Snapping three
days losing streak, Indian equity benchmarks ended the Thursday's trade in
green terrain with frontline gauges recapturing their crucial 38,200 (Sensex)
and 11,500 (Nifty) levels. Markets gained strength soon after their cautious
start, as traders took encouragement with Finance Minister Arun Jaitley's
statement that there is no need to worry over the steep fall in the Indian
rupee's value against the US dollar as the inherent strength of the country's
economy will aid in arresting the downtrend. Some support also came with the
Finance Ministry's statement that Goods and Services Tax (GST) refunds can be
claimed by simply submitting a printout of GSTR-2A form to tax authorities
instead of giving all purchase invoices of a month. Traders also took note of
the Securities and Exchange Board of India's (SEBI) statement that it would
review an order tightening rules on foreign funds ownership by entities of
Indian origin, after some fund managers said it could lead to massive dollar
outflows. Markets pared all of their gains in noon deals to turn red, as Indian
rupee touched a fresh record low of 72 against the US dollar amid concern that
US President Donald Trump may order additional tariffs on China. This was the
seventh consecutive fall, its longest losing streak since May 2016. However,
selling proved short-lived and markets regained momentum to enter into green terrain,
as market participants got some relief with private report that companies are
willing to raise their staff level, and the pace of hiring is expected to be
faster than last year, riding high on strong demand conditions. Optimism
remained among the investors with a private report stating that Corporate India
announced merger and acquisition (M&A) deals worth $34.8 billion during
April-June this year, registering nearly 7-fold jump over the same period last
year. Adding some comfort, Finance Ministry simplified GST refund claim process
for businesses. Finally, the BSE Sensex surged 224.50 points or 0.59% to
38,242.81, while the CNX Nifty was up by 59.95 points or 0.52% to 11,536.90.
Extending the decline seen over
the two previous sessions, the US markets once again ended mostly lower on
Thursday on mounting concerns about contagion from a handful of struggling
emerging economies on top of unresolved trade tension. Technology stocks again
weighed on markets, while energy shares also fell on weak crude prices. Turmoil
in Argentina and Turkey, as their currencies continue to sink on deteriorating
confidence, is dragging on the global market as investors fear a spillover
effect on other healthier emerging markets and beyond. Besides, sentiment were
under-presser following the release of a slew of US economic data, including a
report from payroll processor ADP showing private sector employment rose by
less than expected in the month of August. ADP said private sector employment
climbed by 163,000 jobs in August after jumping by a revised 217,000 jobs in
July. Meanwhile, the Institute for Supply Management released a report showing
a much bigger than expected acceleration in the pace of growth in US service
sector activity in August. The ISM said its non-manufacturing index jumped to
58.5 in August from 55.7 in July, with a reading above 50 indicating growth in
the service sector. On the trade front, the US and Canada continued high-stakes
negotiations in the effort to revamp the North American Free Trade Agreement,
which President Donald Trump said he is prepared to move forward with even
without Canada's participation. The S&P 500 lost 10.55 points or 0.37
percent to 2878.05 and Nasdaq declined 72.45 points or 0.91 percent to 7922.73,
while Dow Jones Industrial Average added 20.88 points or 0.08 percent to
25995.87.
Magnifying their previous
session's fall, Crude oil futures ended lower with prices at their lowest
levels in more than two weeks on Thursday, pressured by concerns over a
potential decline in global demand on the back of the US trade dispute with
China and economic woes in emerging markets. Besides, prices declined despite
the Energy Information Administration reported that domestic crude supplies
fell by 4.3 million barrels for the week ended August 31. That was larger than
the 2.5 million-barrel fall expected by S&P Global Platts, and the decrease
of 1.2 million barrels reported by the American Petroleum Institute. Benchmark
crude oil futures for October fell 95 cents or 1.4 percent to settle at $67.77
a barrel on the New York Mercantile Exchange. November Brent crude dropped 77
cents or 1% to settle at $76.50 a barrel on London's Intercontinental
Exchanged.
Continuing
its record closing low for the seventh straight day, Indian rupee ended
considerably weaker against the Greenback on Thursday, on fresh bouts of dollar
demand from importers. Market participants remained worried over sustained
foreign capital outflows and widening current account deficit in the wake of
soaring crude oil prices. Moreover, weakness in emerging currencies overseas against
the dollar too weighed on the domestic currency. Traders failed to take support
with Finance Minister Arun Jaitley's statement that there is no need to worry
over the steep fall in the Indian rupee's value against the US dollar as the
inherent strength of the country's economy will aid in arresting the downtrend.
On the global front, dollar held steady on Thursday amid growing concerns that
US President Donald Trump would impose further tariffs on Chinese imports,
though a bounce in European currencies impeded a broader rally by the
greenback. Finally, the rupee ended at 71.98, 20 paise weaker from its previous
close of 71.78 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 5575.54 crore against gross selling of Rs 5890.43 crore, while
in the debt segment, the gross purchase was of Rs 639.07 crore with gross sales
of Rs 1761.47 crore. Besides, in the hybrid segment, gross selling was of Rs
0.05 crore against no buying.
The US markets ended mostly lower
on Thursday with technology shares falling on worries about government
regulation and uncertain demand in some segments. Asian markets were trading
mostly lower on Friday as investors feared a new round of Sino-US tariffs could
come at any moment, while a slump in US chip stocks rippled through the tech
sector. The Indian markets snapped three day losing streak and staged a strong
recovery on Thursday, tacking rebound in European markets along with value
buying in beaten-down stocks. Today, the markets are likely to make a cautious
start amid weak global cues. There will be some cautiousness with NITI Aayog
CEO Amitabh Kant's statement that India needs to cut down on oil imports and
switch towards electric mobility, and stressed on the Centre's focus towards
urban mobility. However, traders may take some support with Union Minister for
Commerce and Industry Suresh Prabhu's statement that with phenomenal changes in
social and economic sector reforms, India will become a five-trillion-dollar
economy in seven years from the present 2.6 trillion dollars. Traders will also
be reacting to a report that India and the US on September 6, pledged to expand
their bilateral trade and economic partnership with a view to promoting investment
and job creation. There will be some reaction among the public sector banks
(PSBs) stocks with report that a parliamentary committee has urged the Reserve
Bank of India (RBI) to relax the capital-adequacy norms for at least nine out
of 21 PSBs that may free up capital up to Rs 5.34 trillion, helping the
expansion of lenders. There will be some buzz in the tyre sector stocks with
ICRA's report that expected decline in the Indian natural rubber (NR) output by
18 to 20% this fiscal year will adversely impact the tyre industry. It has
cited the flood in Kerala due to unusually high rainfall as the cause for the
sharp fall in NR which accounts for 35% of the overall input costs in the
manufacture of tyres. There may be some buzz in gold related stocks with a private
report that India's gold imports more than doubled in August to hit their
highest level in 15 months as lower prices prompted manufacturers to replenish
inventory for a jewellery exhibition.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,536.90
|
11,461.22
|
11,587.42
|
BSE Sensex
|
38,242.81
|
37,996.55
|
38,405.01
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
180.01
|
296.45
|
294.02
|
299.37
|
Zee Entertainment
Enterprises
|
178.84
|
470.40
|
444.73
|
487.38
|
Yes Bank
|
175.28
|
339.20
|
335.47
|
345.37
|
Tata Motors
|
147.36
|
269.95
|
265.20
|
273.35
|
Vedanta
|
135.19
|
229.90
|
226.75
|
232.00
|
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