NEW DELHI: Despite weak economic readings, the domestic market looks to open on a calm note. However, investors are going to follow the bleak November auto sales data keenly.
Here’s breaking down the pre-market actions.
Singapore trading sets stage for tepid start
Nifty futures on the Singapore Exchange traded 11 points, or 0.09 per cent, lower at 12,090, indicating a tepid start for Dalal Street.
Tech view: Nifty forms Bearish Belt Hold
Nifty fell nearly 100 points on Friday to settle just above the 12,050 mark. The index formed a Bearish Belt Hold pattern on the daily chart. During the day, the index respected its immediate support at the 11,990 level, but eventually closed below its five-day moving average, suggesting a weakening of the bullish trend.
Asian shares gain in early trade
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%.
US stocks slipped on Friday
US stocks fell broadly on Wall Street Friday following a shortened trading session a day after the Thanksgiving holiday that left the market slightly below its record highs. The S&P 500 index dropped 12.65 points, or 0.4 per cent, to 3,140.98. The index hit all-time highs the first three days of the week. The Dow Jones Industrial Average fell 112.59 points, or 0.4%, to 28,051.41. The Nasdaq slid 39.70 points, or 0.5%, to 8,665.47.
Oil prices jump over 1%
On Monday, Brent crude futures rose 1.16 per cent to $61.19 a barrel while US West Texas Intermediate (WTI) crude gained 1.41 per cent to $55.95 per barrel. The market drew some support from expectations that OPEC and its allies are likely to extend existing oil output cuts when they meet this week
FIIs sell Rs 1,892 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,892 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 954 crore, data suggests. But they remained net buyers for the third straight month in November, putting in Rs 22,872 crore on net basis during the month, according to depositories data.
Rupee: The Indian rupee on Friday 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.
10-year bonds: India 10-year bond yield rose 0.14 cent to 6.47, after trading in 6.45-6.48 range.
Call rates: The overnight call money rate weighted average was 5.03 per cent, according to RBI data. It moved in a range of 3.70-5.25 per cent.
The DAY PLANNER
- Nov India manufacturing PMI
- Nov China manufacturing PMI
- Nov US Markit manufacturing PMI
- Oct US construction spending
Major infra booster in the offing
The government will unveil a series of infrastructure projects this month as part of a plan to invest Rs 100 lakh crore in the sector over the next five years in a push to improve the country’s economy, the Finance Minister said. She said the government we will be able to announce frontloading of at least 10 projects before December 15.
Nov auto sales numbers bleak
Demand for passenger vehicles tailed off last month after a festive season spike in October, with sluggishness in the broader economy putting the brakes on auto sales. Maruti Suzuki saw sales decline over 3%, M&M sales fell 10% to 14,637 units while Hyundai bucked the trend to report a 2% growth. At Tata Motors, passenger vehicle sales dropped 39%.
Poor GDP data may not hurt sentiment
Despite a six-year-low GDP growth print, analysts do not expect market participants to press the panic button on Monday, as the market had already priced in a disappointing outcome and many growth projections for the quarter were worse than the actual footprint. The market may, at the most, see a gap-down start on Monday, with no significant follow-up selling, analysts said.
Modi govt always ready to help industry: Shah
Top ministers in the Narendra Modi government called upon industrialists not to lose confidence because of a temporary slowdown, and assured all support in resolving outstanding issues. Union Home Minister Amit Shah said the Indian economy and markets will emerge stronger, and called upon industry to work together with the government to make India a $5-trillion economy by 2024. “Har dum Narendra Modi sarkar industry ke saath khadi hai,” Shah, the second most powerful man in the government, told industrialists, bankers and bureaucrats at the ET Times Awards for Corporate Excellence on Saturday night.
November GST Collections Up 6%
India’s goods and services tax collections rose 6% to Rs 1.03 lakh crore in November, reversing two months of decline, with experts attributing the increase to festive shopping and better compliance. GST collections were Rs 97,637 crore in November last year and Rs 95,380 crore in October this year.
The increase in collections was a sign of economic revival, recovery in demand and measures to ease compliance, government officials told ET
Low tariff regime over, telcos up rates by 40-50%
About a billion mobile phone subscribers in India will pay up to 40% or so more to make calls and use data from this month, with private operators Reliance Jio Infocomm, Bharti Airtel and Vodafone Idea increasing prices for the first time since 2016 to shore up finances. While loss-making Vodafone Idea and Airtel face a January-end deadline to pay up thousands of crores in additional statutory dues, Jio said on Sunday it took the step “to help sustain” the telecom industry, which is burdened with over Rs 7 lakh crore of debt and the world’s lowest average revenue per user (ARPU). Analysts said the increases would be the biggest in India’s telecom industry, with pricing of voice services back for most plans.
China wants US tariffs rolled back in phase one trade deal
Beijing’s top priority in any phase one trade deal with the US is the removal of existing tariffs on Chinese goods, China’s Global Times newspaper reported on Sunday, amid uncertainty on whether the two sides can end a 17-month trade war that has depressed global growth. “Sources with direct knowledge of the trade talks told the Global Times on Saturday that the US must remove existing tariffs, not planned tariffs, as part of the deal,” according to the report.
RBI policy review starts tomorrow
Monetary Policy Committee of the Reserve Bank of India will meet from December 3-5. With dismal growth in Q2 and falling core numbers in October, analysts are expecting another rate cut to be amnounced on December 5. This year so far, the central bank has already cut policy rate by 135 points.