Extending northward journey for
second straight session, Indian equity benchmarks staged a strong rally on
Thursday and ended with gains of over one and half percent each, on the back of
a broad-based buying interest led by gains in banking, financial services,
telecom and private banking shares. Investor sentiment was boosted as the
government's move to allow opening of multiplexes incited hopes of a faster
economic recovery. Key gauges made gap-up opening, taking support from the
Reserve Bank of India's (RBI) statement that India's current account balance
(CAB) recorded a surplus of $19.8 billion -- 3.9 percent of GDP -- in the June
quarter of FY21, up from the surplus of $0.6 billion in the preceding quarter
(Q4FY20), on the back of lower trade deficit. Trading sentiments remained
optimistic with Commerce and Industry Minister Piyush Goyal's statement that
the government is opening up the economy for greater participation of the
private sector and has been working in different ways to remove entry barriers
for new investments. He said the government has opened up defence manufacturing
for the domestic industry in a much bigger way and coal mining for commercial
engagement. Markets extended their upward momentum in second half of the
session, as the survey report showed India's manufacturing sector activity
improved for the second straight month in September and touched an over
eight-and-a-half-year high supported by accelerated increases in new orders and
production, even as firms reduced staff numbers. The headline seasonally
adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI)
increased from 52.0 in August to 56.8 in September -- highest since January
2012. Additional support also came with the RBI's report stated that India's
external debt stood at $554.5 billion at end-June, recording a decrease of $3.9
billion over its level at the end of March 2020. A sharp appreciation in the
rupee against the US dollar added to the momentum. Indian rupee settled at
73.13 against the US dollar, registering a surge of 63 paise over its previous
close. Traders overlooked data showed that the growth of eight core
infrastructure industries contracted by 8.5 percent in August 2020 as compared
to same period of last year, mainly due to a decline in the production of
steel, refinery products and cement. Finally, the BSE Sensex rose 629.12 points
or 1.65% to 38,697.05, while the CNX Nifty was up by 169.40 points or 1.51% to
11,416.95.
The US markets ended lower on
Friday amid report that President Donald Trump and First Lady Melania Trump
have tested positive for the coronavirus. The news comes just a month before
Election Day and has led to additional uncertainty about the outcome of the
presidential election. White House physician Dr. Sean Conley said the president
and first lady were both well at this time, and they planned to remain at home
within the White House during their convalescence. Conley added that he expects
Trump to continue carrying out his duties without disruption while recovering.
A report from the Labor Department showing US job growth slowed by much more
than anticipated September also weighed on Wall Street. The Labor Department
said non-farm payroll employment rose by 661,000 jobs in September after
spiking by an upwardly revised 1.489 million jobs in August. Street had
expected employment to increase by 850,000 jobs compared to the jump of 1.371
million jobs originally reported for the previous month. However, the markets
attempted to recover from an initial sell-off as traders speculated Trump's
diagnosis and the disappointing data could put further pressure on lawmakers to
pass a new stimulus bill.
Crude oil futures settled sharply
lower on Friday, on worries about the outlook for energy demand amid reports of
sharp spikes in coronavirus cases in several countries and fresh lockdown
restrictions. US President Donald Trump revealing that he and First Lady
Melania Trump tested positive for the coronavirus further hurt oil prices.
Rising supply levels and data showing a slower than expected growth in US
employment also weighted down on prices. The Labor Department said non-farm
payroll employment rose by 661,000 jobs in September after spiking by an
upwardly revised 1.489 million jobs in August. Meanwhile, a report from Baker
Hughes said the number of active US rigs drilling for oil rose by 6 to 189 this
week after seeing an increase of 4 rigs in the previous week. Crude oil futures
for November fell $1.67 or 4.3 percent to settle at $37.05 a barrel on the New
York Mercantile Exchange. December Brent crude declined $1.12 or 2.7 percent to
settle at $39.81 a barrel on London's Intercontinental Exchange.
