Trends in the SGX Nifty point to a negative start for the broader index in India, with a loss of 35 points on Wednesday, in line with a global decline in markets.
The market is expected to open in the red, as trends in the SGX Nifty indicate a 35-point loss for the broader index in India.
The BSE Sensex fell 208 points to 62,626, while the Nifty50 fell 58 points to 18,643 and formed a bullish candle on the daily charts because it closed higher than it opene
According to the pivot charts, the Nifty's key support level is at 18,596, followed by 18,578 and 18,548. If the index rises, the key resistance levels to watch are 18,655, 18,673, and 18,702
Us market
Wall Street finished lower on Tuesday, with the S&P 500 extending its losing streak to four sessions, as investors worried about Federal Reserve rate hikes and renewed talk of a recession.
Markets were dragged down by Meta Platforms Inc, whose shares fell 6.8 percent after reports that European Union regulators ruled the company should not require users to agree to personalised ads based on their digital activity.
The Dow Jones Industrial Average fell 350.76 points, or 1.03 percent, to 33,596.34, the S&P 500 dropped 57.58 points, or 1.44 percent, to 3,941.26, and the Nasdaq Composite fell 225.05 points, or 2%, to 11,014.89.
Asian Markets
Shares in Asia-Pacific fell on Wednesday after major US indexes fell more than 1% each overnight as recession fears weighed on markets.
In early trade, Japan's Nikkei 225 fell 0.69 percent, while the Topix fell 0.17 percent. The Kospi in South Korea fell 0.47 percent. The MSCI Asia-Pacific Index (excluding Japan) fell 0.28 percent. In Australia, the S&P/ASX 200 fell 0.86 percent as the country's economy grew by 0.6 percent in the third quarter, falling short of Reuters' expectations .
SGX Nifty
Trends in the SGX Nifty indicate a negative start for India's broader index, with a loss of 35 points. On the Singapore exchange, the Nifty futures were trading around 18,717.
The RBI is expected to raise interest rates by 35 basis points and change its stance to 'neutral.
According to economists polled by Reuters, the Reserve Bank of India will raise interest rates by 35 basis points to 6.25 percent in December, with another modest increase expected early next year to combat lingering inflationary pressures.
A strong two-thirds majority said it was still too early for the central bank to relax its stance on inflation, which slowed to 6.77 percent in October after remaining above the RBI's 2-6 percent tolerance band all year.
Thirty-three economists, or more than 60%, of those polled between November 22 and 30, predicted the RBI would raise its key repo rate by 35 basis points to 6.25 percent at its December 5-7 policy meeting. Eleven respondents said it would continue to raise rates by 50 basis points, while another eight said it would raise rates by 25 basis points.
Fitch expects the RBI to raise interest rates by 25 basis points today and then remain on hold until 2023.
According to Fitch Ratings, the Reserve Bank of India (RBI) may raise the repo rate by 25 basis points on December 7 and then remain on hold throughout 2023.
"Since the start of the tightening cycle in April 2022, the RBI has raised rates by a total of 190 basis points, trailing the (US) Fed's 350 basis point increases over the same period," Fitch said in the December edition of its Global Economic Outlook report, which was released on December 6.
"We now expect the RBI to increase policy rates to 6.15 percent by December and to then hold this rate throughout 2023."
Sebi relaxes rules for govt for PSU disinvestment
According to a notification, capital markets regulator Sebi can relax regulatory norms for the central government in relation to strategic disinvestment of public sector undertakings (PSUs).
"The Board (Sebi) may, after due consideration of the interests of investors and the securities market, relax the strict enforcement of any of the requirements of these regulations if an application is made by the Central Government in relation to its strategic disinvestment in a listed entity," Sebi stated in a notification made public on Tuesday.
Oil prices have fallen to pre-Ukraine crisis levels due to economic concerns.
As investors fled the volatile market in an uncertain economy, US oil prices fell in frenzied trading on Tuesday to their lowest settlement levels this year, with Brent finishing below $80 per barrel for the second time in 2022.
Brent crude futures dropped $3.33, or 4%, to settle at $79.35 per barrel. WTI crude futures fell $2.68, or 3.5 percent, to $74.25 per barrel, the lowest settlement this year.
Fitch maintains India's growth forecast for this fiscal year at 7%, but lowers projections for the next two years.
Fitch Ratings maintained India's economic growth forecast for the current fiscal year at 7%, saying the country could be one of the fastest-growing emerging markets this year
It did, however, lower its projections for the next two fiscal years, stating that while the country is protected to some extent from global economic shocks, it is not immune to global developments.
Given the better-than-expected result, Fitch predicts 7% growth in the fiscal year ending March 2023. "In our Fitch20 coverage this year, India is expected to record one of the fastest growth rates among emerging markets," it said. Because of its domestic focus, India is somewhat protected from global economic shocks, with consumption and investment accounting for the majority of the country's GDP.
FII DII data
According to preliminary NSE data, foreign institutional investors (FIIs) net-sold shares worth Rs 635.35 crore on December 6, while domestic institutional investors (DIIs) net-offloaded shares worth Rs 558.67 crore.
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