The Indian stock markets on Tuesday ended the trading session on a negative note with the S&P BSE Sensex marginally declining 78 points while the Nifty50 closed below 17900-level.

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Chandan Taparia of Motilal Oswal Financial Services Limited said, “Nifty index opened positive but failed to hold above 18000 zones and then witnessed profit booking decline towards 17850 levels.”

“Index failed to capitalize bounce back move of the last session and closed with losses of around 40 points. It formed a small bodied bearish candle but continued the formation of higher lows of last two sessions,” Taparia added.

“Now it has to cross and hold above 18000 levels for an up move towards 18150 and 18350 zones, else it may stuck in between a trading range of 17777 to 18000 zones. On the downside, support exists at 17777 and 17600 levels,” he said.

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Global Markets

Global equity shares scaled a new peak on Tuesday, lifted by rising U.S. and European stocks, while the dollar gained as strong earnings bolstered sentiment as investors await the Federal Reserve’s plans to taper its massive stimulus, said a Reuters report.

The Fed will release a statement at the end of its two-day meeting on Wednesday, when it is expected to announce the start of tapering its bond-buying program. Markets also are pricing an interest rate hike at the Bank of England meeting on Thursday, the report added.

The S&P 500 and Nasdaq stock indexes hit fresh records, helped by a slew of robust earnings updates, while the STOXX 600 in Europe also posted a record close on strong corporate results as France’s CAC 40 index hit its highest since 2000.

MSCI’s all-country world index, which tracks equity performance in 50 nations, rose 0.09% to 749.21 after earlier surpassing the 750 mark to an all-time peak. The pan-European STOXX 600 also hit a new peak, up 0.1%.

On Wall Street, the Dow Jones Industrial Average rose 0.41%, the S&P 500 added 0.35% and the Nasdaq Composite advanced 0.12%.

Asian Markets

The Hang Seng Index opened with a positive bias on Wednesday and gained around 0.1% around 7:30 AM IST while the Tokyo Stock Exchange closed today.

SGX Nifty

SGX Nifty opened in the red and lost nearly 0.52% around 7.30 AM IST.

Britain, U.S., India, China, EU aim to boost near-zero emission steel output  

Britain, the United States, India, China and the European Union will aim to raise production of near-zero emission steel in all parts of the world by 2030, the British government said on Tuesday.

In a statement, Britain said more than 40 world leaders had agreed to a plan to deliver clean and affordable technology across the globe by 2030. As well as steel, the plan will focus on power, road transport, hydrogen and agriculture.

"Near-zero emission steel is the preferred choice in global markets, with efficient use and near-zero emission steel production established and growing in every region by 2030," said the statement.

Current festive season worst in decade: FADA

Automobile dealers' body FADA on Tuesday termed the current festive season as the worst in terms of business in a decade for its retail partners across the country.

The industry body, which represents over 15,000 auto dealers that own over 26,500 outlets across the country, said the chip shortage situation has impacted offtake in the passenger vehicle segment.

FADA President Vinkesh Gulati said in a statement, "This is the worst festive season that the Indian auto retail has seen in the last decade. Chip shortage is impacting supplies in PV creating a huge shortage of vehicles in SUV, compact - SUV and luxury segment."

Rupee pares initial losses to close flat

The rupee pared its initial losses to settle marginally up by 1 paisa at 74.87 (provisional) against the US dollar on Monday following a firm trend in the domestic equities.

At the interbank foreign exchange market, the domestic unit opened on a weak note and slipped below the 75 per dollar mark. The rupee touched a low of 75.04 and a high of 74.84 during the day before closing at 74.87, up 1 paisa from its last close.

On Friday, the rupee had closed at 74.88 against the US dollar.

RBI lists suggestions to streamline functioning of ARCs

In a bid to streamlining the functioning of asset reconstruction companies (ARCs), a Reserve Bank committee has come out with a host of suggestions including the creation of online platform for the sale of stressed assets and allowing ARCs to act as resolution applicants during the IBC process.

The committee, headed by former RBI Executive Director Sudarshan Sen, suggested that the scope of Section 5 of the SARFAESI Act be expanded to permit ARCs to acquire financial assets from all regulated entities, including AIFs, FPIs, AMCs making investment on behalf of MFs and all NBFCs including HFCs.

Economy expected to grow by 10% in FY22: Rajiv Kumar

Indian economy is expected to grow by 10 per cent or more in the current fiscal, and 8 per cent plus in the next fiscal year, Niti Aayog Vice-Chairman Rajiv Kumar said on Tuesday.

Addressing a book launch event, Kumar further said that seven years of the Modi government has laid a strong economic foundation for businesses to thrive in India.

"There was a hiccup (in economic growth) for two years due to COVID-19 pandemic. The IMF has projected a growth of 9.5 per cent in 2021.

"According to the IMF, India will be the fastest growing major economy for the next five years. These are underestimations," Kumar said. 

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Gold marks time as investors focus on Fed

Gold prices were subdued on Tuesday ahead of a crucial U.S. Federal Reserve meeting that could offer cues on future interest rate hikes amid rising inflationary pressures.

Spot gold dipped 0.1% to $1,790.55 per ounce by 1314 GMT. U.S. gold futures for December delivery slipped 0.3% to $1,791.20 per ounce.

"The theme of today`s market is the Fed and nothing else," said Carsten Fritsch, a commodities analyst at Commerzbank.

FII & DII Data

Foreign portfolio investors (FPIs) remained net buyers for Rs 244.87 crore in the Indian markets while Domestic Institutional Investors (DIIs) were net sellers to the tune of Rs 6 crore, provisional data showed on the NSE.

Stocks under F&O ban on NSE  

Punjab National Bank and Escorts have been placed under the F&O ban on Monday. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.

(With inputs from PTI, Reuters and other agencies)

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