A host of global and domestic cues are likely to impact investor sentiment on D-Street on December 4, including key US economic data that are keeping hopes of a December US Federal Reserve rate cut high, a falling rupee against the US dollar, and Russian President Vladimir Putin’s two-day India visit among other cues.
In the previous session on December 3, the benchmark indices fell for the fourth straight session, as continued weakness in the rupee weigh on investor sentiment.
Putin’s Arrives In India
Russian President Vladimir Putin arrived in New Delhi on December 4 for the 23rd India-Russia summit, where he and Prime Minister Narendra Modi are expected to focus on defence ties, trade facilitation and labour mobility.
The two leaders will hold broad discussions, including boosting India’s imports of Russian fertiliser and collaborating on small nuclear reactors. Both sides are also likely to announce a new labour mobility agreement that would make it easier for Russian companies to hire Indian workers, according to officials from Moscow and New Delhi.
US Private Payrolls
US private payrolls unexpectedly declined in November, posting their biggest drop in more than two and a half years, the payroll processor ADP’s report showed. Private employment fell by 32,000 last month, following an upwardly revised gain of 47,000 in October.
US Services Activity
US services activity continued to rise in November, coming in at 52.6 compared with 52.4 in October, according to an Institute for Supply Management report. The report also showed that prices paid eased slightly but remained high.
RBI MPC Meeting Underway
The Reserve Bank of India’s (RBI) monetary policy committee’s (MPC) meeting is currently underway. The RBI MPC meeting started on December 3, and is set to decide whether to cut interest rates or keep them on hold for longer. The repo rate has remained unchanged at 5.50 per cent for four consecutive meetings.
US Stock Market
Overnight, Wall Street’s benchmark indices closed higher as fresh economic data kept hopes alive for a Fed rate cut next week.
Dow Jones gained 0.86 per cent, S&P 500 rose 0.30 per cent, and the Nasdaq Composite advanced 0.17 per cent.
Asian Stock Markets
Japanese stocks led gains in early Asian trade on December 4, tracking overnight gains on Wall Street.
Japan's Nikkei 225 traded higher by around 1.50 per cent, China's CSI 300 was up around 0.30 per cent, the Hong Kong-based Hang Seng was up 0.20 per cent, however, South Korea's Kospi traded lower by nearly 1 per cent.
USD vs INR
The rupee hit a new record low in early trade today, slipping to 90.56 against the US dollar. The currency was last quoted at 90.447, down 0.31 per cent.
US President Donald Trump’s punitive 50 per cent tariff on Indian goods has hurt investor sentiment, leading foreign investors to sell about $17 billion from Indian equities this year, according to a Reuters report. This heavy outflows have added pressure on the rupee.
Meanwhile, the US Dollar Index futures, which measures the greenback against a basket of six major currencies, rose in early trade today, gaining 0.15 per cent to 98.95.
Crude Oil Prices Today
Crude oil prices traded higher in early trade today after the US and Russia failed to reach a deal to end the war in Ukraine. Gains, however, were capped by concerns about a growing supply glut.
US crude inventories rose by 6,00,000 barrels for the week ended November 28, following a 2.8 million-barrel build the previous week, according to data from the US Energy Information Administration. Stockpiles now stand at 427.5 million barrels, about 3 per cent below the five-year average, according to an OilPrice report.
Brent crude oil futures were up by 0.45 per cent at $62.95 a barrel, while WTI crude oil futures gained 0.58 per cent to $59.29.
