Morning update for 7 December 2020

Indices at 9:30 am

Nifty50 13,285 ▲ 27 (+0.21%) 

Sensex 45,162 ▲ 82 (+0.18%)

Nifty Bank 29,991 ▼ 60 (-0.2%)

In the news

Dow rises despite weak jobs data

• The US economy added 2,45,000 jobs in November, far lesser than the street estimate of around 4,50,000 jobs. 
• While the data is disappointing, the Dow rose and closed at its highest level ever last week. The weak data suggests that there is a need for more stimulus (more liquidity in the markets). 

FPI-DII play tug of war

• In November, the Indian equity markets received nearly ₹60,350 crore of investments from foreign portfolio investors. On the other hand, the domestic institutional investors withdrew about ₹30,760 crore, marking it a sixth straight month of net outflows for DIIs, reports suggest. 
• In 2020, on a net basis, FPIs invested nearly ₹1,25,000 crore and DIIs have been net sellers to tune of ₹28,000. The net result is that the Nifty 50 is up ~9% in CY20, successfully battling one of the worst economic impacts so far.

Crude oil gains for 5 consecutive weeks

• In the recent OPEC+ meeting, major oil producers agreed to continue to curb production to cope with lower demand globally. 
• Crude oil prices rose ~30% over the last five weeks for two reasons. Supply was restrained on one hand and optimism toward economic recovery fueled sentiments that demand will rise.

Events in this week

• Wednesday: Crude oil inventories (US)
• Thursday: Inflation, Initial Jobless claims (US)
• Friday: Inflation, IIP (India) 

Sectoral indices

Global markets

Fact of the day

A person's height is determined by their father's genes, and weight is determined by their mother's.

Source: BBC

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Investment in securities markets are subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.