Indian equity benchmarks ended
November F&O series on strong note on Thursday, with Sensex and Nifty
rallying for the fourth day. The start of day was fabulous, as traders reacted
positively 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.
Domestic sentiments remained optimistic, after Commerce and Industry Minister
Suresh Prabhu said that the government is taking several steps, such as
reducing regulatory burden and ensuring availability of adequate funds, for
budding entrepreneurs to promote startup ecosystem in the country. Some comfort
also came with private report stating that the RBI won't raise interest rates
until at least April, much later than thought just one month ago and rise will
probably be a one-and-done. The key indices maintained their gaining momentum
throughout the session to end near their intraday high points, aided by positive
cues from global markets. In late noon deals, the street took note of Niti
Aayog Vice-Chairman Rajiv Kumar's statement that India will have to undertake
more reforms and try harder to grow at over 8%. He also pointed out that the
government needs to invest more in the country's statistical system. But,
investors paid no heed towards reports that Former Chief Economic Advisor
Arvind Subramanian called demonetisation a massive, draconian, monetary shock
that slowed economic growth to average 6.8% in the seven quarters following the
move as against the 8% average growth recorded in six quarters before it.
Meanwhile, the RBI's data showed that India Inc's foreign borrowings dipped
nearly 66% to $1.41 billion in October this year. Finally, the BSE Sensex surged
453.46 points or 1.27% to 36,170.41, while the CNX Nifty was up by 129.85
points or 1.21% to 10,858.70.
Snapping three-day gaining
streak, the US markets closed marginally lower on Thursday as investors
concerned about the approaching trade negotiation meeting between the US and
China on December 01. Further, sentiments were also downbeat following the
release of some disappointing economic data, including a report from the
National Association of Realtors (NAR) unexpectedly showing a substantial
decrease in pending home sales in the month of October. The NAR said its
pending home sales index plunged by 2.6% to 102.1 in October after climbing by
0.7% to an upwardly revised 104.8 in September. With the steep drop, the index
fell to its lowest level since mid-2014. The sharp pullback surprised
participants, who had expected pending home sales to rise by 0.5%, matching the
increase originally reported for the previous month. The Labor Department released
a report showing initial jobless claims unexpectedly rose to a six-month high
in the week ended November 24. The report said initial jobless claims climbed
to 234,000, an increase of 10,000 from the previous week's unrevised level of
224,000. Street had expected jobless claims to edge down to 220,000. Meanwhile,
the Fed minutes from the central bank's November meeting showed that almost
every member of the Federal Open Market Committee felt comfortable with raising
interest rates fairly soon as long as job market and inflation data were in
line with expectations, bolstering expectations of another rate hike in
December. Dow Jones Industrial Average declined 27.59 points or 0.11 percent to
25338.84, S&P 500 lost 6.03 points or 0.22 percent to 2737.76 and Nasdaq
was down by 18.51 points or 0.25 percent to 7273.08.
Crude oil futures ended higher on
Thursday, bouncing back from an earlier decline that dragged the US benchmark
below $50 a barrel for the first time since October 2017. The oil prices bounce came after a private report
that Russia is increasingly convinced it needs to cut oil output alongside
members of the Organization of the Petroleum Exporting Countries (OPEC), though
it continues to bargain with Saudi Arabia over the specifics of any coordinated
reduction ahead of a meeting of OPEC members and its allies next week.
Benchmark crude oil futures for January rose $1.16 or 2.3 percent to settle
$51.45 a barrel on the New York Mercantile Exchange. January Brent crude gained
75 cents or 1.3 percent to settle at $59.51 a barrel on London's Intercontinental
Exchange.
Indian
rupee strengthened further to hit a fresh three-month high against the US
dollar on Thursday, tracking gains in its Asian peers after comments by Federal
Reserve Chairman Jerome Powell.
Sentiments remained up-beat with private report stating that the RBI
won't raise interest rates until at least April, much later than thought just
one month ago and rise will probably be a one-and-done. Traders also took note
of Niti Aayog Vice-Chairman Rajiv Kumar's statement that India will have to
undertake more reforms and try harder to grow at over 8%. He also pointed out
that the government needs to invest more in the country's statistical system.
Besides, good going in the local equity markets coupled with softening crude
oil price revived forex market sentiments. On the global front, pound sank on
Thursday amid concerns about the UK parliament's vote on Brexit and after the
Bank of England warned of risks to the currency if Britain leaves the European
Union in a disorderedly manner. Finally, the rupee ended at 69.85, 77 paise
stronger from its previous close of 70.62 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 6484.81 crore against gross selling of Rs 5342.74 crore, while
in the debt segment, the gross purchase was of Rs 1322.74 crore with gross
sales of Rs 615.52 crore. Beside, in
the hybrid segment, the gross buying was of Rs 0.86 crore against gross selling
of Rs 1.04 crore.
The US markets ended lower on
Thursday as participants weighed up the outlook for Federal Reserve policy and
looked nervously towards the forthcoming G20 summit in Argentina. Asian markets
were trading mixed on Friday as investors await a crucial meeting between the
US and Chinese presidents with the course of the trade war at stake. Indian
markets ended Thursday's trading session with notable gains for fourth straight
day, as strong rupee and dovish comments from US Federal Reserve Chairman
Jerome Powell boosted sentiments. Today, the start of last trading day of the
month is likely to be marginally in green as investors will be looking ahead to
Gross Domestic Product (GDP) data for the September quarter due later in the
day for clues on the strength of domestic economy. Traders will be getting some
encouragement with economic policy think-tank the National Council of Applied
Economic Research's (NCAER) report stating that Indian economy is projected to
grow at 7-7.4 per cent in the current fiscal. It added that the real
agriculture Gross Value Added (GVA) is envisaged to grow at 3 per cent and real
industry GVA at 7 per cent in 2018-19. As per the report, the forecast for
Gross Value Added (GVA) at basic prices is 7.0-7.4 per cent. These forecasts at
constant (2011-12) prices are based on NCAER's annual GDP macro model. Also,
there will be some support with a report that the Reserve Bank of India (RBI)
on November 29 relaxed rules for non-banking financial companies (NBFCs) to
sell or securitise their loan books, in a bid to ease persistent stress in the
sector. NBFCs can now securitise loans of more than five-year maturity after
holding those for six months on their books. Meanwhile, Niti Aayog
Vice-Chairman Rajiv Kumar said that India will have to undertake more reforms
and try harder to grow at over 8 per cent. He also pointed out that the
government needs to invest more in the country's statistical system. There will
be some buzz in the banking sector stocks with the RBI's statement that Net
Stable Funding Ratio (NSFR) norms that mandate banks to maintain a stable
funding profile in relation to the composition of their assets and off-balance
sheet activities will be operational from April 2020. The NSFR is defined as
the amount of available stable funding relative to the amount of required
stable funding.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,858.70
|
10,799.68
|
10,900.38
|
BSE Sensex
|
36,170.41
|
35,993.15
|
36,300.76
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,920.43
|
160.45
|
149.13
|
169.38
|
ICICI Bank
|
386.93
|
362.20
|
359.47
|
365.67
|
ONGC
|
289.91
|
140.60
|
137.53
|
143.78
|
SBI
|
279.19
|
286.40
|
283.88
|
289.28
|
NTPC
|
256.06
|
142.25
|
140.15
|
145.05
|
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