Market Movers: Top 10 things to know before you make your opening trade today

The Indian market ended the day’s session on a negative note on Tuesday with the S&P BSE Sensex declining marginally but holding a key level of 60400. Similarly, the Nifty50 closed negative but above the 18000-level.

Foreign portfolio investors (FPIs) remained net sellers for Rs 2445.25 crore in the Indian markets on Tuesday. File Image. Source: PTI

The Indian market ended the day’s session on a negative note on Tuesday with the S&P BSE Sensex declining marginally but holding a key level of 60400. Similarly, the Nifty50 closed negative but above the 18000-level.

Vinod Nair, Research Head, Geojit Financial Services said, “After a positive opening, the domestic market traded lower as private banking stocks were under pressure following dull global markets.”

“However, Auto, PSBs, and consumer durables climbed against the market trend with small and mid-cap stocks outperforming. Despite the passage of the long-awaited infrastructure bill, the gains in the US market were capped as investors cautiously awaited the US inflation data,” he added.

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Rohit Singre, Senior Technical Analyst at LKP Securities mentioned, “Index opened a day with gap up but showed a dull moment throughout the day and closed a day at 18044 with minimal loss.”

According to Singre, “The index has formed a strong base around 18k mark & in today’s session also we witnessed a good pull back from the said levels only going forwards also 18k mark will act as fantastic support and if index managed to hold above 18k mark one can expect the next move towards 18200-18300 zone on a very quick basis.”

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or the economy:

Global Markets

World stock indexes slid on Tuesday, bringing a multi-day rally of record closing highs to a wrap as profit-taking and worries over ongoing inflation fueled a broad selloff.

The retreat came as a solid rise in producer prices last month deepened concerns over inflation and oil prices have soared to seven-year highs, driving up the U.S. retail gasoline cost to $3.42 a gallon, the highest in seven years. Meanwhile, U.S. Treasury yields edged lower.

Wednesday’s CPI report will be scrutinized for clues regarding the extent to which producer prices are being passed along to the consumer, whose spending represents about 70% of the U.S. economy.

The pan-European STOXX 600 index lost 0.19% while MSCI’s gauge of stocks across the globe shed 0.23% after coming within a point of uncharted highs earlier in the session.

The Dow Jones Industrial Average fell 0.31% and the S&P 500 lost 0.35%. The Nasdaq Composite dropped 0.6%.

Asian Markets

The Nikkei 225 in Japan as well the Hang Seng Index on Wednesday opened with negative bias. Both the indices were trading flat around 7:30 AM.

SGX Nifty

SGX Nifty opened in the red on Wednesday and lost nearly 0.10% by 7.30 AM IST.

Oil edges up on rising demand forecasts

Oil prices edged up on Tuesday as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight.

The rally came ahead of the U.S. Energy Information Administration`s (EIA) release of oil and gasoline price predictions in its Short Term Energy Outlook (STEO), which U.S. President Joe Biden`s administration has said it would use to determine whether to release oil from the nation`s Strategic Petroleum Reserve (SPR).

Brent futures rose 61 cents, or 0.7%, to $84.04 a barrel by 11:16 a.m. EST (1616 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.04, or 1.3%, to $82.97.

That puts both Brent and WTI on track for their highest closes since Nov. 2.

States borrowing cost falls sharply to 6.81%

After spiking to a record 7.02 per cent last week, the borrowing cost for the states has declined sharply to 6.81 per cent at the weekly auctions held on Tuesday, mainly because they raised shorter tenor funds and 37 per cent less than notified.

Last week, the cost of debt for three states had peaked to the highest this fiscal at 7.02 per cent, up 12 bps over the previous week, despite most of the notified states drawing down less or not participating in the auctions.

According to rating agencies Icra and Care Ratings, the reason for the lower cut-off at 6.81 per cent was driven by the cut in the Central excise duty and VAT by some states on petrol and diesel but left the spread between the 10-year G-secs and state debt widened to 64 bps from 61 bps last week, as the duty cut will cushion the inflation.

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Rupee pairs early gains; settles almost flat

The rupee pared initial gains to settle marginally up by 1 paisa at 74.02 against the US dollar on Tuesday amid a lacklustre trend in domestic equities.

At the interbank forex market, the domestic unit opened strong at 73.92 but erased early gains to finally close at 74.02, up 1 paisa from its previous closing of 74.03.

During the session, the domestic unit witnessed an intra-day high of 73.85 and a low of 74.09 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.13 per cent to 93.93.

RBI to organise first global hackathon

The Reserve Bank of India (RBI) on Tuesday announced its first global hackathon 'HARBINGER 2021 Innovation for Transformation' with the theme 'smarter digital payments'.

Registration for the hackathon starts from November 15, the central bank said in a statement.

The Hackathon, it said, invites participants to identify and develop solutions that have the potential to make digital payments accessible to the under-served, enhance the ease of payments and user experience, while strengthening the security of digital payments and promoting customer protection.

India's coal import 12% drops to 94 MT in April-Aug

The government on Tuesday said the country's total coal import dropped 12 per cent year-on-year (y-o-y) to 94.15 million tonnes (MT) in April-August 2021, on account of a substantial reduction in the import of non-coking coal.

This has resulted in considerable financial savings in the current year as coal prices are going up sharply in the international market, the coal ministry said in a statement.

"Due to a substantial reduction of import of non-coking coal in the current year, the total import of coal has also reduced to 94.15 MT in the period from April to August 2021 as compared with 107.01 MT during the corresponding period of 2019-20, a decrease of about 12 per cent," the statement said.

Govt notifies amended minerals concession rules

The Union government has notified the amended minerals concession rules that will pave the way for sale of 50 per cent of mineral produced from captive mines, transfer of mines without any charges and partial surrender of a lease.

Various amendments were made in the Mines and Minerals (Development and Amendment) Act, 1957 (MMDR Act) earlier this year. The changes were aimed at increasing employment and investment in the mining sector, increasing revenues to states, raising the production and time-bound operationalisation of mines, among other objectives.

FII & DII Data

Foreign portfolio investors (FPIs) remained net sellers for Rs 2445.25 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 1417.63 crore, provisional data showed on the NSE.

Stocks under F&O ban on NSE

Punjab National Bank, Sun TV and Escorts have been placed under the F&O ban on Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

(With inputs from PTI, Reuters and other agencies)

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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