Market Movers: Top 10 things to know before markets open for trading on November 12

The Indian markets ended the day’s session on a negative note for a third straight session on Thursday with the S&P BSE Sensex and the Nifty gave up the key levels of 60000 and 18000, respectively.

On the sectoral front, Nifty Bank, FMCG, Auto, IT, Pharma, and Realty indices were down 1-2 percent each, while the Nifty Metal ended in the green. Stocks like Titan, Hindalco, JSW Steel & M&M ended on a positive note, while Tech Mahindra, SBI, ONGC & SBI Life were the prime laggards. 

Technically, the index has been trading with lower highs and lower lows, which suggest weakness for upcoming sessions on the intraday chart, said Palak Kothari, Research Associate, Choice Broking. “The index has given a breakdown of the rising wedge pattern on the hourly chart, suggests weakness for upcoming sessions,” Kothari added.

“Furthermore, the index trading below 21 & 50 HMA, which added the weakness to the prices. Also, the Stochastic & MACD indicator is trading with a negative crossover, which points out the weakness in the counter for the next trading session. At present, it has a support level of 17780, breaching below the same can show 17650-17700 levels, with resistance shifted to 18000 levels,” Kothari said.

Stay tuned to Zeebiz.com to find out what could impact your trade today. We have collated a list of top 10 news points which could impact markets, companies, or the economy:  

Global Markets

MSCI’s all-country world index closed up 0.07% as Wall Street pared gains at the close. The broad STOXX Europe 600 index rose 0.32% to end at a record closing high.

On Wall Street, the Dow Jones Industrial Average slid 0.44%, while the Nasdaq Composite advanced 0.52% and the S&P 500 added 0.06%, almost turning negative at the bell.

The UK’s blue-chip stock index rose to 20-month highs as China-exposed miners listed in London bounced on relief that property developer China Evergrande averted a default.

Asian Markets

The Nikkei 225 in Japan as well the Hang Seng Index on Friday opened with postive bias. While Nikkei 225 gaind 0.90%, the Hang Seng Index rose 0.67% around 7:30 AM.

SGX Nifty

SGX Nifty opened in the green on Friday and gained nearly 0.15% around 7.30 AM IST.

Oil recovers from US inflation-driven plunge

Oil prices rose above $83 a barrel in volatile trading on Thursday, recovering from sharp falls triggered by concerns over increasing U.S. inflation as OPEC cut its 2021 oil demand forecast due to high energy prices.

Brent crude futures rose 63 cents, or 0.76%, to $83.27 a barrel by 1443 GMT after falling earlier to $81.66. U.S. West Texas Intermediate (WTI) futures were up 63 cents, or 0.77%, at $81.97 after hitting a session low of $80.20.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month`s forecast.

States to forego Rs 44,000 cr from VAT reduction on fuels: Report

The states will forego around Rs 44,000 crore of tax revenue after they reduced VAT on petrol and diesel in the remainder of the fiscal but higher central tax devolution of Rs 60,000 crore will offset the losses, according to a report.

After months of calls for lowering the taxes on the fuels, the Centre on November 4 cut excise duty on diesel by Rs 10 a liter and by Rs 5 on petrol. Following this, as many as 25 states and Union territories have lowered value-added tax (VAT) on these fuels.

The FY22 revenue loss of the states from tax cut is around Rs 44,000 crore, of which Rs 35,000 crore is by way of lower VAT and the rest indirectly, Aditi Nayar, chief economist at rating agency ICRA, told reporters on Thursday.

See Zee Business Live TV Streaming Below:

Rupee slumps 18 paise 

The rupee depreciated by 18 paise to end at 74.52 (provisional) against the US currency on Thursday, as heavy selling pressure in domestic equities and a strong greenback in the overseas market weighed on investor sentiments.

At the interbank foreign exchange market, the local currency opened at 74.44, then lost further ground to quote 74.59 against the American currency.

The local unit finally settled at 74.52 a dollar, down 18 paise over its previous close of 74.34. According to Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities, USD/INR spot closed at 74.52, tracking higher US Dollar Index.

Gold nears 5-month peak as inflation worries boost appeal

Gold prices neared the five-month high they touched in the previous session after data showing U.S. consumer prices surged last month triggered a rush for the precious metal seen as a hedge against inflation.

Spot gold rose 0.6% to $1,860.18 per ounce by 1422 GMT. U.S. gold futures for December delivery rose 0.9% to $1,865.50.

"The market is spooked with yesterday`s CPI data coming in as high as it was. Traders are looking at gold as being a safety asset, as a hedge against this inflation risk," said Bob Haberkorn, senior market strategist at RJO Futures.

Gold rose as much as 2% on Wednesday and hit its highest level since mid-June after data showed U.S. consumer prices rose at their fastest pace in 31 years, more signs inflation could stay uncomfortably high well into 2022.

Sapphire Foods India IPO subscribed 6.62 times 

The initial public offer of Sapphire Foods India Limited, which operates KFC and Pizza Hut outlets, was subscribed 6.62 times on the last day of subscription on Thursday.

The Rs 2,073-crore IPO received bids for 6,39,45,000 shares against 96,63,468 shares on offer, according to BSE data.

The portion for Qualified Institutional Buyers (QIBs) was subscribed 7.50 times, while those for Retail Individual Investors (RIIs) 8.70 times and non institutional investors 3.46 times.

The company's initial public offer (IPO) was of up to 1.75 crore (1,75,69,941) equity shares and it fixed the price band at Rs 1,120-1,180 per share. Sapphire Foods India Ltd on Monday raised Rs 933 crore from anchor investors. 

SEBI notifies rules governing related-party transactions

Markets regulator SEBI has made sweeping changes to strengthen the monitoring and enforcement of norms pertaining to related-party transactions.

The regulator has tweaked the definition of 'related party' and 'related-party transactions’ (RPTs), according to a notification issued on Tuesday.

It made changes to the process followed by a company’s audit committee for approval of RPTs that are material.

Further, there will be a format for reporting of RPTs to the stock exchanges. Cases like Zee, Dish TV and the recent ruling by NCLT in the Videocon case might have probably triggered changes in the RPT framework.

FII & DII Data

Foreign portfolio investors (FPIs) remained net sellers for Rs -1637.46 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net buyers to the tune of Rs 445.76 crore, provisional data showed on the NSE.

Stocks under F&O ban on NSE  

Seven stocks: Punjab National Bank, Sun TV, Bank of Baroda, BHEL, Indiabulls Housing Finance, SAIL and Escorts have been placed under the F&O ban on Monday. 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 PTI, Reuters and other agencies)

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)