Indian rupee ended significantly
higher against dollar on Thursday, extending its previous session's gains,
after the greenback eased against its global peers following robust US data and
stimulus hopes. Besides, healthy growth in the domestic equity markets added to
the rupee gains. Sentiments remained positive, as India's manufacturing sector
activity improved for the second straight month in September and touched an
over eight-and-a-half-year high supported by accelerated increases in new
orders and production, even as firms reduced staff numbers. The headline
seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index
(PMI) increased from 52.0 in August to 56.8 in September -- highest since
January 2012. On the global front; Sterling fell against the dollar and the
euro on Thursday after a report that Britain and the European Union were still
far apart on the key issue of state aid in Brexit trade talks. Finally, the
rupee ended at 73.13, 63 paise stronger from its previous close of 73.76 on
Wednesday.
The FIIs as per Thursday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 6152.47 crore against gross selling of Rs 6417.75 crore, while
in the debt segment, the gross purchase was of Rs 350.14 crore with gross sales
of Rs 1524.85 crore. Besides, in the hybrid segment, the gross buying was of Rs
1.87 crore against gross selling of Rs 10.24 crore.
The US markets closed in red on
Friday after President Donald Trump said he and his wife had tested positive
for the coronavirus, weeks ahead of elections. Asian markets are trading higher
on Monday as investors watched for developments on US President Donald Trump's
health after he tested positive for the coronavirus last week. Indian markets
ended higher with strong gains on Thursday after the Centre announced new
guidelines for re-opening of several economic activities and auto sales numbers
for September showed significant signs of improvement. Markets remain closed on
Friday on account of Mahatma Gandhi Jayanti. Today, the start of session is
likely to be positive tracking gains in Asian peers. Investors will be eyeing
the Services PMI data to be out later in the day. Market participants will be
taking encouragement with Finance Ministry's report that important structural
reforms undertaken by the government to combat risks associated with the
coronavirus pandemic will strengthen the country's economic fundamentals and
ensure long-term sustained growth. Some support will come with report that the
CEOs of top 115 companies who met at CII's National Council earlier this week
indicated a revival of business sentiment and a gradual rise in expected
corporate performance in a poll, raising hopes that a steady recovery of
India's economy is on the anvil. Traders may take note of report that Union
commerce and industry minister Piyush Goyal has said quality, technology, and
scale of production will help India take its annual exports to $1 trillion and
not government subsidies. Besides, the 42nd GST Council meeting is all set to
discuss a whole host of issues proposing compliance relaxations, finding a
solution to the on-going compensation cess issue of states and whether can the
rate be reduced for ayurvedic hand sanitizers. The GST Council, which is set to
meet on October 05, will take a detailed view on the two options of borrowings
given by centre, to states, to make good for lack of funds in the compensation
cess kitty. There may be some cautiousness with report that snapping their three-month
buying spree, overseas investors turned net sellers in Indian markets in
September due to uncertainty ahead of the US presidential polls and surging
coronavirus cases. Also, India on Sunday registered 74,767 new Covid-19 cases,
taking the tally past the 6.6-million mark. With 902 fatalities in 24 hours,
India's death toll stands at 102,714. Auto stocks are likely to trade actively
today after majority of them reported strong September sales numbers.
Meanwhile, the Rs 600-crore Angel Broking IPO, which was subscribed nearly 4
times on the final day of the bidding process, is set to debut on exchanges
today. The price band for the issue was fixed at Rs 305-306 and was sold during
September 22-24.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,416.95
|
11,366.46
|
11,448.01
|
BSE
Sensex
|
38,697.05
|
38,491.87
|
38,820.56
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
Indusind
Bank
|
498.59
|
593.00
|
554.31
|
614.36
|
State
Bank of India
|
435.89
|
190.20
|
187.66
|
191.96
|
Tata
Motors
|
404.92
|
133.85
|
132.10
|
136.05
|
ICICI
Bank
|
232.37
|
368.50
|
360.76
|
373.71
|
Axis
Bank
|
210.83
|
442.05
|
431.20
|
449.10
|
SBI's board has approved raising of additional tier-I bonds to the extent of Rs 5,000 crore by way of issuance of Basel-III compliant debt instruments in rupees.
NTPC has signed Memorandum of Understanding with the Ministry of Power, Government of India.
Dr. Reddy's Laboratories has launched Cinacalcet Tablets, a therapeutic equivalent generic version of Sensipar (cinacalcet) Tablets, approved by the USFDA.
Bajaj Auto has reported 10 per cent rise in total sales to 441,306 units in September as against 402,035 in the same month last year.