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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|
Last Updated: Dec 26, 2019, 09.00 AM IST
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The domestic stock market may see volatility in the near term if the government decides to postpone its plan of BPCL privatisation to the next fiscal.
NEW DELHI: Some F&O expiry-induced volatility is likely on Thursday, as domestic stocks chart their own direction amid Christmas holidays across major global markets. Reports hinting at possible delay in BPCL privatisation could stoke concerns over fiscal math. Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 0.50 point higher at 12,234, indicating a flat start for Dalal Street.

Tech view: Nifty likely to consolidate
Nifty50 saw fag-end selling on Tuesday, but the index managed to protect the immediate support at 12,200 level. The index formed lower highs and lows for the second session, after negating the formation of higher highs and lows of the previous seven days. More consolidation is likely, analysts said.

Asian shares rise in thin trade
Financial markets in Australia, Hong Kong and New Zealand are closed on Thursday for a public holiday.In Japan, the benchmark Nikkei 225 index rose 0.62 per cent or 146.57 points to 23,929.44 in early trade, while the broader Topix index rose 0.48 percent or 8.22 points at 1,729.64. Korean Kospi rose 2.16 points, or 0.10 per cent, to 2,192.24,

US markets shut for Christmas
US markets were shut overnight on account of Christmas. On Tuesday, the Dow Jones Industrial Average lost 36.08 points, or 0.13 per cent, to close at 28,515.45. The S&P 500 fell 0.63 points, or 0.02 per cent, to 3,223.38. While, the Nasdaq Composite Index was up 7.24 points, or 0.08 per cent, to 8,952.88.

DIIs sell Rs 114 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 114.38 crore on Tuesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 345.22 crore, data suggests. Domesric market was shut on Wednesday on account of Christmas.

MONEY MARKETS

Rupee: The rupee depreciated by 9 paise to close at 71.27 against the US dollar on Tuesday amid heavy selling in domestic equities and steady rise in crude oil prices.

10-year bonds:
India 10-year bond yield rose 0.08 per cent to 6.58 after trading in 6.55-6.60 range.

Call rates: The overnight call money rate weighted average was 5.11 per cent, according to RBI data. It moved in a range of 3.70-5.30 per cent.

THE DAY PLANNER

  • India Dec F&O Expiry
  • Japan Nov Housing Starts
  • US Dec Initial Jobless Claims
  • BoJ Gov Kuroda Speech

MACROS

BPCL privatisation delay stokes fisc concerns
The domestic stock market may see volatility in the near term if the government decides to postpone its plan of BPCL privatisation to the next fiscal. A media report citing sources claimed that divestment in the company may be pushed beyond March 31, 2020. Severe shortfall in overall tax revenues (both direct and indirect taxes) will be compounded by large shortfall in divestment proceeds. Deferral of spectrum-related payments by two years to provide relief to beleaguered telecom companies is already weighing heavily on fiscal finances, said analysts.

Budget 2020: Income tax cuts, slab rejigs on table
A flat tax rate without exemptions, new slabs for those earning higher incomes, cuts in personal income tax in line with those in corporate tax — these proposals are being examined ahead of the budget as the government eyes ways of boosting consumption and reviving growth. The finance ministry will present arguments for and against these suggestions before a decision is taken, reports ET. The budget will be presented in February. An alternative to income tax cuts is putting more money in the hands of the people directly through schemes such as PM-KISAN or enhancing the spending on infrastructure.

Over 200 coal blocks may be auctioned in 5 years
The government will open up the Indian coal sector with a large offering of over 200 blocks for commercial coal mining ibn the next five years having a potential to produce at least 400 million tonnes of coal at peak capacity. The government hopes to stop coal imports by power plants by 2024, reports ET. The first tranche of coal auctions for commercial sale purposes is likely to begin this financial year with about 40 coal blocks with peak mining capacity in the range of one million tonnes to 50 million tonnes per annum to cater to needs of all coal consumers.

Trump says will sign trade deal with Xi
US President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month. “We will be having a signing ceremony, yes,” Trump told reporters. “We will ultimately, yes, when we get together. And we’ll be having a quicker signing because we want to get it done. The deal is done, it’s just being translated right now.”

DHFL set to resume lending in next few weeks
Dewan Housing Finance, which is under administration, is setting aside a part of its regular monthly recoveries on previous retail advances to resume lending after a seven-month gap and stay relevant in a business that involves earning interest on funds loaned. Resumption of normal business operations, albeit on a smaller scale, is aimed at strengthening DHFL's credentials as a ‘going concern’ and eventually helping secure better valuations at the closure of the ongoing resolution process.

Onion prices may stay firm on low imports
Onion prices are expected to remain somewhat firm till mid-February partly because countries such as Turkey and Sri Lanka have curbed exports of the vegetable even as Indian imports have pushed up its prices in global markets. Only a substantial increase in domestic arrivals of the crop can help significantly ease onion prices in the local markets where average wholesale prices are still ruling at Rs 60-70/ kg, traders said.

Labour Ministry moots Social Security Fund linked to CSR norms
The labour ministry is pushing for expanding the definition of ‘spending’ under corporate social responsibility (CSR) norms to include contributions towards social security fund for unorganised workers. It has initiated discussions with the corporate affairs ministry, which is responsible for setting norms for CSR.

DPIIT to clarify on 26% FDI in digital media sector
The Department for Promotion of Industry and Internal Trade (DPIIT) is expected to soon issue a clarification on the issues raised by certain stakeholders over the government's decision to permit 26% FDI in digital media sector. Certain industry players and experts have stated that the move to cap FDI in digital media sector to 26% could lead to some of those who were looking to raise funds facing restrictions. Clarity was needed on how to treat cases of television broadcasters that stream news online, but are allowed 49% FDI or news websites which are 100 per cent foreign entity

Ordinance to further amend insolvency law cleared
The Union Cabinet has approved an ordinance to further amend the Insolvency and Bankruptcy Code (IBC), to protect a winning bidder against liability of a corporate debtor for an offence committed prior to the commencement of the insolvency resolution process. There would be no prosecution for any such offence from the date of resolution plan being approved by the adjudicating authority, an official statement said. his will shield the new owner and the corporate entity while instilling confidence in resolution efforts.
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