79.88 crore, while domestic institutional investors (DIIs) bought Rs 1,372.18 crore worth of stocks on December 6, provisional data from the National Stock Exchange (NSE) showed.
Stock under F&O ban on NSE
The NSE has added SAIL to its F&O ban list for December 7, while retaining Delta Corp, Indiabulls Housing Finance, India Cements and Zee Entertainment Enterprises to the said list.
Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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