Bulls which woke up in last leg
of trade mainly helped the benchmarks to end at fresh all time closing highs
levels on Tuesday, with frontline gauges ending above their crucial 34,000
(Sensex) and 10,500 (Nifty) marks for the first time ever amid thin volume as
most traders are away on year-end holiday. The market's rally was mainly led by
ADAG group's stocks which surged after Anil Ambani's announcement that the
debt-ridden company has achieved full resolution and is expected to reduce its
debt of Rs 45,000 crore to Rs 6,000 crore. Earlier, markets after a positive
start turned choppy and traded near neutral lines for most part of the day's
trade. Sentiments remained dampened with report that the overseas investors
have pulled out a massive Rs 7,300 crore from the country's stock markets this
month so far, primarily due to rising crude prices and widening fiscal deficit.
Investors took note that firming crude oil prices in the global market is likely
to cast its shadow on retail inflation, which has began to move northwards
after hitting a low of 1.46 percent in June, and may prompt the RBI to hold
interest rates at least for some time in 2018. However, markets took U-turn and
entered into green terrain in last leg of trade with traders turning optimistic
on hopes of revival in quarterly earnings and a favourable Budget. Reports that
India looks set to leapfrog Britain and France next year to become the world's
fifth-largest economy in dollar terms, too aided sentiments. Traders also took
some encouragement with industry body Assocham's Year-Ahead Outlook report,
which has said that India's economic growth may touch 7 percent next year as
the government's policies tilt towards the country's stress-ridden rural
landscape in the penultimate year before the 2019 general elections. It said
that against GDP growth of 6.3 percent in the second quarter of 2017-18, the
economic expansion may reach the crucial 7 percent mark by the end of September
2018 quarter, while inflation may range between 4 to 5.5 percent towards the
second half of the next calendar year with the monsoon being a key
imponderable. Some support also came from a private report stating that Indian
economy is expected to witness sharp recovery in the January-March quarter and
its GDP growth likely to be around 7.5 percent for 2018. Finally, the BSE
Sensex surged 70.31 points or 0.21% to 34,010.61, while the CNX Nifty was up by
38.50 points or 0.37% to 10,531.50.
The US markets closed lower on
Tuesday, as a decline in Apple Inc. more than offset post-holiday gains in the
retail sector and a surge in crude-oil futures that took the commodity to a
2½-year high. In a holiday shortened stretch, with most global markets closed
Monday, volumes were low, given that many traders are likely to remain on
vacation until after the New Year's holiday. Oil futures surged on reports of
supply disruptions in the Middle East and Europe, while gold settled at its
highest level in four weeks as the dollar index softened around 93.24. On the economy front, the S&P/Case-Shiller
national index rose a seasonally adjusted 0.7% in the three-month period ending
in October. It was up 6.2% compared to the same period a year ago. The 20-city
index also rose a seasonally adjusted 0.7% for the month and it's up 6.4% for
the year. Both indexes advanced 0.2% in raw or unadjusted terms. Prices rose in
more than half of the largest U.S. markets, led by San Francisco and Las Vegas,
reflecting once again the high cost of US housing, especially in tech hotbeds.
The Case-Shiller national index is now 6% above its prior year-to-year peak.
The 20-city index that skews toward the biggest metro areas is still 1.3% below
its all-time high, though. Big cities generally experienced even bigger booms
before 2006 and the ensuing housing bust and some have not climbed all the way
back. The Dow Jones Industrial Average lost 7.85 points or 0.03 percent to
24,746.21 and the Nasdaq dropped 23.711 points or 0.34 percent to 6,936.25, and
the S&P 500 edged lower by 2.84 points or 0.11 percent to 2,680.50.
