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Indian stocks may see a flat start as Asia opens mixed

By Vinu Lal

03:06, 15 December 2021

Stock market chart,Stock market data on LED display concept.
SGX Nifty futures pared early gains to trade 0.11% down – Photo: Shutterstock

Indian benchmarks are poised to begin Wednesday trade on a flat note amid inflation worries even as stock markets in Asia opened mixed.

SGX Nifty futures, which represent Indian stocks, had an 8% spurt during morning trade but lost their momentum as trading progressed. Around an hour before Indian markets opened, the index of Indian stocks in Singapore was trading down 0.11%.

Investors across the region await the US Federal Reserve’s decision on when it would start raising interest rates, forcing others to follow. 

Pressures of inflation start rising 

The big gauges on Wall Street ended lower on Tuesday after data released on producer prices in the United States came out a tad higher, reinforcing fears of a faster pace of tapering by the US Federal Reserve. Dow Jones Industrial Average fell 0.3%, S&P 500 lost 0.75%


1.27 Price
+0.700% 1D Chg, %
Long position overnight fee -0.0047%
Short position overnight fee -0.0035%
Overnight fee time 22:00 (UTC)
Spread 0.00013


146.81 Price
-1.210% 1D Chg, %
Long position overnight fee 0.0111%
Short position overnight fee -0.0194%
Overnight fee time 22:00 (UTC)
Spread 0.010


0.67 Price
+0.760% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006


0.67 Price
+0.760% 1D Chg, %
Long position overnight fee -0.0071%
Short position overnight fee -0.0011%
Overnight fee time 22:00 (UTC)
Spread 0.00006

Price rise is a cause of concern in India as well, as noted by Yes Bank, which said that the headline wholesale price index inflation rose to a series high of 14.23% year-on-year in November, up from 12.54% year-on-year in the previous month.

Deepak Jasani, head of institutional research at HDFC Securities said the unseasonal surge in vegetable prices as well as a rise in the inflation for egg, meat and fish, and condiments and spices pushed primary food inflation to a 13-month high.

“Nifty has formed a near-doji pattern after a fall, suggesting that the near term weakness in the markets may be coming close to end. 17484 could be the next resistance for the Nifty while 17226 could be crucial support below which, a down move can accelerate,” added Jasani.

Things to note before trade

  • State Bank of India raised INR39.74bn ($456.67m) by issuing Basel III compliant bonds to subscribers
  • Mining major Vedanta said it is aiming to achieve a 24% reduction in greenhouse gas emissions intensity by the financial year ending March 2025
  • GAIL, the state-owned gas distributor, plans to import India’s first and the largest-to-date electrolyser for producing green hydrogen within a year
  • Retailer Aditya Birla Fashion signed a long-term licensing agreement with Authentic Brand Group of New York, which has the marketing and branding rights of Reebok

Read more: Federal Reserve feeling pressure to tackle inflation

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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