Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 14.5 points loss or 0.12 percent.
Market benchmarks ended in the red on November 29. However, the week augured well for both Sensex and Nifty as they hit fresh record highs and closed the week over 1 percent higher. The big returns, however, came from the small and mid-cap space.
The Sensex rose 1.08 percent while the Nifty gained 1.19 percent in the week ended November 29, compared to 0.78 percent rise in the S&P BSE small-cap index, and 2.3 percent rally in the mid-cap index in the same period.
In line with expectations, economic expansion slowed further in Q2 FY2020, with the Gross Domestic Product (GDP) and Gross Value Added (GVA) growth declining to 4.5 percent and 4.3 percent, respectively, in that quarter, from 5 percent and 4.9 percent, respectively, in Q1 FY2020.
Nifty formed a bearish belt hold pattern on daily charts. On the weekly scale, it formed a bullish candle as the index gained more than a percent for the week.
In the next couple of sessions, if the index manages a close below 11,990 level then correction shall get accelerated further. In that scenario, an ideal target on downsides can be initially around 11,800 levels, experts said.
According to the pivot charts, key support level for Nifty is placed at 11,999.8, followed by 11,943.6. If the index moves up, key resistance levels to watch out for are 12,129.8 and 12,203.6.
Nifty Bank closed 0.55 percent down at 31,946.10. The important pivot level, which will act as crucial support for the index, is placed at 31,782.3, followed by 31,618.5. On the upside, key resistance levels are placed at 32,098.4 and 32,250.7.
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:
Wall Street's major indexes ended Friday's shorter session lower as US-China discord over Hong Kong fuelled investor anxiety about trade talks and retail stocks dipped as in-store Black Friday sales appeared to draw smaller crowds.
The Dow Jones Industrial Average fell 112.59 points, or 0.4%, to 28,051.41, the S&P 500 lost 12.65 points, or 0.40%, to 3,140.98 and the Nasdaq Composite dropped 39.70 points, or 0.46%, to 8,665.47.
Global shares ticked up on Monday and oil rebounded after a big fall late last week, as investors clung to hopes Beijing and Washington could reach a compromise in trade talks although increasing tensions over Hong Kong unsettled market confidence.
MSCI's index of Asia-Pacific shares outside Japan was up 0.17%, reclaiming some of its one-percent-plus loss on Friday while Japan's Nikkei rose 0.85%.
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 14.5 points loss or 0.12 percent. The Nifty futures were trading around 12,086-level on the Singaporean Exchange.
GDP growth slows to 4.5% in Q2 FY20, worst in six years
India’s gross domestic product (GDP) grew 4.5 percent in July-September 2019, the lowest since the fourth quarter of 2012-13, confirming fears of a deepening slowdown in the economy as households aren't spending enough to buoy demand and companies aren't adding capacities or hiring more.
India is now staring at the real possibility of a sub-6 percent annual GDP growth in 2019-20, the first since 2012, amid a stuttering world economy and plunging sentiments at home. Gross Value Added (GVA), which is GDP minus taxes and is seen as a more realistic gauge to measure economic activity, grew 4.3 percent in July-September 2019, compared to 4.9 percent in the previous quarter and 6.9 percent in the second quarter of the previous year.
China's Nov factory activity unexpectedly expands at quickest pace in almost 3 yrs: Caixin PMI
China’s factory activity unexpectedly expanded at the quickest pace in almost three years in November, with solid increases in output and new orders, a private business survey showed on Monday.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) index rose to 51.8 in November from 51.7 in the previous month. That marked the fastest expansion since December 2016, when it was 51.9.
Rupee slips 12 paise to 71.74 against US dollar
The Indian rupee on November 29 settled 12 paise lower at 71.74 against the US dollar, tracking heavy selling in domestic equities and growth concerns ahead of the release of GDP data.
Forex traders said month-end dollar demand from importers and uncertainty over the US-China trade talks also weighed on the domestic currency. At the interbank foreign exchange market, the local currency opened weak at 71.63 and during the day, it lost further ground and fell to a low of 71.87.
Core sector output shrinks 5.8% in October
Output of eight core infrastructure industries contracted by 5.8 percent in October, indicating the severity of economic slowdown, according to the government data released on November 29. As many as six of eight core industries saw a contraction in output in October.
Coal production fell steeply by 17.6 percent, crude oil by 5.1 percent, and natural gas by 5.7 percent. Production of cement (- 7.7 percent), steel (- 1.6 percent), and electricity (- 12.4 percent) also declined during the month. The only sector that posted growth in October was fertilizers where production increased by 11.8 percent year-on-year.
Debt MFs see Rs 5k-cr outflow in Sep qtr
Mutual funds focussed on investing in fixed-income securities saw an outflow of over Rs 5,000 crore in July-September this year, after registering an infusion of Rs 19,700 crore in the preceding quarter, mainly on account of a massive pullout from liquid and credit risk categories. Although most individual categories that invest in fixed-income securities or debt funds saw a rise in flows compared with the last quarter, outflow from liquid and credit risk categories were significant enough to negate most of the positive flows in other categories.
According to Association of Mutual Funds in India (Amfi), mutual funds that invest in fixed-income securities saw an outflow to the tune of Rs 5,061 crore in the three months ended September 30, 2019 compared with an inflow of Rs 19,691 crore in the previous quarter.
