Tuesday turned out to be a lackluster day for the Indian
markets, with the Sensex and the Nifty breaching their crucial psychological
levels of 35,500 and 10,700, respectively. The key equity indices made a weak
opening of day, as SEBI's data report indicated that the share of foreign
portfolio investments (FPI) through participatory notes (P-notes) in domestic
capital markets has declined to nine-and-a-half year low of Rs 66,587 crore at
the end of October. Domestic sentiments got cautious as SEBI asked listed
companies to disclose detailed reasons for delay in submission of financial
results to the stock exchanges within one working day of the stipulated
deadline. The trade also got affected after a survey by the UK India Business
Council (UKIBC) showed that Quality of bureaucracy is rated as the weakest
component of India's business environment for the fourth year running. Traders
overlooked a report stating that Prime Minister Narendra Modi has set an
ambitious deadline of December-end to implement as many business reforms as
possible on the ground so that India could break into the top 50 of the World
Bank Ease of Doing Business next year. In the second half of the session, the
markets didn't looked back and continued southward journey to end near their
intraday low points, following weak global markets. The street remained
pessimistic, on reports that India has slipped two places to rank 53rd on a
global annual talent ranking released by IMD Business School Switzerland. The
top slot has been retained by the Alpine nation itself. Investors took note of
a report which signaled only a temporary truce, stated the Reserve Bank of
India (RBI) and the government on Monday agreed to refer to an expert committee
the contentious issue of appropriate size of reserves that the RBI must hold,
while restructuring of stressed loans of small businesses would be considered
by the central bank. Meanwhile, Commerce and Industry Minister Suresh Prabhu
has said that development of industrial park rating system would help increase
competitiveness of industries and promotion of the manufacturing sector.
Finally, the BSE Sensex plunged 300.37 points or 0.84% to 35474.51, while the
CNX Nifty was down by 107.20 points or 1.00% to 10656.20.
After the sell-off seen in the previous session, the US
markets once again closed in red on Tuesday. With the continued drop, the
tech-heavy Nasdaq fell to its lowest closing level in over seven months. The
continued weakness on markets partly reflected a negative reaction to the
latest batch of earnings news from companies such as Target (TGT). Shares of Target plummeted by 10.5 percent
after the retail giant reported third quarter earnings that missed street
estimates on slightly weaker than expected comparable store sales growth.
Department store operator Kohl's (KSS) and Victoria's Secret parent L Brands (LB)
also posted steep losses after reporting their quarterly results. A continued
decline by Apple (AAPL) also weighed on the markets. Besides, the drop erased year-to-date gains
for both the Dow and S&P 500, while the Nasdaq now clings to a 0.1% gain on
the year. Month-to-date, the Nasdaq has fallen 5.4%, the S&P and Dow have
retreated 2.6% in November. On the economic front, a report from the Commerce
Department showed housing starts rebounded in the month of October, although
the report also showed a decrease in building permits. The Commerce Department
said housing starts jumped by 1.5 percent to an annual rate of 1.228 million in
October after plunging by 5.5 percent to a revised rate of 1.210 million in
September. Street had expected housing starts to climb to a rate of 1.225
million from the 1.201 million originally reported for the previous month.
Meanwhile, the report said building permits fell by 0.6 percent to an annual
rate of 1.263 million in October after surging up by 1.7 percent to an upwardly
revised 1.270 million in September. Building permits, an indicator of future
housing demand, had been expected to increase to 1.267 million from the 1.241
million originally reported for the previous month. Dow Jones Industrial
Average dropped 551.80 points or 2.21 percent to 24465.64, S&P 500 plunged
48.84 points or 1.82 percent to 2641.89 and Nasdaq was down by 119.65 points or
1.70 percent to 6908.82.
Crude oil futures ended lower on Tuesday with benchmark
finishing at its lowest in over a year, as investor attention remained fixed on
supply ahead of a key meeting of major oil producers early next month.
Meanwhile, October US petroleum inventory stands above the five-year average
and the decline in Iranian oil exports has been less than anticipated. Both the
US contract and the global benchmark Brent oil are in bear market, usually
characterized as a decline of at least 20% from a recent peak. In fact, US oil
is down 31% from its October 3 peak at $76.41 a barrel. Benchmark crude oil
futures for January dropped $3.77 or 6.6 percent to settle $53.43 a barrel on
the New York Mercantile Exchange. January Brent crude declined $4.26 or 6.4%
percent to settle at $62.53 a barrel on London's Intercontinental Exchange.
