The Indian equities staged strong
pullback to end the last trading day of the week with smart gains, aided by
positive cues from global markets. After a fabulous start, the markets
continued gaining momentum, buoyed by Finance Minister Arun Jaitley's statement
that India can crack into top 50 if it improves on time taken for registering
real estate, starting business and enforcement of contracts. Buying got boost
also because of a private report that India's equity market capitalisation
would grow at a compound annual rate of 12% to reach $6 trillion by 2028.
Domestic sentiments were positive with the Finance Ministry's statement that
Goods and Services Tax (GST) collections in October 2018 crossed the Rs 1 lakh
crore mark, after a gap of 5 months, on the back of festive demand,
anti-evasion measures. Adding some comfort, Labour Minister Santosh Kumar
Gangwar said that as many as 10 million employees were added afresh to avail
the benefits of Employees' State Insurance Corporation (ESIC) schemes and more
than 10 million people came under the fold of the EPFO. However, in the last
leg of the trade, the key indices pared some of their gains to settle the
session off day's high points. Trading
sentiments got affected as leading stock exchange BSE will delist as many as
nine companies from Monday as trading in their shares remained suspended for
over 6 months. The market participants also got worried, as the US revoked
duty-free concessions on import of at least 50 Indian products, mostly from
handloom and agriculture sectors, reflecting the Trump administration's tough
stand on trade-related issues with New Delhi. Traders took note of industry
body, the Confederation of Indian Industry's (CII) statement that the country
needs to focus on areas like registering property and enforcing contracts to
get even better ranking in the World Bank's ease of doing business index in the
coming years. Separately, Department of Industrial Policy & Promotion
Secretary Ramesh Abhishek said that India hopes to rise up the World Bank's
Ease of Doing Business index further next year by improving its performance in
categories such as paying taxes and insolvency recovery. Finally, the BSE
Sensex surged 579.68 points or 1.68% to 35,011.65, while the CNX Nifty was up
by 172.55 points or 1.66% to 10,553.00.
The US markets ended lower on
Friday, after moving notably higher over the past few sessions, amid confusion
over prospects for a near-term resolution to the protracted US-China trade
spat. Further, the downturn on markets was led by Apple (AAPL), with the tech
giant tumbling by 6.6% to a nearly three-month closing low. The steep drop by
Apple came after the company reported fiscal fourth quarter earnings and
revenues that exceeded estimates but weaker than expected iPhone shipments.
Apple also forecast fiscal first quarter revenues of $89 to $93 billion, with
the midpoint below the consensus estimate of $93 billion. On the economic
front, according to a report released by the Commerce Department, new orders
for US manufactured goods increased by more than expected in the month of
September. The Commerce Department said factory orders climbed by 0.7% in
September after spiking by an upwardly revised 2.6% in August. Street had expected
factory orders to rise by 0.5% compared to the 2.3% jump originally reported
for the previous month. Besides, with the value of imports rising by more than
the value of exports, the Commerce Department released a report showing the US
trade deficit widened more than expected in the month of September. The report
said the trade deficit widened to $54.0 billion in September from a revised
$53.3 billion in August. Street had expected the trade deficit to widen to
$53.6 billion. Meanwhile, a closely watched report released by the Labor
Department showed employment in the US jumped by much more than anticipated in
the month of October. Dow Jones Industrial Average dropped 109.91 points or
0.43 percent to 25270.83, Nasdaq declined 77.06 points or 1.04 percent to
7356.99 and S&P 500 was down by 17.31 points or 0.63 percent to 2723.06.
Crude oil futures closed lower on
Friday, suffering from a fourth straight weekly loss, pressured by US plans to
issue waivers on Iranian oil sanctions and growing global crude production.
Secretary of State Michael Pompeo said the government expects to issue some
temporary allotments to eight jurisdictions, but added that negotiations are
still ongoing. Benchmark crude oil futures for December declined 55 cents or
0.9 percent to settle at $63.14 a barrel on the New York Mercantile Exchange.
January Brent crude dropped 6 cents or less than 0.1 per cent to settle at
$72.83 a barrel on London's Intercontinental Exchange.
Continuing
strong recovery momentum for the second straight day, Indian rupee ended
considerably stronger against dollar on Friday, on account of selling of
American currency by banks and exporters amid softening crude oil prices.