FPIs net buyers for third month; invest Rs 22,872 crore in Nov
Foreign investors remained net buyers in the Indian capital market for the third straight month in November, putting in Rs 22,872 crore on net basis during the month, according to depositories’ data. Analysts said expectations of a trade deal between the US and China, and more relief measures as well as disinvestment drive by the government among other factors helped keep foreign portfolio investment (FPIs) stuck on the capital markets.
A net sum of Rs 25,230 crore was flowed into equities by FPIs in November, the data showed. However, they pulled out Rs 2,358.2 crore from the debt segment, translating into a total net investment of Rs 22,871.8 crore by FPIs in November.
GST collection crosses Rs 1 lakh crore mark in November
The Goods and Services Tax (GST) revenue collection in November stood at Rs 1.03 lakh crore -- the third highest since its implementation in 2017. The November 2019 collection saw a 6 percent increase year-on-year, from the same period last year.
While Central GST (CGST) was Rs 19,592 crore, State GST (SGST) was at Rs 27,144 crore in November 2019. Integrated GST (IGST) collected in November 2019 was Rs 49,028 crore (including Rs 20,948 crore collected on imports). Cess was Rs 7,727 crore.
RBI may cut interest rates again to support growth
The Reserve Bank may cut interest rates for the sixth straight time on December 5 to support growth that has continued to slip to more than six-year low on slump in manufacturing, bankers and experts said. RBI has cut interest rates on every single occasion the multi-member monetary policy committee (MPC) has met since Shaktikanta Das took over as the Governor of RBI in last December.
In five reductions so far in 2019, interest rates have been lowered by a total of 135 basis points over concerns that growth momentum is slowing down and also to try to boost liquidity in the financial system.
Sebi comes out with norms for debt ETFs
Markets regulator Sebi on November 29 released norms for debt exchange traded funds (ETFs) wherein no single issuer will have more than 15 per cent weight in the index. Under the norms to be adopted by all mutual fund houses, the index will have a minimum of eight issuers, rating of the constituents of the index will be investment grade and the constituents of the index will have a defined credit rating as well as maturity as specified in the methodology of the index, Sebi said in a circular.
In case, where the credit rating of an issuance falls below the investment grade or rating mandated in the index methodology, rebalancing by debt ETFs or index funds need to be done within a period of five working days.
China factory activity expands in November after 6-month losing streak
China's November factory activity rebounded for the first time in seven months, data showed Saturday, despite the looming threat of fresh US tariffs within weeks if Beijing and Washington fail to sign a partial trade deal. The closely watched Purchasing Managers' Index (PMI), a key gauge of activity in the country's factories, rose to 50.2 in November, up from 49.3 last month, the National Bureau of Statistics said.
The reading is slightly above the 50-point mark that separates growth and contraction every month. A sub-index of new export orders climbed to a 7-month high at 48.8, but was still in contraction as demand wanes for China's exports abroad.
NSE commodities segment gets recognition from CBDT, traders to get tax benefit
Leading bourse NSE on November 29 said it has received the approval as 'Recognized Association' from Central Board of Direct Taxes (CBDT) for its commodity derivatives segment, a move that will give tax benefit to traders. This comes after the exchange made an application to CBDT, which observed that the National Stock Exchange (NSE) has complied with all the necessary conditions and thus accorded the approval, the bourse said in a statement.
The approval will benefit traders in relation to trading in commodity derivatives segment of the NSE as the derivative income will be treated as business income. Furthermore, all the benefits under the Income Tax provisions relating to business income including carried forward and set-off of losses will also be available.
Forex kitty continues to move up, closes in $449 bn mark
Foreign exchange reserves continued the upward move, gaining by a modest $347 million to touch a new high of $448.6 billion in the week to November 22, according to the weekly data released by the Reserve Bank on November 29. In the previous week, the reserves had increased by $441 million to reach $448.249 billion.
The gain in reserves was mainly on account of an increase in foreign currency assets, a major component of the overall reserves, which rose by $254 million to $416.725 billion in the reporting week, the data showed.
New Sebi framework to boost depository receipt issuances
In a move that may benefit Indian companies as well as foreign investors, regulator Sebi has issued a new framework for issue of depository receipts for greater exposure to world markets for raising capital and enhancing their shareholder base.
DRs are foreign currency denominated instruments, issued by a foreign depository backed by securities of an issuer, issued or transferred to a domestic custodian and are listed on an international exchange. These can get listed on international exchanges in permissible jurisdictions. Experts believe that issuing DRs has the added benefit of increasing the share's liquidity while boosting the company's prestige on its local market.
Ujjivan Small Finance Bank IPO to open on December 2
The initial public offering (IPO) of Ujjivan Small Finance Bank, the subsidiary of Ujjivan Financial Services, will open for subscription on December 2. The initial public offering (IPO) of Ujjivan Small Finance Bank, the subsidiary of Ujjivan Financial Services, will open for subscription on December 2.
The company launched the IPO with a price band of Rs 36-37 per equity share, a premium of Rs 26-27 over its face value of Rs 10 each. The issue includes a reservation of Rs 75 crore worth of shares for subscription by eligible shareholders of Ujjivan Financial Services. They will get shares at a discount of Rs 2 per share. Minimum bid lot is 400 equity shares, and in multiples of 400 equity shares thereafter.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,892.29 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 953.62 crore in the Indian equity market on November 29, provisional data available on the NSE showed.With inputs from Reuters & other agenciesLIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.