Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 42 points at the opening bell as most Asian stocks dropped. The market may remain volatile in today, 24 November 2016, as traders roll over positions in the futures & options (F&O) segment from the near month November 2016 series to December 2016 series. The near month November 2016 derivatives contracts expire today, 24 November 2016.
In overseas stock markets, most Asian stocks dropped as upbeat economic data strengthened the prospect for higher US interest rate. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. "Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced," according to the minutes. The US stock market will be closed today, 24 November 2016, because of the Thanksgiving holiday.
Weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. That said, claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1023.12 crore yesterday, 23 November 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1254.67 crore yesterday, 23 November 2016, as per provisional data.
Among corporate news, Zee Entertainment Enterprises (Zee) after market hours yesterday, 23 November 2016, announced the acquisition of general entertainment television broadcasting undertakings from Anil Ambani led Reliance Group (Reliance) under a composite scheme of arrangement subject to requisite approvals. Reliance's TV business comprises two entertainment channels (Big Magic, Big Ganga) and four other TV licenses. The business shall get demerged into Zee from three Reliance entities viz. Big Magic, Reliance Big Broadcasting (RBBL) and Azalia Broadcast (Azalia). The consideration payable by the company for the proposed acquisition shall be by way of taking over off debt of the demerged undertakings aggregating about Rs 295 crore and issuance of unlisted preference shares aggregating to Rs 3.95 crore to the shareholders of transferor companies. The appointed date of the demerger scheme shall be 31 March 2017. The transaction is expected to close in the second half of the calendar year 2017. Reliance also operates a news and current affairs channel (BTV) which is not part of the transaction.
Software major Infosys after market hours yesterday, 23 November 2016, announced that it has signed a definitive agreement to a Limited Partner investment of Rs 31.6 crore from its Innovation Fund in Stellaris Venture Partners, an India-based early stage venture fund. This investment is towards the first close of Stellaris' fund. The investment is expected to complete by 15 December 2016.
Power Grid Corporation of India (PGCIL) after market hours yesterday, 23 November 2016 said that a meeting of Committee of Directors for Bonds is planned to be held on 28 November 2016, to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (debenture) under private placement.
Meanwhile, key benchmark indices settled with small gains yesterday, 23 November 2016, extending gains registered during previous trading session. The Sensex rose 91.03 points or 0.35% to settle at 26,051.81, its highest closing level since 18 November 2016.
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