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

US stocks closed higher on Thursday as investors digested the latest jobs data.

ETMarkets.com|
Dec 06, 2019, 07.58 AM IST
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AP
stock-market-2---AP
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 653.36 crore on Thursday, data available with NSE suggested.
NEW DELHI: Indian benchmark equity indices may rise taking cues from firm trading in global markets, following strong US jobs data. That said, the Opec decision to cut crude output may limit upside.

Here’s breaking down the pre-market actions.


TRADE SETUP

Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 24 points, or 0.20 per cent, higher at 12,068, indicating a positive start for Dalal Street.

Tech view: Nifty forms small bearish candle
The index formed a small bearish candle on the daily chart. Analysts said Nifty has support at 11,950-11,960 levels, and unless this range is breached, the outlook will remain positive.

Asian shares up on trade deal optimism
Asian stocks held firm on Friday as US President Donald Trump's rhetoric kept investors' hopes up on a trade deal with China, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts. Japan's Nikkei rose 0.28 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.19 per cent.

US stocks settled higher on jobs data
US stocks closed higher on Thursday as investors digested the latest jobs data. On Thursday, the Dow Jones Industrial Average was up 28.01 points, or 0.10 per cent, to 27,677.79. The S&P 500 rose 4.67 points, or 0.15 per cent, to 3,117.43. The Nasdaq Composite Index was up 4.03 points, or 0.05 per cent, to 8,570.70

Crude prices rise on OPEC output cut
Oil edged up in early Asia trade on Friday, with US crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 per cent in early 2020, although the cartel stopped short of promising any further steps after March. WTI oil futures were up by 2 cents at $58.45 a barrel. Brent futures were up 1 cent at $63.40.

FIIs buy Rs 653 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 653.36 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 410 crore, data suggests.

MONEY MARKETS

Rupee: The Indian rupee rose sharply in the last hour of trade to settle 24 paise higher at 71.29 to the US dollar on Thursday after the RBI promised to continue with accommodative stance in its monetary policy.

10-year bonds: India 10-year bond yield rose 2.26 per cent to 6.61 after trading in 6.46-6.62 range.

Call rates: The overnight call money rate weighted average was 5.02 per cent, according to RBI data. It moved in a range of 3.70-5.30 per cent.

The DAY PLANNER

  • RBI Nov forex data
  • RBI Nov deposit/loan growth
  • US Nov unemployment rate
  • US Baker Hughes Oil Rig Count
  • UK Nov house price index

MACROS

Opec, allies agree on deep output cuts
Opec and allies led by Russia on Thursday agreed one of the deepest output cuts this decade to support crude prices and prevent a glut but were still debating how long the curbs would last next year. The Organization of the Petroleum Exporting Countries (OPEC) is meeting to discuss supply policy in Vienna. OPEC will then meet on Friday with Russia and other producers, a grouping known as OPEC+.

OECD sees signs of Indian recovery
India is set for a modest recovery after a loss of momentum as reforms to simplify taxation, lighten business regulations and upgrade infrastructure start to bear fruit, the Organization for Economic Cooperation and Development (OECD) said on Thursday, even as it pushed for reforms to create jobs and improve public welfare. Growth in Asia's third largest economy will slow down to 5.8% in 2019 but would recover to 6.2% in 2020 and 6.4% in 2021, the OECD said in its ‘Economic Survey of India’ report.

No GST on BPO/KPO
The government withdrew a circular issued in July on what constituted ‘intermediary’ services, providing respite to the business and knowledge process outsourcing (BPO, KPO) industry. Under the circular, they were regarded as intermediaries engaged in the supply of goods and services and not exporters. This brought several multinational back offices located in India, among other such service providers, under the ambit of 18% GST. Several of them were handed showcause notices by the tax department after the circular was issued.

US jobless claims at 7-month low
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended November 30, the lowest level since mid-April, the US Labor Department said. Data for the prior week was unrevised. Economists polled by Reuters had forecast claims increasing to 215,000 in the latest week.

Market separating good and bad NBFCs
NBFC funding rates are market-driven, with the best among them raising the necessary cash at competitive rates, while Mint Road continues to monitor the non-bank lending industry to prevent systemic shocks. After the IL&FS defaults, RBI has taken several steps to ease credit flow to the NBFC sector, with the market differentiating among the lastmile lenders. “The better-performing NBFCs are able to access funds from the market at pre-IL&FS rates,” said Reserve Bank of India (RBI) Governor Shaktikanta Das. “The market today is differentiating between the good and the not-so-good NBFCs.”

Govt borrowing costs set to shoot up
Raises North Block may have to pay more to borrow from Mumbai’s financiers after Mint Road sprang a surprise on Thursday, keeping the benchmark policy rate unchanged despite consensus expectations of further easing in benchmark rates. The Overnight Interest Rate Swap (OIS) with one-year maturity, a derivative gauge where investors exchange fixed rates for floating, surged 24 basis points to 5.26%, suggesting that traders do not expect any rate reduction for now.

Aramco IPO misses $25 billion mark
Aramco IPO has missed the mark, but is still set to be biggest in history. The oil giant priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, raising $25.6 billion and beating Alibaba's record $25 billion listing in 2014. But it will fall short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman. At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple as the world’s most valuable listed firm.

India takes on US, EU for blocking its workers
India led seven countries at WTO in objecting to some nations trying to bring in rules to erect barriers to services trade and cross-border movement of professionals through qualification and licensing requirements, and technical standards. India teamed up with South Africa, Sri Lanka, Tunisia and Zimbabwe on Tuesday and raised objections to disciplines being built around requirements such as recognition of professional qualifications and professional bodies, among other requirements called domestic regulations in trade parlance. The US, EU, Canada and Australia have been erecting barriers through domestic regulations to deny market access to short-term services providers from India under the Mode 4 of General Agreement on Trade in Services.
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