Friday turned
out to be a fabulous day of trade for Indian equity benchmarks, with frontline
gauges re-conquering their crucial 11,550 (Nifty) and 38,300 (Nifty) levels.
Key gauges started the session on a pessimistic note, as traders remained
concerned with NITI Aayog CEO Amitabh Kant's statement that India needs to cut
down on oil imports and switch towards electric mobility, and stressed on the
Centre's focus towards urban mobility. However, traders turned optimistic and
markets gained momentum to enter into green terrain with Union Minister for
Commerce and Industry Suresh Prabhu's statement that with phenomenal changes in
social and economic sector reforms, India will become a five-trillion-dollar
economy in seven years from the present 2.6 trillion dollars. Traders also took
some support with report that India and the US on September 6, pledged to
expand their bilateral trade and economic partnership with a view to promoting
investment and job creation. Markets extended gains in last leg of trade to end
near intraday highs, as credit rating agency, ICRA in its latest report
revealed that aggregate revenues of Indian corporate sector witnessed rise of
17.1% during the first quarter of the current fiscal year (Q1FY19), on a lower
base in the year-ago period due to impact of GST implementation. Traders took
some encouragement with reports that the newly notified annual GST return forms
will go a long way in checking tax evasion by providing the entire financial
transactions logged by an assessee to the revenue department. Some support also
came with report that the Centre is planning to slash the number of GST rate
slabs from the present five to two in the near future. Besides, the market
participants took note of Federation of Indian Export Organisations' statement
that the commerce ministry should direct the Export Credit Guarantee
Corporation (ECGC) to provide liberal insurance coverage to consignments with a
view to promote overseas shipments. Finally, the BSE Sensex surged 147.01
points or 0.38% to 38,389.82, while the CNX Nifty was up by 52.20 points or
0.45% to 11,589.10.
The US markets ended in red on
Friday with losses of around quarter a percent, capping off a volatile week for
investors as rising trade fears and a tech sell-off led to broad weekly losses.
Sentiments were weak after President Donald Trump said the US is ready to slap
tariffs on an additional $267 billion worth in Chinese goods. His remarks come
after a deadline for comments regarding tariffs on another $200 billion in
Chinese goods had passed last night. Meanwhile China's Commerce Ministry has
warned it will be forced to roll out necessary retaliatory measures if the US
imposes any new tariffs. Further, cautiousness also prevailed in the markets on
reports that that the US and Canada will likely end the week with no trade deal
in place. Besides, investors grappled with a sharp decline in Technology stocks
this week, this year's best-performing sector. Tech fell nearly 3% as Wall
Street fretted over potential regulation for companies in the sector,
especially social media giants like Twitter and Facebook. Their shares fell
13.3% and 7.2% this week, respectively, after top executives for the top two
companies testified before Congress on how to stop online abuse and election
meddling. Dow Jones Industrial Average dropped 79.33 points or 0.31 percent to
25916.54, the S&P 500 declined 6.37 points or 0.22 percent to 2871.68 and
Nasdaq was down by 20.18 points or 0.25 percent to 7902.54.
Crude oil futures ended
marginally lower on Friday, marking a loss of 2.9% for the week, the first
weekly loss since mid August. Concerns over the potential for weaker energy
demand on the back of global trade tensions pressured prices. The potential for
new US tariffs on Chinese goods has also contributed to concerns over the
potential for weaker energy demand. However, expectations for tighter supplies
as US oil sanctions on Iran go into effect later this year provided some
support. Benchmark crude oil futures for October dropped 2 cents to settle at
$67.75 a barrel on the New York Mercantile Exchange. However, November Brent
crude gained 33 cents or 0.4% to settle at $76.83 a barrel on London's
Intercontinental Exchanged.
Snapping
seven-day record closing low, Indian rupee recovered against dollar on Friday,
on the back of sustained bouts of dollar selling from banks and exporters.
Investors' sentiment turned positive with Union Minister for Commerce and
Industry Suresh Prabhu's statement that with phenomenal changes in social and
economic sector reforms, India will become a five-trillion-dollar economy in
seven years from the present 2.6 trillion dollars. Traders also took some
support with report that India and the US on September 6, pledged to expand
their bilateral trade and economic partnership with a view to promoting
investment and job creation. On the global front, The British pound jumped
against dollar and euro on Friday after EU's chief Brexit negotiator Michel
Barnier said the European Union was open to discussing other backstops on the
Irish border issue. Finally, the rupee ended at 71.74, 24 paise stronger from
its previous close of 71.98 on Thursday.
The FIIs as per Friday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 5666.08 crore against gross selling of Rs 6526.96 crore, while
in the debt segment, the gross purchase was of Rs 566.07 crore with gross sales
of Rs 1301.52 crore. Besides, in the hybrid segment, there was no gross buying
and gross selling.
The US markets declined on Friday
amid ongoing trade concerns after President Donald Trump suggested he may
impose tariffs on another $267 billion worth of Chinese goods. Asian markets
were trading mostly in red early deals on Monday as trade tensions between the
US and China remains in focus. Extending gains for second straight day, the
Indian markets ended higher on Friday, following stability in crude oil prices
and rupee after recent sharp moves. Today, the markets are likely to make
negative start amid weak global cues. There will be some cautiousness with the
State Bank of India's (SBI) report that with the currency losing more than 11%
to the dollar this year, India will have to shell out an extra Rs 68,500 crore
when repaying short-term debt in the coming months. However, traders may get
some comfort later in the day with the Reserve Bank of India's (RBI) data
showing that India's current account deficit (CAD) as a percentage of GDP
declined marginally to 2.4% in the April-June quarter of 2018-19 against 2.5%
in the year-ago period. There may be some support with the government pegging
the right value of the rupee at 68-70 to the dollar, asking foreign currency
borrowers and importers not to panic. Economic affairs secretary Subhash
Chandra Garg said that there was no reason for further depreciation of the
Indian currency and no extraordinary measures were needed as of now. Traders
may also be reacting to Federation of Indian Export Organisations' (FIEO)
statement that the commerce ministry should direct the Export Credit Guarantee
Corporation (ECGC) to provide liberal insurance coverage to consignments with a
view to promote overseas shipments. Meanwhile, in relief to foreign investors
worried over new KYC and beneficiary ownership norms, regulator SEBI initiated
a public consultation process for finalising the new guidelines after a
high-powered panel suggested changes on several contentious proposals and more
time for compliance. There will be some buzz in steel sector stocks with report
that India may impose anti-dumping duty of up to $185.51 per tonne for five
years on certain varieties of Chinese steel with a view to guard domestic
players from cheap imports of the commodity from the neighbouring country.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,589.10
|
11,514.67
|
11,633.27
|
BSE Sensex
|
38,389.82
|
38,164.17
|
38,518.51
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
488.30
|
323.40
|
316.45
|
335.70
|
Tata Motors
|
261.89
|
277.40
|
271.13
|
281.78
|
Vedanta
|
243.36
|
230.25
|
226.73
|
233.73
|
SBI
|
237.17
|
291.65
|
288.77
|
295.22
|
Sun Pharma
|
220.75
|
664.25
|
646.17
|
676.17
|
Infosys has formed a JV with Temasek, the global investment company headquartered in Singapore.
Bharti Airtel's Payments Bank has offered card-less cash withdrawals at select ATMs across the country using instant money transfer technology.
HDFC Bank has retained its top spot in the BrandZ India Top 50 for the fifth year in a row, growing its brand value by 21 percent to $21.7 billion in 2018.
Tata Motors' subsidiary -- JLR has reported total retail sales of 36,629 vehicles in August 2018, down 4.9% Y-o-Y.