The News International Team
The Indian market on Thursday is likely to open flat with the SGX Nifty trading around 8423, up almost 5 points. On Wednesday, market succumbed to profit taking in late trade after early consolidation; Nifty broke its crucial support level of 8,400 while Sensex too slid perilously close to the 28,000 mark.
With winter session of the Parliament scheduled to begin next week, market is beginning to get cautious as Prime Minister Narendra Modi’s government is expected to push a slew of reforms including goods and services tax.
In US stocks closed marginally lower as Wall Street took in its stride minutes from the Federal Reserve’s last policy meeting, which had some central bankers concerned prices are not increasing rapidly enough.
And in Europe, shares closed flat to lower as investors awaited the Fed minutes. The Bank of England published its own policy minutes that revealed the bank’s rate-setting committee was divided on the risks facing the UK’s economy.
Asian markets opened mixed with the Nikkei leading the gains on the back of a weak yen and owing to good economic data.
Japanese exports rose 9.6 percent above the 4.5 percent rise forecast and following a 6.9 percent rise in September.
Imports meanwhile, rose 2.7 percent below expectations of a 3.4 percent rise and after rising 6.2 percent in September. This brought the trade deficit to 710 billion yen better than expectations of a 1.05 trillion yen deficit
Kospi is trading lower on nagging concerns over a weakening yen and its impact on domestic firms
China’s HSBC flash PMI for November is due and the consensus forecast is 50.2, after its final print for October came in at a three-month high of 50.4. The official PMI from the government for October registered at 50.8 – a five-month low.
In the currency space, the yen slid, striking seven-year lows against the dollar and a six-year trough versus the euro as speculators poured into carry trades funded by a tide of super-cheap liquidity from the bank of Japan. The rupee is currently trading at 61.96 after depreciating 0.36 percent on Wednesday.
In commodities, Brent crude prices trade around USD 78 per barrel as Libya’s representative to OPEC fueled hopes of an output cut, prompting traders to focus on next week’s meeting of the producer group and ignore an unexpected surge in US crude inventories.
From precious metals space, gold prices decline post the Fed minutes.
Back home, last evening, Securities and Exchange Board of India (Sebi) announced that its board has approved new prohibition of insider trading regulations that widen the definition of insider and strengthen the meaning of unpublished price sensitive information, and allow for strategic acquirers and investors to access inside information during due diligence.
The board also approved new delisiting norms with changes to the price and acceptance thresholds. The new delisting norms also allow for delisitng via a takeover offer.
The other big change announced by Sebi is that all delisting, buyback and takeover offers will take place on exchange. This will help boost participation in tender offers. Sebi has also decided to convert the listing agreement into regulations that cover a wide variety of securities.