Dear
Trader…
The benchmark S&P BSE Sensex declined 200 points or 0.25%
to settle at 81,508, while the broader Nifty Future index closed at 24,694,
lower by 88 points or 0.36%.
Shares of fast moving consumer goods (FMCG) players witnessed
the biggest declines on both bourses, with Hindustan Unilever shares skidding
to their worst fall in six weeks.
The Nifty FMCG was the worst performing sectoral index,
falling 2.2% with shares of Godrej Consumer Products witnessing their steepest
decline, nosediving over 11% on the day.
The declines in HUL and Godrej were followed by Dabur, Marico
and Tata Consumer Products, Britannia and Colgate–that fell between 2% and 5%.
Godrej Consumer said in its Q3 business update that
two-thirds of its India business is under demand and margin stress due to
higher raw material costs and unfavourable weather. The company added that a
20-30% year-on-year surge in palm oil and derivatives prices has impacted the
soaps category, which represents one-third of the standalone business revenue.
Global
Markets – Asian shares were mixed on Monday with South
Korea’s benchmark down almost 3% and Hong Kong’s up nearly 3%, after U.S.
stocks ended last week with more records.
Global investors are now awaiting the U.S. inflation data
this week, which could cement a December interest rate cut trajectory.
Meanwhile, the political situation in South Korea remained tense as local media
reported that the police were considering imposing an overseas travel ban on
President Yoon Suk Yeol.
Chinese shares fell less than 0.1% as investors took relief
from the state media’s readout from a meeting of the ruling Communist Party’s
Politburo that pledged more support for the sluggish economy.
Tokyo’s Nikkei 225 index edged 0.2% higher after the Japanese
government reported that the economy expanded at a 1.2% annual rate in July to
September, higher than the initial estimate of 0.9% growth.
Forex –
The rupee depreciated 8 paise on Monday to close
at 84.74 against the US dollar, weighed down by fresh foreign fund outflows and
a muted trend in domestic equities.
Meanwhile, the dollar index, which gauges the greenback’s
strength against a basket of six currencies, was trading lower by 0.09 per cent
at 105.96.
Crude
Oil – Oil prices edged up over 1% on Monday as top
importer China flagged its first move toward a loosened monetary policy since
2010 aiming to bolster economic growth, state media reported citing a Politburo
meeting. Brent crude futures were up 94 cents, or 1.32%, to $72.06 per barrel
by 0852 GMT.
Nifty futures opened at 24763 points against the previous
close of 24783 and opened at a low 24651 points. Nifty Future closed with an
average movement of 129 points and rise of around 88 points and closed 24694 points…!!
Meanwhile,
the markets today witnessed a range-bound
session and mostly languished in negative territory due to lack of investors’
enthusiasm after last week’s rally.
All eyes are on this week’s IIP and inflation numbers, which
would be key given the RBI’s reluctance to cut rates on the back of higher
inflation concerns going ahead.
Technically, the
important key resistances are placed in Nifty future are at 24694 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 24737 – 24880 levels. Immediate support is placed at 24474 –
24404 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
