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

The index formed a bearish candle on the daily chart, with an advance-decline ratio that was skewed in favour of the bears.

ETMarkets.com|
Nov 27, 2019, 08.03 AM IST
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DIIs were net sellers to the tune of Rs 4,242 crore, data suggests.
NEW DELHI: Nifty’s failure to trigger follow-up buying on Tuesday after breaching a crucial resistance zone disappointed many, but analysts remain upbeat on the near-term outlook of the market.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 11 points, or 0.09 per cent, lower at 12,076.50, indicating a negative start for Dalal Street.

Tech view: Nifty forms bearish candle
The index formed a bearish candle on the daily chart, with an advance-decline ratio that was skewed in favour of the bears. Nonetheless, the index respected its immediate support at 12,000 level and formed higher highs and lows for the day. Analysts said the positive outlook for the index will remain intact as long as it holds above its 20-day moving average at 11,925.

Asian shares mixed despite firm cues
Shares were mostly higher in Asia after a fresh set of record highs on Wall Street, spurred by encouraging signs on trade talks between the US and China. Nikkei 225 index advanced 0.4 per cent to 23,464.57. Kospi gained 0.3 per cent to 2,127.21 and the Hang Seng index was almost unchanged at 26,918.28. The Shanghai Composite index lost 0.3 per cent to 2,897.89, AP reported.

US stocks closed higher
In overnight trade, all three major Wall Street indices notched record levels, as upbeat comments by President Donald Trump on trade talks eclipsed some softer-than-anticipated economic data. The Dow Jones Industrial Average rose 55.21 points, or 0.2 per cent, to 28,121.68, the S&P500 index gained 6.88 points, or 0.22 per cent, to 3,140.52 and the Nasdaq Composite index added 15.45 points, or 0.18 per cent, to 8,647.93.

Oil prices drop on rise in US inventories
Oil fell on Wednesday after an industry report showed an unexpected build in US crude inventories, but optimism around the signing of the first phase of a US-China trade deal capped a deeper slide in prices. International benchmark Brent crude futures dropped 19 cents, or 0.3 per cent, to $64.08 a barrel.

FIIs buy Rs 4,678 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 4,678 crore on Tuesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 4,242 crore, data suggests.

MONEY MARKETS

Rupee: The rupee rose by 24 paise to settle at an over two-week high of 71.50 against the US dollar as persistent foreign fund inflows and hopes about US-China trade logjam breakthrough boosted forex market sentiment.

10-year bonds: India 10-year bond yield rose 0.19 cent to 6.48, after trading in 6.47-6.49 range.

Call rates: The overnight call money rate weighted average was 5.04 per cent, according to RBI data. It moved in a range of 3.70-5.30 per cent.

The DAY PLANNER

  • MSCI semi-annual review of indices
  • Nov API Crude Oil Stock Change
  • ECB Lane Speech
  • US GDP Growth Rate QoQ 2nd Est Q3
  • US Nov Initial Jobless Claims

MACROS

Trump says deal with China close
US President Donald Trump said on Tuesday the United States was in the “final throes” in its attempt to reach a trade deal with China, but that at the same time Washington stands with protesters in Hong Kong, where it wants to see democracy. The Congressional legislation to back protesters has greatly angered Beijing and Trump has been vague about whether he would sign or veto it as he tries to strike a deal with China to end the trade war.

Fadnavis resigns, Thackeray new Maharashtra CM
Shiv Sena head Uddhav Thackeray will lead a Maha Vikas Aghadi government in Maharashtra after Devendra Fadnavis resigned as chief minister conceding that the BJP does not have the requisite majority, barely three days after taking oath in a dramatic early morning closed-door ceremony in the Raj Bhavan. Thackeray is likely to be sworn in as the CM on Thursday at Shivaji Park, Mumbai. Fadnavis’ resignation came within hours of the Supreme Court ordering that his government must submit itself to a floor test on Wednesday to be conducted by a pro tem Speaker. BJP’s ally Ajit Pawar, who took oath as deputy CM along with Fadnavis last Saturday, resigned soon after the order.

RBI raises red flag over Mudra loans
Reserve Bank deputy governor MK Jain on Tuesday warned bankers about the growing stress in Mudra loans, which has crossed more than Rs 3.21 lakh crore system-wide, and asked them to monitor such loans closely as unsustainable credit growth in the sector can risk the system. Prime Minister Narendra Modi had launched the Mudra scheme in April 2015 to offer speedier credit up to Rs 10 lakh to small businesses which are non- corporate, non-farm small/micro enterprises and which normally do not get bank funds due to their poor and mostly no credit rating. .

CCI probe finds bearings collusion by Tata Steel unit
An Indian antitrust investigation has found that units of Tata Steel, Sweden’s SKF and Germany’s Schaeffler colluded on the pricing of bearings, a report seen by Reuters shows, opening them up to potential fines. The Competition Commission of India (CCI) began an investigation in 2017 after allegations that five companies colluded on bearings prices from 2009-2014 to pass higher raw material costs onto customers in the auto sector.

Telcos to defer 5G rollout for 5 years
Indian mobile companies are likely to push back 5G network deployments by at least five years due to exorbitant base prices, insufficient spectrum, and unavailability of newer bands. “We will push out 5G for at least five years. That's the operator perspective,” Rajan S Mathews, director-general of the Cellular Operators Association of India (COAI), told ET. COAI represents all private telecom players—Bharti Airtel, Reliance Jio and Vodafone Idea—as well as gear makers such as Huawei, Ericsson, Cisco, and Ciena.

Pharma firms agree to cap drug margins
Domestic drug industry and trade have agreed to the government’s proposal to cap trade margins for all medicines outside price control at 30%, a move that will reduce the prices of nearly 80% of formulations. A consensus to this effect was reached at a meeting held on Friday between the drug pricing regulator, pharma lobby groups and industry associations, said people present at the meeting. The 30% cap on trade margins was preferred over other proposals such as imposing a flat 100% trade margin on all medicines, including those within price control.

Ind-Ra predicts 4.7% growth in Q2, 5.6% in FY20
Indian economy may have slowed for the sixth consecutive quarter in July-September to 4.7%, Fitch group firm India Ratings and Research said on Tuesday, as it lowered GDP growth forecast for current fiscal for the fourth time. The Indian economy expanded 5% in April-June, its slowest annual pace since 2013. The 4.7% projection for the second quarter of the current fiscal would mark six consecutive quarters of slowing growth, a first since 2012. Ind-Ra further revised GDP growth forecast for FY20 to 5.6% for the fourth time.
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