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Last Updated : Jan 07, 2020 08:10 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 68 points gain or 0.56 percent. The Nifty futures were trading around 12,116-level on the Singaporean Exchange.


The Indian market is expected to open with a positive bias on January 7, following positive trend seen in other Asian markets.

After falling by about 800-points on the S&P BSE Sensex, things could well stabalise for Indian markets. The Nifty50 could reclaim 12,000-12,050 levels in the morning trade.

The S&P BSE Sensex plunged nearly 800 points on January 6 to register its biggest single-day fall in a year while Nifty50 breached 12,000 to post its biggest one-day fall in six months. Volatility index surged over 16 percent, the biggest single-day gain in a year.

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Rising Middle-East tensions wiped out almost Rs 3 lakh crore in terms of market wealth, pushed crude oil prices towards $70/bbl, and rupee to its lowest level since November 14.

Let’s look at the final tally on January 6 on D-Street – the S&P BSE Sensex plunged 787 points to 40,676 while the Nifty50 dropped 233 points to 11,993.

Sectorally, profit-taking was seen in metals, the public sector, realty, banks, energy and oil & Gas.

Broader markets underperformed as the S&P BSE Midcap index was down 2.3 percent while the S&P BSE Smallcap index fell 1.96 percent.

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:

The US markets closed higher on January 6, rebounding from losses on January 3 as investors brushed aside worries about increased tensions in the Middle East and shares of Alphabet and other internet names gained, said a Reuters report.

The Dow Jones Industrial Average rose 68.5 points to 28,703.38, the S&P 500 gained 11.43 points to 3,246.28, and the Nasdaq Composite added 50.70 points to 9,071.47.

Asian Markets:

Asian shares rebounded on January 7 as a day passed without a new escalation in the Middle East and Wall Street erased early losses to end in the black as tech stocks climbed, said a Reuters report.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 percent, after a 0.7 percent drop in the previous session. Japan’s Nikkei edged up 0.5 percent and South Korea 0.6 percent.

SGXNifty:

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 68 points gain or 0.56 percent. The Nifty futures were trading around 12,116-level on the Singaporean Exchange.

India gold prices hit record high:

Gold prices in India jumped over 2 percent on January 6 to record levels amid a rush to invest in safe-haven assets globally as well as a steep fall in the rupee, dampening demand for the precious metal in the world’s second-biggest consumer, said a Reuters report.

Gold futures hit an all-time high of 41,096 rupees ($570.05) per 10 grams, taking their gains to more than 5 percent in 2020 after rallying nearly 25 percent in 2019.

Oil steadies as market ponders Iran's next move:

Oil prices steadied on January 6 after Brent touched above $70 a barrel on rhetoric from the United States, Iran and Iraq that fanned tensions in the Middle East after a US airstrike had killed a top Iranian military commander, said a Reuters report.

Brent crude futures settled at $68.91 a barrel, up 31 cents, after soaring to a high of $70.74 a barrel from the settlement on January 3.

Japan December services sector shrinks:

Japan’s services sector saw its deepest contraction in more than three years in December as business activity took a hit from weak demand at home and abroad, a private survey showed on Tuesday, said a Reuters report.

The final seasonally adjusted Jibun Bank Japan Services Purchasing Managers’ Index (PMI) fell to 49.4 in December from 50.3 in November, declining to its lowest level since September 2016.

RBI tightens supervisory action framework for Urban Cooperative Banks:

The Reserve Bank of India (RBI) revised the Supervisory Action Framework (SAF) for Urban Cooperative Banks (UCBs) on January 6, with triggers more stringent than before, in order to take corrective action against weak banks.

The SAF, if implemented in a timely manner, may help cooperative banks improve their financial conditions and avert restrictions on basic services like deposit withdrawals that are imposed by the regulator as a last resort.

NSE, NCDEX explore merger:

The National Stock Exchange (NSE) and the National Commodity and Derivatives Exchange (NCDEX) have started preliminary talks on a possible merger.

NCDEX, which is losing money, is looking at the merger option to remain with the exchange. At present, NSE has 15 percent stake in NCDEX, which focuses on agri commodities.

Rupee slips 13 paise to 71.93 against US dollar

The rupee plunged 13 paise to settle at 71.93 against the US currency on January 6, mainly weighed down by the spike in global crude oil prices as escalating US-Iran tensions fanned fresh fears of conflict in the Middle East

At the interbank foreign exchange, the rupee opened weak at 72.03 against the US dollar. During the day, the domestic unit touched a low of 72.11.

Institutional Activity:

On the institutional front, FPIs were net sellers in Indian markets for Rs 103 cr while the DIIs were net sellers to the tune of Rs 23 cr, provisional data showed.

Note: With inputs from Reuters, PTI & other agencies


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First Published on Jan 7, 2020 08:10 am
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