The US services sector showed growth in November and business orders at US factories in October also rose more than expected. The reports make the Fed’s fight against inflation more difficult. Back in India, 2nd day of RBI’s MPC meeting will be in focus.
BPCL sheds steeply in the second half, drops almost 3%
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Global energy crisis a ‘historic turning point’ for renewables: IEA
Global energy crisis is driving a sharp acceleration in installations of renewable power, with total capacity growth worldwide set to almost double in the next five years overtaking coal as the largest source of electricity generation along the way and helping keep alive the possibility of limiting global warming to 1.5 °C, the International Energy Agency (IEA) said in a new report on Tuesday.
This massive expected increase is 30% higher than the amount of growth that was forecast just a year ago, highlighting how quickly governments have thrown additional policy weight behind renewables. (Read More)
India’s steel ministry seeks import tax waiver for coking coal: Report
India’s steel ministry has asked the finance ministry for a waiver of import tax on coking coal among a slew of raw materials, as it scrambles to fill a shortage of steelmaking ingredients, two government sources said on Tuesday.
The proposal to scrap levies ranging from 2.5% to 7.5% in the world’s second-biggest producer of crude steel comes ahead of the national budget for 2023/24 set to be unveiled in February. (Read More)
Coal production rises over 11% to 75.87 million tonnes in November
India’s total coal production rose by 11.66% to 75.87 million tonnes in November from 67.94 million tonnes recorded during the corresponding period of last year, the Ministry of Coal said in a statement.
In November 2022, Coal India Ltd (CIL) registered a growth of 12.82%, whereas Singareni Collieries Company Limited (SCCL) and other captive mines registered a growth of 7.84% and 6.87%, respectively. (Read More)
Tata Steel is one of the biggest laggards of today’s session, drags the Metal Index
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Maruti Suzuki recalls 9,125 units of Ciaz, Brezza, Ertiga and others: Here’s why
Maruti Suzuki has announced to recall a total of 9,125 vehicles manufactured between 2nd and 28th November 2022. The affected models are Ciaz, Brezza, Ertiga, XL6 and Grand Vitara.
According to the company, there is a possible defect in one of the child parts of the shoulder height adjuster assembly of front-row seat belts in the impacted units. The defect may lead to seat belt disassembly. (read More)
Lux Industries CFO Saurabh Kumar Bhudolia resigns
Lux Industries announced that its Chief Financial Officer (CFO) Saurabh Kumar Bhudolia has resigned from the role. His last working day will be 15 January 2023. He took over from Ajay Kumar Patodia on 13th February 2021. Prior to joining Lux Industries Limited, he was associated with Future Lifestyle Fashions Limited, (Mumbai) as Chief Financial Officer. (Read More)
SME IPO: Shankar Sharma-backed firm’s public issue to open next week.
The initial public offering (IPO) of Droneacharya Aerial Innovations will begin next week on Tuesday, December 13, 2022 and end on December 15, 2022. Droneacharya Aerial Innovations Limited offers end-to-end customized drone ecosystem solutions to a range of businesses.
It will offer 62.90 lakh shares ( ₹10/- paid up) through the book-building process in the price band of ₹52-54 per share. Marquee investors led by Shankar Sharma and others picked up stake in the company in the pre-IPO funding. The fresh funds raised will be utilised to purchase and manufacture drones, sensors and processing infrastructure. (Read More)
Media index drags, sheds 1% in today’s trading with almost all stocks in red
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Foreign equity funds pile into Indian financials as credit cycle picks up
Foreign investors are buying into Indian financial firms, lured by the prospects of a fresh credit cycle that may boost the stocks of the country’s largest lenders.
Indian shares are trading at a record-high valuation premium to their Asian counterparts, BNP Paribas said, but overseas investors have found a bright spot in financials, considering them relatively cheap given their strong fundamentals.
The optimism is reflected in inflows, with foreign investors buying a net of $1.74 billion worth of Indian financial stocks in November, data released by the National Securities Depository Ltd this week showed.
That is more than a third of the total $4.44 billion net inflows for the month. (Reuters)
UPI transactions surge 650% in semi-urban, rural stores: PayNearby
Assisted financial transactions across semi-urban and rural retail counters in India have grown 25% and 14% in value terms and volumes, respectively, so far in 2022, according to PayNearby, a branchless banking and digital network. This indicates a behavioural shift, with more people adopting assisted digital means for banking and lifestyle requirements and getting incorporated into the formal economy.
