What changed for the market while you were sleeping? 12 things you should know

A list of important headlines from across news agencies that could help in your trade today.

The bulls managed to gain the upper hand on Dalal Street after a tussle with the bears on Friday. The Nifty50 closed marginally higher amid consolidation and weak global cues, continuing the uptrend for the fourth consecutive session.

The 30-share BSE Sensex was up 33.29 points at 35,962.93, while the 50-share NSE Nifty managed to close above 10,800 levels, up 14 points at 10,805.50, forming a bullish candle which closely resembles a ‘Hanging Man’ pattern on daily charts.

For the week ended December 14, the Sensex gained 0.8 percent while the Nifty inched up by a percent, forming a robust bullish candle on the weekly charts.

The broader market outperformed as the BSE Midcap index rose 3.2 percent while the S&P BSE Smallcap index closed 2.8 percent higher.

According to Pivot charts, the key support level is placed at 10,766.47, followed by 10,727.43. If the index starts moving upwards, key resistance levels to watch out are 10,830.17 and then 10,854.83.

The Nifty Bank index closed at 26,826, up 9.65 points on December 14. The important Pivot level, which will act as crucial support for the index, is placed at 26,736.14, followed by 26,646.27. On the upside, key resistance levels are placed at 26,912.44, followed by 26,998.87.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

Wall Street tumbles on global growth worries

Wall Street’s three major indexes tumbled on Friday and the Dow confirmed a correction as weak data from China and Europe stoked fears of a global economic slowdown, while Johnson & Johnson shares were the biggest drag after Reuters reported the company knew for decades that its Baby Powder contained asbestos.

The S&P 600 small cap index confirmed it was in a bear market after closing 20.05 percent below its Aug. 31 peak, falling 1.6 percent on the day.

The Dow Jones Industrial Average fell 496.87 points, or 2.02 percent, to 24,100.51, 10 percent below its October 3 closing high. The S&P 500 lost 50.59 points, or 1.91 percent, to 2,599.95, 11.3 percent lower than its Sept. 20 record close, marking the poorest performance for the benchmark since it fell more than 14 percent between May 2015 and January 2016.

The Nasdaq Composite dropped 159.67 points, or 2.26 percent, to 6,910.67.

Asian shares on defensive on mounting signs of a global slowdown

Asian share markets started the week on a cautious footing on Monday after weak economic data from China and Europe added to evidence of cooling global growth and reinforced anxiety over the impact of international trade frictions on business and profits.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed while Japan’s Nikkei was up 0.1 percent in early trade. US stock futures were also almost flat.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 36.5 points or 0.34 percent. Nifty futures were trading around 10,867-level on the Singaporean Exchange.

US sets March 2 as new date for China tariff increases amid talks

The US Trade Representative’s office on December 14 officially changed the scheduled date of a tariff rate increase on $200 billion worth of Chinese goods to 12:01 am EST (0501 GMT) on March 2, 2019, as the United States and China pursue talks on trade and intellectual property. The change was made in a Federal Register filing from a previously scheduled effective date of January 1, 2019, for the increase to 25 percent from 10 percent.

The notice does not affect the 25 percent tariff rate already in place on $50 billion worth of Chinese technology items, including semiconductors, printed circuit boards and other electronic components, machinery and vehicles.

The filing was added to documents associated with USTR’s “Section 301” investigation into China’s intellectual property practices, which has been the basis of US tariffs on Chinese goods that led to tit-for-tat retaliation from Beijing.

China to halt added tariffs on US-made cars in easing of trade tensions

China will temporarily suspend additional 25 percent tariffs on US-made vehicles and auto parts starting January 1, 2019, the Finance Ministry said on December 14, following a truce in a trade war between the world’s two largest economies.

The Ministry of Finance, in a statement on its website, also said it hopes China and the United States can speed up negotiations to remove all additional tariffs on each other’s goods as it reduces tariffs from 40 percent to the 15 percent level that was levied before the current trade fight began. The suspension will last for three months.

“China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended US Tariff Hikes,” Trump said in a tweet. “US is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!”

North Korea condemns US sanctions, warns denuclearization at risk

North Korea on Sunday condemned the US administration for stepping up sanctions and pressure on the nuclear-armed country, warning of a return to “exchanges of fire” and that disarming Pyongyang could be blocked forever.

