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

Nifty staged a smart rebound on Monday but still settle marginally lower for the day.

ETMarkets.com|
Last Updated: Dec 24, 2019, 08.06 AM IST
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NEW DELHI: Stock markets in at least 36 countries are either closed or set for an early close on Tuesday on account of Christmas Eve. As such, trading activity is likely to remain thin elsewhere. In India, some action is likely ahead of the December series F&O expiry.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 2 points, or 0.02 per cent, lower at 12,277, indicating a flat start for Dalal Street.

Tech view: Nifty forms small bullish candle
Nifty staged a smart rebound on Monday but still settle marginally lower for the day. The index formed a small bullish candle on the daily chart. The recovery occurred after Nifty tested its five-day exponential moving average around 12,220. Analysts said Nifty could be in for some consolidation in the coming days.

Asian shares fall in thin trade
Japanese shares edged lower on Tuesday ahead of Christmas holidays, as some investors booked profits to cash in on a recent rally sparked by a preliminary U.S.-China trade deal. The Nikkei index was down 0.04 per cent at 23,812.55. In Hong Kong and Korea, the Hang Seng and the Kospi index fell 0.3 per cent each. Taiwan’s Taipex was down 0.13 per cent. Australian shares inched marginally higher.

US stocks settled higher
In overnight trade, US stocks closed modestly higher on Wall Street, extending the major indexes' milestone-shattering run.The S&P 500 inched up 2.79 points, or 0.1 per cent, to 3,224.01. The Dow gained 96.44 points, or 0.3 per cent, to 28,551.53. The Nasdaq climbed 20.69 points, or 0.2 per cent, to 8,945.65.

Oil prices edge higher in early trade
Oil prices edged higher on Tuesday after Russia's Energy Minister Alexander Novak said cooperation with OPEC on supporting the market would continue and as analysts forecast a second weekly decline in US crude inventories. Brent crude was up 7 cents at $66.46 a barrel. US West Texas Intermediate was 4 cents higher at $60.56 a barrel.

DIIs sell Rs 1,947 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,463.28 crore on Monday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,947.36 crore, data suggests.

MONEY MARKETS

Rupee: The rupee depreciated by 6 paise to close at 71.18 against the US dollar on Monday amid muted activity in domestic equities and steady rise in crude oil prices.

10-year bonds: India 10-year bond yield fell 0.47 per cent to 6.57 after trading in 6.55-6.61 range.

Call rates: The overnight call money rate weighted average was 4.90 per cent, according to RBI data. It moved in a range of 4.30-5.25 per cent.

THE DAY PLANNER

  • BoJ Monetary Policy Meeting Minutes
  • US 5-Year Note Auction
  • API Crude Oil Stock Change

MACROS

Telcos may see cut in licence fee
The government may shortly reduce licence fees of telecom companies from 8% to either 5% or 6%, in what would be a second major step to revive an industry struggling with high debt amid intense competition which has dragged revenue and profitability, reports ET. A meeting at the highest levels of the government is scheduled for this week to discuss scaling down the licence fees which, industry experts say, will save the three telcos a combined Rs 4,000-5,000 crore annually. .

Govt plans to lure phone cos to Make in India
The government is considering a proposal to sweeten export incentive scheme for smartphone manufacturers such as Apple, Samsung, Huawei, Vivo and Oppo by offering 6% duty credit scrips, replacing the current 4% scrip, reports ET. The government has set an ambitious target to increase smartphone exports from the country to $110 billion by 2025 from $3 billion at present. Duty credit scrip is a certificate with certain monetary value that can be utilised for payment of customs duty.

GST compensation cess may fall short
The Centre is staring at a Rs 63,200-crore shortfall in goods and services tax (GST) compensation cess for FY20 as revenues slow down. Delay in the release of compensation to states has already emerged as bone of contention between the Centre and states. As per a presentation made to the GST Council, the compensation requirement for states is expected to be about Rs 1.6 lakh crore for the ongoing fiscal, at a growth rate of 5%. However, compensation cess collections are expected to be about Rs 96,800 crore, leading to a huge shortfall.

Lower tax revenue forecast a worry
The Centre’s estimate that growth in gross tax revenue (GTR) over the next five years is likely to be sedate has left the southern states worried, as it could affect the devolution of funds and cripple their spending on infrastructure and welfare programmes. Senior Karnataka and Tamil Nadu government officials told ET that any fall in central funds would weigh on capital spending and welfare programmes of the state governments.

FinMin not to share Swiss bank A/c details of Indians
The Finance Ministry has declined to share Swiss bank accounts details of Indians saying it is covered under "confidentiality provisions" of a tax treaty signed between India and Switzerland. In reply to an RTI query, the ministry also refused to disclose the details of black money received from other foreign countries.

RBI caps lending on P2P platforms at Rs 50 lakh
To protect consumers interest, the Reserve Bank on Monday said that on a peer-to-peer lending (P2P) platform the permissible exposure of a lender to all borrowers should not exceed Rs 50 lakh at any given point of time. The lender investing more than Rs 10 lakh across P2P platforms will produce a certificate to P2P platforms from a practising Chartered Accountant certifying minimum net-worth of Rs 50 lakh.
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
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