The market has opened firm as the Sensex is up 79.42 points or 0.3 percent at 26732.23. The Nifty is up 19.50 points or 0.2 percent at 8244.00. About 424 shares have advanced, 104 shares declined, and 28 shares are unchanged. ONGC, Cipla, Axis Bank and HDFC twins are gainers while Tata Motors, Bharti, ITC, Bajaj Auto and Infosys are losers in the Sensex. The Indian rupee slipped in the early trade. It has opened lower by 10 paise at 68.48 per dollar versus previous close 68.38. Mohan Shenoi of Kotak Mahindra Bank said, "Oil prices have risen on the back of OPEC decision to cut production. Strong US data makes December rate hike near certain."
The US dollar surged to a 9-month high against the yen and also gains against the euro and Swiss Franc after a surge in oil prices pushed US treasury yields higher. Auto stocks are likely to be in focus today as November sales data will be announced. Demonetisation may hit auto sales as retail growth is expected to be sharply lower for all companies. Medium and heavy commercial vehicles (MHCV) segment may be impacted the most. Analyst expect 30 percent drop in retail volumes and passenger vehicle industry may see 20 percent drop in retail sales.
The pain will continue well into the March quarter of current fiscal, says Sanger. OPEC in its meeting yesterday, agreed to cut output after 8 years. This will lead to a long term positive for crude price. It may be positive for oil producing nations like Russia, but will be a negative for importers like India and China. Crude price rise and other global cues may hamper RBI's ability to cut rates, he says. He also does not see the Indian market rally due to the global pressures. US market is liking the pro US growth story under Trump administration.
The pain will continue well into the March quarter of current fiscal, says Sanger. OPEC in its meeting yesterday, agreed to cut output after 8 years. This will lead to a long term positive for crude price. It may be positive for oil producing nations like Russia, but will be a negative for importers like India and China. Crude price rise and other global cues may hamper RBI's ability to cut rates, he says. He also does not see the Indian market rally due to the global pressures. US market is liking the pro US growth story under Trump administration. 
