Indian stock markets may tick lower on Monday as weak economic data will likely weigh on investor sentiment. Global shares rose on Monday and oil rebounded after a big fall late last week, as investors clung to hopes that Beijing and Washington could reach a compromise in trade talks although increasing tensions over Hong Kong unsettled market confidence.
MSCI's index of Asia-Pacific shares outside Japan was up 0.17%, reclaiming some of its one-percent-plus loss on Friday while Japan's Nikkei rose 0.85%.
US stock futures gained 0.29% to edge near their record highs after a dip in a truncated US session on Friday due to Thanksgiving holiday. MSCI’s broadest gauge of world shares, all-country world index, ticked up 0.07% and stood within reach of its all-time peak hit in January 2018.
While US legislation supporting Hong Kong protesters last week hit optimism of a US-China trade deal, investors are nonetheless holding the broad view that a further escalation in the trade war can be avoided.
Investors have long thought that the United States will avoid imposing an additional 15% tariff on about $156 billion of Chinese products on 15 December after signing a deal with China. The two countries have so far been unable to bridge the gap over existing tariffs on Chinese goods, with Beijing demanding scrapping them as a part of any trade deal.
A trade deal between United States and China was now “stalled because of Hong Kong legislation", news website Axios reported on Sunday, citing a source close to US President Donald Trump’s negotiating team.
China’s foreign ministry last week lambasted US legislation signed by Trump on Wednesday backing protesters in Hong Kong as a serious interference in Chinese affairs.
Back home, all three private telecom operators—Vodafone Idea Ltd, Bharti Airtel Ltd and Reliance Jio Infocomm Ltd—said they will raise prices of their prepaid voice and data services, ending a protracted tariff war that dragged rates to the lowest in the world.
The increases in most plans announced by the three operators on Sunday evening are in the range of 15-47%. While the new tariffs for Vodafone Idea and Bharti Airtel will be effective starting Tuesday, Reliance Jio’s revised tariffs will come into effect on 6 December.
The mess at Karvy Stock Broking Ltd seems to be much bigger than first believed. The markets regulator now estimates the misuse of client securities by the broker at Rs2,800 crore, 40% more than the ₹2,000 crore it determined earlier, according to a Mint report.
Central and state governments together collected goods and services tax (GST) worth ₹1.03 trillion in November, 6% more than what was collected in the same month a year ago. This is also the third highest monthly GST receipts so far since the indirect tax was implemented in July 2017, said an official statement.
The Indian economy in the September quarter decelerated to 4.5%, lowest in 25 quarters, from 5% in the preceding quarter as manufacturing output contracted. The persistent slowdown may also force the central bank to go for another round of interest rate cuts on 5 December in its monetary policy review.
In the primary market, initial public offering (IPO) Ujjivan Small Finance Bank will open for subscription on Monday. The three-day share sale of Ujjivan Financial Services Limited's subsidiary aims to raise ₹750 crore with a price band of ₹36-37 per issue.
In the currency markets, the yen weakened, helped also by expectations that Japan could put together a large-scale fiscal spending package to bolster its economy. Against the yen, the dollar rose 0.25% to 109.675 yen, a six-month high.
The euro was little changed at $1.10215, bouncing back from seven-week low of $1.0981 hit in US trade.
The British pound slipped 0.25% to $1.2909 after opinion polls during the weekend showed Prime Minister Boris Johnson's Conservative Party saw its lead over the opposition Labour Party narrow. Oil prices bounced back a tad after a big slump on Friday on concerns about fresh trade tensions and record high US crude production.
The market drew some support from expectations that OPEC and its allies are likely to extend existing oil output cuts when they meet this week , with non-OPEC oil producer Russia supporting Saudi Arabia’s push for stable oil prices amid the listing of state oil giant Saudi Aramco.
Brent crude futures rose 1.16% to $61.19 a barrel while US West Texas Intermediate (WTI) crude gained 1.41% to $55.95 per barrel.
(Reuters contributed to the story)