The RBI MPC meeting commences, with investors keenly watching for any indications of future rate-cuts that could positively influence lending-sensitive sectors.
The Indian Rupee sank to a record low of $89.88, nearing the psychological $90 mark; this is bearish overall but favors exporters.
Headline indices extended declines for a third straight session. FIIs net sold equities worth Rs 3,642.30 crore, countered by DII net buying.
Stock Market Cues: RBI MPC Meeting, Currency Movement, Gold Rate And Other Factors Set To Affect Investor Sentiment
Investor sentiments are likely to be framed by multiple cues on December 3 such as the commencement of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, fluctuations in currency value and the release of macroeconomic data
Summary
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Stock Market Cues: Headline indices are likely to start the session on a flat note on December 3, tracking the Gift Nifty which opened flat at 26,192.50 levels. In the previous session the headline indices finished lower, extending declines for the third straight session.
The Nifty 50 finished around the 26,032.2 level down by 143.55 points or 0.55 per cent. The Sensex closed around 85,138.27 down by 503.62 points or 0.59 per cent.
Stock Market Cues For Today
Investor sentiments are likely to be framed by multiple cues on December 3 such as the commencement of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting, fluctuations in currency value and the release of macroeconomic data.
RBI MPC Meeting
The MPC meeting of the RBI begins today, while the committee will announce its policy decision on December 5, investors are expected to closely monitor any comments or developments related to potential rate-cuts. If a rate-cut is announced several sectors may benefit from the lower cost of lending.
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Currency Movement
The Indian Rupee declined to record lows on December 2 as it continued to weaken against the US Dollar. The currency finished the session at an all-time low of 89.88. The rupee is close to the psychological Rs 90 per $1 mark. A drop in currency rates is typically seen as a bearish sign for investors. However it impacts countries which export goods and services positively and has a negative effect on companies which rely heavily on imports.
November Composite PMI Data
The stock market is set to react to the final reading of India's November Services and Composite PMI data on December 3.
FIIs Remain Net Sellers
On December 2, foreign institutional investors (FIIs) net sold Indian equities worth Rs 3,642.30 crore on the other hand domestic institutional investors (DIIs) net purchased Indian equities worth Rs 4,645.94 crore.
Crude Oil Prices Today
On December 3, crude oil prices remained flat, the price of West Texas Intermediate crude remained around $58.63 down by $0.01 or 0.2 per cent. The price of Brent Crude remained around $62.45.
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Gold Rate On December 3
Physical gold prices extended declines on December 3, the price of 24 karat gold remained around Rs 12,986 per gram, the price of 22 karat gold was around Rs 11,904 per gram and the price of 18 karat remained around Rs 9,740 per gram.
US Markets
US market indices finished the session in the green on December 3, the Nasdaq Composite, S&P 500 and the Dow Jones Industrial Average closed the session higher by 0.59 per cent, 0.25 per cent and 0.39 per cent respectively.
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