Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 40 points loss or 0.33 percent.
The Indian market benchmarks extended their losing run for the third consecutive session on December 3 on account of weak global cues and caution ahead of RBI monetary policy outcome.
The 30-share Sensex settled 127 points, or 0.31 percent, lower at 40,675.45, with 21 stocks in the red, while the Nifty index closed with a loss of 54 points, or 0.45 percent at 11,994.20, with 11 stocks up and 39 down.
Secondary barometers underperformed Sensex as the BSE Midcap and Smallcap indices ended 0.95 percent and 0.74 percent down, respectively.
The market is cautiously awaiting RBI monetary policy meet outcome on December 5 where it expects the central bank to cut interest rate by 25 basis points (bps) despite higher inflation. On the global front, investors would watch out for development on the US-China trade deal and currency and crude price movement.
According to the pivot charts, key support level for Nifty is placed at 11,944.2, followed by 11,894.2. If the index moves up, key resistance levels to watch out for are 12,056.4 and 12,118.6.
Nifty Bank closed 0.81 percent down at 31,613.35. The important pivot level, which will act as crucial support for the index, is placed at 31,431.93, followed by 31,250.57. On the upside, key resistance levels are placed at 31,865.63 and 32,117.96.
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:
A comment by President Donald Trump that a deal to end the US-China trade war might not come until after the November 2020 election weighed on global stock markets on Tuesday, sending investors to the safety of bonds.
The Dow Jones Industrial Average fell 280.23 points, or 1.01%, to 27,502.81, the S&P 500 lost 20.67 points, or 0.66%, to 3,093.2 and the Nasdaq Composite dropped 47.34 points, or 0.55%, to 8,520.64.
Asian shares extended their losses on Wednesday after US President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election, dashing market hopes for a quick preliminary agreement.
Investors turned to safe-haven assets, boosting bond prices and sending gold to a one-month high, while MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%. Japan's Nikkei dropped 1% in early trade. Australia's S&P/ASX200 was down 1.6%.
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 40 points loss or 0.33 percent. The Nifty futures were trading around 12,011-level on the Singaporean Exchange.
Oil gains ahead of OPEC+ meeting, boosted by fall in US stockpiles
Oil prices rose on Wednesday in advance of a meeting of OPEC and its allies to discuss whether to extend production curbs to support the market and following industry data showing that US crude stockpiles fell more than expected.
Brent crude futures were up 28 cents, or 0.5%, at $61.10 a barrel by 0151 GMT. US West Texas Intermediate (WTI) crude futures were up by 27 cents, or 0.5%, at $56.37.
China Nov services sector activity rises to 7-month high: Caixin PMI
Activity in China’s services sector accelerated to a seven-month high in November, as new business, especially new export business, picked up, a private survey showed on Wednesday.
The Caixin/Markit services purchasing managers’ index (PMI) rose to 53.5 last month, the quickest pace since April, from 51.1 in October. It has stayed above the 50-point margin that separates growth from contraction on a monthly basis since late 2005.
Japan services sector returns to modest growth in November: PMI
Japan’s services sector returned to growth in November after shrinking for the first time in three years in the previous month, though the overall momentum was unconvincing in an economy teetering on the brink of contraction.
The final seasonally adjusted Jibun Bank Japan Services Purchasing Managers’ Index edged up to 50.3 in November from 49.7 in October due to a modest improvement in new business and business expectations. It was above the 50 mark that separates expansion from contraction, though it was still just off the 50.4 preliminary reading for last month.
Rupee settles flat at 71.66 against US dollar
The Indian rupee surrendered early gains to settle flat at 71.66 to the US dollar amid emergence of fresh worries over global trade war. Forex market also remained cautious ahead of the RBI monetary policy decision on Thursday, experts said.
At the interbank foreign exchange market, the rupee opened at 71.66 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.52 and a low of 71.79.
India's November gold imports jump to 5-month high as prices retreat
India's gold imports in November jumped 78% from a month earlier to the highest level in five months as jewellers in the world's second-biggest market for the metal restocked after a fall in prices, a government source said on Tuesday.
Higher imports by the South Asian country could support global prices that have risen more than 12% so far in 2019, but could also widen India's trade deficit and put pressure on the rupee. India fills nearly all of its gold demand through imports. India imported 71 tonne of gold in November, compared with 40 tonnes in October, the source said on condition of anonymity as he was not authorised to speak to media.
