Stock Market, Share Market
The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 106 points.
The BSE Sensex rallied 619.92 points, or 1.09 percent, to 57,684.79, while the Nifty50 climbed 183.70 points, or 1.08 percent, to 17,166.90 and formed a bullish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 17,083.03, followed by 16,999.16. If the index moves up, the key resistance levels to watch out for are 17,231.93 and 17,296.96.
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:
Wall Street's major averages fell more than 1% on Wednesday after a morning rally faded as investor angst about the latest coronavirus variant soared with the first U.S. case confirmation while the market also digested US Fed's comments on inflation.
The Dow Jones Industrial Average fell 461.68 points, or 1.34%, to 34,022.04, the S&P 500 lost 53.96 points, or 1.18%, to 4,513.04 and the Nasdaq Composite dropped 283.64 points, or 1.83%, to 15,254.05.
Stocks in Asia-Pacific struggled for direction in Thursday trade as concerns over the economic impact of the omicron Covid variant continue to weigh on investor sentiment.
Nikkei 225 in Japan declined 0.6% while the Topix index shed 0.54%. South Korea’s Kospi rose 0.59%.
Trends on SGX Nifty indicate a gap-down opening for the broader index in India, with a loss of 106 points. The Nifty futures were trading around 17,138 levels on the Singaporean exchange.
Oil falls on Omicron variant concerns
A gauge of global equity markets retreated from early gains on Wednesday as concerns about the first U.S. case of the Omicron variant and sooner-than-expected interest rate hikes next year by the Federal Reserve turned investor sentiment bearish. U.S. crude oil futures retreated after an American official said the country was continuing to consider tools to lower energy prices, and as government data pointed to weaker gasoline demand.
U.S. crude futures fell 61 cents to settle at $65.57 a barrel after earlier trading as much as 4% higher, while global benchmark Brent crude slid 36 cents to settle at $68.87 a barrel.
OECD cuts world growth forecast, warns of Omicron threat
The OECD warned Wednesday that the Omicron coronavirus variant threatens the global economic recovery as it lowered the growth outlook for 2021 and appealed for a swifter rollout of Covid vaccines. The global economy is now expected to expand by 5.6 percent this year, down from an earlier forecast of 5.7 percent, the OECD said in its updated economic outlook which warns that low vaccination areas could create "breeding grounds" for deadlier virus mutations.
Its forecast for 2022 remains unchanged at 4.5 percent, but the report was released only days after Omicron was detected.
"We are concerned that the new variant of the virus, the Omicron strain, is further adding to the already high levels of uncertainty and risks, and that could be a threat to the recovery," OECD chief economist Laurence Boone said at a press conference.
Exports up 26.49% to $29.88 billion in November
India's merchandise exports in November rose by 26.49 percent to USD 29.88 billion on account of healthy growth in sectors such as engineering, petroleum, chemicals and marine products, according to provisional data released by the government on Wednesday. The exports stood at USD 23.62 billion in November 2020.
Imports in November were at USD 53.15 billion, an increase of 57.18 percent over USD 33.81 billion in the same month of 2020, leaving a trade deficit of USD 23.27 billion.
S. Korean inflation hits decade high, boosting rate hike views
South Korea's consumer inflation accelerated to a decade high in November, remaining above the central bank's 2% target for an eighth straight month and boosting the case for another interest rate hike next month.
November consumer prices jumped 3.7% from a year earlier, government data showed on Thursday, hitting the fastest growth since December 2011 and up from a 3.2% rise in October.
Third tranche of Bharat Bond ETF to be launched tomorrow
The third tranche of Bharat Bond Exchange-Traded Funds (ETFs) will be launched on December 3, with the NFO (new fund offer) continuing till December 9. With a base issue size of Rs 1,000 crore and an additional greenshoe option of Rs 4,000 crore, all categories of investors will be allowed to participate, with a maturity date set at April 2032.
“BHARAT Bond ETF program has achieved some important objectives that were envisioned while creating the blueprint of this program. It has provided aggregate savings in borrowing costs for participating CPSEs/CPSUs/CPFIs. It has provided easy access to investors into bond markets, especially retail investors who are looking for an alternative to fixed deposit,” said Tuhin Pandey, Secretary, DIPAM, Ministry of Finance.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,765.84 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,467.02 crore in the Indian equity market on December 1, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock - Indiabulls Housing Finance - is under the F&O ban for December 2. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies