Indian shares likely will open higher on Wednesday, tracking a sharp fall in crude oil prices, easing macro concerns. The SGX Nifty Futures indicate a positive start on Dalal Street today.
Here is what you need to know before the market opens: Asia: MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent in hesitant early trade. Japan's Nikkei eased 0.1 percent, while E-Mini futures for the S&P 500 inched up 0.17 percent. Wall Street: Talk of a dovish turn helped Wall Street steady and the Dow ended Tuesday up 0.35 percent. The S&P 500 edged up 0.01 percent and the Nasdaq 0.45 percent. Dollar: The steep drop in Treasury yields undermined one of the US dollar’s major props and pulled its index back to 97.000, from a recent 97.711 top. It fell to 112.46 yen, from a 113.70 high last week, while the euro nudged up to $1.1374 from a $1.1266 low. Oil: Oil stole the show as a glut of supply saw US crude sink 8 percent overnight, while Brent shed almost 6 percent. US crude was last changing hands at $46.30 a barrel having hit its lowest since August 2017. Brent’s 35 percent plunge since October is sending a disinflationary pulse through the world at a time when trade and economic activity are already cooling. Market at close: The 30-share BSE Sensex gained 300 points from the day’s low to settle 77 points higher at 36,347, while the 50-share broader NSE Nifty50 spiked 90 points from lows to end 20 points in the green at 10,909. Rupee: The Indian rupee on December 18 rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion. FII & DII data: Foreign Institutional Investors (FIIs) bought shares worth Rs 144.76 crore while Domestic Institutional Investors sold Rs 182.6 crore worth of shares in the Indian equity market on December 18. RBI: The Reserve Bank of India (RBI) on Tuesday said it would inject Rs 50,000 crore into the system in January 2019 through a purchase of government securities. LIC-IDBI Bank: The IDBI Bank on Tuesday said it has received final letter from Life Insurance Corporation (LIC) for an open offer to acquire additional 26 percent in the lender. The open offer has been made at a price of Rs 61.73 a share, which is in connection with LIC's acquisition of 51 percent controlling stake in IDBI Bank.
Gujarat power bill waive off: After newly formed Congress-ruled Madhya Pradesh and Chhattisgarh governments announced a waiver on farmers' debts, the BJP-ruled Gujarat government, too, waived power dues worth Rs 625 crore. Chief Minister Vijay Rupani on Tuesday decided to forgo the dues of residential, commercial and agricultural power connections with immediate effect.