Indian equity bourses gained
traction on the last trading day of the week to end at higher note, with Sensex
and Nifty gaining over 0.90% each. After a positive start, key indices remained
bullish throughout the day, aided by Union Minister Nitin Gadkari's statement
that the government will soon take a call on the recommendations of U K Sinha
committee to strengthen micro, small and medium enterprises sector. Traders
took encouragement with Union Minister of state for heavy industries and public
enterprises, Arjun Ram Meghwal's statement that the government will do
everything to ensure that the economy remains on track and is not weakened so
that the country reaches its target of $5 trillion economy. Markets extended
their gains in the second half of the session, on the back of positive cues
from global markets. Domestic sentiments remained positive, as Agriculture
Minister Narendra Singh Tomar said that the condition of Kharif (summer-sown)
crops is good and the country is likely to have bumper production of
foodgrains. The street paid no heed towards report that credit rating agency,
CARE Ratings revised the India's gross domestic products (GDP) estimate
downward from 6.7-6.8% earlier to 6.4-6.5% for current financial year (FY20)
with the underlying gross value added (GVA) growth of 6.3-6.4% on account of
subdued growth in the industrial sector and weakness in the agricultural sector
during Q1FY20. Finally, the BSE Sensex gained 337.35 points or 0.92% to
36,981.77, while the CNX Nifty was up by 98.30 points or 0.91% to 10,946.20.
The US markets ended the volatile
day of trade mostly in green on Friday. The major averages spent much of the
day bouncing back and forth across the unchanged line before closing mixed.
Markets traded choppy for most part of the trade following the release of a
closely watched report from the Labor Department showing weaker than expected
job growth in the month of August. The report said non-farm payroll employment
rose by 130,000 jobs in August after climbing by a downwardly revised 159,000
jobs in July. The street had expected employment to increase by about 158,000
jobs compared to the addition of 164,000 jobs originally reported for the
previous month. The weaker than expected job growth came as notable increases
in employment in healthcare and financial activities were partly offset by the
loss of mining and retail jobs. The report said government employment climbed
by 34,000 jobs, largely reflecting the hiring of temporary workers for the 2020
Census. Meanwhile, the Labor Department said the unemployment rate held at 3.7
percent in August, unchanged from July and in line with street's estimates. The
report also said average hourly employee earnings climbed by $0.11 to $28.11 in
August following 9-cent gains in both June and July. However, markets managed
to end mostly in green as traders took some support with comments from Federal
Reserve Chairman Jerome Powell, who argued the central has helped keep the
economy on solid ground amid the uncertainty caused by President Donald Trump's
trade war with China.
Crude oil futures ended higher on
Friday, rebounding from early losses, after a report from Baker Hughes said the
oil rig count dropped for a third straight week. Recent data showing a drop in
U.S. crude stockpiles played a role as well in pulling oil prices up from lower
levels. The oil rig count in the U.S. dropped by 4 to 738 this week. Prices had
moved lower earlier in the session due to concerns about near-term energy
demand outlook. Oil prices was also supported by comments from the Federal
Reserve Chairman Jerome Powell who said the economy remained strong and that
the central bank would act appropriate to support economic expansion. Benchmark
crude oil futures for October added 22 cents or 0.4 percent to settle at $56.52
a barrel on the New York Mercantile Exchange. November Brent gained 59 cents or
1 percent to settle at $61.54 a barrel on London's Intercontinental Exchange.
Indian
rupee trimmed most of its early gains but still managed to end higher against
the American currency on Friday, on continued selling of the US currency by
banks and exporters. This was the third consecutive sessions when the rupee
closed higher. Traders took some solace with Union Minister of state for heavy
industries and public enterprises, Arjun Ram Meghwal's statement that the
government will do everything to ensure that the economy remains on track and
is not weakened so that the country reaches its target of $5 trillion economy.
Besides, good going in the local equity markets supported the rupee. However,
gains were capped as anxiety remained among the traders with CARE Ratings
revised the India's GDP estimate downward from 6.7-6.8% earlier to 6.4-6.5% for
FY20 with the underlying GVA growth of 6.3-6.4% on account of subdued growth in
the industrial sector and weakness in the agricultural sector during Q1FY20. On
the global front, dollar was higher against haven currencies on Friday in
Europe, after signs of robust job creation in the U.S. last month. Finally, the
rupee ended at 71.72, 12 paise stronger from its previous close of 71.84 on
Thursday.
The
FIIs as per Friday'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
3703.37 crore against gross selling of Rs 4118.93 crore, while in the debt
segment, the gross purchase was of Rs 1419.09 crore with gross sales of Rs
673.23 crore. Besides, in the hybrid segment, the gross buying was of Rs 11.46
crore against gross selling of Rs 18.14 crore.
The US markets ended mostly
higher on Friday as investors digested a mixed US jobs report and bet on a
Federal Reserve interest rate cut this month, while China's stimulus plan
helped ease some concerns around global growth. Asian markets are trading in
green on Monday as investors pinned expectations on likely stimulus to support
growth in the world's major economies. Indian markets ended higher with gains
of around a percent on Friday amid buying in industry heavyweights such as
Reliance Industries, Axis Bank, Maruti, Infosys and HDFC Bank. Today, the start
of holiday-truncated week is likely to be in green tracking positive leads from
Asian peers. Investors will be looking ahead to the macro-economic data,
factory output (IIP) for July and retail inflation (CPI inflation) for August,
scheduled to be out later in the week. Traders will be taking encouragement as
amid ongoing slowdown of the economy, Union finance Minister Nirmala Sitharaman
said that the government will respond to the challenges faced by all the
sectors. Market participants may take note of report that the Central
Government said that the current slowdown is temporary and the fundamentals of
the Indian economy remain strong. Union Minister Prakash Javadekar said Indian
economy is on a strong footing as the fundamentals are strong. Slowdown is a
cyclical process. Some support will also come with Niti Aayog Chief Executive
Officer Amitabh Kant's statement that states will have to become key agents of
growth to help achieve India's target of becoming a $5 trillion economy.
Meanwhile, the government has constituted a high-level task force to identify
infrastructure projects for Rs 100 lakh crore investment by 2024-25 as India
aims to become a $5 trillion economy. There will be some buzz in the auto
stocks as automotive industry body SIAM sought government intervention to help
the sector in the smooth transition to BS-VI emission norms from April next
year, saying the prospect of abrupt stoppage of manufacturing and sales of
BS-IV vehicles overnight posed a monumental challenge. There will be some reaction
in power stocks with Power Minister R K Singh's statement that the government
is in the process of rolling out a new tariff policy and UDAY 2.0 to address
the issue of losses of discoms, which is the only difficulty in ensuring round
the clock electricity supply for all.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,946.20
|
10,890.08
|
10,979.68
|
BSE Sensex
|
36,981.77
|
36,801.96
|
37,087.28
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
1,307.16
|
60.40
|
59.28
|
61.83
|
Tata Motors
|
677.62
|
121.25
|
117.77
|
123.52
|
Indiabulls Housing Finance
|
341.99
|
425.70
|
407.80
|
440.80
|
ICICI Bank
|
175.64
|
391.35
|
388.87
|
394.17
|
SBI
|
166.75
|
273.95
|
271.70
|
276.60
|
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