Sensex and Nifty ended with losses of about 0.7 percent each, with IT, FMCG, metal and PSU banks falling the most.
According to the pivot charts, the key support level for Nifty is placed at 11,816.6, followed by 11,776.4. If the index moves up, key resistance levels to watch out for are 11,925.1 and 11,993.4.
Nifty Bank closed 0.50 percent down at 31,160.35. The important pivot level, which will act as crucial support for the index, is placed at 31,053.27, followed by 30,946.23. On the upside, key resistance levels are placed at 31,340.07 and 31,519.83.
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:
US Markets
Wall Street’s main stock indexes ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of US tariffs on Chinese goods would take effect on December 15, a potential turning point in a trade dispute between the world’s two largest economies that has convulsed markets.
The Dow Jones Industrial Average fell 27.88 points, or 0.1%, to 27,881.72, the S&P 500 lost 3.44 points, or 0.11%, to 3,132.52 and the Nasdaq Composite dropped 5.64 points, or 0.07%, to 8,616.18.
Asian Markets
Asian stocks flatlined on Wednesday as Sino-US trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race knocked the pound.
MSCI’s broadest index of Asia-Pacific shares outside Japan barely budged. Japan’s Nikkei ticked lower after White House trade adviser Peter Navarro said a decision on the December 15 tariffs would come soon, also knocking modest early gains off Australia’s S&P/ASX 200.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 8.5 points gain or 0.07 percent. The Nifty futures were trading around 11,915-level on the Singaporean Exchange.
ADB cuts growth views for China, developing Asia as trade war bites
The Asian Development Bank (ADB) said on Wednesday it has lowered its growth forecasts for developing Asia this year and the next, as a weaker outlook for China and India indicated softer economic activity elsewhere in the region.
The bank trimmed its growth forecast for developing Asia to 5.2% in 2019 and 2020, the Manila-based lender said in an updated annual outlook report, from 5.4% and 5.5% previously.
It cut its growth estimates for China for this year and the next to 6.1% and 5.8%, respectively, from the 6.2% and 6.0% forecasts announced in September, on the US-Sino trade tensions and as higher prices of pork cut into consumer spending.
Oil prices slip on surprise US crude inventory build
Oil prices fell on Wednesday after industry data showed a surprise build in crude oil inventory in the United States and as investors waited for news on whether a fresh round of US tariffs on Chinese goods would take effect on Sunday.
Brent futures fell by 37 cents, or 0.6%, to $63.97 per barrel by 0121 GMT. US West Texas Intermediate crude slipped by 30 cents, or 0.5%, to $58.94 a barrel.
Rupee settles 12 paise up at 70.92 against US dollar
The rupee settled 12 paise higher at 70.92 against the US dollar on Tuesday amid softening crude oil prices and weakening of the greenback vis-a-vis major global currencies. Forex traders said the Indian rupee gained ground on the back of foreign fund inflows, stable crude oil price and a weaker dollar index. However, muted domestic equity markets weighed on the local unit.
At the interbank foreign exchange market, the rupee opened at 70.98 against the US dollar. During the day, the domestic unit fluctuated between a high of 70.85 and a low of 71.04 and finally ended the day at 70.92 against the US dollar.
China sees US postponing its December 15 tariff threat as talks drag out
Chinese officials expect the US will delay a threatened tariff increase set for Sunday as both sides focus on de-escalating tensions by cutting import taxes currently in place rather than removing specific products from the target list, according to people familiar with the matter.
Beijing sees the removal of the 15 December threat enabling talks to continue on the unfinished items in phase-one of the accord, two officials said on condition on anonymity because the conversations are private. While the Trump administration has yet to announce any postponement, agriculture secretary Sonny Perdue said Monday that he believed there will be “some backing away", Bloomberg reported.
Sebi provides relaxation on group exposure limit for MFs
Debt-oriented mutual fund schemes that have more than 10 per cent exposure to their sponsors' group companies before October 1 have been allowed to continue with such investments till respective maturity dates. Markets regulator Sebi's decision to provide such an exemption comes against the backdrop of debt-oriented mutual funds having a cap of 10 percent in terms of their exposure to group firms of sponsors as well as asset management companies.
In the latest circular, Sebi said "the investments of mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the asset management company of the mutual fund in excess of the limits specified therein, made on or before October 1, 2019 may be grandfathered till maturity date of such instruments".
Non-compliance of govt directives by CPSEs led to shortfall of Rs 9,417 cr in dividend: CAG
Non-compliance of the government's directive with regard to dividend declaration by 53 CPSEs resulted in a shortfall of Rs 9,417.75 crore to the exchequer in 2017-18, according to a CAG report tabled in Parliament on December 10.
As per the norms, all profit-making central public sector undertakings (CPSUs) are required to declare a minimum dividend on equity of 20 per cent or a minimum dividend payout of 20 per cent of after-tax profit, whichever is higher, subject to availability of disposable profits.
However, the government as majority shareholder could seek higher dividend from public sector undertakings (PSUs) with large disposable profits or healthy cash reserves. A higher or special dividend may also be considered.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 366.79 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 338.4 crore in the Indian equity market on December 10, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
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