Bulls tightened their grip on
Dalal Street on Monday with Nifty ending at record closing high of over 10,150
mark, while Sensex reclaimed 32,400 level. Markets made gap-up start and traded
jubilantly throughout the session, as traders took some encouragement with
foreign brokerage report that India is likely to overtake Japan and Germany to
become the third largest economy in the next 10 years but needs to be
consistent in reforms and focus more on the social sector. Markets continue to
trade near higher levels taking support from report that the Modi government
has sprung into action after the economy sent out some distress signals as GDP
growth slipped to a three-year low, inflation shot up to a five-month high and
current account deficit widened to a four-year peak. Adding to the optimism,
Commerce and Industry minister Suresh Prabhu will soon meet the country's top
industrialists individually to seek an investment commitment from each of them
for the next few years. The minister will hold one on one meeting with the
heads of top 30 domestic companies, followed by group meetings, next month. The
market participants shrugged off the report that trade deficit in the month of
August widened to $11.64 billion from $7.7 billion during the same month a year
ago. India's exports rose 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 increased 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. Finally, the BSE Sensex surged 151.15 points
or 0.47% to 32,423.76, while the CNX Nifty was up by 67.70 points or 0.67% to 10,153.10.
The US markets closed higher on
Monday, with the Dow notching its 40th record close of the year as investors
piled into financials and materials shares. US Secretary of State Rex Tillerson
said that US seeks a peaceful solution and wants to bring North Korea to the
table for constructive, productive dialogue. On the economy front, builder
confidence in the market for newly built single-family homes dropped in
September, on worries that the recent hurricanes will make it difficult to find
workers and materials. The National Association of Home Builders/Wells Fargo
housing market index fell 3 points to 64, and August's reading was downwardly
revised by a point. The concern is that Hurricanes Harvey and Irma did so much
damage that construction workers will flock to Texas and Florida for
rebuilding. Concern about the ability to find qualified workers has been a
problem for some time, and the hiring rate in the construction industry, 5.3%,
is well above the national average of 3.8%. The index still is in optimistic
territory, given that any reading over 50 indicates good conditions. The
component gauging current sales conditions fell 4 points to 70, the index
charting sales expectations in the next six months also dropped 4 points, to
74, and the component measuring buyer traffic slipped 1 point to 47. The Dow
Jones Industrial Average added 63.01 points or 0.28 percent to 22,331.35, the
Nasdaq gained 6.17 points or 0.10 percent to 6,454.64 and the S&P 500 edged
higher by 3.64 points or 0.15 percent to 2,503.87.
Crude oil futures managed to
extend the gaining momentum to the new week and ended marginally higher on
Monday, shrugging off expectations that US crude stockpiles are set to show a
build for the third week in a row, following the aftermath of Hurricanes Harvey
and Irma. Demand for crude oil from refiners should start picking up, but early
indications show US oil stockpiles rose more than expected during this period.
Meanwhile, Opec is expected to continue talks to extend its production-cut
agreement beyond March 2018 in an effort to tackle rising output from Nigeria
and Libya - both countries are exempt from production curbs. Benchmark crude
oil futures for October delivery ended higher by 2 cents at $49.91 a barrel on
the New York Mercantile Exchange. Brent crude for October delivery fell by 0.3 cent
to $55.59 a barrel on the ICE.
Indian
rupee ended marginally weaker against the American currency on Monday on
increased demand for the US currency from importers amid foreign fund outflows.
Sentiments remained down-beat with report that trade deficit in the month of
August widened to $11.64 billion from $7.7 billion during the same month a year
ago. India's exports rose 10.29% 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 increased 21.02% 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. Besides, strength in the US dollar against
some other currencies overseas too weighed on the rupee sentiment. Though, firm
domestic equity market restricted the fall of rupee to some extent. On the
global front, dollar hit an eight-week high against yen on Monday, supported by
a rise in US Treasury yields. Finally, the rupee ended at 64.13, 5 paise weaker
from its previous close of 64.08 on Friday.
The FIIs as per Monday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 11850.73 crore against gross selling of Rs 10665.73 crore,
while in the debt segment, the gross purchase was of Rs 723.08 crore with gross
sales of Rs 265.35 crore.
The US markets extended their
rally mood and major bourses surged to fresh record highs, amid hopes the worst
of the North Korea crisis is over. Traders largely overlooked the National
Association of Home Builders data, showing a bigger than expected drop in
homebuilder confidence, as the data was impacted by recent hurricanes. The
Asian markets have made a mixed start and some indices were in green as demand
for safe-haven assets waned the past two trading days and investors seemed
relaxed about the prospect of the Federal Reserve beginning to unwind stimulus.
The Indian markets surged in last session with Nifty closing at a fresh record
high. Today, the start is likely to be flat-to-cautious on mixed global cues,
traders will however be looking ahead to the U.S. Federal Reserve and Bank of
Japan's meetings later this week for clues on the direction of monetary policy.
On the domestic front, all eyes will be on meeting of Prime Minister Narendra
Modi with Finance Minister Arun Jaitley and other top officials to take stock
of the situation and the discussion for remedial measures to bolster growth. PM
will analyse the economic situation with Jaitley and secretaries of the finance
ministry and explore options to stimulate the economy. There will be some
concern in the market on report that the Centre could be forced to cut
infrastructure spending, as GST glitches have hit revenue. Lower-than-expected
tax collections and sluggish growth have upset the government`s budget
calculations. The oil sector stocks will keep buzzing as the Oil Minister
Dharmendra Pradhan has said that he has
requested the Ministry of Finance to bring petroleum products under the ambit
of Goods and Services Tax (GST) in the interest of consumers.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10153.10
|
10132.37
|
10172.77
|
BSE Sensex
|
32423.76
|
32353.99
|
32500.80
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
175.39
|
270.40
|
268.57
|
273.12
|
ICICI Bank
|
111.82
|
293.00
|
291.97
|
294.22
|
ITC
|
101.52
|
267.00
|
264.93
|
270.38
|
Bank of Baroda
|
90.99
|
145.45
|
143.80
|
148.05
|
Tata Motors
|
89.67
|
404.95
|
401.10
|
410.90
|
ITC is planning to open 40 new hotels which will add around 5,000 rooms over a period of time.
SBI Card, the JV between State Bank of India and GE Capital, is looking to double its credit card acquisition and improve its market share in the next two years.
Bharti Airtel has come up with a new free data offer for its postpaid users, after the Airtel Monsoon offer expiry.
Tata Motors is aiming to scale up its ranking in the overall utility vehicles market with its first compact SUV 'Nexon'.