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

DIIs were net buyers to the tune of Rs 754 crore, data suggests.

Dec 03, 2019, 08.10 AM IST
US factory activity contracted further in November amid a slump in new orders while construction spending unexpectedly fell, offering cautionary notes on an economy that had recently shown signs of growing at a moderate pace
NEW DELHI: Weak US manufacturing data and President Donald Trump’s picking up new fronts in trade war, Brazil and Argentina, have hurt investor sentiments globally. Can domestic stocks make a comeback?

Here’s breaking down the pre-market actions.


Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 21 points, or 0.17 per cent, lower at 12,070.50, indicating a weak start for Dalal Street.

Tech view: Nifty forms Bearish Belt Hold
Nifty fell from the word go on Monday but settled the day a tad below 12,050, forming a Bearish Belt Hold pattern on the daily chart. Notwithstanding weak breadth and visible signs of fatigue, a few analysts thought the broader trend remained intact, but the index may need to breach the 12,150-70 range for any strong action.

Asian shares drop in early trade
Asian shares skidded on Tuesday after US President Donald Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions, while weak US factory data added to the investor gloom. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.45 per cent in early trade. Japan’s Nikkei shed 1.1 per cent.

US stocks fall on weak manufacturing data
Wall Street stepped back from last week's record highs on Monday, with weak US manufacturing data and fresh trade worries keeping buyers on the sidelines. The Dow Jones Industrial Average fell 267.35 points, or 0.95 per cent, to 27,784.06, the S&P500 index lost 27 points, or 0.86 per cent, to 3,113.98 and the Nasdaq Composite dropped 97.48 points, or 1.12 per cent, to 8,567.99.

Crude oil prices edge higher in early trade
Oil prices continued to rise on expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week. US West Texas Intermediate crude was up 0.25 per cent to $56.10 a barrel.

Ujjivan SFB IPO subscribed 1.62 times on Day 1
The initial public offering (IPO) of Ujjivan Small Finance Bank was subscribed 1.62 times on the first day of bidding on Monday. The IPO received bids for 20,14,25,600 shares against the total issue size of 12,39,58,333 shares, translating into a subscription of 1.62 times, according to data available with the National Stock Exchange (NSE).

FIIs sell Rs 1,731 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,731 crore on Monday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 754 crore, data suggests.


Rupee: The rupee on Friday settled 12 paise lower at 71.74 against the US dollar, tracking heavy selling in domestic equities and growth concerns ahead of the release of GDP data.

10-year bonds: India 10-year bond yield rose 0.36 cent to 6.49, after trading in 6.45-6.50 range.

Call rates: The overnight call money rate weighted average was 4.59 per cent, according to RBI data. It moved in a range of 3.20-5.25 per cent.


Trump’s trade war reaches Brazil, Argentina
In tweets on Monday, Trump said he would impose tariffs on steel and aluminum imports from Brazil and Argentina, attacking what he saw as both countries’ “massive devaluation of their currencies.” Contrary to his remarks, both Brazil and Argentina have been trying to strengthen their respective currencies against the dollar, Reuters reported. Meanwhile, The Trump Administration has determined that the French Digital Tax is discriminatory against American companies and as such has proposed tariffs of up to 100 per cent on $2.4 billion of French products.

Crisil slashes FY20 growth forecast to 5.1%
Rating agency Crisil on Monday sharply cut its growth forecast for the current financial year to 5.1% from an earlier estimate of 6.3%. The move comes ahead of the RBI's announcement on lending rates on December 5. The RBI's monetary policy committee (MPC) will meet between December 3-5 to review the interest rates. India's first half (April-September) growth has been at 4.75%, a multi-year low.

SC directs NBCC to complete home projects in Noida
The Supreme Court on Monday directed National Buildings Construction Corporation Ltd. to commence and complete the work of eight projects involving 11, 258 home units in Noida and Greater Noida, and start handing over possession to the buyers. The apex court bench headed by Justice Arun Mishra, and comprising Justice Uday Lalit, asked NBCC (India) Ltd to complete the unfinished projects in Noida and Greater Noida - Zodiac, Sapphire 1 and 2, Silicon City 1 and 2, Princely Estate, Centurion Park Low Rise and the O2 Valley.

No tax cut on fuel: FM
The government said on Monday that there is no proposal to reduce taxes on petrol and diesel. Finance minister Nirmala Sitharaman told the Lok Sabha that nowhere in the world do prices of petrol and diesel remain steady for a particular period of time. Responding to a query on whether petrol and diesel would be brought under the Goods and Services Tax (GST) regime, she said that in a way, they are already under the zero rate category of the GST. The rates have to be decided by the GST Council,

Gross direct tax collection rises by 5% till Nov: FM
Gross direct tax collection increased by 5% till November, Finance Minister Nirmala Sitharaman said on Monday as she allayed fears of corporate tax reduction impacting revenue collection. Replying to a debate on Taxation Law Amendment Bill, 2019 in the Lok Sabha, the minister categorically said there is no decrease in direct tax collection. In fact, there is an increase of 5% in the gross direct tax collection till November this fiscal, she said.

Nov factory activity improves in India but firms shed jobs
Business conditions in the India’s manufacturing sector improved in November but firms shed jobs for the first time in 20 months, a private survey showed on Monday. The IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October when it had fallen to a two-year low. It remained above the 50-mark threshold that separates contraction from expansion. “The latest reading was below the survey average (53.8) and indicated only a slight improvement in the health of the sector,” the survey report showed.

FM: Tax rate cut to draw investments
Finance minister Nirmala Sitharaman said the recent corporate tax rate cut was aimed at attracting investments and creating jobs while clarifying that the reduction in minimum alternate tax was applicable from the beginning of the current financial year. “We think we will attract investment by reducing tax rate,” she told Parliament, while adding that several countries had done the same. She was speaking during the debate on the Taxation Laws (Amendment) Bill that was passed by the Lok Sabha, replacing a September 20 ordinance. The MAT clarification would have come as a relief as the text of the bill had said the relief would be applicable from the next financial year rather than the current one as mentioned in the ordinance.

US factory activity unexpectedly falls
US factory activity contracted further in November amid a slump in new orders while construction spending unexpectedly fell, offering cautionary notes on an economy that had recently shown signs of growing at a moderate pace. The reports on Monday came on the heels of upbeat October data on the goods trade deficit, housing and manufacturing that led economists to boost their gross domestic product estimates for the fourth quarter. The Institute for Supply Management (ISM) said its index of national factory activity dropped 0.2 point to a reading of 48.1 last month.
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