Erasing most of their early
gains, Indian equity benchmarks ended flat on Friday, as traders opted to book
profit at higher levels in last leg of trade ahead of long weekend. Traders
also remained on sidelines ahead of some economic data slated to be released in
next week. Though, markets started off on optimistic note as sentiments
remained up-beat with statement of Niti Aayog member Bibek Debroy, who is also
Chairman of the Prime Minister's Economic Advisory Council that while there may
be some minor problems with the economy, it was nothing to be worried about.
Domestic bourses extended their gains to reclaim their crucial 31,500 (Sensex)
and 9,850 (Nifty) levels, as traders took some encouragement with report that
the government will stick to its borrowing and fiscal deficit targets for this
fiscal, indicating that it has no plans to relax spending goals to prop up
growth as of now. The finance ministry on Thursday released borrowing calendar
for the second half of FY18, indicating a gross borrowing of Rs 2.08 lakh
crore, which is in line with the target laid out in the Budget. Reports that
the Goods and Services Tax (GST) collections in the first two months have met
the target and going forward the revenue will see further surge, too aided
sentiments. However, benchmarks took U-turn from high point of the day as
market participants booked almost all of their early gains to end flat.
Sentiments turned pessimistic on report that Securities and Exchange Board of
India (SEBI) continued to hit participatory notes (P-notes) investments in
month of August too. The share of foreign portfolio investments (FPI) in
domestic capital markets through P-notes dropped to seven and a half year low
of Rs 1.25 lakh crore at August- end from Rs 1.35 lakh crore at the end of
July. Some cautiousness also crept with credit rating agency Icra's report that
Reserve Bank of India is likely to leave policy rates unchanged in the
forthcoming policy review next month as it expects a spike in retail inflation
going ahead. Meanwhile, the Centre plans to borrow Rs 2.08 lakh crore from the
market in the second half of 2017-18, reiterating the government's commitment
to meet the fiscal deficit target of 3.2 per cent of the gross domestic product
(GDP). Finally, the BSE Sensex rose 1.24 points to 31,283.72, while the CNX
Nifty was up by 19.65 points or 0.20% to 9,788.60.
The US markets closed higher on
Monday, as equities resumed a steady run-up that could set the tone for the
final three months of 2017. President Donald Trump addressed a mass shooting in
Las Vegas that left scores dead and injured. Trump described the shooting,
which killed at least 58 and left more than 400 casualties, as an act of pure
evil. On the economy front, construction outlays jumped in August, led by a
surge in spending for public works projects. Spending increased 0.5% during the
month, and stood 2.5% higher than a year ago. Outlays were at a seasonally
adjusted annual $1.22 trillion rate in August, while July's initial tally was revised
up to $1.212 trillion. Private construction spending rose 0.4% in August, while
public outlays jumped 0.7%, driven by a 3.5% increase in educational
construction projects. Public construction spending has stagnated for years.
Meanwhile, residential construction spending was up only 0.5% for the month,
but was 11.3% higher than its year-ago level. Meanwhile, the Institute for
Supply Management said its manufacturing index jumped to 60.8 in September from
58.8%, hitting the highest level since 2004. The Dow Jones Industrial Average
added 152.51 points or 0.68 percent to 22,557.60, the Nasdaq gained 20.76points
or 0.32 percent to 6,516.72, and the S&P 500 edged higher by 9.76 points or
0.39 percent to 2,529.12.
Crude oil futures settled lower
on Monday, amid signs of an uptick in crude output as data showed Opec oil
output rose last month. As per the report Organization of the Petroleum
Exporting Countries rose by 50,000 barrels a day in September as the cartel's
overall compliance with its production-cut agreement fell to 86%. Production in
Libya rebounded 30,000 barrels a day to 920,000 barrels in September as the
Sharara field restarted after a halt of more than two weeks while Nigerian
output increased by 20,000 barrels to 1.77 million barrels a day. Benchmark
crude oil futures for November delivery ended lower by $1.59 or 1.1 percent at
$50.58 a barrel on the New York Mercantile Exchange. Brent crude for November
delivery lost 0.69 cents to $56.10 a barrel on the ICE.
Continuing strong recovery momentum
for the second day, Indian rupee ended considerably stronger against dollar on
Friday, as banks and exporters continued to sell the US currency amid
persistent capital inflows. Sentiments were upbeat on reports that the
government will stick to its borrowing and fiscal deficit targets for this
fiscal, indicating that it has no plans to relax spending goals to prop up
growth as of now. Some optimism also came with the statement of Niti Aayog
member Bibek Debroy that while there may be some minor problems with the
economy, it was nothing to be worried about. Moreover, gains in the domestic
equity markets too helped the Indian currency. On the global front, Pound
weakened against dollar on Friday, after data showed that the UK economic
growth expanded at a slower pace year-on-year in the second quarter, than
previously estimated. Finally, the rupee ended at 65.27, 24 paise stronger from
its previous close of 65.51 on Thursday.
The FIIs as per Friday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 7745.86 crore against gross selling of Rs 12423.60 crore,
while in the debt segment, the gross purchase was of Rs 996.39 crore with gross
sales of Rs 2178.21 crore.
The US markets extended their
gains in last session, continuing their upmove to the new week, reacting to a
report from the Institute for Supply Management showing an unexpected
acceleration in the rate of growth in manufacturing activity in the month of
September. The Asian markets too have made mostly a positive start as the US
manufacturing report has bolstered optimism on economic growth and the Japanese
market is heading for its highest close in more than two years on weaker yen. The
Indian markets paring all their early gains made a flat closing in the last
session, as investors adopted a cautious stance before going for a long
weekend. Today, the markets are likely to get a positive start on sanguine
global cues, though all eyes will be on RBI's Monetary Policy Committee (MPC)
meeting starting today. The government expects a helping hand from the RBI in
the form of interest rate cut in the policy review to boost growth, though the
general expectation is that central bank will vote to keep the repo rate
unchanged at 6 per cent, with inflation firming up and rupee coming under
pressure. Traders will be getting some support with Finance Minister FM Arun
Jaitley's indication that the government would consider reducing the goods and
services tax slabs and easing compliance burden for small taxpayers once
revenues from GST better those from the previous tax regime. Meanwhile,
Industry body Assocham has urged the government to relax fiscal deficit targets
and boost public expenditure as a means to accelerate India's economic growth,
which slipped to 5.7 percent in the June quarter. Former RBI Governor C
Rangarajan too has said that the government needs to “pick up very fast” to be
able to maintain a healthy annual growth. There will be some concern in gems
and jewellary segment stocks on report that gems and jewellery exports
contracted 8.12 per cent to $13.5 billion during April-August this year. There
will be buzz from the primary market too as the SBI Life Insurance will make
its debut on today. The Rs 8,400 crore IPO was subscribed 3.58 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9788.60
|
9757.97
|
9836.62
|
BSE Sensex
|
31283.72
|
31177.00
|
31457.16
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
GAIL
|
151.75
|
419.05
|
414.47
|
426.32
|
ITC
|
121.72
|
258.3
|
256.20
|
261.65
|
Axis Bank
|
115.79
|
509.15
|
503.85
|
515.70
|
Yes Bank
|
104.21
|
350.00
|
345.43
|
354.23
|
SBI
|
100.74
|
253.85
|
252.77
|
255.22
|
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