Traders took encouragement with finance minister Arun Jaitely's statement that
India's target of being among the top 50 countries in World Bank's Ease of
Doing Business Rankings looks plausible. Investors also took note of report
stating that monthly goods and services tax (GST) collections breached the Rs
1-lakh-crore mark for the second time since its launch in July last year for
September, giving the Centre some hope that the wide revenue gap against its
budget target could be narrowed in the second half of the fiscal. The rise was
also supported by the US unit's weakness against some currencies overseas along
with strong gains in the local equity markets. On the global front, dollar
steadied on Friday ahead of the closely watched US jobs report, after pulling
back from 16-month highs in the previous session as investors cautiously moved
back into riskier assets. Finally, the rupee ended at 72.45, Re 1 stronger from
its previous close of 73.45 on Thursday.
The FIIs as per Friday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 6931.64 crore against gross selling of Rs 5991.03 crore, while
in the debt segment, the gross purchase was of Rs 767.24 crore with gross sales
of Rs 197.09 crore. Besides, in the hybrid segment, the gross buying was of Rs
0.46 crore against gross selling of Rs 0.05 crore.
The US markets ended lower on
Friday amid contradictory accounts of expectations for a near-term resolution
to a protracted US-China trade clash coupled with steep drop by Apple. Asian
markets were trading in red on Monday, amid concern over whether trade tensions
with China can be mended. Indian markets rallied on Friday, with Sensex
settling near one-month high, tracking firm Asian markets over signs of easing
trade tensions between the US and China, coupled with strong rupee amid fresh
flow of foreign funds. Today, the markets are likely to make negative start of
the holiday truncated week following weak global cues. Investors will be eyeing
Services PMI data for the month of October to be out later in the day. Traders
will be concerned about a private report stating that overseas investors pulled
out a massive Rs 38,900 crore (over $5 billion) from the capital markets in
October, the steepest outflow in nearly two years, on rising crude oil prices,
depreciating rupee and worsening current account deficit. With this, the total
outflow from the capital markets (equity and debt together) has reached over Rs
1 lakh crore so far this year. Also, there will be some cautiousness with an
another private report saying with global crude prices remaining elevated, the
rupee is likely to be under pressure, and may touch the 76 levels against the
US currency over the next three months. However, some support may come with a
report that consumer sentiment in India increased marginally in October as
consumers remained upbeat about spending conditions despite turmoil in currency
markets. Traders may take note of NITI Aayog's chief executive officer Amitabh
Kant's statement that the country would be adding an additional $700 billion to
its economy if its share of the women workforce increases to 48% from the
present 24%. Meanwhile, about 75 lakh new tax filers have been added to the
income tax payers list in the country this fiscal till now. The target for the
taxman is to add 1.25 crore fresh tax filers by the end of the 2018-19 financial
year that ends in March next year. There will be some buzz in banking sector
stocks with report that the Finance Ministry is likely to finalise the second
round of capital infusion for public sector banks (PSBs) towards the end of
this month taking into account the latest quarter's performance. There will be
some important earnings announcements too to keep the markets buzzing.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,553.00
|
10,471.48
|
10,620.73
|
BSE Sensex
|
35,011.65
|
34,710.90
|
35,251.30
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
516.87
|
209.10
|
205.87
|
214.12
|
Coal India
|
381.31
|
261.55
|
258.80
|
264.40
|
Tata Motors
|
294.25
|
190.30
|
183.52
|
194.47
|
SBI
|
277.60
|
285.35
|
281.43
|
291.03
|
ICICI Bank
|
267.14
|
354.45
|
351.50
|
357.60
|
Hero MotoCorp has sold 734,668 units of motorcycles and scooters in October 2018, a growth of 16.4% over the corresponding month of the previous fiscal when the Company had sold 631,105 units.
ICICI Bank has launched an instant digital credit facility to enable customers to buy small ticket items immediately in a completely digital and paperless manner.
Bajaj Auto has registered a rise of 32% in total sales to 506,699 units in October 2018 against 382,464 units in October 2017.
Coal India has reported provisional coal production of 49.77 MT in October 2018, as against 46.15 MT reported during corresponding month of previous year.