After a week belonging to Jet Airways and Natural Gas! Here’s what’s next!

Indian equity benchmarks posted their third consecutive weekly gain due to some appreciation in the rupee, weakening crude oil prices and positive global cues. In this week, the Sensex rose 0.84 percent to 35,457, while Nifty rose 0.91 percent to 10,682.2 while the BSE Midcap index gained 0.36 percent and the BSE Small Cap fell 1.27 percent. The Jet counter soaring over 40 percent in a week due to preliminary talk between Tata Sons and Jet Airways for acquiring a stake in Jet Airways.

DOMESTIC DATA GIVING RBI SOME BREATHING SPACE…

On domestic data front; Wholesale Price Index (WPI) for October came in at 5.28 percent, as against 5.13 percent for September. The country’s Index of Industrial Production (IIP) for September was at 4.5 percent, as against 4.7 percent for August. Consumer inflation stood at a 13-month low of 3.31 percent in October which supports the central bank’s surprise decision to hold interest rates in its last policy statement.

TECH SHARES PULL DOWN US STOCK INDEXES…

Despite healthy gain on Friday; market indexes logged sizable weekly losses, dragged lower by weakness in tech shares and also pressured on renewed geopolitical worries. For the week, The S&P 500 fell 1.6 percent, while the Dow Jones and Nasdaq Composite both declined more than 2 percent. Tech-related shares like Amazon, Netflix and Facebook were down 7, 5.7 and 4 percent, respectively.

OPEC MAY CUT OUTPUT FROM NEXT MONTH…

US crude posts 6th straight weekly loss, settling at USD 56.46, down 6.2 percent this week due to US crude inventory soared by a total of 48 million barrels which biggest weekly build in nearly two years. Some recovering seen on Friday sessions on expectations that OPEC and its allies would agree to cut output next month. An oil market sell-off has shaved more than a fifth off the Brent crude benchmark and slashed the price of U.S. crude by 25 percent since early October.

NATURAL GAS PRICES SURGED TO 4 YEARS HIGH…

Natural gas’ rise has been even more striking with prices for the heating fuel having soared by more than 30 percent for the month to date, recently touching their highest level in more than four years due to the weather forecast of colder-than-normal temperature boosting demand for heating. December natural gas closed at USD 4.377.

RUPEE ENDS AT FRESH 2-MONTH HIGH…

On the currency front, the rupee appreciated around 1 percent and ended at 71.92 to the dollar on weekly basis due to increased selling of the greenback by exporters and banks. Data released on Thursday showed the Reserve Bank of India (RBI) sold USD 7.09 billion in the forward dollar-rupee market in September, the highest monthly sales this year, compared with USD 4.95 billion in August. This is the second straight month for the RBI to intervene more in the derivatives market than spot. It is also speculated that RBI intervened heavily in the spot market in October, as suggested by clues from the headline forex data of October.

COMING UP NEXT WEEK!

The United States and China swapped barbs over trade, investment and regional security at an Asia Pacific Economic Co-operation (APEC) summit on Saturday. This would be last effort in the negotiations prior to the G20 meeting in end-November. Brexit developments will also to steal attention next week. It’s going to be an action-packed week on the global macro front for sure!