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The market extended losses for the second consecutive session on Wednesday following global weakness and dragged by technology stocks.
The Nifty50 fell near 10,550 levels but showed some recovery in later part of the session and defended 10,600 levels. The index lost 56.20 points to close at 10,600 while the Sensex fell 274.71 points to 35,199.80.
The consistent sell-off amid volatility indicated that cautious approach would be prudent strategy now, experts said.
According to Pivot charts, the key support level is placed at 10,551.1, followed by 10,502.2. If the index starts moving upwards, key resistance levels to watch out are 10,660.1 and then 10,720.2.
The Nifty Bank index closed at 26,262.05, up 148.70 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,101.1, followed by 25,940.1. On the upside, key resistance levels are placed at 26,382.6, followed by 26,503.1.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
S&P 500 gains with energy, tech but ends near day's low
The S&P 500 ended higher on Wednesday after a brutal two-day selloff, led by a rebound in energy and technology shares, but the market faltered towards the session’s end as Apple shares surrendered gains ahead of the Thanksgiving holiday. The Dow also gave up its gains to end flat, while the S&P 500 ended near its session lows, a sign of lingering bearishness.
The Dow Jones Industrial Average ended flat at 24,464.69, the S&P 500 gained 8.04 points, or 0.30 percent, to 2,649.93 and the Nasdaq Composite added 63.43 points, or 0.92 percent, to 6,972.25.
Asian shares tick up but growth worries keep investors on edge
Asian shares stepped ahead cautiously on Thursday while oil rebounded from a steep sell-off, though rising US interest rates and escalating trade tensions kept financial markets on edge amid signs of slackening global growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.2 percent and has so far managed to hold up in November after three straight monthly declines. Japan's Nikkei rose 0.7 percent while Australian shares advanced 0.6 percent.
SGX Nifty
Trends on SGX Nifty indicate a flat opening for the broader index in India, a gain of 2.5 points or 0.02 percent. Nifty futures were trading around 10,623- level on the Singaporean Exchange.
Global growth to slow to 3.5% in 2019: OECD
Trade tensions and higher interest rates are slowing the global economy, though for now there are no signs of a sharp downturn, the OECD said on Wednesday, lowering its outlook for next year.
The Organisation for Economic Cooperation and Development (OECD) forecast that global growth would slow from 3.7% this year to 3.5% in 2019 and 2020. It had previously projected 3.7% for 2019.
The global growth slowdown would be worst in non-OECD countries, with many emerging market economies likely to see capital outflows as the US Federal Reserve gradually raised interest rates. The OECD cut its outlook for countries at risk such as Brazil, Russia, Turkey and South Africa.
Crisil downgrades passenger vehicle sales growth forecast to 7-9% for FY19
Rating agency Crisil Research revised the passengers vehicles (PV) volume growth forecast downward to 7-9 percent, from its earlier estimate of 9-11 percent for the fiscal, owing to sluggish demand and higher inventory even during the festive season.
Domestic passenger vehicle sales grew 1.55 percent to 284,224 units in October, against 279,877 units in the year-ago month, snapping three months of consecutive decline, although low market sentiments affected festive season demand.
"Dusshera and Diwali period (September and October/November), which typically contributes a fifth of annual sales, haven't exactly sparkled for automobile makers or original equipment manufacturers (OEMs)," Crisil said in a note.
Oil prices pressured by rising US crude stocks
Oil markets started Thursday timidly, with rising US crude inventories pressuring prices but an expected supply cut by producer cartel OPEC offering some support.
US West Texas Intermediate (WTI) crude futures were at $53.71 per barrel at 0051 GMT, 8 cents above their last settlement. Front-month Brent crude oil futures had yet to trade.
FinMin seeks input from ministries for Jaitley’s next Budget speech by Nov 30
The Finance Ministry has sought inputs from different central ministries for Arun Jaitley’s budget speech, which would be the last budget of the current BJP-led NDA government before the 2019 general polls.
“Kindly provide the requisite information or inputs relating to your department in quadruplicate by November 30, 2018,” the ministry said in a reminder to all other ministries and departments.
The finance ministry has requested the ministries to send material related to their departments that may merit inclusion in the finance minister’s budget speech for 2019-20.
WTO to rule in spat over US tariffs
The World Trade Organization agreed to hear complaints from a range of countries over new US steel and aluminium tariffs, as well as complaints from Washington over retaliatory duties.
The WTO's Dispute Settlement Body (DSB) agreed to establish panels to review US President Donald Trump's decision to hit a long line of countries with tariffs of 25 percent on steel and 10 percent on aluminium.
The DSB will create separate panels for the complaints by the European Union, China, Canada, Mexico, Norway and Russia, after the US said it would not agree to a single panel to hear all of them. A seventh request from Turkey for a panel will be discussed during a meeting later Wednesday.
Liquidity situation improving in financial sector: MFI players
While the government stands stiff on its ground that the financial sector is facing liquidity crunch, sector players believe that the situation has improved over the fortnight.
“Things have started to improve in the last 10 days or so. We have started getting more sanctions as lenders are more open to lending than they were about a month ago,” Jugal Kataria, chief financial officer (CFO) of Satin Creditcare, a private micro-finance institution (MFI), told Moneycontrol.
Financial sector was embroiled in tightened liquidity after one of largest non-banking financial companies (NBFC), Infrastructure Leasing and Financial Service (IL&FS), faced strings of defaults on its debt payment. Soon after, the entire NBFC sector went in red with fears of more defaults gripping the sector.
US core capital goods orders flat; jobless claims rise
New orders for key US-made capital goods were unexpectedly unchanged in October and shipments rebounded modestly, which could temper expectations of an acceleration in business spending on equipment early in the fourth quarter.
Sluggish business spending on equipment together with a lackluster housing market could fan concerns about the durability of the economic expansion that is now in its ninth year and the second longest on record.
Other data on November 21 showed the number of Americans filing applications for unemployment benefits rose to more than a four-month high last week. While that will probably not change the view that the labor market is tightening, it suggests some slowing in the pace of job growth.
US Fed rate hike ‘pause’ rekindles emerging market interest
The mere hint that the US Federal Reserve could pause on rate hikes next year has some money managers reexamining emerging markets0151starting with the hardest-hit assets.
Aberdeen Standard Investments, Schroders Plc and BlackRock Inc. are looking with renewed interest after Fed vice chairman Richard Clarida said last week there’s “some evidence” that the world economy is cooling down. A slower pace of US Fed rate hikes would weaken the dollar and aid emerging markets, which attract investors by paying higher yields to account for their bigger risk.
“A Fed on hold is a rising tide that can lift all ships in emerging markets,” said Edwin Gutierrez, a money manager at Aberdeen in London. Gutierrez said he would be looking to add exposure to the most beaten-down assets like high yield bonds, frontier-market debt and developing-nation currencies, Mint reported.
5 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 22, 2018, Adani Enterprises, Adani Power, DHFL, Jet Airways and PC Jeweller are present in this list.
With inputs from Reuters & other agencies
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