Bulls which woke up in last leg
of trade mainly helped the benchmarks to end near intraday high levels on
Thursday, with frontline gauges ending near their crucial 10,100 (Nifty) and
32,200 (Sensex) levels, as investors took to hefty across the board buying
ahead of macroeconomic data such as consumer price index (CPI)-based inflation
for September and Index of Industrial Production (IIP) for August due later in
the day. Markets, soon after a cautious start gained momentum and traded with
traction through the session, as sentiments remained upbeat on report that
direct tax collections in the first six months of the current fiscal stood at
Rs 3.86 lakh crore, growing by 15.8 per cent over the same period last year.
Gross collections (before adjusting for refunds) have increased by 10.3 per
cent to Rs 4.66 lakh crore during April to September. Traders also took some
encouragement with report that the newly constituted Economic Advisory Council
to the Prime Minister (EAC-PM) wants the government to stick to its fiscal
consolidation road map and has suggested that stimulus to the industry should
not be at the cost of fiscal prudence. Markets extended gains in last leg of
trade after index heavyweight Reliance Industries (RIL) hit its record high
ahead of its second quarter earnings slated to be released on Friday. A strong
rally in Tata Consultancy Services also contributed to the gains. TCS is
scheduled to report its Q2 numbers later in the day. Some support also came
with finance minister Arun Jaitley's statement that the series of reforms like
demonetization and Goods and Services Tax (GST) has put Indian economy on a far
stronger track. Jaitley added that these are structural changes. And these
structural changes, I think have put the Indian economy on a far more sound
track so that we can look forward for a much cleaner much bigger India economy
in the days and years to come. Separately, Department of Economic Affairs (DEA)
Secretary Subhash Chandra Garg expressed hope that India's GDP might return to
7% plus growth by next year as all indicators point to an economic turnaround.
The country's economic slowdown has hit its bottom and will be riding the
growth wave one again. Finally, the BSE Sensex surged 348.23 points or 1.09% to
32,182.22, while the CNX Nifty was up by 111.60 points or 1.12% to 10,096.40.
The US markets heralded the
beginning of third-quarter earnings season by finishing slightly lower on
Thursday, even as Wall Street banks turned in generally upbeat results. Banks
kicked off what is likely to be strong season of third-quarter corporate
results. On the economy front, initial weekly jobless claims fell by 15,000 to
243,000 in early October to mark the lowest level in six weeks. The more stable
monthly average of new claims dropped by 9,500 to 257,500 in the week ended
October 7. The number of people already collecting unemployment benefits, known
as continuing claims, fell by 32,000 to 1.89 million. That's the lowest since
the end of 1973. Fewer Americans sought unemployment benefits as more people
went back to work in Texas and Florida. Separately, the producer price index
jumped 0.4% in September. Another measure preferred by economists, known as
core PPI, rose a smaller 0.2%. The core rate strips out food, energy and trade
margins. The increase in the PPI pushed the 12-month rate of wholesale
inflation to 2.6%, the highest level since February of 2012. The Dow Jones
Industrial Average lost 31.88 points or 0.14 percent to 22,841.01, the Nasdaq
dropped 12.04 points or 0.18 percent to 6,591.51, and the S&P 500 edged
lower by 4.31 points or 0.17 percent to 2,550.93.
Crude oil futures turned lower on
Thursday on getting a bearish outlook on global oil demand for 2018. Traders
even overlooked the data showing U.S. crude oil stockpiles fell for the
third-straight week. Energy Information Administration (EIA) reported that inventories
of U.S. crude fell by roughly 2.8m barrels in the week ended Oct. 6 Gasoline inventories
rose by roughly 2.5m barrels, while distillate stockpiles fell by about 1.5m
barrels, missing expectations of a decline of 2.2m barrels. Benchmark crude oil
futures for November delivery ended lower by $0.70 or 1.4 percent at $50.60 a
barrel on the New York Mercantile Exchange. Brent crude for November delivery lost
0.66 cent to $56.28 a barrel on the ICE.
Rising
for the third straight day, Indian rupee closed at one-week high against US
dollar on Thursday, on the back of dollar sales by banks and sustained flows in
the domestic equity market. Besides, dollar struggled against some other
currencies overseas, further supported the rupee sentiment. However, gains were
limited as some caution lingered in the market ahead of release of crucial
macro-economic data- August IIP and September CPI, which are scheduled to be
released later in the day. On the global front, euro climbed to a two-week high
against dollar on Thursday after a slew of strong data that supported a growing
view that the European Central Bank will announce a plan to wind down its huge
stimulus plan at a policy meeting later this month. Finally, the rupee ended at
65.08, 5 paise stronger from its previous close of 65.13 on Wednesday.
The
FIIs as per Thursday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 6411.40 crore against gross selling
of Rs 5541.86 crore, while in the debt segment, the gross purchase was of Rs
2355.08 crore with gross sales of Rs 1393.50 crore.
The US markets turned modestly
lower in the last session after showing a lackluster performance and the major
averages pulled back off yesterday's record closing highs. Negative reaction to
earnings news from Citigroup and JPMorgan weighed on the market sentiments. The
Asian markets have made a mixed start as confidence in American tax-cut plans
waned somewhat and the Federal Reserve signaled that several policy makers are
cautious about another 2017 interest-rate hike. The Chinese market was modestly
in red ahead of Chinese Communist Party congress next week. The Indian markets
showing a complete reversal of trend surged in the last session and the major
benchmarks gained over a percent. Today, the start is likely to be mildly in
green with traders getting encouragement from double dose of good economic news,
while India's industrial production grew at a nine-month high of 4.3 percent in
August due to good performance of mining, electricity and capital goods
sectors, the retail inflation declined to 3.28 percent in September, compared
to 4.39 percent during the same month last year and 3.36 percent in the
previous month. Traders will also be getting some support with the
International Monetary Fund lauding government's recent efforts to lower the
compliance burden under the Goods and Services Tax, but it also said that
efforts should also be made to lower the tax slabs and minimise exemptions.
There will be some action in power sector stocks, as the Minister of State
(Independent Charge) for Power and Renewable Energy, R K Singh has said that
India's energy needs are going to double in the next 6-7 years at the present
rate of growth of the economy. There will be some buzz in the telecom sector
too, as the Tata Group has agreed to sell its mobile business to Bharti Airtel
for free, on a 'debt-free, cash-free basis, intensifying the consolidation
process underway in the telecom industry.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10096.40
|
10014.18
|
10141.53
|
BSE Sensex
|
32182.22
|
31927.58
|
32322.94
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Hindalco
|
303.20
|
264.45
|
254.30
|
270.00
|
NTPC
|
162.85
|
176.70
|
174.83
|
178.73
|
SBI
|
134.05
|
251.20
|
248.82
|
253.27
|
ICICI Bank
|
118.31
|
267.55
|
265.08
|
268.98
|
Bharti Infratel
|
104.00
|
432.00
|
410.47
|
445.77
|
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