Crude oil futures surged on
Tuesday on reports of an attack on a Libyan oil pipeline. Islamist militants
from the Benghazi Defense Brigade were accused of causing a blast that targeted
the main pipeline linking the al-Waha company's Sidrah terminal and oil fields
in Libya. Meanhwhile, Saudi Arabia expects oil revenue to jump about 80 percent
by 2023 thanks to increased production and $75 oil. Benchmark crude oil futures
for January delivery ended higher by $0.31 or 0.53 percent at $58.78 a barrel
on the New York Mercantile Exchange. Brent crude for February delivery was up by
$0.28 or 0.43 percent to $65.01 a barrel on the ICE.
Indian
rupee ended marginally lower against US dollar on Tuesday, due to fresh demand
for the American currency from banks and importers. Trading sentiments remained
subdued with report that foreign investors have pulled out Rs 7,300 crore from
the country's stock markets this month so far, primarily due to rising crude
prices and widening fiscal deficit. However, the home unit managed to restrict
fall, taking support from industry body ASSOCHAM's Year-Ahead Outlook report
stating that Indian economy is likely to touch 7% growth in 2018 with the
government policies tilting towards the country's stress-ridden rural landscape
in the penultimate year before the 2019 general elections. Besides, last hour
recovery in local equity markets, too aided the rupee to minimize its losses.
On the global front, dollar was steady in holiday-thinned trading on Tuesday,
shrugging off upbeat Japanese economic data as most market participants have
already closed their books for the year. Finally, the rupee ended at 64.08, 4
paise weaker from its previous close of 64.04 on Friday.
The FIIs as per Tuesday'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 6628.50 crore against gross
selling of Rs 7764.06 crore, while in the debt segment, the gross purchase was
of Rs 1299.51 crore with gross sales of Rs 254.14 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.70 crore against gross selling of Rs 2.72
crore.
The US markets made a modestly
lower closing in the last session, following the long holiday weekend. Tech
heavy Nasdaq was weighed down by a notable decline by shares of Apple. Selling
pressure was relatively subdued, however, limiting the downside for the major
averages. The Asian markets have made mostly a positive start though trading remained thin in a holiday-shortened
week. Energy stocks were higher after oil prices breached $60 a barrel for the
first time since 2015 after a pipeline blast in Libya. The Indian markets
surged to record highs in the last session and the BSE Sensex touched the
record closing highs of 34000. It was the last hour pull back that led the
markets higher from the sluggish day of trade. Today, the start is likely to be
flat-to-green on mixed global cues. There will be some concern in the markets
with the GST collections slipping to their lowest in November as rates were cut
on dozens of goods to make the new national sales tax regime more acceptable.
Total collections under the Goods and Services Tax (GST) in November slipped
for the second straight month to Rs 80,808 crore, down from over Rs 83,000
crore in the previous month. There will be buzz in the India Inc with report
that the Securities and Exchange Board of India (Sebi) board will consider
proposals to ease compliance norms for insolvent firms - especially with regard
to trading, listing and de-listing, and declaring results-at its meeting on
Thursday. Tech stocks are likely to remain under pressure following their
global counter parts, while the energy stocks too will see some action with the
spike in international crude prices.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10531.50
|
10491.15
|
10558.65
|
BSE Sensex
|
34010.61
|
33912.95
|
34085.08
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ONGC
|
113.45
|
193.70
|
191.88
|
196.33
|
NTPC
|
97.84
|
178.45
|
176.73
|
180.33
|
ITC
|
95.50
|
264.15
|
262.87
|
265.22
|
SBI
|
93.30
|
317.15
|
315.65
|
319.30
|
Yes Bank
|
92.70
|
315.50
|
311.17
|
318.87
|
Yes Bank has established a Medium Term Note programme to raise $1 billion by issuing debt securities on private placement basis.
Wipro has made a strategic investment of $ 2.05 million in Imanis Data (formerly Talena) taking total investment to $ 4.05 million.
Dr. Reddy's Laboratories has launched Melphalan Hydrochloride for Injection in the United States market approved by the USFDA.
L&T's construction arm -- L&T Construction -- has bagged orders worth Rs 3355 crore under buildings & factories business.