Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 17.5 points loss or 0.14 percent.
Investor risk appetite remained low as lower than expected auto sales, weak core sector output and GDP data raised concerns over the health of the domestic economy. All eyes are now on the RBI's monetary policy meet outcome on December 5.
The BSE Sensex closed 8 points up at 40,802 and the Nifty50 index slipped 8 points to 12,048. Among secondary barometers, the BSE Midcap index lost 0.77 percent while the BSE Smallcap index declined 0.39 percent, underperforming the Sensex.
On the technical front, experts said near-term critical support for Nifty is placed around 13-day exponential moving average whose supporting value for the next trading session is placed around 12,006.
According to the pivot charts, key support level for Nifty is placed at 12,002.2, followed by 11,956.2. If the index moves up, key resistance levels to watch out for are 12,115.7 and 12,183.2.
Nifty Bank closed 0.23 percent down at 31,871.45. The important pivot level, which will act as crucial support for the index, is placed at 31,719.97, followed by 31,568.53. On the upside, key resistance levels are placed at 32,023.47 and 32,175.53.
Stay tuned to Moneycontrol to find out what happens in 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 stepped back from last week’s record highs on Monday, with weak US manufacturing data and fresh trade worries keeping buyers on the sidelines.
The Dow Jones Industrial Average fell 267.35 points, or 0.95%, to 27,784.06, the S&P 500 lost 27 points, or 0.86%, to 3,113.98 and the Nasdaq Composite dropped 97.48 points, or 1.12%, to 8,567.99.
Asian shares skidded on Tuesday after US President Donald Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions, while weak US factory data added to the investor gloom.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.45% in early trade, with Australian shares dropping nearly 2%, on track for their worst day in two months. Japan’s Nikkei shed 1.1%.
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 17.5 points loss or 0.14 percent. The Nifty futures were trading around 12,074-level on the Singaporean Exchange.
Trump slaps metal tariffs on Brazil, Argentina
US President Donald Trump ambushed Brazil and Argentina on Monday, announcing tariffs on US steel and aluminum imports from the two countries in a measure that shocked South American officials and left them scrambling for answers.
In an early morning tweet, Trump said the tariffs, “effective immediately,” were necessary because “Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers.”
Oil gains boosted by hope of OPEC+ supply cuts, China manufacturing data
Oil futures gained more than 1 percent on hints that OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.
Brent futures for the most active contract for February delivery gained 0.7%, or 43 cents, to settle at USD 60.92 a barrel. US West Texas Intermediate (WTI) crude rose 1.4% to settle at USD 55.96 a barrel.
Rupee settles 8 paise higher at 71.66 a dollar
The Indian rupee on December 2 settled 8 paise higher at 71.66 against the US dollar amid participants hoping Reserve Bank will go for another rate cut in the ensuing RBI policy review meet this week. Forex traders said the domestic currency opened weak as investors traded cautiously after India's Q2 GDP growth dipped to an over six-yr low of 4.5 percent, but during the day, the local unit gathered strength anticipating further easing in key rates to boost the slowing economy.
At the interbank foreign exchange, the rupee opened weak at 71.78 a dollar but soon gathered strength to touch a high of 71.62 before finally settling at 71.66, up 8 paise over its last closing.
RBI Policy: MPC likely to cut repo rate by 25 basis points on growth concerns
The Monetary Policy Committee (MPC) scheduled to meet from December 3-5 is expected to continue on the path of interest rate easing in order to support the country's weakening economic growth. The Reserve Bank of India (RBI) is also expected to cut its GDP growth estimates in light of second-quarter data released last week. The central bank had cut this year's GDP growth estimate by 80 basis points in the previous policy review to 6.1 percent.
The dismal GDP growth in July-September quarter, read in line with the MPC's decision to stay accommodative for "as long as it is necessary to revive growth" from October policy review, makes a case for the sixth consecutive rate cut this year.
Gross direct tax collection rises by 5% till Nov: FM Sitharaman
Gross direct tax collection increased by 5 percent till November, Finance Minister Nirmala Sitharaman said on December 2 as she allayed fears of corporate tax reduction impacting revenue collection. Replying to a debate on Taxation Law Amendment Bill, 2019 in the Lok Sabha, the minister categorically said there is no decrease in direct tax collection.
In fact, there is an increase of 5 per cent in the gross direct tax collection till November this fiscal, she said. Historically, maximum collection of direct taxes happens in the last quarter of the fiscal, she added. The main objective of the reduction in corporate tax was aimed at attracting fresh investment in the manufacturing sector.
EPFO's investment in ETFs at Rs 86,966 cr till Sept
Retirement fund body EPFO has invested Rs 86,966 crore in exchange traded funds (ETFs) till September 2019, Parliament was informed on Monday. The EPFO has been investing in ETFs since August 2015. Initially, the body decided to invest 5 percent of its investible deposits into stock markets. Later, the proportion was increased to 10 percent in 2016-17 and 15 percent in 2017-18 and onwards.
The Employees' Provident Fund Organisation (EPFO) is investing in ETFs based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices. "The total amount invested by EPFO in ETFs as on September 30, 2019 is Rs 86,966 crore. The Central Board of Trustees (CBT), Employees' Provident Fund (EPF) in its 207th meeting held on March, 31, 2015 decided to invest only in ETFs in the category of equity and related investments," Labour Minister Santosh Gangwar said in a written reply to the Lok Sabha.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,731.33 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 753.99 crore in the Indian equity market on December 2, provisional data available on the NSE showed.With inputs from Reuters & other agenciesLIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.