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Last Updated : Nov 17, 2020 07:48 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 start with Nifty futures trading 74 points higher.

The Indian stock market is expected to open in the green following positive global cues. Trends on SGX Nifty indicate a positive start with Nifty futures trading 74 points higher at 07:30 hours.

The BSE Sensex rose 194.98 points to 43,637.98 on November 14 while the Nifty50 was up 60.30 points at 12,780.30. According to pivot charts, the key support levels for the Nifty is placed at 12,743.57, followed by 12,706.93. If the index moves up, the key resistance levels to watch out for are 12,822.77 and 12,865.33.

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:

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US Markets

Wall Street jumped on Friday as encouraging earnings stoked risk appetite and President-elect Joe Biden's COVID advisory team said it was not considering a nationwide shutdown, but oil prices slid as Libyan output rose and investors worried the resurgent pandemic could hurt global demand.

The Dow Jones Industrial Average rose 399.64 points, or 1.37%, to 29,479.81, the S&P 500 gained 48.14 points, or 1.36%, to 3,585.15 and the Nasdaq Composite added 119.70 points, or 1.02%, to 11,829.29.

Asian Markets

Asian stocks opened firmer on November 17 after the S&P 500 and Dow Jones indexes hit record highs on news of another promising coronavirus vaccine, which supported hopes of a quicker economic recovery.

Australia's S&P/ASX 200 rose 0.6% in early trading, while Hong Kong's Hang Seng index futures gained 0.27%. Japan's Nikkei 225 climbed 0.5%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India tracking positive global cues. Trends on SGX Nifty indicate a positive start with Nifty futures trading 74 points higher from its November 14 closing of 12,792.50.

Oil prices edge higher ahead of OPEC+ meeting, vaccine hopes

Oil prices edged higher on Tuesday on expectations OPEC and its allies will extend oil production cuts for at least three months, while sentiment was bolstered by news of another promising coronavirus vaccine.

Brent crude futures for January rose 16 cents, or 0.4%, to $43.98 a barrel by 0104 GMT and U.S. West Texas Intermediate crude for December added 13 cents, or 0.3%, to $41.47 a barrel.

WPI inflation at 8-month high of 1.48% in October

The wholesale price-based inflation rose to an eight-month high of 1.48 percent in October, as manufactured products turned costlier. The WPI inflation was 1.32 percent in September and zero per cent in October last year.

This is the highest level of Wholesale price index-based (WPI) inflation since February when it was 2.26 percent. While food article prices softened in October, manufactured items witnessed hardening of prices, according to data released by the Commerce and Industry Ministry on Monday.

DIPAM signs pact with World Bank for advising on CPSE asset monetization

DIPAM, which mainly handles government’s disinvestment programme, on Monday signed an agreement with the World Bank for providing advisory services for asset monetization.

"The World Bank advisory project, approved by the Finance Minister, is aimed at analyzing public asset monetization in India and benchmarking its institutional and business models against international best practices as well as supporting development of operational guidelines and capacity building for their implementation," an official statement said.

Moderna says its vaccine is 94.5% effective in preventing COVID-19

Moderna Inc said on Monday its experimental vaccine was 94.5 percent effective in preventing COVID-19 based on interim data from a late-stage clinical trial, becoming the second US company in a week to report results that far exceed expectations.

"This announcement from Moderna is a further encouragement that vaccines will be found to not only have an acceptable efficacy, but an efficacy that is much greater than we had anticipated. This press release is more specific than that of others, in that it confirms the numbers in each group, which was able to be guessed at but to have it confirmed is helpful.

Japan GDP grows most on record after coronavirus-induced recession

Japan’s economy grew at the fastest pace on record in the third quarter, rebounding sharply from its biggest postwar slump, as improved exports and consumption showed the country is recovering from damage caused by the coronavirus pandemic. Still, many analysts expect any further rebound in the economy to be more moderate as persistent weakness in consumption and a resurgence in infections at home and abroad clouds the outlook.

The 21.4 percent expansion in the gross domestic product (GDP) beat a median market forecast for an 18.9 percent gain, Cabinet Office data showed. It marked the first increase in four quarters and followed a 28.8 percent plunge in April-June.

Indian economy may be recovering faster than anticipated: Oxford Economics

The Indian economy is seen recovering faster than expected and the Reserve Bank is likely to have come to an end of the rate easing cycle, according to global forecasting firm Oxford Economics. It further said that inflation is expected to average significantly above 6 percent in the fourth quarter of the current fiscal and the RBI may hold policy rates in December monetary policy review meeting.

"Consumer inflation rose back to pre-virus highs in October, with almost every broad category other than fuel experiencing a rise in prices. While Q4 is likely to mark the peak for inflation, we have turned more cautious on the trajectory over 2021,” it said.

Government seeks higher dividends from state-run companies: Report

The government, facing a revenue crunch, has sought for a higher quarterly dividend from state-run firms. The Department of Investment and Public Asset Management (DIPAM) has issued an advisory on the subject to heads of the companies on November 9, Business Standard reported. The government has also asked for a higher share of the companies' profits, the report added.

"The central public sector enterprises, especially those that pay relatively higher dividends (100 per cent dividend or Rs 10 per share as the case may be), may consider paying interim dividend every quarter after quarterly results. Other central public sector enterprises may consider paying interim dividend half-yearly," the advisory said, as seen by the paper.

India's forex reserves surge $7.78 billion to lifetime high of $568.494 billion

The country's foreign exchange reserves jumped by a massive $7.779 billion to touch a lifetime high of $568.494 billion in the week ended November 6, RBI data showed on November 13. In the previous week ended October 30, the reserves had increased by $183 million to $560.715 billion.

In the reporting week, the jump in reserves was mainly on account of an increase in foreign current assets (FCAs), a major component of the overall reserves. FCAs increased by $6.403 billion to $524.742 billion, the central bank's weekly data showed.

India's exports dip 5.12% in October; trade deficit narrows to $8.71 billion

India's exports fell 5.12 percent to $24.89 billion in October, after recording positive growth in September, on account of drop in shipments of petroleum products, gems and jewellery, leather and engineering goods, according to government data released on November 13. Trade deficit in October narrowed to $8.71 billion as against $11.75 billion in the corresponding month a year ago.

Imports also fell 11.53 percent to $33.6 billion (year-on-year) in October 2020. Major export commodities that recorded negative growth in October included petroleum products (52 percent), cashew (21.57 percent), gems and jewellery (21.27 percent), leather (16.67 percent), man-made yarn/fabrics/made-ups (12.8 percent), electronic goods (9.4 percent), coffee (9.2 percent), marine products (8 percent) and engineering goods (3.75 percent).

FPIs remain positive on Indian markets; put in massive Rs 35,109 crore in November so far

Foreign portfolio investors (FPIs) have invested a massive Rs 35,109 crore in Indian markets in November so far as corporate earnings and reforms measures undertaken by the government to revive investment activities kept the investors'' sentiment upbeat.

According to the depositories data, FPIs invested a net sum of Rs 29,436 crore into equities and Rs 5,673 crore into debt segment between November 2-13. During the period under review, a net amount of Rs 35,109 crore was pumped by overseas investors in Indian markets.

FII and DII data

Foreign institutional investors (FIIs) net sold shares worth Rs 78.53 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 20.27 crore in the Indian equity market on November 14, as per provisional data available on the NSE.

8 stocks under F&O ban on NSE

BHEL, Canara Bank, Indiabulls Housing Finance, Jindal Steel & Power, LIC Housing Finance, SAIL, Sun TV Network and Tata Motors are under the F&O ban for November 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
First Published on Nov 17, 2020 07:48 am
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