The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 63 points.
The BSE Sensex fell 34 points to 62,835, while the Nifty50 gained 5 points at 18,701 and formed Doji sort of candle on the daily charts, indicating indecisiveness among bulls and bears about future market trend.
As per the pivot charts, the key support level for the Nifty is placed at 18,621, followed by 18,589 & 18,536. If the index moves up, the key resistance levels to watch out for are 18,726 followed by 18,758 and 18,811.
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
US markets ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China.
The Dow Jones Industrial Average fell 482.78 points, or 1.4%, to close at 33,947.1, the S&P 500 lost 72.86 points, or 1.79%, to end on 3,998.84, and the Nasdaq Composite dropped 221.56 points, or 1.93%, to finish on 11,239.94.
Asian Markets
Shares in the Asia-Pacific fell on Tuesday after Wall Street sold off overnight on fears that the Fed will keep increasing interest rates.
In Australia, the S&P/ASX 200 fell 0.28%. Nikkei 225 in Japan shed 0.23% and the Topix lost 0.24%. South Korea’s Kospi dropped around 1%. The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.45%.
SGX Nifty
Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 63 points. The Nifty futures were trading around 18,746 levels on the Singaporean exchange.
Oil falls over 3% after data raises Fed interest rate worries
Oil prices fell over 3% on Monday, following US stock markets lower, after US service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path.
Brent crude futures settled down $2.89, or 3.4%%, at $82.68 a barrel. West Texas Intermediate crude (WTI) fell $3.05, or 3.8%, to $76.93 a barrel.
US services industry perks up; factory orders jump
US services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy as it braces for an anticipated recession next year.
The survey from the Institute for Supply Management (ISM) on Monday followed on the heels of news last Friday that the economy continued to create jobs at a solid clip in November, with wage growth accelerating. Consumer spending also rose strongly in October. The Federal Reserve's fastest rate-hiking cycle since the 1980s as it wages war against inflation is stoking anxiety about an economic downturn.
The ISM said its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, which was the lowest reading since May 2020. Economists polled by Reuters had forecast the non-manufacturing PMI slipping to 53.3. A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of US economic activity.
Japan October household spending rises for 5th straight month
Japanese household spending rose for a fifth straight month in October from a year earlier, data showed on Tuesday, as easing coronavirus cases prompted more people to shop and eat at restaurants.
An improvement in consumer spending, which accounts for more than half of the economy, is seen as vital for the nation's economic growth. Accelerating inflation, however, propelled by a weak yen amid a tepid recovery in wages cloud the outlook.
Household spending grew 1.2% in October from a year earlier, government data showed, slightly better than economists' median estimate of 1.0%.
Euro zone likely heading into mild recession - PMI
Euro zone business activity declined for a fifth month in November, suggesting the economy was sliding into a mild recession as consumers cut spending amid surging inflation, a survey showed.
S&P Global's final composite Purchasing Managers' Index (PMI) for the euro zone, seen as a good guide to economic health, nudged up to 47.8 in November from October's 23-month low of 47.3, matching a preliminary estimate.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 1,139.07 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 2,607.98 crore on December 5, as per provisional data available on the NSE.
UK consumer spending fails to keep pace with inflation: surveys
British consumer spending ticked up last month at a rate that greatly lagged behind inflation, according to surveys on Tuesday that underscored the pressure on household budgets ahead of the Christmas holidays. Barclaycard said spending on its credit and debit cards rose 3.9% year-on-year in November, far behind the annual 11.1% increase in consumer prices in October that was the highest reading in 41 years.
Some 94% of Britons surveyed by Barclaycard said they were concerned about the impact of soaring household energy bills on their personal finances.
Stocks on F&O ban list on NSE
The National Stock Exchange has added GNFC, and retained Delta Corp and Indiabulls Housing Finance, on its F&O ban list for December 6. 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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