Moneycontrol
Last Updated : Dec 24, 2018 07:50 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? 10 things to know

A collation of important stories from across news agencies to help you with your trade today.

Moneycontrol News @moneycontrolcom

Global cues are likely to weigh in on the market, as trends indicate a subdued start on Monday morning.

Benchmark indices witnessed a sharp correction for the first time in the last nine consecutive sessions on December 21, despite consistent fall in crude oil prices, which were dragged by global growth concerns and the threat of a partial US government shutdown.

"In the near term, the 40-day exponential moving average (DEMA) of 10,726 will be a crucial support level on the way down. The index can fall to 10,660–10,582 once the index breaks and sustain below the 40-DEMA," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

On the way up, 10,850–10,900 will act as crucial resistance in the near term, he said. "In case of a pullback, a bounce towards the resistance levels shall be considered as selling opportunity."

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important stories from across news agencies.

Asian markets

Asian stocks started in subdued fashion on Monday as investors fretted that political instability in the United States was leaving the country rudderless at a time when the global economy was showing signs of faltering.

Moves were limited by a holiday in Japan while many bourses are set to close early for Christmas. After opening lower, E-Mini futures for the S&P 500 ESc1 turned flat.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.38 percent and Australian stocks 0.2 percent.

US markets

US stocks plunged again on Friday, sending the Dow Jones Industrial Average to its worst week since the financial crisis in 2008, down nearly 7 percent, CNBC reported. The Nasdaq Composite Index closed in a bear market and the S&P 500 was on the brink of one itself, down nearly 18 percent from its record earlier this year. The Federal Reserve's rate hike on Wednesday drove the losses this week and fears of an extended government shutdown only added to the pain on Friday.

SGX Nifty

The Nifty futures on Singaporean Exchange are trading flat, with a hint of negative bias amid a global selloff, courtesy growth concerns in US and China.

Rupee

Snapping its four-day rising streak, the rupee Friday fell by 48 paise to close at 70.18 against the US currency due to month-end dollar demand and sharp losses in domestic equities.

Increased dollar demand from importers mainly oil companies weighed on the rupee sentiment, analysts said.

The rupee opened lower at 69.93 against the dollar and dropped further to quote at 70.37 in day trade. The local unit however pared some losses and finally settled at 70.18, down by 48 paise over its previous close.

GST Council Meet

The Goods and Services Tax (GST) Council on Saturday slashed rates on 23 items such as televisions and movie tickets while keeping the tax rate on cement and auto parts unchanged. Additionally, the Council proposed to cut GST rates on six of the items from 28 percent to 18 percent. Retreated Tyres, video games and sporting equipment, movie tickets, billiards and snookers and lithium battery power banks will attract 18 percent GST.

Wheelchair accessories too have been proposed to be brought under 5 percent bracket from 28 percent.

Recommendations of the GST Council's fitment committee on rate rationalisation and balancing revenue flows were considered during the meeting, FM Arun Jaitley said.

The move comes after Prime Minister Narendra Modi promised bringing most of the goods under the 18 percent or lower GST slab. The Council will now meet in January next year.

FPIs infuse Rs 4,000 crore in 3 weeks on strengthening rupee, easing crude prices

Foreign investors have pumped in close to Rs 4,000 crore in the Indian capital markets this month so far on strengthening rupee and easing global crude oil prices.

This comes following a 10-month high net inflow of over Rs 12,266 crore in the capital markets (equity and debt) by Foreign Portfolio Investors (FPIs) in November.

Trump asked officials if he can legally fire Fed chair Jerome Powell

President Donald Trump has privately asked cabinet members if he has the authority to fire Fed Chair Jerome Powell after interest rates were increased and the stock market tanked, US media reported.

CNN and Bloomberg, citing unnamed people familiar with the matter, said on December 22 that Trump was furious when the Fed raised the key borrowing rate on December 19 and signalled it will continue to hike rates next year.

Scheme of amalgamation for merger of BoB, Dena and Vijaya Bank likely by month-end

The scheme of amalgamation spelling out the contours of the merger of Bank of Baroda (BoB), Vijaya Bank and Dena Bank is expected to be finalised by the end of this month, sources said.

As per the requirement, the scheme of amalgamation will be placed before Parliament, which is in session till January 8.

The scheme is being worked out and will subsequently get vetted by respective boards of the three banks. It will have details of share swap ratio and requirement of capital from the promoter, sources said.

RBI shortlists TCS, Wipro, IBM, 3 others for setting up Public Credit Registry

The Reserve Bank of India has shortlisted six major IT companies, including TCS, Wipro and IBM India, to set up a wide-based digital Public Credit Registry (PCR) for capturing details of all borrowers and wilful defaulters.

The proposed PCR will also include data from entities like market regulator Sebi, the corporate affairs ministry, Goods and Service Tax Network (GSTN) and the Insolvency and Bankruptcy Board of India (IBBI) to enable banks and financial institutions to get a 360-degree profile of the existing as well as prospective borrowers on a real-time basis.

"Consequent to the publication of expression of interest (EOI) on October 27, 2018, the Reserve Bank had received responses from several vendors for implementation of end-end solution for PCR," the central bank has said.

Six of top-10 companies lose Rs 89,531 crore in m-cap

Six of the 10 most-valued Indian companies suffered a combined erosion of Rs 89,531.31 crore from their market valuation last week, with Tata Consultancy Services (TCS) alone accounting for over Rs 34,000 crore. Reliance Industries (RIL), HUL, Infosys, Kotak Mahindra Bank and Maruti Suzuki were also among the losers, while HDFC Bank, ITC, HDFC and State Bank of India (SBI) finished the week ended Friday with gains.

The market capitalisation (m-cap) of TCS slumped Rs 34,521.94 crore to Rs 7,11,921.19 crore and that of Infosys plunged Rs 26,143.34 crore to Rs 2,82,105.44 crore.
First Published on Dec 24, 2018 07:50 am
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