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

The index formed a similar indecisive candle on the weekly scale. A hold above 11,850 level is a must for any upside.

ETMarkets.com|
Nov 18, 2019, 08.00 AM IST
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Asian share markets got the week off to a muted start on Monday as jaded investors awaited real evidence on progress in the US-China trade dispute.
NEW DELHI: With earnings season almost over and global markets lacking direction, domestic stocks looked set to open on a dull note on Monday.

Here’s breaking down the pre-market actions.

TRADE SETUP
Singapore trading sets stage for flat start
Nifty futures on the Singapore Exchange traded 3 points, or 0.03 per cent, higher at 11,941, indicating a flat start for Dalal Street.

Tech view: Nifty forms Doji candle
Nifty50 erased most of the intraday gains on Friday to settle around the same level where it had opened. In the process, it formed a Doji candle on the daily chart. The index formed a similar indecisive candle on the weekly scale. A hold above 11,850 level is a must for any upside.

Asian shares in waiting mode ahead of Fed event
Asian share markets got the week off to a muted start on Monday as jaded investors awaited real evidence on progress in the US-China trade dispute. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.06 per cent in very light volumes. Japan's Nikkei added 0.05 per cent. Minutes of the Federal Reserve’s last policy meeting are set to be released on Wednesday.

Oil prices flat amid lack of directional cues
Oil prices were little changed following steady gains in the previous week with investors awaiting fresh clues over prospects for a trade deal between the United States and China, shrugging off concerns over steadily rising oil supplies. Brent crude futures were down 5 cents, or 0.1 per cent, at $63.25. The contract rose 1.3 per cent last week.

US stocks settled higher on Friday
On Friday, The Dow Jones Industrial Average increased 222.93 points, or 0.80 per cent, to 28,004.89. The S&P 500 rose 23.83 points, or 0.77 per cent, to 3,120.46. The Nasdaq Composite Index was up 61.81 points, or 0.73 per cent, to 8,540.83.

FIIs sell Rs 1,008 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,008 crore on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 537.74 crore, data suggests.

MONEY MARKETS
Rupee: The rupee appreciated by 18 paise to close at 71.78 against the American currency on Friday, extending gains for a second day on the back of easing crude oil prices and positive trends in equity markets.

10-year bonds: India 10-year bond yield rose 0.06 cent to 6.52, after trading in 6.51-6.53 range.

Call rates: The overnight call money rate weighted average was 5.07 per cent, according to RBI data. It moved in a range of 3.70-5.25 per cent.

The DAY PLANNER

  • India Parliament session starts
  • China FDI (YTD) YoY Oct
  • ECB Guindos speech
  • US Fed Mester speech

MACROS
Software isn’t manufacturing, won’t get 15% tax
Software development is not manufacturing and will not be eligible for the 15% tax rate applicable to new manufacturing entities, reports ET. The government will table a Bill in Parliament in the upcoming winter session to clarify this and other related matters. The Bill will replace its earlier ordinance in September. The amendment comes after industry sought clarity on whether software development could be treated as manufacturing and be eligible for the reduced tax rate.

SBI, govt plan priority status for real estate AIF
State Bank of India (SBI) and the ministry of finance are exploring a legal framework where the proposed alternative investment fund (AIF) for reviving stalled real estate projects will have the first charge on assets and cash flow of entities receiving funding. This may call for introducing changes in the Insolvency and Bankruptcy Code (IBC) to incorporate the concept of seniority of lenders which the code in its present form does not adequately recognise, two senior industry sources familiar with the development told ET.

Revival of royalty payment caps for tech transfer likely
The government is considering to re-introduce restrictions on royalty payments for technology transfer in view of excessive outflow of such funds to overseas companies, sources said. A proposal in this regard will soon be circulated by the Department for Promotion of Industry and Internal Trade (DPIIT) for inter-ministerial consultation, sources said.

Curbs on FDI by JVs of Indian cos may be eased
In a bid to ease the flow of foreign funds into legitimate business activities, the government may soon ease restrictions on foreign direct investment (FDI) by joint ventures (JVs) or wholly-owned subsidiaries (WOS) of an Indian company without categorising such investments as "suspect" involving 'round tripping' of funds, reports IANS. The existing legal framework under FEMA does not permit FDI by an overseas JV or WOS of an Indian party without the prior approval of RBI. Similarly, there are restrictions on Indian entities to undertake overseas direct investment (ODI) in a foreign entity which already has existing FDI investment structures in India. Changes would soon be be made in ODI norms to ease the curbs and put FDI and ODI under the automatic route.

MF investment in equities halves in 2019
Mutual fund investment in stock markets halved to Rs 55,700 crore in the first 10 months of the year because of lower participation from retail investors. Fund managers had bought shares worth about Rs 1.12 lakh crore during January-October 2018, according to the data provided by the Securities and Exchange Board of India (Sebi).

China, US have ‘constructive discussions’ on phase-one trade deal
Chinese Vice Premier Liu He spoke with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer about a phase-one trade deal in a phone call Saturday morning, according to Chinese state media. The two sides had “constructive discussions” about “each other’s core concerns” and agreed to remain in close contact, Xinhua reported. The call came at the request of Mnuchin and Lighthizer, according to Xinhua.

India has potential for very rapid growth: Gates
India has the potential for "very rapid" economic growth over the next decade which will lift people out of poverty and allow the government to invest in health and education priorities in an "exciting way", billionaire philanthropist and Microsoft co-founder Bill Gates has said to PTI. The positive outlook by Gates for the Indian economy, comes at a time when it is reeling under major slowdown amid apprehensions that the cycle may last for a longer period.
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