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Benchmark indices snapped the six-day winning streak to close lower on December 4 as traders maintained a cautious stance ahead of the Monetary Policy Committee meeting scheduled on December 5.
A spate of events such as a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on December 6 and results of state elections in the country next week could keep investors wary, experts said. If the Nifty 50 decisively breaks 10,747 on the downside then there could be more selling pressure, they added.
After opening flat the Nifty 50 traded lower in a range of 57 points and closed 14.30 points lower at 10,869.50, forming small bearish candle resembling a 'Doji' kind of pattern on the daily charts.
According to Pivot charts, the key support level is placed at 10,838.2, followed by 10,806.9. If the index starts moving upward, key resistance levels to watch out are 10,895.9 and then 10,922.3.
The Nifty Bank index closed at 26,693.80, down 163.75 points. The important Pivot level, which will act as crucial support for the index, is placed at 26,611.14, followed by 26,528.47. On the upside, key resistance levels are placed at 26,810.14, followed by 26,926.47.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
Wall Street tumbles, spooked by growth and trade worries
Wall Street tumbled more than 3 percent on Tuesday, led lower by bank and industrial shares, as the US bond market sent unsettling signs about economic growth and investors worried anew about global trade.
The Dow Jones Industrial Average fell 799.36 points, or 3.1 percent, to 25,027.07, the S&P 500 lost 90.31 points, or 3.24 percent, to 2,700.06 and the Nasdaq Composite dropped 283.09 points, or 3.8 percent, to 7,158.43.
Asian shares fall as declining US yields, trade woes knock sentiment
Asian stocks fell on Wednesday, dragged by Wall Street’s tumble as sharp declines in long-term US Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.
Global equities have been shaken as a flattening US Treasury yield curve - a result of a steep fall in longer-dated yields - fanned recession jitters and as US-China trade conflict woes resurfaced after a temporary lull.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 percent. Australian stocks lost 1.3 percent after Australia's third quarter growth data fell short of expectations. Japan's Nikkei fell 1.15 percent and South Korea's KOSPI shed 1 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 50.5 points or 0.46 percent. Nifty futures were trading around 10,862-level on the Singaporean Exchange.
RBI seen holding rates steady as inflation, growth soften
Analysts expect the Reserve Bank of India (RBI) to support an economy that is losing momentum by leaving interest rates unchanged at a policy meeting on Wednesday, when just over a month ago most of them had predicted a hike.
Having resisted any temptation to jack up rates in October when the rupee was sliding to a record low against the dollar, the Reserve Bank of India has been vindicated by the currency’s subsequent recovery, and by waning inflationary pressures thanks to falling food and oil prices.
There are now clearer economic reasons to avoid going higher, analysts say. A pause in rate hikes would also be welcomed by Prime Minister Narendra Modi’s ruling party as it prepares for an election that must be called by May.
Oil prices slide on swelling US supply, global market slump
Oil prices fell 1 percent on Wednesday, weighed down by swelling US inventories and a plunge in global stock markets amid concerns over an economic slowdown.
US West Texas Intermediate (WTI) crude futures were at $52.61 per barrel at 0128 GMT, down 64 cents, or 1.2 percent, from their last close. International Brent crude oil futures were down 56 cents, or 0.9 percent, at $61.52 per barrel.
RBI to inject Rs 10,000 cr through open market operations on Dec 6
The Reserve Bank of India (RBI) said it would inject Rs 10,000 crore into the system through purchase of government securities on December 6 to increase liquidity. The purchase will be made through open market operations (OMOs).
"Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of ... government securities under open market operations for an aggregate amount of Rs 100 billion on December 6, 2018 (Thursday)," the central bank said.
Rupee slips to 70.49 against dollar as crude pursue climb
The rupee slipped further by 3 paise to close at 70.49 against the US dollar on December 4 due to increased demand for the American currency from importers and firming global crude oil prices.
Forex traders said the dollar strengthening against major global currencies overseas and losses in the domestic equity market also weighed on the local unit. At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 70.50 and fell further to touch the day's low of 70.68 a dollar.
GDP to recover in Q4 of FY19; Q3 to remain slow: Niti Aayog
The country's economy is likely to bounce back during the fourth quarter at a faster rate to match the overall projection for the current fiscal, Niti Aayog Vice Chairman Rajiv Kumar said on December 4.
However, the economy is unlikely to recover in the third quarter from the slow pace during the last quarter, the Aayog said. "Niti Aayog has not done its own projection yet. I think it will be around the same figure as projected by the Reserve Bank, which will be 7.4-7.5 per cent," Kumar said.
WTO to set up dispute panel in India-US case on steel, aluminium duties
The dispute settlement body of World Trade Organisation (WTO) has agreed to set up a panel to assess if high customs duties imposed by the US on certain steel and aluminium products infringes global trade norms, an official said.
India had approached Geneva-based WTO for setting up of the dispute panel as both the countries failed to resolve the issue in a bilateral consultation process under the dispute settlement mechanism of the WTO.
"The dispute settlement body has agreed to establish a panel to rule whether additional duties imposed by the US on imports of certain steel and aluminum products comply with WTO rules," the official added.
Sebi panel votes for overseas listing of Indian companies
A panel appointed by the Securities and Exchange Board of India (Sebi) on Tuesday batted for overseas listing of Indian companies without a local listing, but with caveats.
In its 26-page report filed Tuesday, the Sebi panel suggested several changes in the prevailing regulatory framework, including those in the The Securities and Exchange Board of India Act, 1992, The Companies Act, 2013, and Foreign Exchange Management Act, 1999 (Fema) and tax laws, to allow Indian companies to list overseas.
The proposals included having minimum capital threshold for listing overseas and recommended 10 overseas jurisdiction based on strong Anti-Money laundering policies, Mint reported.
With inputs from Reuters & other agencies
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