Global Markets Influenced By Major Events This Month

The market is likely to remain cautious ahead of key events this month. One among them is the GST council meet that begins today. The dream tax structure will take a step further towards its realization. The other most important event is the RBI Credit Policy that will be held on 7th of this month. This credit policy needs to be monitored even more minutely as Demonetization has already left its unforgettable mark on the face of Indian Economy. Expectations are that of a rate cut which would be cheered by the markets and companies like DHFL, Yes Bank and others in the Banking and Financial Services Sector would be direct beneficiaries.

Looming over the market this month is the Fed rate hike possibility that would get a clearer picture on 15th of this month. The Federal Reserve is widely expected to hike interest rates at its next policy meeting on Dec. 13-14. With each passing day, the possibility of fed rate hike has been becoming strong influencing the markets worldwide.

Global Market Report:

Weakness across Asia and SGX Nifty implies a weak start. Asian shares were flat in early trade following mostly lethargic sessions on Wall Street and Europe, as 10-year US Treasury yields surged to near 18-month highs and crude futures increased to 16-month highs.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little altered, but remained on track to end the week up 0.6 percent. Japan’s Nikkei, which soared to an 11-month high on Thursday, slipped 0.6 percent early on Friday as the yen fortified. It is set for a weekly gain of 0.1 percent.

Yields on 10-year US Treasuries touched 2.492 percent on Thursday, the highest since June 2015, after data showed factory activity quickening in November and construction spending at a seven-month high in October.

While the rise in the risk appetite helped lift the Dow Jones Industrial Average to a record closing high, the S&P 500 and the Nasdaq ended the day with losses as expensive technology stocks pulled back.

Home Indices:

Back home, the 30-share BSE Sensex was down 92.89 points at 26559.92 and the 50-share Nifty share price lost 31.60 points to 8192.90 amid consolidation while the broader markets underperformed benchmarks on Thursday.

Auto stocks may be in focus after November sales data. Nifty IT has been going up due to weakening Rupee. There has been strong buying in the Pharma sector, pushing the Nifty Pharma to the rise.

The government has issued a clarification to suppressing rumors surrounding gold. The centre has clarified that there is no limit on any gold holding given it is acquired from explained sources of income including inheritance.

Quoting a circular issued 22 years ago, the central board of direct taxes said married women can hold 500 grams of gold even if it does not seem to be in line with their income records. However, this limit is just 250 grams for unmarried women and 100 grams for men.

December will see a lot of movement in the global market and most in the home market. After the 15th of this month, it will be clearer on where the market will be heading.

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