Moneycontrol
Last Updated : Dec 07, 2018 07:40 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? 12 things you should know

A list of important headlines from across news agencies that could help in your trade today.

Sandip Das @Im_Sandip1

Nervousness ahead of exit polls and results of five state elections and consistent global weakness spooked markets on December 6. The Nifty fell below 10,600 level and the Sensex shed over 600 points intraday. The rupee's depreciation by 43 paise against the US dollar also dented market sentiment.

The exit poll of state elections will be announced on the evening of December 7 immediately after the voting in Rajasthan and Telangana. Final results will be declared on December 11.

The cautious trend is expected to continue ahead of elections results, experts said, adding if the Nifty index closes below 10,500 in coming sessions, then there could be a further correction.

The Nifty50 after a sharp gap-down opening extended losses as the day progressed and fell below 10,600 levels to hit an intraday low of 10,588.25. The index closed 181.70 points or 1.69 percent lower at 10,601.20, forming bearish candle on the daily charts.

India VIX has moved up by 5.62 percent to 19.42 levels. The VIX is not ready to cool down and its hovering at a higher band suggests restricted upside and volatile swings in the market, experts said.

According to Pivot charts, the key support level is placed at 10,552.03, followed by 10,502.87. If the index starts moving upward, key resistance levels to watch out are 10,686.53 and then 10,771.87.

The Nifty Bank index closed at 26,198.30, down 321.30 points on December 6. The important Pivot level, which will act as crucial support for the index, is placed at 26,111.83, followed by 26,025.37. On the upside, key resistance levels are placed at 26,322.33, followed by 26,446.37.

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.

S&P 500, Dow slip on trade worries, but end off of lows

The S&P 500 and Dow industrials ended slightly negative but well above their session lows in volatile trading on Thursday as the arrest of a Chinese technology executive fanned fears of US-China tensions over trade, while some beaten-up big technology and internet shares posted gains.

The Dow Jones Industrial Average fell 79.4 points, or 0.32 percent, to 24,947.67, the S&P 500 lost 4.11 points, or 0.15 percent, to 2,695.95 and the Nasdaq Composite added 29.83 points, or 0.42 percent, to 7,188.26.

Battered Asia shares try to rally on talk of Fed pause

Asian share markets tried to find their footing on Friday as speculation the Federal Reserve might be “one-and-done” with US rate hikes helped salve some wounds after a punishing week.

MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.l3 percent, though that followed a 1.8 percent drubbing on Thursday. Japan’s Nikkei added 0.9 percent and E-Mini futures for the S&P 500 edged up 0.1 percent.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 51 points or 0.48 percent. Nifty futures were trading around 10,675-level on the Singaporean Exchange.

Oil firms on drop in US crude stocks

US oil prices stabilised on Friday, buoyed by a fall in US crude oil inventories, but sentiment remained weak as producer group OPEC postponed a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia.

US West Texas Intermediate (WTI) crude futures were at $51.61 per barrel at 0037 GMT, 12 cents above their last close. WTI was supported by drop in US commercial crude inventories which fell by 7.3 million barrels in the week to November 30, to 443.16 million barrels. International Brent crude oil futures had yet to trade.

Rupee drops 44 paise to 70.90 against US Dollar               

The rupee depreciated by 44 paise to close at 70.90 against the US dollar on December 6 amid a strengthening greenback and sharp decline in equity markets.

The dollar and yen rose on safe-haven buying after the arrest of a top executive of Chinese telecom giant Huawei in Canada for suspected Iran sanctions violations renewed concerns over US-China relations. After opening lower at 70.82, the rupee plunged to the day's low of 71.14 and finally settled for the day at 70.90, down 44 paise over its previous closing price.

OPEC expected to cut oil production to support price

OPEC countries were meeting to find a way to support the falling price of oil, with analysts predicting the cartel and some key allies, like Russia, would agree to cut production by at least 1 million barrels per day. Crude prices have been falling since October because countries like the US and Saudi Arabia are producing at high rates and due to fears that weaker economic growth would dampen energy demand.

The price of both benchmark US crude and the standard for internationally traded oil fell 22 percent in November.

