Dear
Trader…
The benchmark BSE Sensex lost 1064 points or 1.30% to settle
at 80,684, while the broader Nifty Future index closed at 24,417, lower by 320
points or 1.30%.
Shares of HDFC Bank, Reliance Industries, Bharti Airtel, Tata
Consultancy Services, and Larsen & Toubro were the biggest drags on the
Nifty 50 benchmark, skidding around 2% each.
A weakness in financial stocks dragged the benchmarks the
most, with the Nifty financial services closing 1.4% lower, while Nifty Bank
and Nifty PSU posted 1.4% and 1.8% declines for the day, respectively.
HDFC Bank — the heaviest stock on the Nifty 50 — plunged more
than 1% during the trading session after the lender got a warning letter from
the markets regulator, Sebi, alleging its disclosures regarding the resignation
of a senior employee were non-compliant with certain provisions.
Domestic investor sentiment was also dampened after data on
Monday showed that India’s merchandise trade deficit rose to a record high of
$37.84 billion, led by a surge in gold imports.
Meanwhile, global investor focus continues to be on the US
Federal Reserve’s policy decision due on Wednesday during US market hours. The
central bank is widely expected to cut rates at this meeting, and investors are
keeping a close eye on policymakers’ future interest rate projections.
Global
Markets – Global shares wobbled on Tuesday as investors
braced for a slate of central bank meetings this week that are likely to see
the U.S. Federal Reserve deliver a rate cut and the Bank of Japan stand pat for
now. The pan-continental STOXX 600 was down 0.5%, to a two-week low.
In Asia, Japan’s Nikkei 225 fell 0.2%, while South Korea’s
Kospi fell 1.3%, taking its yearly losses to over 7%, making it Asia’s
worst-performing market this year. Meanwhile, Chinese markets slid further,
with Hong Kong’s Hang Seng index losing 0.1% and the Shanghai Composite index
shedding 0.7% on Tuesday.
Forex
Watch – The Indian rupee ended at a record
closing low versus the US dollar at 84.8950 on Tuesday, hurt by concerns about
a widening trade deficit and likely outflows from local equities, although
intervention by the central bank capped losses.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading higher by 0.17% at
107.03.
Crude
Oil – Oil prices eased on Tuesday as
China’s economic data renewed demand concerns, while investors remained
cautious ahead of the US Federal Reserve’s interest rate decision.
Brent crude futures slipped 32 cents to $73.59 a barrel at
0949 GMT, while US West Texas Intermediate crude was down 44 cents at $70.27 a
barrel.
FIIs
and DIIs Turn Net Sellers – Foreign
institutional investors (FIIs) offloaded equities worth Rs 278.70 crore on
December 16, while domestic institutional investors also sold stocks worth Rs
234.25 crore on the same day.
Nifty futures opened at 24669 points against the previous
close of 24738 and opened at a low 24380 points. Nifty Future closed with an
average movement of 315 points and Decline of around 320 points and closed 24417
points…!!
Meanwhile,
The widespread pessimism prevails across all
sectors ahead of key policy decisions from the US Fed, BoJ, and BoE.
While the market has already factored in a 25 bps cut from
the US Fed, it remains vigilant for any hawkish signals. The BoJ and BoE are
largely expected to maintain their current rates for the year. Concurrently,
the INR has depreciated to an all-time low, and a record-high trade deficit is
exacerbating the pressure. FII outflows persist due to rising US bond yields
and a strengthening dollar, further contributing to the prevailing pessimism.
As uncertainty about the U.S. interest rate trajectory next
year weighed on IT firms in today’s session. Market participants are now
awaiting the U.S. Fed’s monetary policy decision on Wednesday and any
commentary on further rate cuts.
Technically, the
important key resistances are placed in Nifty future are at 24417 levels, which
could offer for the market on the higher side. stainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24474 – 24570 levels. Immediate support is placed at 24303 –
24232 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
