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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|
Dec 05, 2019, 08.05 AM IST
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AP
Stock-market-1---AP
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent. Australian shares were up 0.9 per cent, while Japan's Nikkei stock index rose 0.81 per cent.
NEW DELHI: Hopes of another rate cut by RBI in its policy review today and firm cues globally should support the domestic market. Technical charts are suggesting positive momentum ahead.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for muted start
Nifty futures on the Singapore Exchange traded 9.50 points, or 0.07 per cent, higher at 12,085.50, indicating a muted start for Dalal Street.

Tech view: Nifty forms 'Piercing Line' candle
Nifty50 formed a ‘Piercing Line’ pattern on the daily chart on Wednesday, suggesting the emergence of buying from the lows. Often, such a formation results in a follow-through buying, said Nagaraj Shetti of HDFC Securities. “The index held on to its immediate support at 12,000 after an intraday violation. This is a positive indication. One may expect some more up-move in the next session,” he said.

Asian shares gain as trade talks back on track
Asian stocks edged up on Thursday on signs the United States and China were on track for a preliminary trade deal, though optimism was tempered by the almost daily shifts in prospects for defusing the damaging tariff war now in its second year. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent. Australian shares were up 0.9 per cent, while Japan's Nikkei stock index rose 0.81 per cent.

US stocks rise on Trump comments
Wall Street rebounded on Wednesday as investor optimism got a boost from US President Donald Trump’s remarks that talks with China on an interim trade deal were going “very well.” The Dow Jones Industrial Average index rose 146.97 points, or 0.53 per cent, to 27,649.78. The S&P500 index gained 19.57 points, or 0.63 per cent, to 3,112.77 and the Nasdaq Composite index added 46.03 points, or 0.54 per cent, to 8,566.67.

Crude prices fall ahead of two-day Opec meet
US crude prices edged 0.03 per cent lower to $58.41 a barrel on Thursday as a 3 per cent rally overnight showed signs of fading. However, prices could be supported if the OPEC, and allies including Russia, approve deeper crude output cuts when they meet in Vienna on Thursday and Friday.

FIIs sell Rs 781 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 781 crore on Wednesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 904 crore, data suggests.

MONEY MARKETS

Rupee: The rupee clawed back its lost territory to settle 13 paise higher at 71.53 to the US dollar on renewed hopes about US-China trade deal.

10-year bonds: India 10-year bond yield stood at 6.47, after trading in 6.45-6.48 range.

Call rates: The overnight call money rate weighted average was 5.05 per cent, according to RBI data. It moved in a range of 3.60-5.25 per cent.

The DAY PLANNER

  • RBI money policy
  • Nov UK car sales
  • Opec meet on output cut
  • US Nov initial job loss claims
  • US Oct balance of trade

MACROS

RBI may cut rate for a 6th time in a row
Reserve Bank may cut interest rates for the sixth straight time on Thursday to support growth that has continued to slip to more than six-year low on slump in manufacturing, bankers and experts said. In five reductions so far in 2019, interest rates have been lowered by a total of 135 basis points over concerns that growth momentum is slowing down and also to try to boost liquidity in the financial system.

Cabinet clears Personal Data Protection Bill
The Union Cabinet has cleared the Personal Data Protection Bill for introduction in the current session of Parliament. The Personal Data Protection Bill proposes that all “critical” information related to individuals will be stored and processed only in India, while all “sensitive personal data” has to be stored in the country but can be processed outside subject to certain conditions. There’s no restriction on other kinds of personal information, partially taking into account the demands of global companies such as Google and Facebook, while aiming to safeguard data sovereignty. Social media firms must put in place systems to verify users and rein in trolling and misinformation, says the Bill.

Services output expands after 3 months
Indian service providers signalled a moderate rebound in business activity during November, with the return to output growth accompanied by a renewed rise in new business intakes, faster job creation and strengthening business confidence, a private survey showed on Wednesday. Posting 52.7 in November from 49.2 in October, the IHS Markit India Services Business Activity Index signalled output growth for the first time in three months. A reading below 50 on the index shows contraction while above that threshold indicates expansion.

US, China closer to trade deal
The US and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal despite tensions over Hong Kong and Xinjiang, reports Bloomberg, quoting people familiar with the talks. US President Donald Trump’s comments Tuesday downplaying the urgency of a deal shouldn’t be understood to mean the talks were stalling, as he was speaking off the cuff.

Govt mulls 'riskier' plan to ease cash crunch
Prime Minister Narendra Modi’s government is considering easing lending rules for NBFCs, a move that would give the cash-starved financiers access to funds, reports Bloomberg. Modi’s cabinet is likely to discuss allowing state banks to provide so-called credit enhancement against securities rated BBB+ to non-bank financiers. NBFCs have been reeling from a cash shortage that’s hurt expansion plans and stalled trade finance at small and medium companies.
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