Extending
its rising streak for the sixth straight day, Indian rupee ended higher against
dollar on Tuesday, on persistent selling of the American currency by banks and
exporters. Sentiments remained up-beat with Prime Minister Narendra Modi
setting an ambitious deadline of December-end to implement as many business
reforms as possible on the ground so that India could break into the top 50 of
the World Bank Ease of Doing Business next year. Traders also took note of
RBI's statement that it will inject Rs 8,000 crore into the system through
purchase of government securities on November 22. The OMO operation will help
ease tight liquidity situation triggered by series of default by group
companies of IL&FS. Moreover, dollar's weakness against currencies overseas
supported the rupee. On the global front, dollar hit a near two-week low
against its peers on Tuesday with sentiment soured by Federal Reserve caution
on the global outlook and weak data at home, pointing to slower rate hikes.
Finally, the rupee ended at 71.46, 21 paise stronger from its previous close of
71.67 on Monday.
The FIIs as per Tuesday'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 4763.10 crore against gross
selling of Rs 3708.68 crore, while in the debt segment, the gross purchase was
of Rs 533.64 crore with gross sales of Rs 599.21 crore. Besides, in the hybrid
segment, the gross buying was of Rs 1.89 crore against gross selling of Rs 2.25
crore.
The US markets ended sharply lower on Tuesday as US
investors continued to be plagued by doubts surrounding slowing global growth,
US-China trade relations, and the steady rise in interest rates that can be
expected to continue into next year. The Nasdaq remains in correction
territory, down more than 14% from August peak, while the S&P closed just 4
points shy of a correction, defined as a 10% decline from an index's most
recent highs. Asian markets are trading in red on Wednesday after another dive
on Wall Street, where concerns have spread to the corporate-bond market.
Snapping three-day gaining streak, Indian equity markets ended lower with
losses of around one percent on Tuesday, on heavy selling by market
participants, in line with a global selloff. Weakness in the markets came in a
day after the outcome of a key meeting of the Reserve Bank of India (RBI)
board. The measures, announced to boost lending, failed to impress investors,
amid expectations that their implementation will take time. Today, the start is
likely to be mildly negative on sluggish global cues. Traders may remain
concern with domestic rating agency Icra in its latest report stating that
after the strong upswing in April-June quarter of current financial year
(FY19), GDP growth for July-September quarter is expected to dip to 7.2 percent
on account of sluggishness in agriculture and industry. The GDP had grown by a
higher than expected 8.2 per cent in the first quarter of FY19 as compared to
the year-ago period. There will be some
cautiousness too on report that India's crude oil imports in October rose to
their highest level in at least more than seven years. Crude imports in October
climbed 10.5 per cent from a year earlier to 21.02 million tonnes. However,
some respite can come in latter part of day on report that the committee proposed
by the RBI Board for examining the Economic Capital Framework (ECF) to
determine the appropriate levels of reserve the central bank ought to hold will
be constituted soon. The Central Board of the RBI had decided on an expert
committee to look into the ECF. Currently, the capital base of the RBI is Rs
9.69 lakh crore. Meanwhile, Job creation more than doubled to 9.73 lakh in
September 2018, the highest monthly addition since September 2017, compared to
4.11 lakh in the same month last year, according to the Employees' Provident
Fund Organisation (EPFO) payroll data.
The data showed that around 79.48 lakh new subscribers were added to
social security schemes of the EPFO from September 2017 to September 2018. This
indicates that these many jobs were created in the last 13 months. The banking
sector stocks will be in action on report that the Reserve Bank of India (RBI)
estimates that Indian banks will have the capacity to lend an extra 2.5
trillion rupees to 3.0 trillion rupees ($35 billion to $42 billion) over the
next year after it decided to relax a deadline for lenders to boost capital
ratios. Meanwhile, A rating agency
CRISIL has said that the RBI's Board decision to extend the timeline for
implementation of the last tranche of capital conservation buffer (CCB) under
Basel III capital regulations could reduce the burden of public sector banks by
Rs 35,000 crore this fiscal. This will provide some breathing space to
capital-starved PSBs.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,656.20
|
10,617.75
|
10,717.75
|
BSE Sensex
|
35,474.51
|
35,349.90
|
35,665.39
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
773.55
|
192.10
|
188.82
|
197.57
|
ICICI Bank
|
195.91
|
357.90
|
353.18
|
364.03
|
Vedanta
|
186.16
|
205.25
|
199.87
|
210.77
|
Hindalco
Industries
|
147.61
|
221.95
|
216.95
|
230.40
|
Tata Motors
|
131.15
|
183.75
|
181.87
|
186.97
|
HDFC has issued masala bonds under its medium-term note (MTN) programme and raised Rs 500 crore.
IOC is planning to infuse Rs 1,200 crore over the next 6-7 years to create infrastructure of laying LPG pipeline and installing CNG stations in the two Burdwan districts of West Bengal.
Maruti Suzuki India has increased production of its blockbuster model Vitara Brezza.
Bajaj Finance has raised funds aggregating to Rs 200 crore via private placement.