The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 102 points.
The BSE Sensex surged 886.51 points to 57,633.65, while the Nifty50 jumped 264.40 points to 17,176.70 and formed bullish candle on the daily charts.
According to pivot charts, the key support levels for the Nifty are placed at 17,025.77, followed by 16,874.83. If the index moves up, the key resistance levels to watch out for are 17,289.66 and 17,402.63.
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:
US Markets
Wall Street’s main indices finished Tuesday’s session with strong gains as investors shook off some anxiety about the latest coronavirus variant and boosted Nasdaq by piling into technology stocks.
The Dow Jones Industrial Average rose 492.4 points, or 1.4 percent, to 35,719.43, the S&P 500 gained 95.08 points, or 2.07 percent, to 4,686.75 and the Nasdaq Composite added 461.76 points, or 3.03 percent, to 15,686.92.
Asian Markets
Chinese stocks lagged other Asia-Pacific markets on Wednesday, and troubled real estate developers are back in the spotlight. Local social media giant Weibo made its market debut in Hong Kong. Japan’s Nikkei 225 bounced 1.1 percent, and the Topix climbed 0.63 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 102 points. The Nifty futures were trading around 17,313 levels on the Singaporean exchange.
Japan’s Q3 GDP revised down to 3.6 percent annualised contraction
The Japanese economy shrank 3.6 percent in the third quarter, worse than the initial estimate of a 3.0 percent contraction, revised government data showed on Wednesday, posting a decline as private spending took a hit from a resurgence in COVID-19.
The revised figure for gross domestic product (GDP) released by the Cabinet Office compared with economists’ median forecast for a 3.1 percent contraction in a Reuters poll.
On a quarter-on-quarter basis, the GDP fell 0.9 percent, slightly worse than the initial reading and median forecast for a 0.8 percent drop.
Reliance, Abu Dhabi-based TA’ZIZ form joint venture for $2 billion chemical projects in Ruwais
Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) on December 7 announced the launch of a strategic joint venture with Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA'ZIZ) for chemical projects worth $2 billion in Ruwais, a town located 240 km to the west of Abu Dhabi City.
The new joint-venture will construct and operate a Chlor-Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with an investment of more than $2 billion,” RIL said in a statement. The joint venture, named ‘TA’ZIZ EDC & PVC’, will be a “world-scale chemical production partnership” at the TA’ZIZ Industrial Chemicals Zone in Ruwais.
US trade deficit shrinks as exports hit record high
The US trade deficit narrowed sharply in October as exports soared to a record high, potentially setting up trade to contribute to economic growth this quarter for the first time in more than a year.
The commerce department said on Tuesday that the trade gap plunged 17.6 percent to $67.1 billion. That was the biggest percentage decline since April 2015. Economists polled by Reuters had forecast a $66.8 billion deficit.
Oil edge lower as investors try to assess Omicron impact
Oil prices edged lower on Wednesday, reversing gains from earlier the week, as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines.
Brent crude futures dropped 25 cents, or 0.3 percent, to $75.19 a barrel at 0129 GMT, after settling 3.2 percent higher on Tuesday. US West Texas Intermediate crude was at $71.86 a barrel, down 19 cents, or 0.3 percent, having gained 3.7 percent in the previous session.
Gold inches higher as US Treasury yields ease
Gold prices rose slightly on Wednesday as US Treasury yields eased from their recent highs, reducing the metal's opportunity cost, while investors looked ahead to key inflation data that could settle the course of interest rates.
Spot gold rose 0.1 percent to $1,785.48 per ounce. Benchmark 10-year and 30-year US Treasury yields pulled back from their one-week highs hit on Tuesday.
FII and DII data
Foreign institutional investors (FIIs) net sold shares worth Rs 2,584.97 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 2,605.81 crore in the Indian equity market on December 7, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
One stock – Indiabulls Housing Finance – is under the F&O ban for December 8. 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]
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