As per the report, Unified Payments Interface (UPI) transactions saw a whopping 650% and 500% increase in value and volume across PayNearby retail counters, representing the growing adoption of UPI beyond Tier II regions in the country. This also highlights the pivotal role UPI can play in promoting digital financial inclusion. (Read More)
Sri Lanka to resume flights from Jaffna to India next week: Aviation Minister
Sri Lanka will resume flights from the northern Jaffna peninsula to Chennai by next week, a senior minister has said, a move that will help the cash-strapped country’s tourism sector and provide a fillip to its beleaguered economy.
The tourism sector is the main source of foreign exchange earnings for Sri Lanka.
However, the onset of the pandemic in 2020 severely crippled the tourism sector and was one of the major reasons for Sri Lanka’s economic travails.
The island nation’s earnings from international tourist arrivals for November touched USD 107.5 million, with the cumulative tally in the first eleven months of the year notching up a whopping USD 1129.4 million, according to the Central Bank of Sri Lanka. (PTI)
Shriram Housing Finance, Credit Fair and Indel Money on their expectation on monetary policy
Ravi Subramanian, MD & CEO of Shriram Housing Finance Ltd: There is a sign of inflation cooling off as CPI-based inflation in October is at its three-month low of 6.7%. This is still higher than the RBI’s tolerance limit of 4-6%. We expect a moderate rate hike of 25-35 basis points this time around. Since the housing loan demand, especially the affordable sector, is not very sensitive to the interest rate fluctuation, it won’t immediately affect the home finance business. RBI’s directional approach will be closely monitored by the industry, which is waiting for long-term signals. In order to bring about stability in the market, we look forward to a clear indication.
Aditya Damani, founder and CEO of Credit Fair: We are expecting only a moderate rate hike this time as the domestic situation warrants some serious measures to sustain growth. Though the Q2 GDP numbers are in line with RBI’s expectations, rating agencies and institutions are revising India’s growth rate downwards, given the global headwinds. Now, I think the priorities are changing, and the immediate focus should be on maintaining the growth momentum. Current inflationary pressures are largely imported, and we shouldn’t worry much about it. As far as food price is concerned, the domestic supply side is intact and a good Rabi harvest will further strengthen the rural economy. So, the demand for retail loans may remain robust. However, the repo rate touching the 6.2 percentage levels in a period of eight months is a bit tricky and, going forward, it will affect consumer sentiments.
Umesh Mohanan, executive director & CEO, Indel Money: As inflation remains elevated, the MPC is expected to continue with the rate hikes. However, as CPI inflation is expected to moderate in the next few months due to falling commodity prices, RBI may keep the rate hike scale smaller. With the high-frequency economic indicator denoting healthy recovery, the MPC is likely to keep the rate hike moderate this time.
Angel One increases its client base to 12.19 million in Nov, an increase of 66.5% YoY
FinTech company, Angel One Limited exhibited a 66.5% YoY increase in its client base as it reached the 12.19 million mark with 0.32 million gross client acquisition in November’22. Angel One also witnessed business growth with 70.82 million orders, registering an increase of 23.8% YoY.
The company’s Average Daily Turnover surged to Rs. 12.97 trillion, depicting a 79.7% YoY growth. Its market share in overall retail equity turnover increased to 21.1% with a 4bps YoY expansion. Angel One’s average client funding book for November’22 was at Rs. 12.92 billion.
India’s economy expected to grow 6.9% this year – World Bank
India’s economy is expected to grow 6.9% in the current fiscal year, the World Bank said in a report on Tuesday, citing tightening monetary policy and high commodity prices as factors impacting the country’s growth. The report sees average retail inflation at 7.1 this year. (Reuters)
UPL struggling in today’s session, sheds 1.5% among the top laggards
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PNB hits fresh 52-week high: Vaishali Parekh gives’ buy’ tag to the banking stock
Government-owned Punjab National Bank (PNB) on Tuesday witnessed a bull run with the stock hitting a fresh 52-week high. In early deals, the banking stock zoomed more than 4%. Based on the technical view, Prabhudas Lilladher’s Vaishali Parekh suggests buying PNB shares as a decisive breach above ₹57 level would anticipate further upside.
On Tuesday, Prabhudas Lilladher’s Vice President – Technical Research, Vaishali Parekh said, “PNB has moved nearly 12% since our last analysis and is now approaching the first resistance level. A decisive breach above 57 would anticipate for fresh further upside movement till 80 and 100 levels. Any pullback or retest of breakout levels will be a good buying opportunity. We suggest to buy and accumulate this stock.” (Read More)
Noon Update: Indices remain in red on Tuesday as Sensex and Nifty struggle to defend 62,500 and 18,600 marks, respectively
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Japanese shares end higher as chip stocks, exporters gain
Japanese shares closed slightly higher on Tuesday, supported by gains in chip-related stocks and as exporters advanced after the yen weakened against the dollar overnight.
