Indian equity benchmarks failed
to hold their gains on Thursday to end in red terrain. After a firm start,
markets managed to trade above neutral lines for the most part of the session,
as Union minister Ravi Shankar Prasad termed the low Gross Domestic Product
growth as a temporary phenomenon, and expressed confidence that things will
improve in future as the fundamentals of Indian economy are strong. He added
that the government is taking all necessary steps to boost the economy. Adding
some comfort, data from the India Meteorological Department showed India
received 38% more rainfall than the 50-year average in the week to September
11, with central India receiving 142% more rain. However, in the last hours of
the trade, indices slipped in negative, as Organization of the Petroleum
Exporting Countries (OPEC) said that it seems India's economic slowdown could
continue for the next two to three years as the economy faces serious
structural reform, which will hurt consumer demand and manufacturing. Some
worries also came with rating agency Moody's statement that Indian non-banking
financial companies (NBFCs) and housing finance companies (HFCs) are pulling
back on loan against property (LAP) lending to micro, small and medium sized
enterprises (MSMEs) because of the funding squeeze caused by the liquidity
crisis in the country's financial sector. Finally, the BSE Sensex fell 166.54
points or 0.45% to 37,104.28, while the CNX Nifty was down by 52.90 points or
0.48% to 10,982.80.
The US markets ended marginally
higher on Thursday following reports suggesting that US and China trade
aggressions continued to soften ahead of meeting next month. Trump
administration officials have discussed offering an interim trade agreement to
China. The limited trade agreement would delay and even roll back some US
tariffs for the first time in exchange for Chinese commitments on intellectual
property and agricultural purchases. Besides, sentiments also got boost after
the European Central Bank's announced fresh stimulus measures, including an
interest-rate cut that moved a deposit rate further into negative territory,
raising hopes that the Federal Reserve may also enact easy-money policies next
month. On the economic data front, first-time claims for US unemployment
benefits dropped by much more than expected in the week ended September 7,
according to a report released by the Labor Department. The report said initial
jobless claims fell to 204,000, a decrease of 15,000 from the previous week's
revised level of 219,000. Street had expected jobless claims to edge down to
215,000 from the 217,000 originally reported for the previous week. Besides,
with higher prices for shelter and medical care partly offset by a steep drop
in energy prices, the Labor Department released a report showing just a modest
increase in US consumer prices in the month of August. The Labor Department
said its consumer price index inched up by 0.1 percent in August after rising
by 0.3 percent in July. The uptick in prices matched street estimates.
Crude oil futures settled lower
on Thursday as Organization of the Petroleum Exporting Countries (OPEC) and its
allies reiterated their commitment to current output cuts. OPEC, in its monthly
report, said global oil market would be in surplus next year and that oil
demand will expand by 1.08 million barrels per day, down 60,000 per day from
previous estimate due to an economic slowdown. Oil prices also were lower after
a monthly report from the International Energy Agency (EIA) said that supplies
from outside of OPEC would rise by 2.3 million barrels a day in 2020, from 1.9
million barrels a day this year. The IEA left its daily global demand growth forecast
at 1.1 million for 2019 and 1.3 million barrels for 2020. Benchmark crude oil
futures for October declined 66 cents or 1.2 percent to settle at $55.09 a
barrel on the New York Mercantile Exchange. November Brent lost 43 cents or 0.7
percent to settle at $60.38 a barrel on London's Intercontinental Exchange.
Indian
rupee ended significantly higher against dollar on Thursday, on persistent
selling of the American currency by exporters. The rupee sentiment was buoyed
with report that Union minister Ravi Shankar Prasad termed the low Gross Domestic
Product (GDP) growth as a temporary phenomenon, and said things will improve in
future as the fundamentals of Indian economy are strong. Besides, weakness in
the dollar against some other currencies overseas gave the uptrend some
momentum. However, there was some cautiousness too ahead of key economic data
-- July IIP and August CPI, to be announced after the market hours. On the
global front, Euro strengthened against major rivals on Thursday as markets
await the latest European Central Bank (ECB) interest rate and monetary policy
decisions, which will have a decisive impact on the single currency into
year-end. Finally, the rupee ended at 71.14, 52 paise stronger from its
previous close of 71.66 on Wednesday.
The
FIIs as per Thursday'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
5674.50 crore against gross selling of Rs 5096.91 crore, while in the debt
segment, the gross purchase was of Rs 1474.38 crore with gross sales of Rs
1615.11 crore. Besides, in the hybrid segment, the gross buying was of Rs 6.67
crore against gross selling of Rs 5.89 crore.
The US markets ended higher on
Thursday after the European Central Bank announced new stimulus measures and as
investors greeted further signs of moderation in the US-China trade war. Asian
markets are trading in green on Friday after US President Donald Trump signaled
that he would consider an interim trade deal with China, though it would not be
preferred. Indian markets ended volatile session in red on Thursday mainly due
to late hour selling led by auto and IT sectors. Today, the start of session is
slightly in green following firm global cues coupled with robust industrial
output data. The Central Statistics Office's data showed that India's
industrial output rose 4.3 percent in July, as against 1.2 percent in June.
Some support will come with Union Minister of Commerce & Industry and
Railways Piyush Goyal's statement that government will soon be coming out with
a credit scheme for exporters with enhanced insurance cover upto 90 percent
instead of the present 60 percent. Traders may take note of report that the
government clarified that no licence would be required for the manufacture of
goods except tobacco items, defence equipment, hazardous chemicals and
industrial explosives. However, there may be some concern with government data
showing that consumer price index-based inflation (CPI) for August crept up
slightly to 3.21 per cent year-on-year, compared with 3.15 per cent in July,
driven by a sharp rise in food prices. Also, there may be some cautiousness
with the International Monetary Fund's (IMF) statement that India's economic
growth is much weaker than expected, attributing the reasons for corporate and
environmental regulatory uncertainty and lingering weaknesses in some non-bank
financial companies. Meanwhile, SEBI has asked listed companies to settle their
outstanding dues to the capital markets regulator, bourses and depositories
before filing schemes of arrangement such as mergers and demergers with the
exchanges. There will be some buzz in the aviation stocks with ICRA's report
that India's domestic air passenger demand plummet to 1.8 per cent in July
following the end of tourist season while the cumulative growth in traffic in
the first four months stood at a mere 1.6 per cent. Banking stocks will be in
focus with RBI's data showing that bank credit and deposits growth slowed to
10.24 per cent and 9.73 per cent to Rs 96.80 trillion and Rs 127.80 trillion ,
respectively, in the fortnight to August 30.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,982.80
|
10,937.92
|
11,054.72
|
BSE Sensex
|
37,104.28
|
36,956.92
|
37,343.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
2,218.40
|
67.95
|
66.00
|
71.05
|
Tata Motors
|
720.84
|
127.95
|
124.65
|
133.30
|
SBI
|
219.65
|
287.05
|
284.53
|
289.18
|
Indiabulls Housing Finance
|
207.03
|
449.40
|
436.75
|
460.50
|
ICICI Bank
|
195.77
|
402.70
|
399.17
|
406.72
|
IOC has commenced a pilot test-study of an indoor solar cooking system at Leh, Ladakh.
HDFC Bank has more than doubled its mid-corporate loan book to over Rs 90,000 crore in the past three years.
M&M has entered into a partnership with Salesforce, the global CRM leader.
L&T's construction arm -- L&T Construction's Water & Effluent Treatment Business has secured orders from prestigious clients from two states in India.