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

Analysts said the advance-decline ratio needs to improve, as the index looks to take out the 12,000 level in the coming days.

ETMarkets.com|
Nov 20, 2019, 08.00 AM IST
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AP
Stock-market-1---AP
The Union Cabinet will soon consider a proposal to bring down government stake in central public sector enterprises (CPSEs) to below 51% even while retaining the state control.
Undertainty over the US-China trade talks returned to haunt markets this morning, while back home valuation concerns appeared to be keeping sentiments subdued. Going by SGX Nifty, Dalal Street looked headed for a negative start.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 28.50 points, or 0.24 per cent, lower at 11,953, indicating a negative start for Dalal Street.

Tech view: Nifty forms small bullish candle
Nifty50 on Tuesday saw a fag-end rally, but failed to close above the lower end of a crucial 11,950-12,000 range. The index ended up forming a Small Bullish Candle on the daily chart. Analysts said the advance-decline ratio needs to improve, as the index looks to take out the 12,000 level in the coming days.

Asian markets weak
Asian shares lumbered lower on Wednesday as the Sino-U.S. trade talks produced nothing but a stream of conflicting messages, while concerns about a glut of supply saw oil prices suffer their biggest spill in seven weeks. Action in share markets was subdued with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.25 per cent. Japan's Nikkei eased 0.2 per cent and South Korea shares were down 0.4 per cent. E-Mini futures for the S&P 500 lost 0.1 per cent.

Oil slumps on oversupply fears
Oil fell more than $1 a barrel on Tuesday on concerns about excess global crude supply and limited progress toward resolving the U.S.-China trade dispute that has clouded the outlook for oil demand. Brent crude futures fell $1.53, or 2.5%, to settle at $60.91 a barrel. U.S. West Texas Intermediate (WTI) crude futures lost $1.84, or 3.2%, to settle at $55.21 a barrel.

Dow and S&P end lower
The Dow Jones Industrial Average and the S&P 500 fell from record levels on Tuesday as dour forecasts from retailers Home Depot and Kohl's fueled worries about consumer spending and the U.S.-China trade dispute dragged on. US President Donald Trump on Tuesday threatened to escalate the trade war by raising tariffs on Chinese imports if no deal is reached with Beijing. Dow was down 0.36 per cent and S&P off 0.06 per cent.

FII sell shares worth Rs 915 crore
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 915 crore on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 262 crore, data suggests.

MONEY MARKETS
Rupee: The rupee recovered from initial losses to settle higher by 13 paise at 71.71 against the US currency on Tuesday, propped up softening crude oil prices and gains in domestic equity markets.

10-year bonds: India 10-year bond yields fell 0.01% to 6.48% on Tuesday, against 6.49% in the previous session, according to Bloomberg.

Call rates: The overnight call money rate weighted average was 5.06% on Tuesday, according to RBI data. It moved in a range of 3.70-5.25%.

The DAY PLANNER

API Nov crude oil stock change
Japan Oct balance of trade
ECB financial stability review
ECB Lane Speech

MACROS

Stricter PMS rules on Sebi board table
The Securities and Exchange Board of India (Sebi) is likely to tighten rules for portfolio management services (PMS) and shorten the timeline for rights offers. These decisions, along with a few others, are expected to be taken at the market regulator’s board meeting on Wednesday. The board will likely go ahead with an expert panel’s proposals to more than double the net worth requirement for portfolio managers to Rs 5 crore from Rs 2 crore, increase the minimum investment ticket size in such products to Rs 50 lakh from Rs 25 lakh and tighten broker commissions for selling them. Proposed tougher rules for the PMS industry come in the wake of the strong growth of these asset managers in the last five years.

China central bank cuts rates
China’s central bank cut its new benchmark lending rate on Wednesday for the third time since its debut in August, as widely expected, as the authorities move to lower financing costs to the real economy.
The one-year loan prime rate was lowered by five basis points to 4.15% from 4.20% at the previous monthly fixing.

China tariffs will go 'even higher' without deal: Trump
US President Donald Trump on Tuesday warned that failure to get a trade deal with China will prompt more tariffs. "If we don't make a deal with China, I'll just raise the tariffs even higher," he told reporters at the White House. Trump's latest tough comment came as markets are watching intensely for signs of progress in the two economic superpowers' attempt to reach a so-called "phase one" partial deal taking the heat out of a growing trade war.

India vulnerable to oil price shocks: YV Reddy
The recent developments around China, Iran and the Middle East have the potential to generate two types of shocks - oil price and capital flow - and India is the country most vulnerable to both, former governor of Reserve Bank YV Reddy said here on Tuesday. Reddy said there is new 'bi-polar' world with USA and China leading each block and despite the fact that both the countries have close 'economic integration.'

Govt has no plan to revise fiscal deficit target
The government on Tuesday categorically stated that it does not intend to revise its fiscal deficit target of 3.3% of gross domestic product (GDP) for the current financial year notwithstanding slowdown in economic activities. "No sir," Minister of State for Finance Anurag Thakur said in a written reply in the Rajya Sabha to a query if the government intends to revise fiscal deficit in view of the economic slowdown.

Cabinet mulls lowering PSU holdings
The Union Cabinet will soon consider a proposal to bring down government stake in central public sector enterprises (CPSEs) to below 51% even while retaining the state control. Besides, the Modi-led Cabinet is likely to take a call on the merger of public sector general insurance companies. The 2018-19 Budget had proposed merger of three public sector general insurance companies and subsequent listing on stock exchanges.

Job creation slowed in last 2 yrs: CARE
The pace of employment growth in India slowed in the last two years with job creation growing 3.9% in 2017-18 and 2.8% in 2018-19, a study done by ratings agency CARE Ratings showed. Based on a set of 1,938 companies spread across all sectors, the study said the value of sales in FY19 was Rs 69 lakh crore thus covering the entire corporate sector. It includes all listed public sector entities but the SME segment may find less representation in this sample. The aggregate headcount or employment increased at a CAGR of 3.3% from 2014-15 to 2018-19 compared with a CAGR of 7.5% in GDP during this period.

Reliance Jio follows peers, to hike tariffs
Reliance Jio Tuesday said that it will raise tariffs in the next few weeks, following the steps of its competitors Bharti Airtel and Vodafone Idea, in a move that will help the industry in revenue recovery after years of a price war. "Like other operators, we will also work with the Government and comply with the regulatory regime to strengthen the industry to benefit Indian consumers and take measures including appropriate increase in tariffs in next few weeks in a manner that does not adversely impact data consumption or growth in digital adoption and sustains investments," said Jio on Tuesday.
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