The Nikkei share average rose 0.24% to close at 27,885.87, while the broader Topix ended 0.12% higher at 1,950.22.
“As the yen weakened, some shares looked attractive,” said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
The dollar gained against the yen overnight, after data showed that U.S. services industry activity unexpectedly picked up in November, prompting speculation the Federal Reserve may lift interest rates more than recently projected. (Reuters)
Multibagger infra stock surges to record high, up 145% in 6 months
Shares of Power Mech Projects Ltd surged to a record high of ₹2,374 apiece on the BSE in Tuesday’s early trading session. The stock, which has seen bullish momentum lately, has outperformed this year (YTD) by giving multibagger returns during the last six months period.
Power Mech Projects shares have rallied more than 145% in the last six months, from trading around ₹960 per share level to currently at an all-time high. Meanwhile, the multibagger infra stock has gained over 137% in a year’s period. (Read More)
India sees massive drop in Covid cases; active cases further decline
India reported a massive drop in Covid cases with 165 new infections reported in the last 24 hours, according to the Union Health Ministry data updated on Tuesday. This drop in cases came a day after the country reported 226 cases.
The death toll has climbed to 5,30,633 with two reconciled by Kerala and one death reported from Delhi in the last 24 hours, the data updated at 8 am stated.
The active cases comprise 0.01 per cent of the total infections, while the national COVID-19 recovery rate increased to 98.80 per cent, according to the ministry website. (Read More)
PSU Bank index zooms in an otherwise muted market; most stocks trading in green
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Radhakishan Damani sells stake in this fundamentally strong stock. Here’s why
The stock in question today is VST Industries and the seller here is market maven Radhakishan Damani.
Last week on Friday, Damani sold stake in VST Industries in the open market via a block deal.
In this case, has the company’s valuation become higher than what Damani perceived it to be or are there other reasons? (Read More)
Adani Enterprises shines in today’s trading; jumps 2%
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US risks stoking inflation if carbon-linked tariffs hit China, says MBMG
China’s steel and aluminium exports are under attack once again, as the US and European Union weigh new tariffs linked to carbon emissions.
The idea from President Joe Biden’s administration would probably have the biggest impact on the aluminium market, particularly in the EU, which has relied on Chinese smelters to plug gaps in output following Russia’s invasion of Ukraine. That dependency highlights the inflationary risks of any measures that would shrink supply or add costs based on climate goals. (Read More)
Rupee drops to 1-month low, falls below 50-day moving avg
The Indian rupee extended its opening decline against the dollar on Tuesday, to slip to its lowest level in over a month and below a key level.
The rupee was at 82.30 to the U.S. dollar by 9.30 a.m. IST, down from 81.79 in the previous session. The local unit opened at 81.9350 before swiftly falling below the 50-day moving average of 81.98 and the psychological level of 82.
There was probably another round of stop losses triggered once USD/INR moved about 82, a trader said, recalling a possible dividend dollar outflow of a mining company. However, they added “it was difficult to be sure”.
“It could be that the news is chasing the price action.”
The trader requested anonymity as they are not allowed to speak to the media. (Reuters)
Kotak Securities outlook on Commodities – Gold and Crude
Gold & Crude by Ravindra Rao, CMT, EPAT, VP-head commodity Research, Kotak Securities Ltd:
Gold: COMEX Gold trades mildly higher today recovering from the lows of $1778/oz hit in yesterday’s session. After solid gains posted in the previous week, gold gave away a part of gains on Monday as the US Dollar and bond yields recovered amid some encouraging US data prints. The US Dollar recovered from a five-month low as US factory orders and ISM services PMI rose above expectations. With better-than-expected data prints, the Federal Reserve gets more room for extended interest rate hikes that is not good for non-yielding assets like bullion. On the price front, COMEX gold has not sustained above the 252 DMA resistance near $1804. Additionally, $1825 would act as the next hurdle. So, till the said resistances hold, we expect a range-bound move in gold between $1773 to $1820.
