Stock market forecast
The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a 60-point gain.
The BSE Sensex rose 32.02 points to 60,718.71, while the Nifty50 was up 6.70 points at 18,109.50 and formed a bearish candle on the daily charts as the closing was lower than opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 18,050.4, followed by 17,991.4. If the index moves up, the key resistance levels to watch out for are 18,189.3 and 18,269.2.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Wall Street indices closed out Monday’s session near the unchanged mark as rising Treasury yields dented the appetite for technology stocks, while Boeing shares advanced on signs of demand for its freighter aircraft.
The Dow Jones Industrial Average fell 12.86 points, or 0.04 percent, to 36,087.45, the S&P 500 lost 0.05 point at 4,682.80 and the Nasdaq Composite dropped 7.11 points, or 0.04 percent, to 15,853.85.
Shares in Asia-Pacific were mixed in Tuesday trade as the Reserve Bank of Australia released minutes from its recent monetary policy meeting. The S&P/ASX 200 in Australia declined 0.48 percent.
The Nikkei 225 in Japan slipped slightly while the Topix index climbed 0.28 percent. In South Korea, the Kospi hovered above the flatline.
Trends on SGX Nifty indicate a positive opening for the index in India with a 60-point gain. The Nifty futures were trading at 18,199 on the Singaporean Exchange around 7:30am today.
Oil prices drop on demand worries, rising supplies
Oil prices slipped on Tuesday as a rebound in COVID-19 cases in Europe raised concerns over demand amid expectation that supply will rise, while some in the market still fear the US may release crude reserves to stop a rally in gasoline prices.
Brent futures fell 9 cents, or 0.1 percent, to $81.96 a barrel, as of 0105 GMT, while US West Texas Intermediate (WTI) crude slid 10 cents, or 0.1 percent, to $80.78 a barrel.
Gold hits 5-month high as inflation worries offset stronger yields
Gold prices hit a five-month high on Monday as inflation worries burnished the safe-haven metal’s appeal even as the dollar and U.S. bond yields strengthened. Spot gold was up 0.1 percent at $1,866.03 per ounce by 1902 GMT, following a slight pullback earlier in the day due to profit-taking.
Interest rate hikes tend to reduce non-interest bearing gold’s appeal as it raises the metal’s opportunity cost. However, the US benchmark 10-year Treasury yields rose to near three-week high, increasing the opportunity cost of holding the bullion. The dollar index gained 0.3 percent to a 16-month high against its rivals.
RBI introduces internal ombudsman mechanism for select NBFCs
Reserve Bank of India (RBI) on November 15 introduced an internal ombudsman mechanism for select NBFCs.
The RBI has directed deposit-taking NBFCs (NBFCs-D) with or more branches and Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs 5,000 crore and above having public customer interface to appoint Internal Ombudsman (IO) at the apex of their internal grievance redress mechanism within a period of six months.
Certain NBFCs not having public customer interface and certain types of NBFCs such as standalone Primary Dealers (PDs), NBFC – Infrastructure Finance Companies (NBFC-IFCs), Core Investment Companies (CICs), Infrastructure Debt Fund – Non-Banking Financial Companies (IDF-NBFCs), Non-Banking Financial Company – Account Aggregators.
Bharat Bond ETF’s third tranche likely on December 3
The third tranche of Bharat Bond ETF is likely to be launched on December 3, according to people in the know. The ETF issue is likely to have a greenshoe option, which will allow any over-subscription over the base issue to also get absorbed in the issue.
The third tranche of the ETF is expected to have maturity of April 2032. The first tranche of Bharat Bond ETF, which was launched in January 2020, raised Rs 12,400 crore, while second tranche launched in July 2020, raised Rs 15,000 crore.
Morgan Stanley sets end-2022 S&P 500 target at 4,400
Morgan Stanley analysts see the S&P 500 moving lower in 2022, with equity markets more volatile as earnings growth slows, bond yields climb and companies try to manage supply chain disruptions and higher input costs.
While Morgan Stanley does expect earnings for the S&P 500 overall to be solid, chief U.S. equity strategist Michael Wilson expects “significant” earnings dispersion at the stock level, making the year more about stocks than sectors or styles.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 424.74 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,524.67 crore in the Indian equity market on November 15, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Nine stocks – Bank of Baroda, BHEL, Escorts, Indiabulls Housing Finance, IRCTC, NALCO, Punjab National Bank, SAIL and Sun TV Network – are under the F&O ban for November 16. 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 Reuters & other agencies