Moneycontrol News
Benchmark indices closed the last session of the truncated week ended November 22 on a negative note. Indices declined for three consecutive days until Thursday ahead of the expiry of November futures and options contracts.
The Nifty 50 lost around 250 points from its recent swing high of 10,774 to move near 10,500. The index shed 73.20 points to close at 10,526.80 and the 30-share BSE Sensex ended below 35,000, down 218.78 points at 34,981.02 despite a sharp appreciation in the rupee and the fall in crude oil prices.
The rupee gained 219 paise against the US dollar in last seven consecutive sessions while crude oil prices plunged 27 percent since October 3, 2018, to trade around $63 a barrel.
All sectoral indices closed in the red on Thursday with Nifty Bank falling a percent and metal declining 1.77 percent. The broader indices also traded in line with frontliners with the Nifty Midcap index falling 0.91 percent.
The index is expected to be volatile in the coming week ahead of the expiry of November F&O contracts due next Thursday, experts said, adding the 10,500 could be crucial levels for bulls.
According to Pivot charts, the key support level is placed at 10,479.47, followed by 10,434.43. If the index starts moving upwards, key resistance levels to watch out are 10,607.87 and then 10,691.23.
The Nifty Bank index closed at 25,999.45, down 262.60 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 25,881.04, followed by 25,762.87. On the upside, key resistance levels are placed at 26,220.64, followed by 26,442.07.
Wall Street drops, S&P 500 confirms correction
US stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018. The three major US indexes all fell well over 3 percent for the week, with the Dow industrials and the Nasdaq posting their biggest weekly percentage declines since March.
The Dow Jones Industrial Average fell 178.74 points, or 0.73 percent, to 24,285.95, the S&P 500 lost 17.37 points, or 0.66 percent, to 2,632.56 and the Nasdaq Composite dropped 33.27 points, or 0.48 percent, to 6,938.98.
Asian shares on defensive as plunging oil prices fan growth worries
Asian shares were on a slippery slope on Monday as plunging oil prices fanned worries about a dimming outlook for the global economy as investors brace for a crucial meeting between U.S. and Chinese leaders at the end of week.
MSCI's broadest index of Asia-Pacific shares outside Japan was down slightly while Japan's Nikkei posted gains of 0.2 percent after initial losses.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 17 points or 0.16 percent. Nifty futures were trading around 10,572-level on the Singaporean Exchange.
Oil prices edge up after nearly 8% 'Black Friday' plunge
Oil prices won back some ground after hefty losses on Friday, but remained under pressure with Brent crude below $60 per barrel amid weak fundamentals and struggling financial markets.
Front-month Brent crude oil futures were at $59.20 per barrel at 0049 GMT, up 40 cents, or 0.7 percent, from their last close. US West Texas Intermediate (WTI) crude futures were up 16 cents, or 0.3 percent, at $50.58 per barrel.
RBI may hold the rates baton till March: DBS report
The Reserve Bank will hold the rates for the remainder of the fiscal year ending March 2019 and is likely to go for "measured hikes" in FY20 as inflation inches up, Singaporean lender DBS has said. Decision on rates will be majorly influenced by the movement in oil prices and also the currency, which were termed as "wildcards" by its house economists.
In a report that comes days after the headline inflation print eased to a surprising 3.31 per cent for October, the lender lowered its consumer price inflation (CPI) expectations for FY19 to 4 per cent from 4.4 per cent earlier. It said the price rise scenario will go up to 4.2 per cent for FY20, which may prompt the RBI to go in for a hike.
FPIs turn positive, pump in Rs 6,310 cr in Nov so far
Foreign investors have pumped in Rs 6,310 crore into Indian capital markets this month so far, after pulling out massive funds in October, on easing crude oil prices and a strengthening rupee. Of these, most of the funds were infused in the debt market by foreign portfolio investors (FPIs), the latest data with depositories showed.
Overseas investors infused Rs 923 crore in the equity market during November 1-22, and Rs 5,387 crore in the debt market, taking the total to Rs 6,310 crore (USD 862 million), the data showed.
Forex reserves up by $568.9 mn to $393.58 bn
The country's foreign exchange reserves rose by USD 568.9 million to USD 393.580 billion in the week to November 16, mainly due to a spurt in foreign currency assets, according to RBI data. In the previous week, reserves had declined by USD 121.2 million to USD 393.01 billion.
In the reporting week, foreign currency assets, a major component of overall reserves, increased by USD 506 million to USD 368.541 billion, as per the RBI data. Forex reserves had touched a record high of USD 426.028 billion in the week to April 13, 2018. Since then, the forex kitty has been on a slide and is now down by over USD 31 billion.
Bank credit grows by 14.88%, deposits by 9.13%
Bank credit rose by 14.88 percent to Rs 91.11 lakh crore in the fortnight ended November 9, while deposits grew by 9.13 percent to Rs 118.25 lakh crore, according to the RBI data.
In the year-ago fortnight, bank advances stood at Rs 79.31 lakh crore, while deposits at Rs 108.35 lakh crore. Bank loans to the services sector expanded by 24 percent, compared with 7 percent in September 2017. Personal loans rose by 15.1 percent in the month, against 16.8 percent last year.
CAD may narrow to 2.6% of GDP in FY19 on falling crude: Report
Following decline in oil prices, the country's current account deficit (CAD) is expected to touch 2.6 percent of GDP in the current fiscal against an earlier expectation of 2.8 per cent, a report said. Fiscal deficit in first half of FY19 has already reached 95.3 per cent of full-year budget estimates (BE).
Total receipts for the six months period is Rs 7.09 lakh crore (39 percent of BE) and the total expenditure is estimated at Rs 13.04 lakh crore (53.4 percent of BE). "The recent decline in oil prices might compress the CAD by around USD 5-6 billion from our estimates of USD 78 billion. This will imply CAD settling down at 2.6 percent of GDP (previously 2.8 percent of GDP)," according to a SBI Research report.
Rupee closes near 3-month high, up 76 paise against US dollar
The Indian rupee extended its winning streak for seventh consecutive session on Thursday amid consistent correction in crude oil prices, to close near three-month high. Weakness in dollar against some currencies, increased selling of the greenback by exporters & banks, and persistent foreign fund inflows also supported the rupee.
The rupee closed at 70.69 to the dollar, the highest level since August 29, 2018, up 76 paise compared to previous day's closing levels.
4 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
For November 26, 2018, Adani Enterprises, Adani Power, DHFL and Jet Airways are present in this list.
With inputs from Reuters & other agencies
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
