The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 48 points gain.
The BSE Sensex rose 259.33 points to 47,613.08 on December 29 while the Nifty50 jumped 59.40 points to 13,932.60. According to pivot charts, the key support levels for the Nifty are placed at 13,872.47, followed by 13,812.33. If the index moves up, the key resistance levels to watch out for are 13,980.17 and 14,027.73.
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 stocks edged lower on Tuesday in choppy trading after hitting record highs, as investors worried about the path of the economic reopening and whether the Senate would authorize additional pandemic aid checks.
Dow Jones Industrial Average fell 65.4 points, or 0.22%, to 30,338.57, the S&P 500 lost 8.46 points, or 0.23%, to 3,726.9 and the Nasdaq Composite dropped 49.85 points, or 0.39%, to 12,849.57.
Asian shares retreated on Wednesday as investors cashed in on a recent rally, while the euro flirted with highs not seen in more than 2-1/2 years on as hopes of a gradual global economic recovery supported demand for riskier currencies.
Australian shares lost 0.79% while Japan’s Nikkei share average lost 0.03% after jumping to a 30-year high on Tuesday. Hong Kong’s Hang Seng index futures were up 0.11%, however, while E-Mini futures for the S&P 500 were little changed.
Trends on SGX Nifty indicate a positive opening for the index in India with a 48 points gain. The Nifty futures were trading at 13,981 on the Singaporean Exchange around 07:30 hours IST.
Oil rises on hopes of recovery in fuel demand
Oil prices gained more ground on Wednesday as a U.S. coronavirus fiscal aid package and expectations of global economic recovery lifted hopes for higher fuel demand.
U.S. West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.6%, to $48.27 a barrel, as of 0114 GMT, while Brent crude futures added 24 cents, or 0.5%, to $51.33 a barrel.
NBFCs' profitability may dampen due to loan impairment, says RBI report
The Reserve Bank of India (RBI) on Tuesday said the profitability of non-banking finance companies (NBFCs) may be “dampened” on account of asset quality issues and lower credit demand.
“Going forward, the profitability of NBFCs may be dampened due to loan impairment, lower credit demand, and a tendency to preserve cash,” the RBI said in its Trend and Progress report.
Auto parts industry revenue to grow 16-18% in FY22; outlook revised from negative to stable: ICRA
Ratings agency ICRA on Tuesday said it has revised its outlook on the auto component industry from negative to stable, on the back of demand revival across original equipment manufacturers (OEMs), replacements and exports.
ICRA expects the domestic auto component industry's revenue to grow 16-18 percent in the financial year starting April 2021, supported by factors such as increasing content per vehicle, low base effect, and higher realisations.
GNPA ratio of banks declined to 7.5% in September, says RBI Trend and Progress report
Scheduled Commercial Banks’ (SCBs)gross non-performing assets (GNPA) ratio declined from 9.1 percent at end-March 2019 to 8.2 percent at end-March 2020 and further to 7.5 percent at end-September 2020, the Reserve Bank of India (RBI) said in its Report on Trend and Progress of Banking in India 2019-20 on December 29.
Further, the capital to risk weighted assets (CRAR) ratio of SCBs strengthened from 14.3 percent at end-March 2019 to 14.7 percent at end-March 2020 and further to 15.8 per cent at end-September 2020, partly aided by recapitalisation of public sector banks (PSBs) and capital raising from the market by both public and private sector banks, the RBI said.
Banks’ financials may face pressure from higher NPAs and muted income growth: RBI
The Reserve Bank of India (RBI) on December 29 said banks’ financials may likely come under pressure as COVID-19- related relaxations are withdrawn slowly and asset quality pressure becomes evident.
With the moratorium coming to an end, the deadline for restructuring proposals is fast approaching and with the possible lifting of the asset quality standstill, banks’ financials are likely to be impacted in terms of asset quality and future income, the RBI said in its Trend and Progress report.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 2,350 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,020 crore in the Indian equity market on December 29, as per provisional data available on the NSE.
2 stocks under F&O ban on NSE
Punjab National Bank and SAIL are under the F&O ban for December 30. 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