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

Here’s breaking down the pre-market actions.

ETMarkets.com|
Dec 10, 2019, 08.04 AM IST
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Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 459.22 crore on Monday, data available with NSE suggested.
NEW DELHI: Domestic equity indices are likely to open flat taking cues from Asian markets and flat Nifty trading on Singapore Exchange. Nifty technical charts are suggesting possible continuation of selling pressure.

Here’s breaking down the pre-market actions


TRADE SETUP

Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 1.5 points, or 0.01 per cent, up at 11,966, indicating a flat to negative start for Dalal Street.

Tech view: Nifty forms bearish candle
Nifty index formed a Doji candle on the daily chart on Friday with a negative advance-decline ratio, suggesting continuation of selling pressure in the broader market. Momentum indicator MACD stayed in ‘sell’ mode.

Asian shares flat
Asian equity markets were a tad lower on Tuesday as investors refrained from making major bets before December 15, when the next round of US tariffs on Chinese imports is due to take effect. MSCI's broadest index of Asia-Pacific shares outside Japan was down just 0.04 per cent as the Asian trading day began on Tuesday. Australian shares were also 0.04 per cent lower, while Japan's Nikkei lost 0.23 per cent.

US stocks close lower
US stocks pulled back on Monday from near-record levels, as Apple and healthcare shares fell. On Monday, the Dow Jones Industrial Average fell 105.46 points, or 0.38 per cent, to 27,909.6, the S&P 500 lost 9.94 points, or 0.32 per cent, to 3,135.97 and the Nasdaq Composite dropped 34.70 points, or 0.4 per cent, to 8,621.83.

FIIs buy Rs 459 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 459.22 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 74.93 crore, data suggests.

Crude prices fell further
Oil prices dropped on Tuesday for a second straight session as the cons of a slowing global demand outlook outweighed the pros of OPEC's agreement with associated producers. Brent futures were down 11 cents, or 0.2 per cent, at $64.14 per barrel by 0204 GMT while West Texas Intermediate oil futures were down 7 cents, or 0.1 per cent to $58.95 a barrel. The benchmarks fell 0.2 per cent and 0.3 per cent, respectively, on Monday.


MONEY MARKETS

Rupee: The rupee pared initial losses and settled 16 paise up at 71.04 against the US dollar on Monday amid softening crude oil prices and weakening of the greenback vis-a-vis other currencies overseas.

10-year bonds: India 10-year bond yields remained unchanged at 6.67% on Monday, according to Bloomberg.

Call Rate: The overnight call money rate weighted average was 4.69% on Monday, according to RBI data. It moved in a range of 3.50-5.20%.

The DAY PLANNER

  • Fed money policy review begins
  • China Nov inflation rate
  • UK Oct balance of trade
  • UK Oct industrial production
  • BoE Financial Stability Report

MACROS

FDI limit in insurance cos may rise to 74%
The government may raise the overseas investment limit in insurance to 74% in the February budget, up from 49% now, possibly paving the way for foreign control of companies, reports ET. The Insurance Regulatory and Development Authority of India (IRDAI) sought the views of various stakeholders on the matter in a December 2 letter at the direction of the government. The letter to insurance companies and others has called for suggestions on raising the foreign direct investment (FDI) limit.

Don’t delay AGR dues: Govt tells telcos
The government has warned all telecom licence holders against any delays in the payment of dues related to adjusted gross revenue (AGR) and has asked them to seek clarifications by December 13 on any doubts that may not have been covered in the recent Supreme Court judgment. The Department of Telecommunications (DoT) asked all telecom licence holders, including non-telecom companies, to speed up the process of self-assessment of AGR-based dues and their payments in a letter written last week. Some 15 telcos need to pay over Rs 1.47 lakh crore, which could rise further, the government has said. Industry estimates peg the money owed by non-telecom companies, which hold nearly 3,500 licences, at around Rs 2.28 lakh crore.

