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Market Ahead, Nov 26: F&O expiry, GDP data, global cues to be key this week

A host of factors like fluctuating crude oil prices, macroeconomic data, expiry of futures and options contracts for Nov series and trends in global markets could impact investor sentiment this week

BS Web Team  |  New Delhi 

A host of factors such as fluctuating crude prices, macroeconomic data, expiry of the futures and options contracts for November series and trends in global are likely to impact investor sentiment this week. Investors will watchout for G20 meeting this week where President Donald Trump will meet his Chinese counterpart Xi Jinping in Buenos Aires.

That apart, fiscal deficit numbers, movement of against the dollar and state elections are other key factors that market may take cues from.

Amid the stock specific action, HUDCO is likely to release its September quarter earnings later in the day today. Also, HCL Technologies and Bajaj Finance are expected to replace Wipro and Adani Ports in the BSE effective from December 24, 2018.

The opened at 71.12 a dollar, and closed at a near three-month high of 70.69 on Thursday.

GLOBAL MARKETS

Asian shares were on a slippery slope on Monday as plunging prices fanned worries about a dimming outlook for the global economy as investors brace for a crucial meeting between and Chinese leaders at the end of week.

MSCI's broadest index of Asia-Pacific shares outside Japan was down slightly while Japan's Nikkei posted gains of 0.2 per cent after initial losses.

On Wall Street, US stocks closed lower on Friday, with the benchmark S&P 500 hitting its lowest close in more than six months as the energy sector was sold off in the wake of the slump.

OIL PRICES

Oil prices won back some ground after hefty losses on Friday, but remained under pressure with Brent crude below $60 per barrel amid weak fundamentals and struggling financial

Front-month Brent crude oil futures were at $59.20 per barrel, up 40 cents, or 0.7 per cent, from their last close. US West Texas Intermediate (WTI) crude futures, were up 16 cents, or 0.3 per cent, at $50.58 per barrel.

FPIs may find India attractive as oil prices fall, fundamentals improve


Foreign investors may come back to India because of the fall in oil prices and the improvement in the domestic fundamentals, but that could happen only after they make sure the oil correction is here to stay and India’s deficits are bridged.

The crude oil price for the Indian basket has averaged $74/barrel (bbl) in the current financial year. The rupee-dollar exchange rate has averaged Rs 69.6 a dollar.

In the Budget 2018-19 (FY19), the petroleum and finance ministries had calculated the oil import bill to be $105 billion on the assumption that the international oil basket would average $65/bbl and the exchange rate Rs 65 a dollar over the financial year.


Standard Chartered Bank moves NCLT in Essar Steel takeover case

Standard Chartered Bank has filed an interlocutory application in the bankruptcy court against a panel of lenders selecting ArcelorMittal to take over debt-ridden Essar Steel, saying the decision was “illegal” and was taken without considering its claims.

Standard Chartered Bank (SCB), which has more than 7.5 per cent weight in the Committee of Essar Steel Creditors, in the petition before the National Company Law Tribunal (NCLT) claimed that ArcelorMittal’s revised bid of Rs 420 billion was never considered by the CoC.

SCB had lent Essar Steel, which the lenders are auctioning to recover Rs 493.95 billion of unpaid financial dues, a principal amount of Rs 26.46 billion but the Committee of Creditors admitted only Rs 607 million for repayment out of the auction proceeds

First Published: Mon, November 26 2018. 08:13 IST
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