The market corrected for the third consecutive session on December 26, the expiry day of the month's futures & options contracts. A fall in technology, banks, FMCG, auto stocks and Reliance Industries pulled benchmark indices down.
The BSE Sensex ended 297.50 points lower at 41,163.76 while the Nifty 50 shed 88 points to close near the day's low at 12,126.50, forming a bearish candle on daily charts.
Experts expect the market to consolidate further in the coming session but believe there could be a sharp correction if the Nifty breaks the crucial support of 12,000.
According to the pivot charts, the key support level for Nifty is placed at 12,089.7, followed by 12,052.9. If the index gains strength, key resistance levels to watch out for are 12,192.4 and 12,258.3.
Nifty Bank closed below 32,000 levels, down 0.88 percent at 31,997.70. The important pivot level, which will act as crucial support for the index, is placed at 31,869.07, followed by 31,740.43. On the upside, key resistance levels are placed at 32,220.47 and 32,443.23.
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:
Nasdaq tops 9,000 on boosts from Amazon, trade optimism
The Nasdaq crossed the 9,000-point mark for the first time on Thursday as all three major Wall Street indexes posted record closing highs, boosted by optimism over U.S.-China trade relations and gains in shares of Amazon.com after a report signaled robust online holiday sales.
Asian shares hit 18-month top in festive cheer
Asian shares jumped to an 18-month high on Friday while gold and oil prices stayed buoyant in a holiday-shortened week, as investor optimism was boosted by hopes a US-China trade deal would soon be signed.
MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.55% to 555.25, a level not seen since mid-2018. Japan's Nikkei was flat, but on track for a near 20% rise this year, biggest annual increase since 2013.
Japan's factory output, retail sales fall as demand stays depressed
Japan's industrial output slipped for the second straight month in November, raising the likelihood the economy will fall into contraction in the fourth quarter due to slowing demand abroad and at home.
The economy has cooled in recent months due to a prolonged hit to exports from soft global demand and a slide in consumer spending following a nationwide tax hike
Trends on SGX Nifty indicate a positive opening for the broader indices in India, a gain of 27.50 points or 0.23 percent. Nifty futures were trading around 12,221-level on the Singaporean Exchange.
Oil hits 3-month highs as strong US consumer spending underpins growth hopes
Oil prices rose on Friday, hitting three-month highs after data showed record online spending by US consumers, stoking faith in the world’s no. 1 economy even before the hoped-for end to the trade war between Washington and Beijing.
Brent crude futures were up 13 cents, or 0.2%, at $68.05 a barrel at 0150 GMT, while the West Texas Intermediate contract was up 13 cents, or 0.2%, at $61.81 a barrel.
Rupee loses 4 paise to end at 71.31 vs US dollar
The rupee pared its early gains and settled lower by 4 paise at 71.31 against the US currency on December 26 amid heavy selling in domestic equities and steady rise in crude oil prices. Month-end dollar demand and weakness in domestic equities weighed on the domestic currency, forex traders said.
At the interbank foreign exchange market, the rupee had opened higher at 71.26 against the US dollar. During the day, the domestic unit fluctuated between a high of 71.22 and a low of 71.35.
US jobless claims fall, point to sustained labour market strength
The number of Americans filing applications for unemployment benefits fell last week in a sign of ongoing labour market strength. Initial claims for state unemployment benefits decreased 13,000 to a seasonally adjusted 222,000 for the week ended December 21, the Labor Department said on Thursday.
Economists polled by Reuters had forecast claims would fall to 224,000 in the latest week. Claims have been volatile in recent weeks around the U.S. holiday season and end of the year.
RBI to purchase, sell G-Secs worth Rs 10,000 cr each on Dec 30
The Reserve Bank of India on December 26 announced simultaneous purchase and sale of government securities through special open market operations (OMOs) for Rs 10,000 crore each on December 30 following a review of liquidity situation. Earlier this week, the central bank had conducted a similar OMO and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore.
Fund raising via IPOs plunge 60% in 2019 as economy sputters
Reflecting the woes of the broader economy, fund raising through IPOs plunged to a low Rs 12,362 crore in 2019, down a full 60 per cent from 2018 when the street mopped up Rs 30,959 crore. The outgoing year saw only 16 initial public offerings (IPOs) as against 24 in 2018, show the data collated by the premier database on the capital market Prime Database.
IL&FS case: Sebi slaps Rs 25 lakh fine each on ICRA, CARE
Markets regulator Sebi on December 26 imposed a penalty of Rs 25 lakh each on rating agencies ICRA and CARE for failing to exercise "due diligence" while assigning credit rating to the non-convertible debentures of IL&FS. Sebi also said the default by IL&FS occurred due to "lethargic indifference and needless procrastination and laxity" of these rating agencies.
The case relates to the default committed by IL&FS and its subsidiary IL&FS Financial Services on their obligations in respect of the commercial paper, inter-corporate deposits (ICDs), as well as on interest payments related to the non-convertible debentures (NCDs).
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 504.13 crore, whereas domestic institutional investors (DIIs) bought shares worth Rs 120.46 crore in the Indian equity market on December 26, provisional data available on the NSE showed.
FM to meet CEOs of state-owned banks on Saturday
Finance Minister Nirmala Sitharaman will hold a meeting with heads of public sector banks on Saturday to review financial performance of the lenders and their business growth, sources said.
Given the importance of the banking sector in generating demand and boosting consumption, the sources said the meeting with the MD and CEOs of PSBs ahead of the Budget 2020-21 is considered important.
Gold eases as stocks gain
Gold prices edged lower on Friday on rising risk appetite buoyed by optimism over an interim U.S.-China trade deal, but bullion was still set to register its best week in more than four months.
With inputs from Reuters & other agencies