Market Movers: What changed for Dalal Street while you were sleeping

NEW DELHI: Nifty50 breaching a strong resistance zone at 12,000-12,050 is expected to usher in a fresh leg of up-move in the index thanks to supportive global cues.

Here’s breaking down the pre-market actions.

TRADE SETUP

Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 22 points, or 0.18 per cent, higher at 12,129, indicating a positive start for Dalal Street.

Tech view: Nifty forms large bullish candle
Nifty50 took out its strong resistance zone at 12,000-12,050 on Monday and ended up forming a large bullish candle on the daily chart. The index broke above this range after three weeks of struggle. Analysts said Nifty might have kicked off the next leg of up-move, where it is likely to scale fresh all-time highs in the short term

Asian shares rise on US-China trade talks
Asian stocks rose on Tuesday as an apparent olive branch from Beijing in trade talks with Washington added to other recent signs of progress, fuelling a rally in Wall Street's main benchmarks to record highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent. Australian shares were up 0.59 per cent, while Japan's Nikkei stock index rose 0.78 per cent.

Oil prices steady in early trade
Oil prices were steady on Tuesday, holding onto gains from the previous session, after positive comments from the United States and China kept alive hopes that the world's two largest economies are soon to agree an end their trade war. Brent crude futures were down 1 cent at $63.64, after rising 0.4 per cent in the previous session

US stocks closed higher
Each of Wall Street's three major averages kicked off the trading week with record closes on Monday as signs pointed to progress between the United States and China on a trade truce, while a round of merger deals also helped buoy sentiment. The Dow Jones Industrial Average index rose 189.77 points, or 0.68 per cent, to 28,065.39, the S&P500 index gained 23.29 points, or 0.75 per cent, to 3,133.58 and the Nasdaq Composite index added 112.60 points, or 1.32 per cent, to 8,632.49.

FIIs buy Rs 961 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 960.90 crore on Monday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 213.66 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Monday settled 3 paise lower at 71.74 per US dollar in line with weaker key global currencies against the greenback, despite a strong rally in financial markets on renewed hopes of trade truce between Washington and Beijing.

10-year bonds: India 10-year bond yield fell 0.43 cent to 6.47, after trading in 6.46-6.50 range.

Call rates: The overnight call money rate weighted average was 5.04 per cent, according to RBI data. It moved in a range of 3.70-5.30 per cent.

The DAY PLANNER

• SC decision on Maharashtra
• Fed Chair Powell speech
• Fed Brainard speech
• US Oct new home sales

MACROS

No further relief on telecom cos'AGR dues likely
The Committee of Secretaries (CoS) set up to suggest relief measures for the telecom sector has been ‘disbanded’, a top government official said, indicating that the two-year moratorium on spectrum payments is possibly all that the sector will get for now. “They (telcos) have been given a two-year moratorium (from spectrum payment), they’ve got relief of Rs 42,000 crore,” the official said, adding that nothing more should be expected. When asked specifically if the CoS had been disbanded, the official said “yes”.

SC to rule on Maharashtra floor test today
The Supreme Court will rule Tuesday on the plea by the Shiv Sena, Nationalist Congress Party (NCP) and Congress for an immediate vote to test chief minister Devendra Fadnavis’ majority on the floor of the Maharashtra assembly. The chief minister’s counsel resisted the demand for an urgent vote, arguing that Bharatiya Janata Party’s Fadnavis had been invited by governor Bhagat Singh Koshyari to form a government as he headed the largest post-poll alliance in the state and would prove it in time. The row over his surprise appointment as chief minister saw disruptions in and outside Parliament with political parties accusing the Centre and the governor of bias.

China, US closer to trade deal
China and the US are “moving closer to agreeing” on a “phase one” trade deal, the Global Times, a tabloid run by the ruling Communist Party’s official People’s Daily, reported on Sunday. The report noted that Washington and Beijing had not agreed on specifics or size of rollbacks of tariffs on Chinese goods. Beijing's insistence that Washington roll back the Trump administration's tariffs here has been a major sticking point.

Cash still the king in India's realty market
Indians’ love affair with cash purchases shows little signs of abating. Especially when it comes to buying real estate. The incidence of high cash component in property sales in metros has come down sharply since 2016, but it continues to be rampant in smaller and even some bigger cities like Ahmedabad and Indore, reports ET. A late October survey conducted by a community platform LocalCircles, based on over 50,000 responses across 220 districts across India, pointed out that cash continues to dominate the real estate market despite the demonetisation of high-value currency notes 3 years ago.

Apple supplier Salcomp to invest $279 mn in India
Finland’s Salcomp, a supplier to US tech group Apple, is to invest Rs 2000 crore ($278.67 million) in India to make mobile chargers and other smartphone components from March 2020, the country’s technology minister said on Monday. Salcomp has reached an agreement to take over a facility, formerly owned by Nokia, in Chennai and will begin operations at the site by March, Ravi Shankar Prasad told a news conference. Salcomp, a major supplier of chargers to Apple for iPhones, has reached an agreement to take over the entire facility of Nokia handsets lying closed for the past so many years, Prasad said.

12.23 lakh new jobs created in Sept: ESIC payroll data
Around 12.23 lakh jobs were created in September as compared to 13.38 lakh in August 2019, according to the payroll data of Employees' State Insurance Corporation (ESIC). Gross enrolments of new subscribers with the ESIC were 1.49 crore during the entire 2018-19 fiscal, the National Statistical Office (NSO) said in a report. It also showed that during September 2017 to September 2019, around 3.10 crore new subscribers joined the ESIC scheme.

92,000 employees opt for VRS at BSNL, MTNL
Over 92,000 employees of state-run BSNL and MTNL have so far opted for the recently announced Voluntary Retirement Scheme (VRS), according to a government source. The source said the scheme and the strong response it has generated marks the biggest milestone in the history of these state-owned corporations. Nearly one lakh BSNL employees are eligible for VRS out of its total staff strength of about 1.50 lakh. BSNL is looking at savings of about Rs 7,000 crore in wage bill, if 70,000-80,000 personnel opt for the scheme.

Imported onions unlikely to bring major relief to consumers
Consumers are unlikely to get major relief from soaring onion prices even as the first consignment from Egypt is likely to hit Indian coast in December. The government said that the onions would be available to state governments at the rate of Rs 52-55 a kg in Mumbai while for Delhi, the bulb would be dearer at Rs 60 a kg. This will give only little respite to consumers who are currently buying onions at the rate of Rs 80-100 a kg in various parts of the country due to crop damage from floods and incessant rains in onion growing regions of Karnataka and Maharashtra.