Buying which emerged in last leg
of trade helped markets to erase all of their initial losses to end flat on
Friday. Markets started off on pessimistic note, as geo-political worries
resurfaced with North Korea's new provocative move of firing another ballistic
missile over Japan. Key gauges traded in red terrain for most part of the day,
as sentiments remained dampened with SBI research report stating that country's
GDP is likely to remain below 6 percent in the second quarter of 2017-18 owing
to muted agriculture growth and sluggish performance of manufacturing and
mining sector. The GDP stood at a three year low at 5.7% for April-June quarter
of 2017-18, which the report said has raised concerns about the annual GDP
numbers for the fiscal. Traders also remained concerned with United Nations'
report stating that effects of demonetisation and rollout of the Goods and
Services Tax regime on the informal sector and reduction in pace of credit
creation may affect India's growth prospects and the country unlikely to serve
as the ‘growth pole' for the global economy in the near future. Domestic
bourses even went to test psychological 32,150 (Sensex) and 10,050 (Nifty)
levels, but the key gauges got some support near those intraday low levels as
they trim their losses from thereon and ended near their neutral lines, as
investors continued hunt for fundamentally strong stocks. Traders took some
sense of relief with report that India and Japan have signed 15 key agreements
including open sky agreement, after the historic launch of India's first bullet
train project between Ahmedabad and Mumbai, to further expand the horizon of
their bilateral relationship. Finally, the BSE Sensex gained 30.68 points or
0.10% to 32272.61; however the CNX Nifty was down by 1.20 points or 0.01% to
10085.40.
The US markets closed higher on
Friday, posting sharp weekly gains, with a big assist from rally in
telecommunication and bank shares, as Wall Street shook off North Korea's
latest missile launch. Stocks initially struggled for direction as investors
weighed North Korea's decision to fire a missile over Japan for the second time
in a month, but soon found firmer footing. The New York Federal Reserve reduced
its estimate of US gross domestic product growth for the third quarter and
fourth quarter to below 2 percent, based on unexpected falls in industrial
output and retail sales in August. On the economy front, industrial production
plunged in August mainly due to disruptions from Hurricane Harvey. Output sank
0.9% last month. It was the biggest decline since May 2009 when the economy was
in recession. This is the first decline in production in seven months. Output
in July was revised to a 0.4% gain from the prior estimate of a 0.2% increase. There
were across-the-board declines in output in August. Meanwhile, US retail sales
fell in August for the second time in three months, reflecting fewer car
purchases and reluctance by Americans to spend on a variety of consumer goods
such as clothes and electronics. Sales at retailers nationwide dropped 0.2% to
mark the biggest decline in six months. The Dow Jones Industrial Average added
64.86 points or 0.29 percent to 22,268.34, the Nasdaq gained 19.39 points or
0.30 percent to 6,448.47 and the S&P 500 edged higher by 4.61 points or
0.18 percent to 2,500.23.
Crude oil futures maintained its
momentum on Friday, making it best weekly gains in last seven weeks, after
industry data showed the U.S. oil rig count dropped for a second week
post-hurricanes. Also, there was rising expectations that higher oil demand
will reduce excess crude supplies to Opec's five-year average target. Opec said
production in August fell by 79,000 barrels a day (bpd) to 32.76 million as
falling production from Venezuela, Iraq, the UAE and Saudi Arabia offset rising
output from Nigeria. Benchmark crude oil futures for October delivery ended
unchanged at $49.89 a barrel on the New York Mercantile Exchange. Prices were
up 5.1% for the week. Brent crude for October delivery rose 0.23 percent to
$55.60 a barrel on the ICE.
Indian
rupee ended marginally higher against dollar on Friday due to sustained selling
of the US currency by exporters and banks. Traders took some support with
report that India and Japan have signed 15 key agreements including open sky
agreement, after the historic launch of India's first bullet train project
between Ahmedabad and Mumbai, to further expand the horizon of their bilateral
relationship. However, the dollar rose to a position of strength overseas along
with lackluster trade in the domestic equity market, restricted the further
move. On the global front, dollar inched higher against yen on Friday,
regaining its footing after taking a hit when North Korea fired a missile over
Japan into the Pacific Ocean. Finally, the rupee ended at 64.08, 4 paise
stronger from its previous close of 64.12 on Thursday.
The FIIs as per Friday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 4020.69 crore against gross
selling of Rs 4951.98 crore, while in the debt segment, the gross purchase was
of Rs 1562.63 crore with gross sales of Rs 1415.22 crore.
The US markets surged in the last
session, with Dow and S&P climbing to new record closing highs, as traders
shrugged off some disappointing economic reports, as the data was impacted by
Hurricane Harvey. The Asian markets have made mostly a positive start and some
of the indices are up by over half a percent, as havens retreated after the worst-case
scenarios for North Korea and hurricanes in the U.S. didn't eventuated.
Japanese market too has moved higher after the yen weakened against dollar. The
Indian markets recovering from their lows managed a positive close in the last
session. Today, the start is likely to be mildly green-to-cautious amid
lingering geo-political worries, traders will also be reacting to trade data
announced after the market hours on Friday. India's exports grew by 10.29
percent on a yearly basis to $23.81 billion in August on account of rise in
shipments of engineering, petroleum, chemicals and pharmaceuticals products.
Imports too rose by 21.02 percent to $ 35.46 billion in August from $29.30
billion in the year-ago month due to rise in inward shipments of crude oil and
gold. The trade deficit in the month widened to $ 11.64 billion from $ 7.7
billion during the same month a year ago. There will be buzz in the oil sector
stocks, as the industry chamber Assocham has called for a cut in the cess on
transport fuels, saying that the consumer is getting restive about a three-year
high in the petrol prices and feels the market pricing mechanism is being
distorted by tax hikes on petrol and diesel. Meanwhile, Petroleum Minister
Dharmendra Pradhan has called for a ‘uniform tax mechanism' across the country
for petroleum products and said that said petroleum products will need to be
brought under the ambit of the goods and services tax (GST). There will be buzz
from the primary market too, where Dixon Technologies and Bharat Road Network,
will make stock market debut. Dixon Technologies' IPO was subscribed 117.83
times, while Bharat Road Network was subscribed 1.81 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10085.40
|
10047.65
|
10119.15
|
BSE Sensex
|
32272.61
|
32155.29
|
32373.02
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ONGC
|
254.54
|
166.75
|
161.22
|
170.07
|
ICICI Bank
|
226.33
|
291.60
|
289.85
|
294.45
|
SBI
|
184.05
|
271.50
|
269.43
|
274.03
|
Vedanta
|
178.74
|
319.00
|
312.85
|
324.15
|
ITC
|
131.48
|
269.30
|
267.42
|
271.97
|
-
Tata Motors has unveiled its commercial vehicle -- Tata Yodha -- in Nepal in association with its authorised partner Sipradi Trading.
Induslnd Bank has partnered with the ADB to provide a loan of up to $200 million to low income women borrowers in rural India.
Maruti Suzuki India's Japanese parent Suzuki Motor has decided to make electric cars at its factory in Gujarat for India and the world.
Wipro has been awarded a seven-year contract by innogy SE to manage their data center and cloud services.