10 things you need to know before the opening bell on December 8

SUMMARY

The Indian market is likely to open on a flat note on Tuesday amid cautiousness in the Asian markets. At 7:15 am, the SGX Nifty was trading 10.50 points or 0.08 percent lower at 13,410.50, indicating a flat start for the Sensex and Nifty50.

By CNBCTV18.comDec 8, 2020 7:55:38 AM IST (Published)

1. Asia: Asia-Pacific markets traded mixed on Tuesday as investors remained cautious over rising coronavirus cases, U.S. stimulus negotiations as well as Brexit talks between the U.K. and the European Union. Japan’s Nikkei 225 fell 0.5 percent while the Topix index was down 0.29 percent. In South Korea’s the Kospi declined 0.21 percent. Australia’s benchmark ASX 200 reversed earlier losses to trade up 0.12 percent. The energy subindex was down more than 1 percent after oil prices slipped in the overnight session on Monday, reported CNBC International.

2. US: Stock futures fell on Monday night as traders kept an eye on negotiations for additional fiscal stimulus while the U.S. coronavirus caseload continues to rise. Dow Jones Industrial Average futures dipped 55 points, or 0.2 percent. S&P 500 and Nasdaq 100 futures also lost 0.3 percent, reported CNBC International.

3. Closing Bell On Monday: The Indian market ended at fresh record high on Monday led by the gains from financials, pharma and FMCG stocks. At 3:30 pm, the Sensex ended 347.42 points or 0.77 percent higher at 45,426.97, and the Nifty was up 97.30 points or 0.73 percent at 13355.80.

4. Crude Oil: Oil prices slipped on Monday as the positive impact from COVID-19 vaccine news and an OPEC+ deal on oil production cuts was undermined by surging coronavirus cases and heightened tensions between the United States and China. Brent crude fell 46 cents to settle at $48.79 per barrel, while U.S. West Texas Intermediate crude settled 50 cents, or 1.08 percent, lower at $45.76 per barrel, reported CNBC International.

5. Rupee: The rupee dropped by 10 paise to settle at 73.90 against the US currency on Monday due to a rebound in the dollar in overseas markets following geopolitical concerns. At the interbank forex market, the domestic unit witnessed a volatile trading session. It opened at 73.79 and rose to an intra-day high of 73.70 in the first half. The local unit, however, lost momentum and dropped to a low of 73.96 before closing at 73.90 a dollar, registering a decline of 10 paise over its previous close of 73.80.

6. Bharat Bandh Today: Farmers across India have called for a Bharat Bandh on December 8. They have been holding protests against agrarian laws passed recently in Parliament. The bandh was called by the protesting farmers after several rounds of talks with the Central government failed. While the Centre is firm on its stance on the laws, farmers want them rolled back as they fear, they will be at the mercy of corporates to sell their produce. Talks between the government and protesting farmers remained inconclusive on Saturday even after five rounds of discussions as union leaders stuck to their demand for the repeal of the new farm laws and went on a 'maun vrat' seeking a clear "yes or no" reply, forcing the Centre to call for another meeting on December 9 to resolve the deadlock. The Centre has asked all states and Union Territories to tighten security during Tuesday's 'Bharat Bandh' call while asserting that peace and tranquillity must be maintained across the country, officials said.

7. Madhu Kela On Market Base, Valuations: Dalal Street has been on a bull run like its global peers. The Sensex and the Nifty have gotten into the habit of scaling new record highs every other day in the recent times. There is however a worry that valuations are high and a correction might be around the corner. Veteran market investor, Madhu Kela, isn't really worried about this. In an interview with CNBC-TV18, he said, “My view on market still remains very positive in the medium-term to long-term.” “On an overall basis, there is fear in some pockets of the market that the index has gone so high, so maybe market will correct and then we will buy. I am saying, market will correct but what you want to buy may not correct as much as you want it to,” he explained. “The base of the market is rising... there are no signs of any euphoric valuation in the market, is what I am saying. People should be adequately invested,” Kela advised.

8. SBI Chairman On Liquidity: “I don’t expect any kind of a challenge related to liquidity,” said Dinesh Kumar Khara, Chairman of State Bank of India (SBI) in an interview with CNBC-TV18. “Reserve Bank of India (RBI) has done a great job in the current pandemic scenario ensuring that there is adequate liquidity,” he said. “Retail book continues to do well. When it comes to investment demand, there we will have to wait for some more time to come. When it comes to large corporates also, though it is not universally seen across, in some sectors we have started seeing better utilisation,” he said. When asked if the glitches on YONO platform sorted out, Khara replied, “More or less – we have improved quite a lot and hopefully we will be in a position to address it very soon.”

9. DCGI On Immediate Application Of Pfizer Vaccine: Pfizer and Serum Institute of India have sought emergency use approval for their respective COVID-19 vaccines from the Drug Controller General of India (DCGI) and sources told CNBC-TV18 that an internal review has begun under the accelerated review process. The review is likely to conclude within two weeks, sources added. "The Drug Controller General of India is likely to look into these applications under the accelerated review process for granting emergency use authorisation, and an outcome is expected over the next two weeks," sources said. A Subject Expert Committee (SEC) is expected to meet on Wednesday and discuss the application of Pfizer, Serum Institute and Bharat Biotech for emergency authorisation use of their respective vaccines.

10. Companies Garner Rs 73,215 Crore From Markets: Companies raised Rs 73,215 crore from the capital markets in October, with private placement of debt instruments continuing to be the most-preferred route for funding. The funds have been mopped up mainly for business expansion plans, loan repayments and working capital requirements. According to monthly bulletin published by markets regulator Sebi on Monday, firms raised a total of Rs 73,215 crore in October compared to Rs 75,232 crore in September through issuance of equity and debt securities. Prior to this, companies had mopped up Rs 1.1 lakh crore in August. Out of the cumulative Rs 73,215 crore garnered in October, Rs 62,331 crore was mopped up from private placement of debt securities and Rs 4,144 crore through private placement of equity, which include qualified institutional placement (QIP) and preferential allotment routes. Individually, a total of Rs 2,200 crore were raised through the QIP route and Rs 1,944 crore were raised through issuance of shares on a preferential allotment basis.