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India: benchmarks close in the red

Key Indian equity benchmarks turned in negative performance on Tuesday, December 3, in particular after US leader Donald Trump tweeted that Washington is set to impose tariffs on steel and aluminum exports from Brazil and Argentina given that the two countries sharply devalued their currencies.

Meanwhile, investors await a monetary policy meeting to be held by the Reserve Bank of India on Thursday. Market participants are hopeful that the regulator will decide to reduce the key rate for the sixth time this year. 

As regards macro, the country’s services PMI for November will be released during the second half of the session. 

By the close, the Nifty 50 dipped 0.45% to 11,994.20, and the BSE Sensex 30 edged down 0.31% to 40,675.45. 

On the BSE Sensex 30, the top performers included Bajaj Auto and Tata Consultancy (+1.24% and +1.05%), while the decliners were led by Yes Bank and Tata Steel (-7.42% and -5.03%).

On the Nifty 50, the outperformers were Bajaj Auto and Bajaj Finserv (+3.06% and +1.49%). The losers included Yes Bank and Bharti Infratel (-7.52% and -5.88%).

In the FX market, USD/INR ticked down 0.07% to 71.57, while EUR/INR dropped 0.03% to 79.131 and the yield on 10-year government bonds reached 6.47%.

Metal names underperformed, with Tata Steel and JSW Steel giving up over 1.3%.

Bank names came under pressure, with Union Bank of India and Syndicate Bank pulling back over 4%.

Real estate plays were well bid, with Prestige Estates and Oberoi Realty spiking over 4.2%.

From a technical viewpoint, the BSE Sensex 30 has broken out of a rising wedge to the downside after crossing its lower line at 40,840. Stochastic lines are on the sell side and still far from oversold territory, so we expect the index to extend losses.

 

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