The BSE Sensex fell 71 points, or 0.17 percent, to 40,939 while the Nifty 50 closed with losses of 33 points, or 0.27 percent, at 12,054. BSE Midcap and Smallcap closed with losses of 0.46 percent and 0.20 percent, respectively.
A long negative candle was formed today with a gap up opening, which indicates the formation of the dark cloud cover type candle pattern. Technically, the formation of such a pattern at the swing highs or near the hurdles could indicate further weakness in the market ahead.
According to the pivot charts, the key support level for Nifty is placed at 12,021.97, followed by 11,989.93. If the index moves up, key resistance levels to watch out for are 12,110.37 and 12,166.73.
Nifty Bank closed 0.13 percent down at 31,974.20. The important pivot level, which will act as crucial support for the index, is placed at 31,852.37, followed by 31,730.54. On the upside, key resistance levels are placed at 32,141.47 and 32,308.73.
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 notched a fresh record high on Monday as investor confidence was boosted by upbeat data from China, while cooling trade tensions between the world’s two biggest economies removed one of the hurdles for global economic growth.
Dow Jones Industrial Average was up 197.85 points, or 0.70%, at 28,333.23, the S&P 500 was up 26.19 points, or 0.83%, at 3,194.99 and the Nasdaq Composite was up 86.77 points, or 0.99%, at 8,821.65.
Asian Markets
Asian shares gained on Tuesday, but a lack of detail about the Sino-US trade deal tempered some of the exuberance that sent Wall Street to record highs overnight, while familiar fears of a hard Brexit knocked the pound.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%. Japan's Nikkei rose half a percent to its highest in more than year. Australia's S&P/ASX 200 eked a tiny extension to Monday's big gains.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 38 points gain or 0.31 percent. The Nifty futures were trading around 12,108-level on the Singaporean Exchange.
Oil rises on US-China trade hopes, still below 3-month highs
Oil prices rose slightly Monday on hopes energy demand will benefit from the trade deal between the United States and China announced last week, but prices remained below the previous session’s three-month highs.
Brent crude oil futures settled up 12 cents, or 0.2%, at $65.34 a barrel, a session after hitting their highest since September 17 at $65.79. West Texas Intermediate crude settled up 14 cents, or 0.2%, at $60.21 a barrel.
Rupee settles 17 paise down at 71 vs US dollar
The rupee reversed all its early gains and settled 17 paise down at 71.00 against the US currency on December 16, following rising crude oil prices and fag-end selling in domestic equities. Forex traders said the rupee ended the day in the negative territory after inflows related to Essar steel got completed.
At the interbank foreign exchange market, the rupee had opened at 70.80 against the US dollar. Later, the local unit lost ground and fell to the day's low of 71.03.
Moody’s cuts India GDP growth forecast for FY20, citing weak consumption
Global ratings agency Moody's Investors Service has lowered India’s gross domestic product growth projection for the fiscal year 2019-20 to 4.9 percent from 5.8 percent, saying that weak household consumption will curb economic growth and weigh on the credit quality.
"What was once an investment-led slowdown has now broadened into weakening consumption, driven by financial stress among rural households on the back of stagnating agricultural wage growth and constrained productivity, as well as weak job creation due to rigid land and labor laws," said Deborah Tan, a Moody's Assistant Vice President and Analyst.
India's GDP growth declined for the third straight quarter to an over six-year low of 4.5 percent for the second-quarter ended September 30, down from 5 percent recorded in the Q1FY20.
Insolvency law to have positive impact on debt mkt: Sebi
Sebi Chairman Ajay Tyagi on December 16 expressed hope that positive impact of the insolvency law will be visible on the domestic corporate debt market in five years. Describing the Insolvency and Bankruptcy Code (IBC) as a "landmark reform" in the country's economic history, Tyagi said the Code has brought in behavioural changes among corporate debtors.
AMCs can provide management, advisory services to appropriately regulated FPIs: Sebi
Markets regulator Sebi on December 16 allowed asset management companies (AMCs) to provide management and advisory services to appropriately regulated foreign portfolio investors (FPIs), that include pension funds, insurance company and banks.
Further, AMCs can provide such services to government and government related investors such as central banks, sovereign wealth funds, international or multilateral organisations or agencies, including entities controlled or at least 75 percent directly or indirectly owned by such government and government related investors.
Morgan Stanley expects MSCI India's weight to rise about 70 bps in May review
Global brokerage house Morgan Stanley expects MSCI India's weight to rise about 70 bps in May 2020 review after Finance Minister Nirmala Sitharaman said that FPI limit hike will be implemented from April 1, 2020. According to the brokerage, the increase in India weightage will lead to a passive flow of $2.5 billion.
Equitas Small Finance Bank files IPO papers with SEBI, likely to raise Rs 1,000 cr
Equitas Small Finance Bank, a subsidiary of Equitas Holdings, on December 16 filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The IPO will comprise of a fresh issue aggregating up to Rs 550 crore and an offer for sale of up to eight crore equity shares by Equitas Holdings. The offer includes a reservation of up to Rs 100 crore, for subscription by eligible shareholders of Equitas Holdings and a reservation aggregating up to Rs 5 crore for subscription by eligible employees, the release said.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 728.13 crore, while domestic institutional investors (DIIs) sold shares of worth Rs 796.38 crore in the Indian equity market on December 16, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Yes Bank is under the F&O ban for December 17. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies
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