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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|
Nov 06, 2019, 08.03 AM IST
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Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 473 crore on Tuesday, data available with NSE suggested.
NEW DELHI: Asian equity markets have paused amid lack of directional cues. And going by technical charts, domestic investors look indecisive.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 31 points, or 0.26 per cent, lower at 11,930.50, indicating a negative start for Dalal Street.

Tech view: Nifty forms indecisive candle
Nifty50 on Tuesday snapped a seven-day winning streak to end lower and in the process formed a bearish candle that looked like a ‘Hanging Man’ pattern on the daily chart. During the day, the index recovered some ground after testing its five-day EMA. Levels around the 12,000 mark are posing risks on the upside. A key support is seen at 11,850 level.

Asian markets little changed
Asian shares were little changed on Wednesday as investors awaited new developments toward scaling back a bruising trade war between the United States and China. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged. Australian shares were up 0.14 per cent, while Japan's Nikkei stock index rose 0.35 per cent.

US stocks settled lower
In overnight trade, US stocks edged lower as investors paused in the wake of a rally buoyed by hopes of a trade deal between the US and China. Dow Jones rose 30.52 points, or 0.11 per cent, to 27,492.63, S&P500 index lost 3.65 points, or 0.12 per cent, to 3,074.62 and Nasdaq Composite added 1.48 points, or 0.02 per cent, to 8,434.68.

Oil prices edge lower
Oil prices dropped after industry data showed a larger-than-expected build-up in US crude stockpiles, but expectations for an easing of trade tensions between the United State and China capped losses. Brent crude futures LCOc1 were at $62.73 a barrel, down 23 cents, or 0.4 per cent, from their previous settlement.

IB Housing, Tata Steel to announce Q2 results
Tata Steel, Cipla, Indiabulls Housing Finance, Lupin, Fortis Healthcare, Bajaj Electricals, Canara Bank and Exide Industries are among some of the firms that will declare Q2 earnings later in the day.

DIIs sell Rs 1,594 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 473 crore on Tuesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,594 crore, data suggests.

MONEY MARKETS

Rupee: The rupee gained 8 paise to close at a fresh five-week high of 70.69 against the US dollar on Tuesday following foreign fund inflows and gains in Asian peers after Chinese central bank cut interest rates.

10-year bonds: India 10-year bond yield rose 0.66 cent to 6.52, after trading in 6.48-6.53 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

  • Q2 earnings: Tata Steel | Canara Bank | Cipla | Corp Bank | Godrej Consumer | Indiabulls Housing | SCI | Lupin | Bajaj Electricals | Bosch
  • BoJ Monetary policy meeting minutes
  • US API crude oil stock change
  • US Oct total vehicle sales

MACROS

Next wave of reforms soon: FM
Finance minister Nirmala Sitharaman on Tuesday said the government will soon use its strong electoral mandate to usher in the next wave of reforms, and will not miss the bus this time. Without naming the reform measures unsuccessfully attempted by the Modi government in its first term, and in an apparent hint at land acquisition reform attempts by NDA1, she said government's efforts last time were thwarted by the poor numbers in the Upper House.

In talks with RBI to fix realty issues: FM
FM Nirmala Sitharaman on Tuesday said the government is working with RBI to resolve issues faced by the realty sector. “Government is very keen on working with RBI to see how best we can, where necessary, tweak existing laws to help the people who have been affected in the real estate sector,” said Sitharaman at the NSE’s silver jubilee event in Mumbai.

China sets terms for Xi US visit
China is seeking the roll back of US tariffs on as much as $360 billion of Chinese imports before President Xi Jinping agrees to go to the US to sign a partial trade deal with President Donald Trump. Negotiators asked the Trump administration to eliminate tariffs on about $110 billion in goods that were imposed in September and lower the 25% tariff rate on about $250 billion that began last year.

Services activity declines in October, PMI at 49.2
India’s service sector activity declined for the second straight month in October, the first back-to-back reduction since the second quarter of 2017-18, dragging business confidence to its lowest level in almost three years, a private survey showed on Tuesday. Although the IHS Markit Services Purchasing Managers’ Index rose to 49.2 last month from 48.7 in September, it remained below the 50-mark threshold that separates contraction from expansion.

New base year for GDP to be decided soon
The Ministry of Statistics and Programme Implementation will decide on a new base year for the GDP series in a few months, reports PTI. The ministry is working to bring in a new series of national accounts which would result in change in the existing base year of 2011-12. Though the ministry is considering 2017-18 as the new base year, no decision has been taken as the committees of experts are awaiting some more data before finalising their opinion.

Sebi tightens rules governing P-note investments
Securities and Exchange Board of India has tightened rules on participatory notes (p-notes) while easing some operational norms for select overseas funds. ET was the first to report last month on the likelihood of such a move by the markets regulator.

Average spot power price falls 54% to 2-yr low at IEX
Average spot power price at Indian Energy Exchange(IEX) dropped 54 per cent to a two-year low of Rs 2.71 per unit in October, compared to Rs 5.94 per unit in the same month last year mainly due to lower electricity demand, better coal supplies and higher hydro generation. "The day-ahead market (DAM) traded 3,391 million units with average market clearing price at only Rs 2.71 per unit, lowest in the last two years," an IEX statement said.

9 hour working day suggested in draft labour code
The labour ministry has suggested nine-hour regular working day in its draft wage code as against eight hours now but stayed away from fixing a national minimum wage, which may draw wrath from trade unions. “The number of hours which shall constitute a normal working day… shall be of nine hours,” said the draft rules, floated for public opinion. Like the Labour Code on Wages, the draft rule has left a decision on minimum wage to an expert committee.

BPCL stake sale may affect govt-oil cos linkages
The potential sale of entire government stake in Bharat Petroleum Corp Ltd (BPCL) could result in a reassessment of linkages between the government and oil marketing companies, Fitch group firm India Ratings and Research said on Tuesday. Traditionally, oil marketing companies (OMCs) have been used by the government to push its inclusive agenda, the latest being the dole out of free cooking gas (LPG) cylinders to poor women households.

India Inc to see a 10% salary hike in 2020: Survey
Salaries in India are projected to rise 10% in 2020, marginally higher than the actual increase (9.9%) in 2019, according to the latest Q3 2019 Salary Budget Planning Report released by Willis Towers Watson, a leading global advisory, broking and solutions company. While salary increases in India are stabilising around the 10% mark, they remain the highest in the Asia Pacific region. Indonesia is projected at 8%, China at 6.5%, Philippines at 6%, Hong Kong and Singapore both at 4%, the report stated.
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