Market Movers: What changed for D-Street while you were sleeping

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NEW DELHI: Investors on Dalal Street may stay light on their holdings ahead of quarterly GDP print scheduled for release later in the day.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for tepid start
Nifty futures on the Singapore Exchange traded 10points, or 0.08 per cent, lower at 12,176, indicating a tepid start for Dalal Street.

Tech view: Nifty forms small bullish candle
Nifty settled November F&O series at 12,154 level on Thursday. The index formed a small bullish candle on the daily chart. For the NSE barometer to see further upside, it needs to respect the resistance at 11,990, analysts said.

Asian shares tick up amid HK protests
Global shares ticked up on Friday but hesitated to test an all-time peak as investors worried a new US law backing Hong Kong protests could derail Washington’s and Beijing’s efforts to end their trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan also ticked up 0.05 per cent in early Friday trade while Japan’s Nikkei gained 0.27 per cent.

US markets shut on Thanksgiving
US markets were shut overnight in observance of Thanksgiving. The market will resume trade on Friday, but for a shortened period. On Wednesday, the Dow Jones Industrial Average closed at 28,164.00, up 0.2 per cent. The S&P500 was up 0.4 per cent at 3,153.63.

Oil prices little changed
Oil prices were little changed on Friday but looked set to have one of the best performances in recent months in November. Brent futures are up 6 per cent so far this month, marking the biggest gain since April. On Friday, US crude futures were little changed at $58.09 a barrel early, up 7 per cent for this month.

FIIs buy Rs 1,009 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,008.89 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 155.47 crore, data suggests.

MONEY MARKETS

Rupee: The rupee dropped by 27 paise to close at 71.62 against the US currency on Thursday, ending its two-day winning run due to month-end dollar demand from oil importers and growth concerns ahead of release of GDP data on Friday.

10-year bonds: India 10-year bond yields fell 0.01% to 6.46% on Thursday, against 6.47% in the previous session, according to Bloomberg.

Call rates: The overnight call money rate weighted average was 5.02% on Thursday, according to RBI data. It moved in a range of 3.70-5.25%.

The DAY PLANNER

India Q2 GDP growth rate
India Oct infrastructure output
RBI foreign exchange reserves
India fiscal deficit for Oct
ECB Lane Speech

MACROS

India’s GDP growth may hit 26-quarter low
India’s economy probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further and a global slowdown hit exports. The median of a poll of economists showed annual growth in gross domestic product of 4.7% in the quarter, down from 5.0% in the previous three months and 7% for the corresponding period of 2018. If the latest figure for expansion of gross domestic product is 4.7% or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3% in January-March 2013.

Trump signs HK bill, angers China
US President Donald Trump signed legislation expressing US support for Hong Kong protesters on Wednesday, prompting China to threaten retaliation just as the two nations get close to signing a phase one trade deal. Protesters in Hong Kong responded by staging a “Thanksgiving” rally, with thousands of people, some draped in US flags, gathering in the heart of the city. The law requires the State Department to certify, at least annually, that HK is autonomous enough to justify favourable US trading terms that have helped it become a world financial centre. It also threatens sanctions for human rights violations. The bill prompted China to warn of “firm counter-measures”, unsettling financial markets globally.

Rural India showed good demand in Q2
Demand for daily household products and groceries in rural markets recovered sharply in September quarter, even as economic growth is likely to have slipped further in the quarter. Rural market by volume grew 4.4% in the July-September period from a year earlier when it had declined 2.4%, data from consumer research firm Kantar Worldpanel showed. The overall market expanded 3.1% during the quarter compared with a 1.7% contraction in the year-ago period.

HDFC Bank forms panel for Puri successor
HDFC Bank has set up a six-member committee of board members to find a successor to managing director Aditya Puri who retires on October 26, 2020, kickstarting the search for the next head for India’s most valuable lender, according to a regulatory filing. CFO Sashidhar Jagdishan and country head for wholesale banking operations Bhavesh Zaveri were appointed as executive directors, the bank said in a separate notice to the stock exchanges

Dollar on a high
The dollar headed for its highest weekly finish against the safe-haven yen since May on Friday, as data showing the U.S. economy on a firm footing prompted investors to scale back rate-cut bets. Nerves persisted though, as other major currencies spent the week rangebound, navigating a blizzard of trade-war headlines that offered few clues as to when or how an overdue truce might be agreed between Washington and Beijing.

NBFC loan growth hits a low
Credit disbursals by NBFCs have continued to slide despite government measures to boost bank funding to the sector. Loan sanctions fell 34% in September quarter, a year after unexpected defaults at IL&FS sparked off the NBFC liquidity crisis. Total NBFC sanctions fell to Rs 1.9 lakh crore at the end of September from Rs 2.9 lakh crore during the same period last year, CRIF High Mark credit bureau data showed.

Big pay packages in IIT placements
Salesforce, Microsoft, Cohesity and Uber are set to offer crore-plus pay packages for the cream of engineering talent at IITs, where the final placements start this Sunday. Only two companies, Microsoft and Uber, had offered compensation packages in excess of Rs 1 crore last year. “Despite all the talk about a slowdown, it is shaping up to be a strong placement season. There are more companies this year offering big salary packages,” said a placement coordinator at an IIT.

Carlyle to make bumper profit from SBI Cards IPO
SBI Cards and Payment Services, the credit card arm of State Bank of India (SBI), aims to raise roughly 90 billion rupees ($1.25 billion) in an initial public offering, according to a source familiar with the matter, in a deal set to make a bumper profit for U.S private equity firm Carlyle Group.

[“source=economictimes”]