Central GST falls short by 40%
The Central GST collection fell short of the budgeted estimate by nearly 40% during the April-November period of 2019-20, according to the data presented in Parliament on Monday. The actual CGST collection during April-November stood at Rs 3,28,365 crore while the budgeted estimate is of Rs 5,26,000 crore for these months, Minister of State for Finance Anurag Singh Thakur said in a written reply in Lok Sabha.

Major banks, FIs optimistic on economy
Major banks and financial institutions in the country are ‘largely optimistic’ about the Indian economy, according to a survey assessing the country’s short-term financial conditions. The CII-IBA Financial Conditions Index, which is based on a survey of 22 banks and financial institutions, slipped 1.5 points quarter-on-quarter in the three months to December, but remained comfortably above 50 at 68.9. A reading above 50 on the index is considered largely optimistic, optimistic and below 50 is considered sub-optimistic.

Tit-for-tat to countries discriminating with Indian cos: Goyal
Any country discriminating against Indian companies in the award of contracts would not be allowed to participate in public procurement contracts, Commerce and Industry Minister Piyush Goyal said on Monday. "Free and equal access" is the policy adopted by this government two years ago, he said at an event organised by EXIM Bank in New Delhi. He said mainly China and even Japan and Korea don't allow too many of our Indian companies to participate in tenders in those countries.

China may be spared Dec 15 duties: US farm secy
The US is unlikely to impose extra tariffs on a new $160 billion swath of Chinese goods including toys and smartphones come Sunday, Agriculture Secretary Sonny Perdue said. The looming December 15 deadline for new tariffs is just one of a number of events this week putting concerns over trade back at the forefront for investors and policy makers around the world.

Cut in export sops spooks electronics cos
A two percentage point cut in duty incentives under an existing export scheme effective January 1 has panicked electronics manufacturers, who say the reduction has the potential to derail the $3 billion mobile handset export segment, halting capacity expansion and leading to job losses. Ahead of a new export incentive scheme — Remission of Duties or Taxes on Export Products (RoDTEP)--to be rolled out from next year, the Director General of Foreign Trade (DGFT) Saturday issued a notice that the additional 2% benefits given under the existing Merchandise Export from India Scheme (MEIS) for all sectors, except garments and made ups, and including electronics manufacturing, would end on December 31.

LS passes Citizenship Amendment Bill, 2019
The Lok Sabha on Monday midnight passed the Citizenship Amendment Bill (CAB), 2019, with 311 votes for and 80 against. Home minister Amit Shah insisted that the only intention of bringing the bill was to provide refuge to the “persecuted minorities of Pakistan, Bangladesh and Afghanistan”. Shah said: “It’s a humanitarian issue, beyond political ideologies.” He asserted that the legislation will not in any manner affect the minority communities in India. “The Muslims in India have nothing to fear, they will continue to live peacefully,” he said.

PSBs turn profitable in April-Sept period
Public sector banks (PSBs) returned to profitability in 2019-20, posting an aggregate profit of Rs 3,221 crore in the first half ending September, Minister of State for Finance Anurag Singh Thakur said in Parliament on Monday.PSBs had posted huge losses in 2017-18 and 2018-19 financial years due to heavy provisioning for non-performing assets and other contingencies, according to the minister. State-run lenders had posted aggregate operating profits during 2017-18 and 2018-19 of Rs 1,55,603 crore and Rs 1,53,871 crore respectively.

Slowdown only cyclical, says CEA
The economic slowdown which India is facing at present is only cyclical in nature, and the country has not lost its growth potential, which signifies that the economy will bounce back, Chief Economic Advisor K Subramanian said. Subramanian said that there was, needless to say, a slowdown in the economy but it needs to be assessed whether it was structural or cyclical in nature. “My take is that this is a lot more on the cyclical side, because there has been no change in the demographics, there has been no change in the demand in the medium term and the ability of companies to supply,” he said at the FICCI young leaders summit here on Monday.

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