Market

10 things you need to know before the opening bell

Updated : December 20, 2018 08:55 AM IST

The Indian market is set for a negative start on Thursday as global investors remained jittery after the US Fed increased the key interest rates.

Wednesday's rate increase, the fourth of the year, pushed the central bank's key lending rate to a range of 2.25 percent to 2.50 percent.

At 07:19 AM, SGX Nifty, an early indicator of the Nifty 50's trend in India, was down 0.78 percent at 10,900, indicating a negative opening for the Indian market.

Also read: Here are the top stocks to watch out for in today's trade

Here's what you should know before the opening bell

Asia: Asian shares retreated on Thursday after the US Federal Reserve raised rates, as expected, and kept most of its guidance for additional hikes next year, dashing investor hopes for a more dovish policy outlook. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.34 percent, with Australian shares dropping as much as 0.65 percent to two-year lows.

Wall Street: In New York, US S&P 500 Index lost 1.54 percent to hit its lowest level since September 2017. US stocks are on pace for their biggest December decline since 1931, the depths of the Great Depression. "I think the Fed may be underestimating other factors at play," said Bob Baur, chief global economist at Principal Global Investors in Des Moines, Iowa in the Unites States.

US Fed hike: After weeks of market volatility and calls by President Donald Trump for the Federal Reserve to stop raising interest rates, the US central bank instead did it again, and stuck by a plan to keep withdrawing support from an economy it views as strong.

Oil: Oil prices rose on Wednesday, recovering somewhat from a sharp selloff during the previous session, after US data showed strong demand for refined products. Sentiment remained negative, however, as investors grappled with weakening demand and worries about oversupply.

Rupee: The rupee closed at 70.40 against the US dollar on Wednesday.

Sebi ban: Markets regulator Sebi on Wednesday banned Kolkata-based stock broker Guiness Securities Ltd (GSL) and 35 entities from securities market "till further directions" in a case related to non-settlement of client funds and misappropriation of securities.

Market close: The Indian equity market on Tuesday ended higher continuing its upward movement for the seventh straight session benefiting from the fall in crude oil prices. The 30-share benchmark BSE Sensex moved 117 points higher to close at 36,464, and the broader NSE Nifty, surged 58 points to 10,967 to end the session at nearly 3-month highs.

Recapitalisation bonds: In a bid to help public sector banks (PSB), the government is planning to issue Rs 40,000 crore additional recap bonds to them in FY19, said sources familiar with the matter. The government will seek Parliament nod this week on this matter, sources told CNBC-TV18.

World Bank report: India lost a staggering $86.1 billion, equivalent to over 4 percent of its GDP, owing to distortions in the power sector in 2016, says a World Bank report released on Wednesday.

RBI ECF: Economic Affairs Secretary Subhash Chandra Garg on Wednesday said the government will seek interim dividend from the Reserve Bank of India. He also said that the expert committee on Economic Capital Framework has virtually been finalised.

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(With inputs from agencies)