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

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

What changed for the market while you were sleeping? Top 12 things to know
2018-12-05 13:01:44

The market ended the month as well as week on a strong note, forming a robust bullish candle on the weekly and monthly scale. The recovery from 10,000 to 10,900 levels suggests that bulls have an upperhand on Dalal Street.

The Nifty 50 rallied 5 percent during the month and gained 3.3 percent in the last week of November, primarily driven by banks, auto and FMCG stocks, while the metal sector was the underperformer.

Experts expect some consolidation in the coming week and are of the view that 11,000 could be possible only in case of positive newsflow.

“Nifty index has been making higher highs – higher lows from last four trading sessions on daily scale and formed a big bullish candle on weekly scale which suggests that bulls are holding tight grip in the market,” Chandan Taparia, Associate Vice President and Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.

The Nifty 50 gained 18.10 points to close at 10,876.80, forming ‘Doji’ kind of pattern on the daily charts on November 30, the first day of December series.

India VIX moved up 2.49 percent to 19.16 levels. However it has to cool down below 17-16 zones to get the smooth ride to surpass psychological 11,000


According to Pivot charts, the key support level is placed at 10,833.77, followed by 10,790.73. If the index starts moving upward, key resistance levels to watch out are 10,921.17 and then 10,965.53.

The Nifty Bank index closed at 26,862.95, down 76.65 points. The important Pivot level, which will act as crucial support for the index, is placed at 26,747.63, followed by 26,632.37. On the upside, key resistance levels are placed at 26,995.43, followed by 27,127.96.

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.

Wall Street rises on trade hopes

Wall Street rose on Friday as investors hoped for progress on trade in a critical US-China meeting over the weekend, and the S&P 500 and the Nasdaq posted their biggest weekly percentage gains in nearly seven years.

The Dow saw its largest weekly advance in two years. Investors were encouraged this week by comments by Federal Reserve Chair Jerome Powell and subsequent minutes from the central bank’s latest meeting that suggested that the Fed will take a data-driven rather than ideological approach to future rate-hikes.

The Dow Jones Industrial Average rose 199.62 points, or 0.79 percent, to 25,538.46, the S&P 500 gained 22.4 points, or 0.82 percent, to 2,760.16 and the Nasdaq Composite added 57.45 points, or 0.79 percent, to 7,330.54.

Asian shares rally on Sino-US trade truce

Asian shares rallied on Monday after US and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets.

E-Mini futures for the S&P 500 climbed as much as 1.9 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6 percent. Nikkei gained 0.9 percent to a six-week high.

SGX Nifty

Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a gain of 8 points or 0.07 percent. Nifty futures were trading around 11,636- level on the Singaporean Exchange.

GDP growth slows down to 7.1% in Sept quarter

India’s gross domestic product (GDP) grew 7.1 percent in July-September, down from 8.2 percent in the previous quarter as high fuel prices, a sliding rupee and relatively weaker rural demand seem to have applied the brakes on the economy. Despite slight deceleration in the second quarter of 2018-19, GDP grew considerably faster than the previous year’s 6.3 percent growth in the same quarter.

Latest national income data put out by the Central Statistics Office (CSO) on November 30, gross value added (GVA) at 2011-12 prices, which is GDP minus taxes, grew 6.9 percent in July-September, slower than the previous quarter’s 8 percent, but faster than the previous year’s 6.1 percent growth in same quarter.

Trump, Xi declare 90-day trade truce, US not to impose 25% tariffs from Jan 1

China and the United States have agreed to halt additional tariffs as both nations engage in new trade negotiations with the goal of reaching an agreement within 90 days, the White House said on December 1 after President Donald Trump and Chinese President Xi Jinping held high-stakes talks in Argentina.

Trump agreed not to boost tariffs on $200 billion of Chinese goods to 25 percent on January 1 as previously announced, while Beijing agreed to buy an unspecified but “very substantial” amount of agricultural, energy, industrial and other products, the White House said in a statement.

China “is open to approving the previously unapproved” deal for US company Qualcomm Inc to acquire Netherlands-based NXP Semiconductors “should it again be presented.”

Oil prices surge after US, China agree trade war ceasefire

Oil prices surged in early trading on Monday after the United States and China agreed a truce in their trade conflict and ahead of a meeting by producer club OPEC this week that is expected to result in a supply cut.

US West Texas Intermediate (WTI) crude futures were at $52.60 per barrel at 0032 GMT, up $1.67 per barrel, or 3.2 percent from their last close. International Brent crude oil futures were up $1.55 per barrel, or 2.6 percent, at $61.01 a barrel.

