Dear
Trader…
The benchmark BSE Sensex lost 384 points or 0.47% to settle
at 81,748, while the broader Nifty Future index closed at 24,738, lower by 92
points or 0.37%.
The top losers on the Nifty 50 included Titan, Adani Ports
and Special Economic Zone, Hindalco Industries, Tech Mahindra and IT major TCS,
ending lower between 1.2% and 2%.
On the sectoral front, Nifty Metal and Nifty IT were the
biggest drags on the broader benchmark. Domestic IT firms, which benefit from
the depreciation of the rupee as they earn a bulk of their revenue from the
U.S., closed 0.7% lower, with Tata Consultancy Services dipping 1.3%.
Metal stocks ended 1% lower, tracking weak global prices
after top consumer China’s retail sales were weaker than expected in November,
keeping pressure on Beijing to ramp up stimulus as it braces for more U.S.
trade tariffs under a second Trump administration.
Global
Markets – Global shares edged lower on Monday after
underwhelming economic data from China and Europe and as surging bond yields
challenged equity valuations.
Data released on Monday showed China’s consumption slowed
more than expected in November. Retail sales grew by just 3% last month, much
slower than October’s 4.8% rise and economists’ forecast of 4.6%. Industrial
production was much as expected, while house prices were still falling, though
at a slower pace.
China’s blue chip index eased 0.5%, European stocks also
nudged down, off 0.1%. Hong Kong’s Hang Seng Index lost 0.88%, while MSCI’s
world share index was also a fraction lower.
Forex
– The Indian rupee slipped to its weakest closing
level on record at 84.8625 against the U.S. dollar on Monday, hurt by a rise in
U.S. bond yields, weakness in the Chinese yuan and data which showed that
India’s merchandise trade deficit widened to a record high in November. Meanwhile,
the dollar index, which gauges the greenback’s strength against a basket of six
currencies, was trading marginally lower by 0.14% at 106.85.
Crude
Oil – Oil futures eased from their
highest levels in weeks as traders took profit while waiting for a Federal
Reserve meeting later this week for clues on further rate cuts. Brent
crude, the global oil benchmark, fell 0.78% to $73.91 per barrel in futures
trade on Monday. Foreign Institutional Investors (FIIs) purchased Rs
2,335.32 crore in the capital markets on net basis on December 13, while
domestic institutional investors sold equities worth Rs 732.2 crore on the same
day.
Nifty futures opened at 24800 points against the previous
close of 24830 and opened at a low 24660 points. Nifty Future closed with an
average movement of 173 points and Decline of around 92 points and closed 24738
points…!!
Meanwhile,
The national market traded in a range-bound
manner while the realty sector outperformed in expectation of growing demand
and a potential rate cut cycle in 2025.
A rise in manufacturing and service PMI suggests a positive
turnaround in H2FY25 earnings, which may limit further downgrades in FY25
earnings. Rising US 10-year bond yields and a strengthening dollar led
investors to remain watchful of the upcoming US Fed policy and its commentary
for 2025 rates.
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 24738 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 24808 – 24909 levels. Immediate support is placed at 24606 –
24474 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
