Indian market witnessed profit-taking at higher levels to close flat on December 30 tracking muted trend seen in other Asian markets amid holiday season. Both Sensex and Nifty recovered losses to close on a mixed note.
The S&P BSE Sensex closes 17 points lower at 41,558 while the Nifty50 ended with gains of over 10 points t0 12,255. Sectorally, the action was seen in telecom, autos, metals, and healthcare stocks while profit-taking was recorded in IT, banks, and finance stocks.
Experts are of the view that the market is likely to remain rangebound in the absence of any major triggers, but smart money continues to flow into broader markets.
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 slip
Wall Street’s major stock indexes slipped from record highs on Monday as investors booked profits from gains made this month after the United States and China reached a trade deal.
Asian Markets slip
Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the United States and China reached a preliminary trade deal earlier this month.
Markets in Japan and South Korea were closed for a holiday.
Oil prices rise to three-month highs
Oil prices rose on Monday to three-month highs, lifted by optimism over an expected China-US trade deal and upbeat industrial data, while traders kept a close watch on the Middle East following US airstrikes in Iraq and Syria.
Trends on SGX Nifty indicate a negative opening for the broader indices in India. Around 07:45 hours IST, Nifty futures were trading 47 points, or 0.38 percent lower around 12,279.50-level on the Singaporean Exchange.
Rupee settles 4 paise higher at 71.31 against US dollar
The rupee appreciated by 4 paise to settle at 71.31 against the US currency amid the weakening of the US dollar in overseas markets even as crude oil prices surged. At the interbank foreign exchange market, the rupee opened at 71.36 against the US dollar. During the day, the domestic unit saw a high of 71.30 and a low of 71.39.
The domestic unit finally settled at 71.31, higher by 4 paise over the previous closing price. On Friday the rupee had settled at 71.35 against the American currency.
Govt might breach fiscal deficit target in FY20; need for fiscal stimulus rises: Report
The government might breach the fiscal deficit target this financial year amid a drop in the revenue mobilisation and expected additional expenditure by the government, says a report. According to Dun & Bradstreet's Economy Forecast, the need for fiscal stimulus has increased even as the government finances remain "strained".
"We expect that the drop in the revenue mobilisation of the government and likelihood of additional expenditure by the government might breach the fiscal deficit target in FY20," Dun & Bradstreet India Chief Economist Arun Singh said.
Commerce Ministry to review free trade agreements: Piyush Goyal
Commerce and Industry Minister Piyush Goyal on December 30 said his ministry will review all existing free trade agreements with different countries to protect interest of industry and traders. Addressing domestic traders here, he said India also decided to walk out from the Regional Comprehensive Economic Partnership (RCEP) agreement keeping in view the interest of small traders and dairy industry.
Goyal said that free trade agreements (FTAs) with countries like Japan, South Korea and Asean provided duty free access to Indian markets but domestic goods face barriers in these countries.
RBI releases draft norms on loan exposure limits for urban cooperative banks
The Reserve Bank of India (RBI) on December 30 released a draft circular on lending norms for Urban Cooperative Banks (UCBs). The circular stipulates limits for a single borrower and a group of connected borrowers to be at 10 percent and 25 percent, respectively, of their Tier-I capital and at least 50 percent of their loan portfolio shall comprise loans not more than Rs 25 lakh per borrower.
The draft also stipulates that the target for loans and advances to the priority sector for UCBs shall stand increased to 75 percent of adjusted net bank credit or credit equivalent amount of off-balance sheet exposure, whichever is higher, by March 31, 2023.
RBI buys Rs 10,000cr worth long-term govt securities in 2nd special OMO
In the second special open market operation (OMO), the Reserve Bank of India on Monday bought Rs 10,000 crore of long-term government securities and sold Rs 8,501 crore of three short-term bonds. The RBI had announced to purchase and sell simultaneously government securities under Open Market Operations (OMO) for Rs 10,000 crore each, last week.
Though RBI offered to sell four securities in the auction, it accepted bids for three bids only. In the OMO purchase of 6.45 percent GS 2029, the 10- year benchmark security, the RBI received Rs 25,698 crore worth of bids from the participants but accepted Rs 10,000 crore of bids.
12 firms to list commercial papers on BSE for Rs 8,215 cr issue size
As many as 12 companies have filed applications with the BSE to list their commercial papers on the bourse for a total issue size of Rs 8,215 crore, the exchange said on December 30.
The firms that have made applications are SBI Cards and Payment Services Ltd, Birla Group Holdings Pvt Ltd, National Housing Bank, Aditya Birla Capital Ltd, Larsen & Toubro Ltd, SBI Cards and Payment Services Ltd, BASF India Ltd, The Ramco Cements Ltd, Aarti Industries Ltd, HT Media Ltd, GIC Housing Finance Ltd and Himadri Speciality Chemical Ltd.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 130.52 crore, while domestic institutional investors (DIIs), bought shares of worth Rs 201.32 crore in the Indian equity market on December 30, provisional data available on the NSE showed.With inputs from Reuters & other agencies