The Indian stock market is expected to open flat as trends on SGX Nifty indicate a flat opening for the index in India with a 11 points gain.
BSE Sensex rose 314.73 points to end at a record closing high of 43,952.71 on November 17 while the Nifty50 climbed 93.90 points to 12,874.20. According to pivot charts, the key support levels for the Nifty is placed at 12,802.87, followed by 12,731.53. If the index moves up, the key resistance levels to watch out for are 12,939.77 and 13,005.33.
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:
U.S. stocks retreated from record closing highs on Tuesday, ending lower as surging COVID-19 cases, the growing threat of a fresh round of economic lockdowns and weak retail sales data dampened the euphoria caused by potential vaccine breakthroughs.
The Dow Jones Industrial Average fell 167.09 points, or 0.56%, to 29,783.35, the S&P 500 lost 17.38 points, or 0.48%, to 3,609.53 and the Nasdaq Composite dropped 24.79 points, or 0.21%, to 11,899.34.
Asian equities were set for a sluggish open on Wednesday, tracking a lower Wall Street session as concerns over rising coronavirus cases and fresh lockdowns dampened the euphoria from vaccine trial breakthroughs.
Japan's Nikkei 225 futures fell 0.35%, while Australia's S&P/ASX 200 were up 0.4% in early trading.
Trends on SGX Nifty indicate a flat opening for the index in India with a 11 points gain. The Nifty futures were trading at 12,909 on the Singaporean Exchange around 07:30 hours IST.
Oil edges lower
Oil prices edged lower in post-settlement trade on Tuesday after an industry group reported a bigger build than expected in U.S. crude stockpiles, adding to worries that new coronavirus lockdowns could hit demand.
During the session, prices were narrowly mixed as the demand fears offset hopes for a vaccine and talk of tighter OPEC+ supply policies. Brent futures fell 7 cents, or 0.2%, to settle at $43.75 a barrel. U.S. crude gained 9 cents, or 0.2%, to settle at $41.43.
Goldman Sachs projects India GDP to shrink 10.3%, less than September forecast, in FY21
Investment bank Goldman Sachs expects India's gross domestic product (GDP) to contract by 10.3 percent in the financial year 2020-21, expecting an uptick in the economy from its previous estimate in September of a 14.8 percent contraction.
The American firm projected India’s GDP to rebound to 13 percent in the succeeding fiscal, FY22. According to a report from PTI, Goldman Sachs said that the developments on the vaccine front — where two candidates, Pfizer and Moderna, have posted satisfactory progress — will be very helpful in the recovery.
Indian oil firms need to bring in foreign players to unlock resources: Pradhan
India’s oil minister Dharmendra Pradhan asked exploration companies to consider farming out their acreages to global players with advanced technology to expedite development and raise oil and gas output.
“The government will grant petroleum mining lease rights but the companies should consider a farm-out (of a stake) to get global technology players,” Pradhan said.
Euro zone economy likely already in double-dip recession - Reuters poll
The euro zone is on track for its first double-dip recession in nearly a decade, according to a Reuters poll of economists which points to a more muted recovery next year despite expectations for 500 billion euros (£447 billion) of additional monetary stimulus.
As most of Europe grapples with a resurgence in coronavirus cases, forecasters who last month predicted the recovery would continue now expect the euro zone economy to shrink 2.5% this quarter after expanding a record 12.6% in Q3.
RBI selects six companies in first cohort for regulatory sandbox
The Reserve Bank of India (RBI) has named two startups in the first cohort on retail digital payments as a part of its regulatory sandbox programme. In a notification, the central bank said that 32 companies had applied for the sandbox programme, of which six have been shortlisted.
The regulatory sandbox is a protected environment within which the selected companies will operate. Here they will have to show their system's preparedness while dealing with dummy data. Once they achieve success within the protected environment, the systems will be allowed to be tested in the live environment with actual banks and consumer data.
Lakshmi Vilas Bank under moratorium: Depositors do not need to panic, says RBI
On November 17, the central government decided to place lender Lakshmi Vilas Bank on a one-month moratorium period until December 16, 2020. The move, based on an application made by the Reserve Bank of India, was announced through an order by the Ministry of Finance.
"The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic," it said in a statement, reiterating that the central bank has drawn up a scheme for the bank’s amalgamation with another bank.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 4,905.35 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 3,829.16 crore in the Indian equity market on November 17, as per provisional data available on the NSE.With inputs from Reuters & other agencies