Friday turned out to be a dismal
day of trade for Indian equity benchmarks, where frontline gauges ending with a
cut of around a percentage point on mixed economic data. Traders also remained
on sideline ahead of Reserve Bank of India (RBI) Policy, Federal Reserve meet
and Gujarat assembly elections. Markets started on optimistic note but soon
gave up all their gains to enter into red terrain, as traders turned cautious
after the eight core sectors grew at a slower pace of 4.7% in October, chiefly
due to subdued performance of cement, steel and refinery segments. Market
participants also remained a bit cautious with India's fiscal deficit at the
end of October hitting 96.1% of the budget target for 2017-18 on account of
lower revenues and increase in expenditure. The fiscal deficit was 79.3 per
cent in the same period last year. Markets somehow managed to cap losses for
most part of the day taking support from good Gross Domestic Product (GDP)
numbers for the second quarter ended September. Reversing a five-quarter slide
and setting itself on course for revival GDP rose 6.3% in the July-September
period, compared with the three year low of 5.7% growth in the April-June
quarter and 7.5% in the year earlier. Reacting to the GDP growth data, Finance
Minister Arun Jaitley has said the impact of demonetization and GST is behind
us and growth in coming quarters will be on upward trajectory. But, selloff in
last leg of trade mainly dragged the markets below their crucial 32,900
(Sensex) and 10,150 (Nifty) levels. Sentiments remained dampened with chief
statistician TCA Anant's statement that the Goods and Services Tax (GST)
regime, which kicked in from July 1, has posed fresh a new challenge for
calculating India's GDP. GST has consolidated a welter of local and central
levies such as value added tax, excise and service tax into a single levy.
Also, traders failed to draw any sense of relief with the Nikkei India
Manufacturing Purchasing Managers' Index, or PMI, which rose to a 13-month high
of 52.6 in November from October's 50.3. It enlightened that growth in output
and new orders picked up to the fastest since October 2016, reportedly
supported by reductions in GST rates and stronger underlying demand conditions.
Finally, the BSE Sensex tumbled 316.41 points or 0.95% to 32,832.94, while the
CNX Nifty was down by 104.75 points or 1.02% to 10,121.80.
The US markets closed lower on
Friday, after news surrounding former national-security adviser Michael Flynn
added an element of political uncertainty into markets, though the issue wasn't
seen as derailing a market rally that gave the Dow its best week of the year.
Trading was volatile, with major indexes mostly opening higher, though they
fell sharply in the immediate aftermath of the Flynn news. However, all three
indexes clawed back losses throughout the afternoon on optimism over
expectations lawmakers would make additional progress on tax-cut legislation.
Flynn is the second member of Trump's campaign to reach a deal with the special
counsel investigating Russia's alleged interference in the US election. On the
economy front, the Institute for Supply Management said its manufacturing index
slipped to a still-strong reading of 58.2% last month from October's 58.7%. The
ISM's new orders index rose 0.6 points to 64% and the production index climbed
2.9 points to 63.9%, setting a six-year watermark. The employment gauge was
little changed at a still-strong 59.7%.
The Dow Jones Industrial Average lost 40.76 points or 0.17 percent to
24,231.59, the Nasdaq dropped 26.387 points or 0.38 percent to 6,847.59, and
the S&P 500 edged lower by 5.36 points or 0.20 percent to 2,642.22.
Crude oil futures made a positive
close on Friday, as OPEC producers voted to extend supply cuts through 2018.
However, prices came off session highs as financial markets reeled from an ABC
News report that added to concerns about President Donald Trump's exposure to a
probe into Russian meddling in last year's campaign. Also, there were some
concern with Russian officials expressing concern that extending the output
cuts might encourage rival U.S. shale firms to pump more crude. Meanwhile oil
services firm Baker Hughes reported that the total active U.S. rig count, which
includes oil and natural-gas rigs, added 6 to 929. Benchmark crude oil futures for January
delivery ended higher by $0.96 or 1.7 percent at $58.36 a barrel on the New
York Mercantile Exchange. Brent crude for February delivery was up by 1.8
percent to $63.73 a barrel on the ICE.
Indian Money market remained
closed on Friday on account of Id-e-Milad.
The FIIs as per Thursday'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 4859.48 crore against gross selling
of Rs 5481.92 crore, while in the debt segment, the gross purchase was of Rs
1607.38 crore with gross sales of Rs 1479.42 crore.
The US markets despite coming off
their worst levels of the day ended lower in the last session, on report that former
National Security Adviser Michael Flynn is prepared to testify that
then-candidate Donald Trump directed him to make contact with the Russians. The
Asian markets have made a mixed start of the new week, with some indices
trading modestly in red, though others were trading higher on report that US
Senate passed tax-cut legislation, drawing focus away from events in the
continuing investigation into connections between Donald Trump's aides and
Russia. The Indian markets extended their plunge in the last session and the
major averages lost another around a percent, as growing fiscal deficit
concerns overshadowed positive GDP and manufacturing data. Today, the start of
the crucial week is likely to be cautious and traders will be eyeing the RBI
policy meet outcome on December 6 after the upbeat GDP numbers for the
September quarter. Though, Niti Aayog Vice-Chairman Rajiv Kumar has said that
the September quarter growth rebound shows that the economy has come out of the
woods and economic expansion for the full year will come in at 6.5-7 percent.
Traders will be getting some support with the statement of Mukesh Ambani,
Reliance Industries chairman that
India's GDP will double to $ 5 trillion in the next seven years and hit $ 10
trillion by 2030 as it will elbow out China by the middle of 21st century.
Meanwhile, the International Monetary Fund (IMF) has said that it will update
its growth rate forecast for India in January. There will be some buzz in the
media stocks, on a private report that the Indian media and entertainment
(M&E) industry would nearly double in size by 2022, clocking 11-12 per cent
CAGR between 2016 and 2022. The report further said that the industry would
also be able to generate direct and indirect employment of 4 million people in
the next four to five years. PSU stocks too will be in focus on report that the
Centre is likely to come up with expression of interest (EOI) for strategic
sale in three-to-four out of the 16 odd public sector units (PSUs) shortlisted.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10121.80
|
10062.67
|
10226.82
|
BSE Sensex
|
32832.94
|
32653.54
|
33156.57
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
164.26
|
312.75
|
308.57
|
319.62
|
Vedanta
|
89.76
|
286.70
|
282.32
|
294.27
|
Tata Motors
|
79.59
|
398.90
|
393.52
|
407.27
|
Hindalco
|
72.09
|
235.35
|
232.15
|
239.95
|
Axis Bank
|
71.38
|
533.85
|
530.53
|
538.53
|
Maruti Suzuki India has sold a total of 154,600 units in November 2017, growing 14.1% over the same period of last fiscal.
Cipla's subsidiary - Cipla Holding B.V., has entered into an agreement to sell its 100% equity stake in Cipla Croatia.
Bajaj Auto has registered a jump of 21% in total sales to 3,26,458 units in November 2017 against 2,69,948 units in November 2016.
Tata Motors has reported strong sales numbers in November 2017 continuing its turnaround trend of the past few months.