Indian equity bourses logged
strong gains on Wednesday to continue northward rally for straight third
session, on the back of covering-up of pending short positions ahead of
November F&O expiry on Thursday. The markets made a cheerful start, taking
support with a report that the Reserve Bank of India (RBI) Governor Urjit Patel
told law makers that the note ban's impact was transient and the economy is
robust. He said the economy would get a boost from oil prices cooling off from
four-year highs and asserted that the fundamentals were robust. Adding
enthusiasm among the traders, banks credit flow to commercial sector has gone
up by 15.6% on year-on-year basis, registering highest growth since
demonetisation. According to the fortnightly data released by the RBI, the
adjusted non-food bank credit stood at Rs 97.32 lakh crore as on November 9,
2018 as compared to Rs 84.22 lakh crore reported in the year-ago fortnight. The
trade remained positive throughout the session, following positive global
markets. Investors reacted positively to the Commerce and Industry Minister
Suresh Prabhu's statement that he has taken up the issue of declining credit to
exporters with the finance ministry to ensure adequate availability of funds to
them. The street got comfort with a private report stating that Indian
analytics, data science and big data industry is estimated to be $2.71 billion
in revenues and growing at a healthy rate of 33.5% CAGR. Some relief also came with Finance Minister
Arun Jaitley stating that as many as 3 lakh poor people have benefited from
Ayushman Bharat health scheme in the last one-and-a-half months. Meanwhile, the
RBI has decided to inject a higher amount of Rs 40,000 crore through purchase
of government securities under open market operations (OMOs) in December 2018.
Finally, the BSE Sensex surged 203.81 points or 0.57% to 35,716.95, while the
CNX Nifty was up by 43.25 points or 0.40% to 10,728.85.
The US markets ended sharply
higher on Wednesday, with the Dow Jones Industrial Average surging more than
600 points, on the heels of Federal Reserve Chairman Jerome Powell's remarks in
a speech to the Economic Club of New York that were interpreted as dovish for
interest rates. Powell said that interest rates are still low by historical
standards, and they remain just below the broad range of estimates of the level
that would be neutral for the economy- that is, neither speeding up nor slowing
down growth. Meanwhile, economic growth in the US was unrevised in the third
quarter, according to the second reading released by the Commerce Department.
The report said real gross domestic product jumped by 3.5% in the third
quarter, unrevised from the initial estimate and in line with street estimates.
Upward revisions to non-residential fixed investment and private inventory
investment were offset by downward revisions to consumer spending and state and
local government spending. The Commerce Department said consumer spending,
which accounts for about 70% of the economy, surged up by 3.6% compared to the
previously reported 4.0% spike. However, new home sales in the US showed a
substantial decrease from an upwardly revised level in the month of October,
according to a report released by the Commerce Department. As per the report,
new home sales plummeted by 8.9% to an annual rate of 533,000 in October from
an upwardly revised rate of 597,000 in September. Dow Jones Industrial Average
surged 617.70 or 2.50 percent points to 25366.43, S&P 500 gained 61.62
points or 2.30 percent to 2743.79 and Nasdaq was up by 208.89 points or 2.95
percent to 7291.59.
Crude oil futures ended lower for
second straight-day on Wednesday, sending US prices sliding toward $50 a barrel
on the back of a 10th straight weekly rise in US crude stockpiles. The Energy
Information Administration reported that domestic crude supplies rose by 3.6
million barrels for the week ended November 23. That followed weekly increases
over each of the past nine weeks. The string of 10 increases is the longest run
since autumn 2015. Both benchmarks marked their lowest finish for a front-month
contract since October 2017. Benchmark crude oil futures for January declined
$1.27 or 2.5 percent to settle $50.29 a barrel on the New York Mercantile
Exchange. January Brent crude dropped $1.45 or 2.4 percent to settle at $58.76
a barrel on London's Intercontinental Exchange.