S&P reaffirms India's rating, retains outlook at 'stable'
Global rating agency S&P has reaffirmed sovereign rating of India with stable outlook, Economic Affairs Secretary Atanu Chakraborty said on Tuesday. The rating action comes weeks after another global agency Moody's Investors Service lowered the country's rating outlook to "negative" from "stable".
"S&P has reaffirmed sovereign rating of India at BBB- with stable outlook. They have stated that India's economy continues to achieve impressive long-term growth rates despite a recent deceleration," Chakraborty said in a tweet. 'BBB' signifies adequate capacity on an entity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to weaken its capacity to meet financial commitments.
Consumer durable loans jump on festive season demand
After a long spell of contraction, loans given by banks for purchase of consumer durable goods like washing machines, refrigerators and air- conditioners saw a sharp rise since the start of festive season this year. Strong demand, fuelled by lucrative discount offers and backed by retail loan push from banks led to a boost in consumer durable loans in months of August, September and October.
Data released by the Reserve Bank of India (RBI) showed that bank credit to consumer durable segment under personal loans, increased by around 70 percent for all three months, as against deep negative growth seen during rest of the year.
Govt raises Rs 2.79 lakh cr through divestment in last 5 years
The government raised Rs 2,79,622 crore from the disinvesment of public sector undertakings (PSUs) during 2014-19 compared to Rs 1,07,833 crore during the 10-year UPA rule from 2004-14, Union minister Anurag Singh Thakur said on December 3. Speaking during the Question Hour in the Rajya Sabha, the Minister of State for Finance said, "In five years, we raised double the amount. This was done in an average 21 transactions each year, while it was four between 2004-2014."
During 2014-19, a total amount of Rs 2,79,622 crore was realised from the disinvestment transaction using various modes, he said. "If you compared it with 2004-14, which was 10 years period, through 40 transactions, only Rs 1,07,833 crore could be raised," Thakur said in the Upper House.
PSU banks disburse record Rs 4.9 lakh cr loans during October-November
Public sector banks disbursed a record Rs 4.91 lakh crore of loans during the festive month of October and November, the finance ministry said on December 3.
In a bid to boost consumption and revive the economy, Finance Minister Nirmala Sitharaman in September had asked banks to reach out to customers and signal their willingness to lend following all prudential norms.
Govt open to further reforms to make India attractive investment destination: FM
Finance Minister Nirmala Sitharaman, at the India-Sweden Business Summit on December 3, said that the government is open to further reforms aimed at making India a more attractive destination for investors. She cited the recent corporate tax rate cut while talking about the various steps that the Indian government has taken in the recent times in this direction.
"I only can invite and assure that the Government of India is committed for further reforms in various sectors whether it is banking, mining or insurance and so on," she said. She invited Swedish firms to invest in infrastructure development projects in India.
NSE identifies 8 cos for surveillance action
Leading stock exchange NSE has shortlisted eight companies, including Future Enterprises and GMR Infrastructure, that have higher levels of pledged shares by promoters, for surveillance action. The exchange would levy minimum margin of 35 per cent on the respective shares, including on stocks in derivatives segment.
Jindal Steel & Power, Dish TV India, Gayatri Projects, Max India, Sadbhav Infrastructure Project and Sequent Scientific are the other six companies identified for surveillance action, according to a circular.
SAT asks NSDL to hold back remaining stocks of Karvy clients
The Securities Appellate Tribunal (SAT) has instructed National Securities Depository (NSDL) to halt transfer of the balance investor securities that Karvy Stock Broking had pledged with lenders.
The decision came after Bajaj Finance challenged SEBI's decision to return to Karvy’s clients the securities that the broking house had illegally pledged to raise money for itself. The tribunal further directed SEBI to hear out the lender's concerns by December 4 and pass an order by December 10.
Indian economy to see a rebound in 2020: Goldman Sachs' chief economist
India "should stage a rebound in 2020 as global conditions improve," feels Goldman Sachs’ Chief Economist Jan Hatzius, as reported by CNBC. The recovery would be ‘modest’, Hatzius told the publication while there would be "a tentative sense of stabilisation in the Indian economy” in 2020, he said.
He said improved global economic conditions and domestic measures, such as the corporate tax cut and the Reserve Bank of India’s monetary policy are likely to create some positive momentum.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,131.12 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 963.97 crore in the Indian equity market on December 3, provisional data available on the NSE showed.With inputs from Reuters & other agenciesAre you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.