Wednesday
turned out to be a remarkable day of trade for Indian equity benchmarks where
bulls tightened their grip on Dalal Street,
with Nifty and Sensex hitting fresh record highs and ending above their crucial
10,400 and 33,600 levels, respectively. The market mood remained up-beat
through the day and benchmarks fervently gained strength to strength, as
investors continued hunt for fundamentally strong stocks. Key gauges made a
gap-up opening on report that India's ranking in the World Bank ease of doing
business survey for 2018 climbed to record 30 notches to 100, as a range of
regulatory and policy reforms put in place by the Union and state governments
over the past four years started delivering results. The survey also recognized
India as one of
the top five reformers in this year's assessment. Further support also came
with Department of Industrial Policy and Promotion (DIPP) secretary Ramesh
Abhishek's statement that the government is working with the World Bank to
recognise over 200 reforms that will help propel India
into the top-50 bracket in ease of doing business. Domestic bourses continued
to move northward till end at all time high levels, with up-beat economic data
also providing strength. The Core sector growth hit a six-month high in
September. The index of eight core industries was up 5.2% in September,
compared with 4.4% in August and 5.3% in September last year. Also, fiscal
deficit improved to 91.3% of the budget estimate at the end of September from
96.1% at the end of August as revenues picked up pace. Fiscal deficit is pegged
at Rs 4.99 lakh crore at the end of September, down about Rs 26,000 crore from
August as second instalment of corporate taxes allowed revenue to exceed
spending in the month. The markets participants paid no heed towards the report
that growth in India's
manufacturing sector lost momentum in October month. The Nikkei India
Manufacturing Purchasing Managers' Index fell from 51.2 in September to 50.3 in
October. Finally, the BSE Sensex soared 387.14 points or 1.17% to 33,600.27,
while the CNX Nifty was up by 105.20 points or 1.02% to 10,440.50.
The US
markets made a mixed closing on Wednesday as the major averages gave up some
ground following the Federal Reserve's announcement of its latest monetary
policy decision. The Fed said that data received since the September meeting
indicates the labor market has continued to strengthen and that economic
activity has been rising at a solid rate despite hurricane-related disruptions.
The Fed also said that inflation for items other than food and energy remained
soft but continued to predict inflation would stabilize around its 2 percent
objective over the medium term. The central bank also reiterated its
expectation that economic conditions will evolve in a manner that will warrant
gradual increases in the federal funds rate. On the economy front, payroll
processor ADP released a report showing stronger than expected private sector
job growth in the month of October. ADP said private sector employment climbed
by 235,000 jobs in October after rising by a downwardly revised 110,000 jobs in
September. A separate report from the Institute for Supply Management showed a
slowdown in the pace of growth in the manufacturing sector in October. The ISM
said its purchasing managers index fell to 58.7 in October from 60.8 in
September. The Dow Jones Industrial Average added 57.77 points or 0.3 percent
to 23,435.01 and the S&P 500 edged higher by 4.10 points or 0.2 percent to
2,579.36, while the Nasdaq declined by 11.14 points or 0.2 percent to 6,716.53.
Crude
oil futures got a halt to their rally on Wednesday despite data showing
supplies of U.S crude oil and gasoline declined more-than-expected, as the
Energy Information Agency (EIA) reported that US oil production grew by 46,000
barrels a day (bpd) to 9.55 million barrels a day, not far off the June. 5,
2015 record high of 9.61 million barrels per day while weekly U.S.
crude oil exports rose to an all-time high of 2.13 million barrels per day. The
report overshadowed a separate report from EIA showing crude and gasoline
stockpiles declined more than expected while distillate fell
less-than-expected. Inventories of US crude fell by roughly 2.4 million barrels
in the week ended Oct. 27. Gasoline inventories fell by 4 million barrels,
while supplies of distillate fell by about 320,000 barrels. Benchmark crude oil
futures for December delivery ended lower by 8 cents at $54.30 a barrel on the
New York Mercantile Exchange. Brent crude for December delivery weakened by 45
cents to $60.49 a barrel on the ICE.
Indian rupee continued its upward march for the third
straight session on Wednesday, on persistent selling of the American currency
by exporters. Traders took some encouragement with report that India's ranking in the World Bank ease of doing business survey
for 2018 climbing a record 30 notches to 100, as a range of regulatory and
policy reforms put in place by the Union and state governments over the past four years started
delivering results. Traders largely shrugged off the report that growth in India's manufacturing sector lost momentum in October month. Though, US currency's strength against other units limited further
appreciation of Indian currency. On the global front, dollar steadied against a
basket of major currencies on Wednesday as investors eyed a policy decision
from the US Federal Reserve later in the day. Finally, the rupee ended at
64.59, 15 paise stronger from its previous close of 64.74 on Tuesday.
The
FIIs as per Wednesday'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
6307.20 crore against gross selling of Rs 6362.29 crore, while in the debt
segment, the gross purchase was of Rs 3161.37 crore with gross sales of Rs
1397.83 crore.
The US
markets made a mixed closing in the last session, coming off their record highs
reached in initial trade after the Federal Reserve's announcement of its latest
monetary policy decision. It left interest rates unchanged as widely expected
and offered support for the December rate hike. The Asian markets have made a mixed
start and some indices are trading in red as investors digest news that
President Donald Trump picked Jerome Powell to lead the Federal Reserve. The
Indian markets zoomed to their fresh record highs in the last session, on
jubilation of huge jump in India's
ranking in World Bank's Doing Business 2018 report. Today, the start is likely
to be a bit cautious and some consolidation can be seen at the record high
levels on sluggish global cues. PSU banking stocks will keep buzzing, as the
government in a bid to push consolidation among state run lenders has said that
the alternative Mechanism headed by finance minister Arun Jaitley may also
direct banks to examine proposals for amalgamation. A three-member ministerial
panel on PSU bank consolidation led by finance minister Arun Jaitley has been
formed, the other members of the panel are railway and coal minister Piyush
Goyal and defence minister Nirmala Sitharaman. Markets may get some support
with a private report stating that India's
current account deficit (CAD) for this financial year is expected to be around
$ 40 billion, or 1.5 per cent of GDP. CAD rose sharply to $ 14.3 billion, 2.4 per
cent of GDP, at the end of first quarter of 2017-18. Auto stocks will continue
to remain in focus after the announcement of their monthly sales numbers, as
sales of most manufacturers cooled in October after dispatches to dealers
moderated with the festive season end. There will be some action in the steel
stocks too, as the Union Steel Minister Chaudhary Birender Singh has called for
coastal shipping of steel products to boost growth of the sector.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10440.50
|
10398.48
|
10467.08
|
BSE Sensex
|
33600.27
|
33410.09
|
33720.99 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
388.30
|
313.40
|
304.22
|
320.77
|
SBI
|
349.07
|
319.85
|
312.35
|
324.40
|
Bharti Airtel
|
321.82
|
539.10
|
517.83
|
552.53
|
Axis Bank
|
225.43
|
535.10
|
525.07
|
544.57
|
Yes Bank
|
92.65
|
318.80
|
316.67
|
320.72 |
- Tata Motors has reported domestic sales growth of 5% at
48,886 units, in October 2017, compared to October 2016, last year.
- HDFC Bank is expanding its SmartUp zones across niche branches
in Bengaluru following in the footsteps of RBL and SBI who launched dedicated
branches last year.
- M&M has reported its auto sales performance for October
2017 which stood at 51,149 vehicles, compared to 52,008 vehicles during October
2016, representing a fall of 1.65%.
- Bharti Airtel is planning to bring the anniversary edition
iPhone X to India through its digital store Airtel Online on November 3.