Rupee rises 27 paise to end at 4-month high

The rupee strengthened further by 27 paise to close at a four-month high of 69.58 against the US currency on Friday, extending gains for a fourth day in a row aided by easing crude oil prices and firm stock markets. The rupee traded firm against the US currency despite a firm dollar overseas, signalling a change in sentiments of forex speculators, analysts said.

At the Interbank Foreign Exchange (Forex), the rupee opened higher at 69.68, and soon gathered momentum to touch a high of 69.57. The domestic unit, however, pared some gains and settled the day up by 27 paise at 69.58 a dollar, a level not seen since August 1.

A strong balance sheet essential for credibility of RBI: Fitch

New Delhi: Pitching for a strong balance sheet for the Reserve Bank, Fitch Ratings said it was essential to ensure independence and credibility of the central bank.The RBI board last month decided to set an expert committee to decide the economic capital framework of the RBI to determine the appropriate amount of reserves which the central bank can hold.

“A strong balance sheet generally supports central bank independence and its policy credibility,” Fitch Ratings Director (Sovereign Ratings) Thomas Rookmaaker told PTI in an interview.

He, however, did not express any opinion on the optimal amount of reserves which the RBI should hold.

Forex reserves down by $795 mn to $392.78 bn

The country’s foreign exchange reserves dropped by USD 795 million to USD 392.785 billion in the week to November 23 due to a decline in foreign currency assets, according to RBI data. In the previous week, the reserves had increased by USD 568.9 million to USD 393.580 billion. In the reporting week, foreign currency assets, a major component of the overall reserves, fell by USD 841 million to USD 367.699 billion, as per the RBI data.

Forex reserves had touched a record high of USD 426.028 billion in the week to April 13, 2018. Since then, the forex kitty has been on a slide and is now down by over USD 31 billion.

FPI inflows hit 10 months high of Rs 12,260 crore in Nov

Overseas investors have pumped Rs 12,260 crore into the Indian capital markets in November, making it the highest inflow in 10 months due to falling crude oil prices and sharp rupee appreciation. The inflow comes following a net withdrawal of close to Rs 60,000 crore from the capital markets (equity and debt together) in the preceding two months (September and October).

So far this year, FPIs have pulled out over Rs 88,000 crore from the capital markets. This includes over Rs 35,000 crore from equities and close to Rs 53,000 crore from the debt markets.

FPIs put in Rs 10,925 cr in equity, debt instruments in Nov: Subhash Chandra Garg

Foreign investors have put in Rs 10,925 crore in equity and debt instruments in November, Economic Affairs Secretary Subhash Chandra Garg said on Friday.

“Foreign Portfolio Investors have returned to invest in equity and debt quite strongly in November. FPIs investment at (Rs) 4,786 crore in equity and (Rs) 6,139 crore in debt, together at (Rs) 10,925 crore, is the highest during the financial year,” Garg tweeted.

He hoped that stronger flow will continue in the coming months.

India’s fiscal deficit crosses 103.9% of full year target in April-Oct

India on November 30 reported a fiscal deficit of Rs 6.48 lakh crore during April-October, which translates to 103.9 percent of its full-year target, government data showed. The government has pegged fiscal deficit target — a measure of how much the government borrows in a year to meet part of its spending needs – at 3.3 percent of Gross Domestic Product (GDP) for the financial year 2018-19.

“The extent of a potential fiscal slippage in 2018-2019 would be driven by the likelihood of meeting the targets for GST, excise duty, dividends and profits, and disinvestment, and the adequacy of outlays for revised MSPs, the NHPS, fuel and other subsidies. Notwithstanding fears of a potential fiscal slippage in 2018- 2019, the announcement of OMO purchases by the RBI in December 2018 and the decline in crude oil prices would keep a check on G-sec yields in the immediate term,” Aditi Nayar, Principal Economist at ICRA said.

BSE to launch bidding platform for retail investor in G-secs today

Leading exchange BSE said it is launching from on Monday an online bidding platform for retail investors in non-competitive bidding of government securities (G-secs) and Treasury bills (T-bills).

“BSE to launch ‘BSE-Direct’ for retail investors in non-competitive bidding of G-sec and T-bills from December 03, 2018,” the exchange said in a Friday release.

With inputs from Reuters & other agencies

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

What changed for the market while you were sleeping? Top 12 things to know
2018-12-05 13:01:44

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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