What changed for the market while you were sleeping? Top 12 things to know

Equity market benchmarks ended lower on December 5 after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained status-quo on rates as against a widely-anticipated 25 basis points (bps) rate cut.

The BSE Sensex fell 70 points to 40,780 while the Nifty 50 closed 25 points lower at 12,018.

Market experts expect the consolidation to extend and advise traders to continue with a stock-specific trading approach. "We suggest preferring index majors and keeping positions on both sides. Also, maintain a close watch on global markets for cues," said Ajit Mishra, VP - Research, Religare Broking.

According to the pivot charts, the key support level for Nifty is placed at 11,984.4, followed by 11,950.4. If the index moves up, key resistance levels to watch out for are 12,066.8 and 12,115.2.

Nifty Bank closed 0.83 percent down at 31,712.95. The important pivot level, which will act as crucial support for the index, is placed at 31,518.5, followed by 31,324.1. On the upside, key resistance levels are placed at 32,017.1 and 32,321.3.

US Markets

Wall Street eked out slight gains on Thursday as investors waited for concrete news on a hoped-for interim trade deal between the United States and China before a new round of tariffs scheduled to kick in on December 15.

The Dow Jones Industrial Average rose 28.01 points, or 0.1%, to 27,677.79, the S&P 500 gained 4.67 points, or 0.15%, to 3,117.43 and the Nasdaq Composite added 4.03 points, or 0.05%, to 8,570.70.

Asian Markets

Asian stocks held firm on Friday as US President Donald Trump’s rhetoric kept investors’ hopes up on a trade deal with China, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts.

Japan’s Nikkei rose 0.28% and MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.19%. Australian shares rose 0.24%, while South Korea’s Kospi rose 0.57%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, with a 24 points gain or 0.2 percent. The Nifty futures were trading around 12,068-level on the Singaporean Exchange.

Oil prices rise after OPEC cut

Oil edged up in early Asia trade on Friday, with U.S. crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 percent in early 2020, although the cartel stopped short of promising any further steps after March.

West Texas Intermediate oil futures were up by 2 cents at $58.45 a barrel by 0101 GMT. Brent futures were up 1 cent at $63.40. They fell 0.6% on Thursday.

Rupee rebounds 24 paise against US dollar

The Indian rupee rose sharply in the last hour of trade to settle 24 paise higher at 71.29 to the US dollar on Thursday after the RBI promised to continue with accommodative stance in its monetary policy. The central bank, however, decided to keep key interest rate unchanged in its fifth bi-monthly monetary policy for this ongoing fiscal, a move that widely surprised investors who were expecting at least 25 basis points cut in policy rate.

The Indian unit traded on a flat note for a better part of the session but briefly fell post RBI monetary policy announcement. It recovered swiftly mainly in the last hour of trade to close at 71.29, up 24 paise over its previous close.

RBI allows lenders to finance larger amounts on P2P platforms

For borrowers and lenders using peer-to-peer (P2P) platforms, the RBI has given reasons to cheer. The regulator has increased the lending cap for each individual lender from the current Rs 10 lakh to Rs 50 lakh. You can borrow money for short-term requirements (medical emergency, business loan, repay credit card dues, etc.) as well as invest money to earn higher rate of returns on these platforms.

US trade deficit narrows to 1-1/2-year low on weak imports, exports

The US trade deficit dropped to its lowest level in nearly 1-1/2 years in October, suggesting trade could contribute to economic growth in the fourth quarter, though a fall in imports of consumer goods hinted at a slowdown in domestic demand.

The Commerce Department said on December 5 the trade deficit tumbled 7.6% to $47.2 billion, the smallest since May 2018, as both imports and exports of goods declined. It was the second straight monthly fall in the trade bill and the percent decline was the biggest since January.

NSE launches Nifty Bharat Bond Index series

The National Stock Exchange on December 5 launched Nifty Bharat Bond Index series, which will track a portfolio of AAA-rated bonds issued by government entities. The first two indices in the series are for April 2023 and April 2030.

On Wednesday, the Cabinet approved the launch of exchange-traded fund (ETF) for bonds to create an additional source of funding for central public sector companies and state-owned financial institutions. The new fund offer (NFO) of the ETF is expected be launched during December itself.

Analysts see RBI pausing for long as inflation worries return

Even though governor Shaktikanta Das asserted that a rate cut is not off his table and reiterated the accommodative stance, many analysts are of the view that rising headline inflation numbers may result in a longer pause by the monetary authority.

The move to suprisingly press the pause button on Thursday's review was driven by the rising inflationary pressure and gradual improvement in monetary transmission, domestic ratings agency Crisil said, adding RBI will be looking for clarity on the fiscal stance in the budget before further action.

US weekly jobless claims drop to seven-month low

The number of Americans filing applications for unemployment benefits unexpectedly fell last week, hitting their lowest level in seven months, suggesting the labor market remains solid even as the economy is slowing.

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended Nov. 30, the lowest level since mid-April, the Labor Department said on Thursday. Data for the prior week was unrevised. Economists polled by Reuters had forecast claims increasing to 215,000 in the latest week.

Govt approves allocation of 5 coal blocks, to generate Rs 17,136 cr revenue

The Centre on December 4 approved allocation of five coal blocks, including two to Birla Corporation and one to Vedanta, and said the mines will generate a revenue of Rs 17,136 crore for the government. For the first time, the successful bidders shall have the flexibility to sell 25 per cent of the coal produce in open market.

"The ministry of coal, after a long gap of four years, has approved the allocation of five coal mines," the Coal Ministry said in a statement.

FII and DII data

Foreign institutional investors (FIIs) bought shares of worth Rs 653.36 crore, while domestic institutional investors (DIIs) sold shares of worth Rs 410.49 crore in the Indian equity market on December 5, provisional data available on the NSE showed.