India inks pact with Iran to pay crude bill in rupee

India has signed an agreement with Iran to pay for crude oil it imports from the Persian Gulf nation in rupees, sources in know of the development said. The memorandum of understanding (MoU) was signed following the US letting India and seven other nations to keep buying Iranian oil despite sanctions were reimposed on the Islamic state on November 5.

Sources said Indian refiners will make rupee payments in a UCO Bank account of the National Iranian Oil Co. Under the 180-day exemption, India is allowed to import a maximum of 300,000 barrels a day of crude oil. This compares to an average daily import of about 560,000 barrels this year.

PE/VC investments in Jan-Nov totals $27 bn

The private equity (PE)/ venture capital (VC) investments between January to November 2018 aggregates to $27 billion, surpassing the high of $26.1 billion recorded in entire 2017. November recorded $1.6 billion in PE/VC investments, 33 percent lower compared to November 2017 and 49 percent lower compared to the previous month.

"The decline was mainly on account of fewer large deals (greater than $100 million) with November 2018 recording only five large deals aggregating $950 million compared to nine large deals worth $1.8 billion in November 2017 and six large deals worth $2.5 billion in October 2018," according to an EY report.

Total individual wealth to hit Rs 518 lakh crore in 5 yrs: Report

The total wealth held by individuals in the country is expected to touch Rs 517.88 lakh crore by FY23, growing at an annual rate of 16.99 percent, according to a report.

Direct equity and mutual funds are expected to be the growth drivers of this northward trend, growing at a CAGR of 24.41 percent and 21.04 percent, respectively, over the next five years, the report named 'India Wealth Report 2018' by Karvy Private Wealth said.

Karvy Private Wealth chief executive officer Abhijit Bhave said the coming five to seven years are expected to be the time for equity as an asset class and investors can possibly treble their wealth in equities. Individual wealth in the country grew by 14.02 percent year-on-year to touch Rs 392 lakh crore in FY18, according to the report.

Uniparts India files IPO papers with Sebi

Uniparts India, manufacturer of engineering systems and solutions, has filed draft papers with markets regulator Sebi to float an initial public offering. The IPO comprises fresh issuance of shares worth Rs 100 crore besides an offer for sale of 1,30,60,770 stocks by existing shareholders, according to the draft red herring prospectus (DRHP).

Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets will manage the company's public issue.

MSE gets SEBI approval for weekly options on currency products

Metropolitan Stock Exchange (MSE) on December 6 said it has received market regulator SEBI's approval to launch weekly options on US dollar-Indian rupee (USD-INR) and other new currency products. The move will enable market participants to reduce their cost of hedging significantly.

These new products will be available on the MSE platform from the first week of December, the exchange said in a statement. Besides, MSE has been allowed by Securities and Exchange Board of India (SEBI) to introduce monthly options contracts on currency pairs of EUR-INR, GBP-INR and JPY-INR.

Govt sells 2.21% stake in Coal India to CPSE ETF

The government has sold 2.21 per cent stake in state-owned CIL to the CPSE ETF which is managed by Reliance Nippon Life Asset Management Ltd, according to a regulatory filing.“The President of India, acting through the Ministry of Coal...has sold 13,73,11,943 i.e. 2.21 percent equity shares of Coal India Ltd to the AMC,” Coal India (CIL) said in a filing to BSE Thursday.

Coal India accounts for over 80 per cent of domestic coal production. “Post-acquisition holding of promoter is 72.92 percent of equity share capital of the company,” the filing said.

Cabinet approves sale of govt stake in REC to PFC, agriculture export policy

In the second merger of public sector undertakings under this government, the Cabinet Committee on Economic Affairs (CCEA) on Thursday approved sale of the government's 52.63 percent stake in REC Ltd to Power Finance Corporation for an estimated Rs 15,000 crore.

"The CCEA gave in principle approval for strategic sale of the Government of India's existing 52.63 percent of total paid up equity shareholding in REC Ltd to Power Finance Corporation along with transfer of management control," Finance Minister Arun Jaitley said at a press conference after the Cabinet meeting here.

"By these methods, CPSEs can be integrated across the value chain of an industry. It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders," he had said.

With inputs from Reuters & other agencies
First Published on Dec 7, 2018 07:40 am
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