Bears dominated Dalal Street on
Friday, with Sensex and Nifty losing over 0.80% each. The start of the day was
positive, as Reserve Bank of India's (RBI) Governor Shaktikanta Das indicated
that the government may come up with some countercyclical policy measures on
the fiscal side to revive growth. Indices remained in green during early
morning deals, taking support with Commerce and Industry Minister Piyush
Goyal's statement the target of Rs 5 lakh crore business through government's
e-marketplace GeM is achievable in less than five years given the huge amount
of procurement done via the platform. However, markets failed to hold gains in
noon deals and turned negative to settle in red terrain, impacted with Reserve
Bank of India's consumer confidence survey which highlighted that a further
drop in consumer confidence in November as households remained pessimistic
about jobs and the general economic situation. Weakness persisted over the
street, as Federation of Indian Chambers of Commerce and Industry (FICCI)
expressed disappointment at the RBI's decision to keep interest rates unchanged
and said there is a need for continued action on the policy rate front to boost
growth. Finally, the BSE Sensex lost 334.44 points or 0.82% to 40,445.15, while
the CNX Nifty was down by 96.90 points or 0.81% to 11,921.50.
The US markets traded jubilantly
and ended with a significant gain of around a percent on Friday. Sentiments
remained up-beat after the Labor Department's closely watched monthly
employment report showing much stronger than expected US job growth in the
month of November. The report said non-farm payroll employment surged up by
266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in
October. The street had expected an increase of about 180,000 jobs compared to
the addition of 128,000 jobs originally reported for the previous month. The
Labor Department said notable job gains occurred in healthcare and in
professional and technical services, while manufacturing employment also rose
as General Motors (GM) workers returned from a strike. With the stronger than
expected job growth, the unemployment rate edged down to 3.5 percent in
November from 3.6 percent in October. The unemployment rate was expected to
remain unchanged. Traders also remained optimistic with preliminary data
released by the University of Michigan showed a much bigger than expected
improvement in US consumer sentiment in the month of December. The report said
the consumer sentiment index climbed to 99.2 in December from the final
November reading of 96.8. Street had expected the index to inch up to 97.0.
With the much bigger than expected increase, the consumer sentiment index
reached its highest level since hitting 100.0 in May. Surveys of Consumers
chief economist Richard Curtin said nearly all of the improvement in consumer
sentiment in December was among upper income households, who reported near
record gains in household wealth due to record high stock prices.
Crude oil futures ended higher on
Friday after Organization of the Petroleum Exporting Countries (OPEC) and its
allies agreed to deepen oil production cuts in order to prevent oversupply in
the market. The new deal agreed upon during the Vienna meet will apply for the
first three months of 2020. The move follows the recommendation of the oil
exporting countries to deepen the cuts by 500,000 barrels per day to existing
1.2 million barrels per day. The total curb of 1.7 million barrels per day
would amount to 1.7% of global crude supply. Saudi Arabia's energy minister
Prince Abdulaziz bin Salman said that the kingdom's quota would be an
additional 167,000 barrels per day and that it would continue to exceed its
quota by 400,000 barrels a day, thus bringing the overall production cut to
closer to 2.1 million barrels a day. Positive comments on the trade deal front
and upbeat US jobs data also contributed as well to oil's sharp rise. Benchmark
crude oil futures for January gained 77 cents or 1.3 percent to settle at $59.20
a barrel on the New York Mercantile Exchange. Moreover, January Brent added $1
or 1.6% percent to settle at $64.39 a barrel on London's Intercontinental
Exchange.
Erasing
all of its initial losses, Indian rupee ended marginally higher against dollar
on Friday on selling of dollars by banks and exporters. Traders took some
support with Reserve Bank of India (RBI) Governor Shaktikanta Das indicating
that the government may come up with some countercyclical policy measures on
the fiscal side to revive growth. However, further upward move got restricted
as Federation of Indian Chambers of Commerce and Industry (FICCI) expressed disappointment
at the RBI's decision to keep interest rates unchanged and said there is a need
for continued action on the policy rate front to boost growth. On the global
front, euro was steady against dollar on Friday, though the greenback was
headed for its worst week since mid-October, dragged down by nervousness around
US-China trade relations and hints of weakness in the US economy. Finally, the
rupee ended at 71.20, 9 paise stronger from its previous close of 71.29 on
Thursday.
The
FIIs as per Friday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
4602.88 crore against gross selling of Rs 4165.47 crore, while in the debt
segment, the gross purchase was of Rs 1066.22 crore with gross sales of Rs
1110.04 crore. Besides, in the hybrid segment, the gross buying was of Rs 24.45
crore against gross selling of Rs 20.06 crore.
The US markets ended higher on
Friday on much better than expected jobs data. Asian markets are trading mostly
in green on Monday, catching some of Wall Street's momentum after surprisingly
strong US jobs data although regional gains were capped by concerns about
China's economy due to the prolonged Sino-US trade war. Indian markets ended
sharply lower on Friday, dragged by sustained selling in banking, consumer and
auto counters. Today, the markets are likely to make cautious start amid
concerns over ongoing slowdown in the India's economy and inflationary risk.
Investors will be eyeing macro-economic data to be out later in the week. IHS
Markit in its latest report said that India's real GDP growth in 2019-20 fiscal
is expected to be slightly below 5 per cent as the impact of stimulus measures
will take time to filter through to the economy. Some cautiousness will come
with report that reversing their buying trend, foreign portfolio investors
(FPI) turned net sellers in December with a net outflow of Rs 244 crore from
the capital markets amid subdued economic data. Traders will be also concerned
with former Reserve Bank of India (RBI) governor Raghuram Rajan's statement
that India is in the midst of a growth recession with signs of deep malaise in
the Indian economy that is being run through extreme centralisation of power in
Prime Minister's Office and powerless ministers. However, some support may come
with Finance Minister Nirmala Sitharaman's statement that the government is
working on more measures to revive the sagging economy. She added that the
government has taken several measures during August and September to boost the
economy. Traders may take note of report that industry chamber CII has
suggested that the government should reduce the personal income tax rate and
slash corporate tax further to 15 percent for all companies over three years to
boost demand and propel growth. There will be some buzz in the banking stocks
with report that the insurance regulator may allow public sector banks to hold
over 10 per cent stake in multiple insurance companies, given that they limit
their promoter control to one entity and remain just an investor in others with
no say in management decisions.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,921.50
|
11,854.55
|
12,022.75
|
BSE Sensex
|
40,445.15
|
40,204.41
|
40,819.01
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,824.41
|
56.00
|
53.85
|
59.45
|
SBI
|
470.28
|
320.00
|
312.78
|
332.43
|
Bharti Infratel
|
295.51
|
259.70
|
250.83
|
265.28
|
ZEEL
|
292.45
|
287.70
|
279.93
|
298.93
|
Tata Motors
|
277.27
|
161.50
|
158.37
|
166.32
|
M&M has acquired 36.63% of the Equity Share Capital of Meru in the first tranche of investment, and also the Right to appoint majority of the Directors on the Board of Meru.
Bajaj Finance has participated in QIP of RBL Bank and have been allotted 42.73 lakh equity shares at a price of Rs 351 per equity shares aggregating to around Rs 150 crore.
Tata Motors in conjunction with the IOC has flagged off the second Sarathi Aaram Kendra, at COCO Narsapura, Karnataka, near Bangalore on NH4.
Dr. Reddy's Laboratories has launched Deferasirox Tablets for Oral Suspension, approved by the USFDA.