Crude: NYMEX WTI crude oil trades 1% higher in today’s early session after a sharp drop in the previous session. Recovery in the US dollar after better-than-expected US data prints has pressurized commodity prices, including oil. Crude oil fell 3.89% in the previous session, once again failing to sustain above the $81.50 resistance level. Apart from dollar, crude will take cues from China’s COVID situation that has been haunting oil markets as well as the Russian oil cap that kicked off on Monday. With EU embargo and the price cap on Russian oil, along with China’s COVID situation, the price might witness wild moves from one direction to another. On the price front, WTI crude oil has once again failed to sustain above $81.50/bbl and fell deep towards $76.77/bbl. The trend seems to be consolidative with immediate support near $76/bbl followed by strong support near $73.60/bbl. There would be resistance near $81.50/bbl on closing.
Vedanta’s high dividend payout to continue, says Edelweiss, raises target price
Brokerage and research firm Edelweiss interacted with Vedanta (VEDL) to get an update on its ongoing expansion plans, parent’s deleveraging target and more. The highlights of which were – FY24 is the year of commissioning of the ongoing expansion in zinc, aluminium, alumina, coal; high dividend pay-out to continue in FY24 & FY25; focus on curbing carbon emissions at the forefront.
“Vedanta’s low cost status in zinc and efforts to reduce its aluminium CoP below $1,500/t on a sustainable-basis (likely by FY26) will be a long-term positive. The expectation of reopening of China (demand to improve) will help base metal prices to sustain higher, providing a cushion to our financial numbers,” the note stated. (Read More)
Hindalco leads the downward spiral in Metal index as the stock sheds more than 1.5%
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Oil Resumes Advance as China’s Covid Pivot Aids Demand Outlook
Oil rose after a two-day drop on more signs China is moving away from its strict Covid Zero policy, and as investors assessed the implications for global flows from the price cap imposed on Russian crude.
West Texas Intermediate climbed toward $78 a barrel following a roller-coaster session on Monday, when a broad shift away from risk assets saw prices close down 3.8% after earlier gains. The city of Beijing will scrap Covid testing requirements at public venues following similar moves in other centers, bolstering the outlook for demand in the world’s largest crude importer. (Reuters)
IT index drags with a drop of 1% in early trading, all stocks in red
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RPT-India’s sugar output set to drop 7%, could crimp exports
India’s sugar output is likely to fall 7% this year as erratic weather conditions have cut cane yields, which could dampen exports from the world’s biggest producer of the sweetener, farmers, millers and traders said.
Lower sugar exports from India, also the world’s second biggest exporter, could lift global prices and allow rivals Brazil and Thailand to increase their shipments.
“The crop was just looking like last year but when we started harvesting we realised that yields were very low,” said Pradip Jagtap, a farmer from the Solapur district of the western state of Maharashtra, India’s No.1 sugar-producing state.
This year, Jagtap could gather 530 tonnes of cane from his nine-acre plot, down from the previous year’s 750 tonnes. (Reuters)
SBI Life shines in an otherwise depressing start to the day; gains 2%
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Kalpataru Power to consider fundraising proposal via NCDs issuance this week
Kalpataru Power Transmission to consider the fundraising proposal later in the current week. The company’s executive committee is scheduled to meet on December 8 to consider the proposal. The leading EPC company is looking to raise funds through the issuance of Non-Convertible Debentures on a private placement basis. Kalpataru shares will be in focus this week. (Read More)
Indices open in red as Sensex is down 250 points and Nifty 75 points
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Dharmaj Crop Guard IPO: Check GMP as all eyes on shares listing after allotment
The finalisation of the basis of share allotment of Dharmaj Crop Guard IPO is done and if allotted, then the credit of shares to demat account of bidders will be done on Wednesday, December 7. Now, all eyes are on the company’s stock market debut which is expected to happen this week.
As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹52 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE later this week on Thursday, December 8, 2022. (Read More)
INDIA BONDS-Bond yields seen tad higher tracking U.S. peers, MPC decision key
Indian government bond yields are expected to open marginally higher on Tuesday, tracking an overnight rise in U.S. yields, while the broad market awaits the domestic monetary policy decision due on Wednesday.
The benchmark 10-year yield is likely to move in a 7.20%-7.25% band, a trader with a private bank said. The yield ended at 7.2254% on Monday.
We have seen resistance with 7.20% acting as the bottom. With some upmove in U.S. yields, there should be some selling today, the trader added.