Indian rupee appreciated against
the American currency due to selling of dollar by exporters as well as banks.
Rupee was moving in a narrow range with traders looking ahead to important G20
meeting scheduled during this weekend. Some support came with report that the
Reserve Bank of India (RBI) has decided to inject a higher amount of Rs 40,000
crore through purchase of government securities under open market operations
(OMOs) in December 2018. Rupee sentiments were also buoyed with a report that
the RBI Governor Urjit Patel told law makers that the note ban's impact was
transient and the economy is robust. He said the economy would get a boost from
oil prices cooling off from four-year highs and asserted that the fundamentals
were robust. Besides, strong gains in local equity markets also aided the
currency's appreciation. On the global front, the dollar rose versus most of
its major peers, as concerns about Sino-U.S. trade tensions propped up safe
haven currencies and as investors awaited cues from the US Federal Reserve on
the path of future interest rate increases. Finally, the rupee ended at 70.62,
17 paise stronger from its previous close of 70.79 on Tuesday.
The FIIs as per Wednesday'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 5536.04 crore against gross
selling of Rs 4859.67 crore, while in the debt segment, the gross purchase was
of Rs 1052.82 crore with gross sales of Rs 1338.53 crore. Besides, in the
hybrid segment, the gross buying was of Rs 0.87 crore against gross selling of
Rs 0.93 crore.
The US markets extended gains on
Wednesday on the heels of Federal Reserve Chairman Jerome Powell's remarks in a
speech to the Economic Club of New York that were interpreted as dovish for
interest rates. Asian markets were trading mostly in green on Thursday tracking
a Wall Street rally as comments from Jerome Powell boosted investor sentiment
towards riskier assets. Indian markets extended their gains for third straight
session on Wednesday on positive global cues. Besides, buying in IT stocks such
as TCS and Infosys also supported the markets. Today, the markets are likely to
make gap-up opening of November future and options (F&O) expiry session on
firm global cues as the US Federal Reserve Chair Jerome Powell's comment
boosted investors' sentiments. Traders will be getting some encouragement with
Union Minister Suresh Prabhu's statement that the commerce and industry
ministry is preparing an action plan for implementing the proposed new
industrial policy, aimed at promoting manufacturing and economic growth of the
country. Traders will also be reacting to a private report that the Reserve
Bank of India (RBI) may have to conduct open market operations (OMOs) of
another Rs 1,60,000 crore in the fourth quarter of the current fiscal to tide
over the banking liquidity crisis. Meanwhile, the RBI's data showed that India
Inc's foreign borrowings dipped nearly 66% to $1.41 billion in October this
year. Moreover, Finance Minister Arun Jaitley will present the interim Budget
for 2019-20 fiscal on February 01, 2019. There will be some buzz in the banking
sector stocks with Fitch Ratings' stating that the decision to restructure
loans of up to Rs 25 crore for the MSME sector is a step backwards and the
risks to the banking sector will manifest in the next 6-9 months.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,728.85
|
10,699.87
|
10,757.82
|
BSE Sensex
|
35,716.95
|
35,607.47
|
35,824.29
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,407.20
|
162.10
|
154.60
|
175.30
|
IOC
|
204.51
|
134.05
|
132.25
|
137.05
|
SBI
|
198.38
|
284.55
|
280.88
|
290.33
|
ICICI Bank
|
181.63
|
359.00
|
354.32
|
362.62
|
Infosys
|
177.20
|
666.40
|
648.03
|
676.73
|
Tech Mahindra has received an order of Rs 270 crore project from Coal India to deploy modern technologies in the state-owned company. It will span over period of five years.
Hero MotoCorp has renewed its association with the globally admired, Golfing great Tiger Woods.
HDFC Bank has launched its next-gen mobile banking application that provides improved security features like biometric and facial recognition based log-in.
Reliance Industries' wholly owned subsidiary -- Reliance Industrial Investments and Holdings has invested in New Emerging World of Journalism.