The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points.
The BSE Sensex declined 519 points to 61,145, while the Nifty50 slipped 148 points to 18,160 and formed bearish candle on the daily charts at the close on Monday. The immediate support of the last month (10-day exponential moving average) has been broken on the downside at 18,250 levels.
As per the pivot charts, the key support level for the Nifty is placed at 18,136, followed by 18,105 and 18,056. If the index moves up, the key resistance levels to watch out for are 18,234 followed by 18,265 and 18,314.
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:
US Markets
Wall Street's main indices ended Monday roughly down amid fears that China could resume stricter measures to fight Covid-19 after it said it faces its most severe test of the pandemic.
The Dow Jones Industrial Average fell 45.41 points, or 0.13 percent, to 33,700.28, the S&P 500 lost 15.4 points, or 0.39 percent, to 3,949.94 and the Nasdaq Composite dropped 121.55 points, or 1.09 percent, to 11,024.51.
Asian Markets
Shares in the Asia-Pacific were set to rise on Tuesday as investors weigh risks. Japan’s Nikkei 225 climbed 0.6 percent and the Topix added 0.82 percent. In Australia, the S&P/ASX 200 rose 0.5 percent ahead of central bank governor Philip Lowe’s speech at the Committee for Economic Development of Australia.
The Kospi in South Korea fell 0.34 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was about flat.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points. The Nifty futures were trading around 18,245 levels on the Singaporean exchange.
Goldman Sachs strategists say bear market will last in 2023
Equity investors hoping for a better year in 2023 will be disappointed, according to Goldman Sachs Group Inc. strategists, who said the bear market phase is not over yet.
“The conditions that are typically consistent with an equity trough have not yet been reached,” strategists including Peter Oppenheimer and Sharon Bell wrote in a note on Monday. They said that a peak in interest rates and lower valuations reflecting the recession are necessary before any sustained stock-market recovery can happen.
The strategists estimate the S&P 500 will end 2023 at 4,000 index points -just 0.9 percent higher than Friday’s close - while Europe’s benchmark Stoxx Europe 600 will finish next year about 4 percent higher at 450 index points. Barclays Plc strategists led by Emmanuel Cau have the same target for the European gauge and said the path to get there will be “tricky”.
Crisil lowers FY23 growth by 30 bps to 7%; Icra slashes Q2 GDP to half of last fiscal at 6.5%
Rating agencies Crisil and Icra on Monday revised down their India growth projections for the current fiscal and the second quarter mainly due to the ripple effect of slowdown in global growth and mixed crop output.
Crisil downgraded the India growth forecast by 30 bps to 7 percent while Icra pegged the economic expansion at 6.5 percent for the second quarter of FY2022-23.
"We have revised down our forecast for real gross domestic product growth to 7 percent for fiscal 2023 from 7.3 percent, primarily because of the slowdown in global growth that has started to impact our exports and industrial activity. This will test the resilience of domestic demand," Crisil chief economist Dharmakirti Joshi said in a note.
Oil rebounds from early plunge after Saudis deny OPEC+ output report
Oil prices rebounded from early losses on Monday after Saudi Arabia denied a report it was discussing an increase in oil supply with OPEC and its allies.
Brent crude futures for January settled at $87.45, shedding 17 cents. US West Texas Intermediate (WTI) crude futures for December settled at $79.73 a barrel, falling 35 cents ahead of the contract's expiry later on Monday.
Lighthouse India to sell Rs 320 crore stake in Nykaa via block deal
Private equity firm Lighthouse India will sell stake worth Rs 320 crore in FSN E-Commerce Ventures Ltd, the owner of beauty e-retailer Nykaa through a block deal, CNBC Awaaz reported on November 21.
The shares would be offered at a price of around Rs 180-183.5 apiece, marking a discount of nearly two percent to the last closing price. A total of around 1.8 crore shares or 0.65 percent of Nykaa's overall stake would be offloaded by Lighthouse through the block trade, the report added.
Bank of America will be the broker for the deal.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 1,593.83 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,262.91 crore on November 21, as per provisional data available on the NSE.
Bank of Korea to hike rates a modest 25bps on November 24 as growth slows
South Korea's central bank will scale back its tightening pace on Thursday and hike rates by a modest 25 basis points amid signs of slowing domestic growth, despite high inflation and an aggressive US Federal Reserve, a Reuters poll found.
South Korea's economic growth was fast losing momentum at latest measure as higher living costs erode household income and crimp demand, pressuring the Bank of Korea (BoK) to strike a balance between inflation and growth.
Still, with inflation well above the central bank's 2 percent target at 5.7 percent in October, along with aggressive tightening from the Fed, the Bank of Korea still has a bit more to do before pausing. All but one of 30 economists in the November 15-21 poll forecast the BoK would raise its policy rate by 25 basis points to 3.25 percent on Thursday.
Stocks under F&O ban on NSE
Five stocks - Escorts, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance, Punjab National Bank, and Sun TV Network - are under NSE F&O ban list for November 22. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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