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The market failed to hold on to 10,800 level on the Nifty, but maintained positive momentum for the third straight session on December 13 backed by Asian cues and rate cut hope after further fall in November retail inflation.
The Nifty 50 climbed 53.90 points to 10,791.50 and the BSE Sensex gained 150.57 points to close at 35,929.64 after hitting 36,000 level in intraday trade.
After a three-day rally with around 500 points gain and volatility in the second half of the third day may be an indication that there could be some profit booking in the coming session, experts said.
The Nifty 50 formed a bearish candle which also resembles a 'Spinning Top' kind of pattern on the daily charts.
India VIX fell by 3.24 percent to 15.29 levels. It has seen a sharp cut of 25.89 percent in the last three sessions which suggests that bulls are now getting a grip on the market with the expectation of limited downside.
According to Pivot charts, the key support level is placed at 10,747.83, followed by 10,704.12. If the index starts moving upward, key resistance levels to watch out are 10,836.93 and then 10,882.32.
The Nifty Bank index closed at 26,816.35, up 172.50 points on December 13. The important Pivot level, which will act as crucial support for the index, is placed at 26,709.52, followed by 26,602.68. On the upside, key resistance levels are placed at 26,937.32, followed by 27,058.28.
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 ends flat as nervous investors flock to defensive shares
The S&P 500 finished little changed after a volatile session on Thursday, as investors continued to be spooked by uncertainty on both domestic and international issues, driving up bids for defensive shares while financials and consumer discretionary stocks were the biggest drags.
The Dow Jones Industrial Average rose 70.11 points, or 0.29 percent, to 24,597.38, the S&P 500 lost 0.53 point, or 0.02 percent, to 2,650.54 and the Nasdaq Composite dropped 27.98 points, or 0.39 percent, to 7,070.33.
Asian shares wobbly, euro steady after ECB ends QE
Asian shares were on the defensive on Friday as investors kept a wary eye on economic tensions between Washington and Beijing while the euro was steady after the European Central Bank halted new bond purchases as expected.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3 percent while Japan’s Nikkei dropped 0.4 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 42 points or 0.39 percent. Nifty futures were trading around 10,784-level on the Singaporean Exchange.
New RBI Governor Shaktikanta Das to steer first central board meet today
The central board of the Reserve Bank of India (RBI) under new Governor Shaktikanta Das will meet on Friday where the directors are likely to push for greater say in the decision making of the central bank.
The meeting will review the progress with respect of some of the decisions taken in the last meet on November 19. Among other things, the crucial board meeting is expected to take a stock of Micro, Small & Medium Enterprises (MSMEs), which is under stress due to demonetisation and implementation of the Goods and Services Tax (GST).
According to sources, one of the key agenda for the upcoming board meeting will be governance issue -- the role of central board in the decision making of the RBI.
Oil prices edge up on hopes global supplies will tighten
Oil prices climbed more than 2 percent on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.
OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if top producers stick to the deal, the International Energy Agency said in its monthly Oil Market Report.
Brent crude settled $1.30, or 2.16 percent, higher at $61.45 per barrel while US light crude rose $1.43, or 2.8 percent, to end the session at $52.58 a barrel.
Rupee snaps 3-day losing streak, settles 33 paise higher at 71.68
The rupee snapped its three-day losing streak to end 33 paise higher at 71.68 against the US dollar on December 13 amid a weak greenback and softening oil prices. At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 71.70 against the US dollar and surged further to touch a high of 71.51 during the day.
The local unit finally ended at 71.68, higher by 33 paise over its previous closing price.
Govt mulls additional Rs 30,000 cr capital infusion in PSU banks
The government is considering additional capital infusion of up to Rs 30,000 crore in public sector banks as they have been unable to raise required funds from the markets, sources said.
As part of the capital infusion plan announced by the Finance Ministry in October 2017, the government envisaged that public sector banks (PSBs) would raise Rs 58,000 crore from the stock markets by March 2019 to meet Basel III norms.
Despite this relaxation, PSBs need more funds to meet global capital norms called Basel III as the RBI has retained the capital to risk weighted assets ratio (CRAR) at 9 percent, sources said, adding, the shortfall could be around Rs 30,000 crore.
Sebi eases norms for clubbing of investment limits by FPIs
Capital markets regulator Sebi on Thursday relaxed its norms for clubbing of investment limits by well regulated foreign investors. The move comes a day after the board of Sebi approved a proposal in this regard.
Under the new norm, multiple entities having common ownership, directly or indirectly, of more than 50 per cent will be treated as part of the same investor group and their investment limits would be clubbed, the regulator said in a circular.
Besides, the clubbing of investment limit would not be applicable in case of entities having common control, if the FPIs are appropriately regulated public retail funds.
Brokers to be placed in risk reduction mode from next week: NSE
To enhance risk management capabilities, the NSE has said trading members will be compulsorily placed in risk reduction mode when 90 percent of the members' capital is utilised towards margins.
The new framework will be effective from December 17, 2018, the National Stock Exchange (NSE) said in a circular. "Member shall be compulsorily placed in a risk reduction mode when 90 percent of the member's capital is utilised towards margins," it added.
The stock broker will be moved back to the normal risk management mode as and when the utilisation goes below 85 percent. In case a member moves into risk reduction mode, all the unexecuted orders would be cancelled, the exchange said.
HDFC to raise up to Rs 1,500 cr by issuing bonds
Mortgage lender HDFC will raise up to Rs 1,500 crore by issuing bonds on a private placement basis. The 'HDFC Series U-006 June 18, 2020' secured redeemable non-convertible debentures will open for subscription on December 17 and close the same day, HDFC said in a regulatory filing on December 13.
"The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue would be utilised for financing/refinancing the housing finance business requirements of the corporation," it said.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For December 14, 2018, Adani Enterprises and Adani Power are present in this list.
With inputs from Reuters & other agencies
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