U.S. Treasury prices fell on Monday as strong data on the services and manufacturing sectors, after a solid non-farm payrolls report, reinforced expectations of the U.S. Federal Reserve continuing to raise interest rates in 2023. (Reuters)
Sensex comes under pressure in the preopen session as it sheds 500 points; HDFC, Adani Green, Tata Motors in focus
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Geojit Financial Services on today’s market: Buy on dips strategy has worked well this year and investors can continue with the strategy
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: Two trends stand out in the current economic scenario. The US economy continues to be strong as reflected by the jobs data, labour market conditions and ISM services. But these positive numbers are viewed by the market with concern since this strong scenario might persuade the Fed to continue to be hawkish. The Indian macros indicate steady improvement with buoyant tax collections, impressive credit growth and declining crude. Partly the market resilience in India comes from retail optimism and DII investment. This is likely to continue despite the elevated valuations. Buy on dips strategy has worked well this year and investors can continue with the strategy.
TVS Motor Company promoter entity sells 25.6 lakh shares for ₹262 cr
A promoter entity of TVS Motor Company on Monday offloaded 25.69 lakh shares of the company for ₹262 crore through an open market transaction.
According to the bulk deal data available with the BSE, Srinivasan Trust sold 25,69,726 shares, amounting to a 0.54% stake in the company.
The shares were disposed of at an average price of ₹1,020.03 per scrip, taking the transaction value to ₹262 crore.
As of quarter ended September, Srinivasan Trust held a 0.54% stake in the company, shareholding data showed with the exchange.
Shares of TVS Motor Company closed 3.01 per cent lower at ₹1,017.75 per piece on BSE. (PTI)
Reliance Securities Stock in Focus for Today: BEML
STOCK IN FOCUS:
BEML (CMP 1,561) – We expect its EBITDA margin at 6-6.5% over FY22-FY24E. Considering strong opportunities across segments, healthy earnings growth and margin expansion, we have BUY rating on the stock with Target Price of Rs2,000.
Intraday Picks
HINDUNILVR (PREVIOUS CLOSE: 2,620) BUY
For today’s trade, long position can be initiated in the range of Rs2,615-
2,600 for the target of Rs2,695 with a strict stop loss of Rs2,570.
PIDILITIND (PREVIOUS CLOSE: 2,734) BUY
For today’s trade, long position can be initiated in the range of Rs2,722-
2,702 for the target of Rs2,815 with a strict stop loss of Rs2,670.
PIIND (PREVIOUS CLOSE: 3,473) SELL
For today’s trade, short position can be initiated in the range of Rs3,490-
3,510 for the target of Rs3,370 with a strict stop loss of Rs3,570.
Elon Musk’s Neuralink faces federal probe, employee backlash over animal tests
Elon Musk’s Neuralink, a medical device company, is under federal investigation for potential animal-welfare violations amid internal staff complaints that its animal testing is being rushed, causing needless suffering and deaths, according to documents reviewed by Reuters and sources familiar with the investigation and company operations.
Neuralink Corp is developing a brain implant it hopes will help paralyzed people walk again and cure other neurological ailments. (Read More)
Stocks to Watch: HDFC, JSW Energy, PTC India, Adani Green, Tata Motors, Vodafone Idea, Bharti Airtel, Mannapuram Finance, Sun Pharma, Hatsun Agro
NSE lists Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals, and Indiabulls Housing Finance stocks on the list of banned securities under the F&O segment for Tuesday trading as they have crossed 95% of the market-wide position limit. (Read More)
Bitcoin, dogecoin fall while Shiba Inu, Litecoin gain. Check cryptocurrency prices today
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading more than a per cent lower at $17,040. The biggest token is down by three-quarters from its record high of $69,000. The global cryptocurrency market cap today remained below the $1 trillion mark, as it was down over a per cent in the last 24 hours to $893 billion, as per the data by CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, also fell by over 2% to $1,266. Meanwhile, dogecoin price today was trading more than 2% lower at $0.10 whereas Shiba Inu was up marginally by 0.5% at $0.000009. (Read More)
HC stays order involving penalty of ₹10 lakhs on Sun Pharma
The Delhi HC in its order has stayed its earlier order of November that had imposed a fine of ₹10 lakhs on Sun Pharmaceutical Industries for allegedly concealing facts in a trademark matter. According to the order the stay has been granted till 27 March 2023, which is when the matter will be taken up for hearing by the high court.
On 22 November, the Delhi High Court in its order levied a penalty of ₹10 lakhs on Sun Pharmaceutical Industries for concealing facts in order to obtain an ex-parte injunction order in its trademark matter with DWD Pharmaceuticals. This order was immediately challenged by Sun Pharma for seeking a stay. (Read More)
Biocon Biologics appoints Shreehas Tambe as MD, CEO
Biocon Biologics (BBL), a subsidiary of Biocon, has announced that Shreehas Tambe has been appointed as its managing director and CEO with effect from Monday.