The North’s stinging response came after the United States said on Monday it had introduced sanctions on three North Korean officials, including a top aide to North Korean leader Kim Jong Un, for alleged human rights abuses.

US oil prices inch up, but global economic concerns weigh

US oil prices edged up on Monday amid a fall in drilling activity in the United States, but lingering concerns about weaker economic growth in major economies kept a lid on gains.

US West Texas Intermediate (WTI) crude futures were at $51.35 per barrel at 0010 GMT, up 0.3 percent, or 15 cents, from their last settlement.

Govt to launch Bharat-22 ETF follow on offer in Feb, plans to raise Rs 10,000 cr

The government is planning to raise about Rs 10,000 crore through a follow on offer of Bharat-22 ETF in February, an official said. “Plans are on for launching the third tranche of Bharat-22 ETF around February. The offer is likely to have a base issue size of Rs 5,000 crore, with a green-shoe option to retain an over-subscription of equal amount, taking the total issue size to Rs 10,000 crore,” the official told PTI.

The government has so far raised Rs 22,900 crore through the Bharat-22 exchange traded fund (ETF). While Rs 14,500 crore was raised in November 2017, another Rs 8,400 crore was raised in June 2018.

The official said there would be a need to rebalance the ETF after the third tranche as the government holding in certain CPSEs in the basket could fall below 53 percent.

PE investments deal tally at $17.8 bn in Jan-Nov: Report

Private equity investments witnessed in November a declining trend both in value and volume terms with 39 deals worth around $500 million, says a report. According to the Grant Thornton report, PE deal tally from January to November was 717 totalled $17.8 billion in valuation.

The deal volume saw a 4 percent increase over the same period a year ago, while the deal size of investments declined by 9 percent as big ticket investments remained cautious.

India Resurgence Fund, promoted by Piramal Enterprises Ltd and Bain Capital Credit, invested $156 million in Chennai-based Archean Group’s marine chemicals business — the biggest deal of the month.

Forex reserves marginally up to $393.734 bn

The country’s foreign exchange reserves increased by $16.6 million to $393.734 billion in the week to December 7, mainly due to a rise in foreign currency assets, according to the Reserve Bank (RBI) data. In the previous week, the reserves had increased by $932.8 million to $393.718 billion. In the reporting week, foreign currency assets, a major component of the overall reserves, rose by $9.7 million to $368.497 billion, as per the RBI data.

Forex reserves had touched a record high of $426.028 billion in the week to April 13, 2018. Since then, the forex kitty has been on a slide and is now down by over $31 billion.

Rupee skids 22 paise to 71.90 against US dollar

The rupee declined by 22 paise to close at 71.90 against the US dollar amid strengthening of the greenback and cautious trading in the domestic equity market on December 14. Forex traders said the rupee came under pressure following strengthening of the dollar against major currencies overseas, while caution prevailed amid the RBI’s central board meeting under new Governor Shaktikanta Das.

At the Interbank Foreign Exchange (forex) market, the local unit opened lower at 71.80 and fell further to touch the day’s low of 72.04. However, it pared some losses and finally ended at 71.90 per dollar, down by 22 paise against its previous close.

Foreign investors’ outflow nears Rs 1 lakh cr

Foreign investors’ portfolio investments have long been known as ‘hot money’ that comes in fast but can go out even faster and it is the outward journey that seems to be the underlying theme for the Indian capital markets as 2018 draws to a close, with net outflows nearing the Rs 1 lakh crore mark.

This could make 2018 the worst year in terms of foreign portfolio investments in the Indian capital markets and follows a record net inflow of about Rs 2 lakh crore into equities and debt securities in 2017, as per data available with the depositories and exchanges. As of now, the foreign portfolio investors (FPIs) have made a net withdrawal of about Rs 87,000 crore from the Indian markets with about a fortnight of trading remaining.

Analysts warn the trend may continue in the wake of negative sentiments about possible changes in the regulatory framework after the sudden exit of the RBI governor and the emerging political scenario.

4 stocks under ban period on NSE

Securities which are in the ban period for the next day’s trade under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

For December 14, 2018, Adani Enterprises, Adani Power, Jet Airways and Reliance Capital are present in this list.

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