Tambe, formerly deputy CEO of Biocon Biologics, will lead BBL in realising its goal of being a global biosimilars leader, a release said. Tambe takes over from Arun Chandavarkar, who will continue to serve as a non-executive, non-independent director on the board of Biocon Biologics. (ANI)
Manappuram Fin to release succession plan next quarter
Manappuram Finance, which is preparing the contours of succession planning, will announce the names of potential candidates in the next quarter, said managing director and chief executive officer V. P. Nandakumar.
With a 16% market share, Thrissur-based Manappuram Finance is the second-largest gold finance NBFC in the country after Muthoot Finance with assets under management of ₹19,190 crore and a gold loan customer base of 2.5 million. (Read More)
Buy or sell: Vaishali Parekh of Prabhudas Lilladher recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today which are Can Fin Homes and Jubilant Food.
Can Fin Homes: Buy CAN FIN HOMES, stop loss ₹555, target ₹580
Jubilant Food: Buy JUBLFOOD, stop loss ₹545, target ₹570 (Read More)
Uniparts India IPO: What does latest GMP suggest about listing?
After a successful public offer, Uniparts India may complete all the necessary procedures such as allotment of equity shares, refund if any, and credit of the shares offered in the IPO this week ahead of its listing. At the grey market, on Tuesday, Uniparts IPO’s GMP is unchanged at ₹60 per equity share. The nearly ₹836 crore initial public offering (IPO) closed last week with a robust appetite from institutional and high-net-worth investors. The IPO oversubscribed by 25.32 times.
Uniparts is likely to carry the allotment of equity shares on December 7, while initiation of refunds and credit of equity shares to the applicant’s Demat account will likely follow between December 8 to December 9. The company is expected to list next week on December 12. (Read More)
Adani Group open offer for NDTV ends with 31.79% subscription
NDTV shares settled 4.94% lower at ₹393.9 apiece as Adani Group’s open offer for the broadcaster ended Monday. The open offer garnered 31.79% or 53.28 lakh shares against the 1.67 crore size as of 4 pm on December 5. The share has fallen 12% over the past three sessions from a high of ₹447.70 to Monday’s closing of ₹393.9. (Read More)
Rupee falls 52 paise to close at 81.85 against US dollar on forex outflows, firm crude
The rupee pared its initial gains to settle down by 52 paise at a nearly two-week low of 81.85 against the US dollar on Monday weighed down by weak domestic markets, forex outflows and a rise in crude oil prices.
Forex traders said a weak dollar in the overseas market cushioned the downside for the local unit.
At the interbank foreign exchange market, the local unit opened at 81.26, but pared the gains and ended at 81.85, down 52 paise which is its biggest single-day loss in over six weeks.
During the day, the local unit witnessed an intraday high of 81.25 and a low of 81.87. On Friday, the rupee had settled down by 7 paise at 81.33 against the dollar. (PTI)
Trade ministry weighs cut in gold tariff to curb smuggling
The commerce ministry is discussing a reduction in import taxes on gold to rein in illegal shipments, according to people familiar with the matter.
The world’s second-largest consumer of the precious metal, almost all of which is purchased from abroad, has asked the finance ministry to consider reducing the tariff to about 10% from 12.5%, two of the people said, asking not to be identified as the deliberations are private. It’s as yet unclear if the recommendation will be accepted and a decision could be announced at or before the budget presentation due early next year, they added. (Read More)
Wall Street stocks slide as strong data suggests Fed has more to do
Stocks closed broadly lower on Wall Street and Treasury yields rose Monday after surprisingly strong economic reports highlighted the Federal Reserve’s difficult fight against inflation.
The S&P 500 fell 1.8%, its third straight drop. The slide more than offset the index’s gains last week. The Dow Jones Industrial Average dropped 1.4% and the tech-heavy Nasdaq composite slid 1.9%. Small-company stocks fell even more, sending the Russell 2000 index 2.8% lower.
The selling came as traders reacted to some better-than-expected economic snapshots. The services sector, which makes up the biggest part of the U.S. economy, showed surprising growth in November, according to the Institute for Supply Management. Reports on business orders at U.S. factories and orders for durable goods in October also rose more than expected.
The reports are positive for the broader economy, but they make the Fed’s fight against inflation more difficult because it likely means the central bank will have to keep raising interest rates in order to bring down inflation.
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