Indian equity benchmarks gave up
most of their initials gains to end marginally higher on Monday, led by buying
in IT, TECK, Healthcare and FMCG stocks. The benchmarks staged a gap up
opening, as traders took encouragement with the report that concerted efforts
by the Reserve Bank to move to a non/less-cash economy by pushing digital
payments have begun to pay rich dividends as the volume of such payments has
jumped manifold in the past five years. Sentiments remained positive with NITI
Aayog CEO Amitabh Kant's statement that India's massive digital footprint is
one of its biggest strengths for Artificial Intelligence (AI) development, and
established platforms like Aadhaar, UPI along with massive digital
infrastructure create a unique opportunity for this futuristic technology to be
leveraged to enhance transparency and improve governance. Some support also
came in with report that foreign portfolio investors (FPI) have invested Rs 1,086
crore on a net basis so far in October in Indian markets, tracking encouraging
factors including improved GST collection, acceleration in economic activity
and positive global cues. However, markets witnessed volatility in late
afternoon session, as investors remained on sidelines ahead of industrial
production data for August and CPI inflation for September which are due later
in the day. But, indices managed to end session in green terrain, as the
government has unveiled a one-time Rs 10,000 interest-free festival advance to
all its officers and employees, as part of plans to increase consumer spending
to spur demand in the economy. Besides, Prime Minister Narendra Modi said that
the Survey of Villages and Mapping with Improvised Technology in Village Areas
(SVAMITVA) scheme will bring historical changes in the villages across the
country. Finally, the BSE Sensex rose 84.31 points or 0.21% to 40,593.80, while
the CNX Nifty was up by 16.75 points or 0.14% to 11,930.95.
The US markets ended higher on
Monday, extending the strong upward move seen over the past few sessions, as
investors bought technology giants and shifted their focus to corporate
earnings starting this week. Apple posted a standout gain, surging up by 6.4
percent, while Facebook and Google parent Alphabet also moved notably higher.
Shares of Twitter also showed a strong move to the upside after Deutsche Bank
upgraded its rating on the social media giant to Buy from Hold. Besides, with less
than three weeks to the presidential election, investors were focusing on the
outlook for the Democratic Party controlling both the White House and Congress.
The markets also benefited from optimism about a new stimulus bill even though
House Speaker Nancy Pelosi said talks will remain at an impasse until serious
issues with the Trump administration's latest proposal are resolved. The White
House has increased its offer to $1.8 billion in its latest proposal, but
Pelosi still called the administration's proposed bill grossly inadequate.
Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff
Mark Meadows sent a letter to members of the House and Senate accusing
Democrats of refusing to compromise on bipartisan legislation.
Crude oil futures ended lower on
Monday with production in Libya, Norway and the Gulf of Mexico set to recover.
Libya lifted force majeure at its largest oil field, producers began restoring
output in the Gulf of Mexico following Hurricane Delta, and crude output in
Norway looked to recover following the end of an oil-worker strike. Meanwhile,
private reports said several states in America are likely to see a surge in
coronavirus cases in the coming weeks. In the UK, the government has imposed
fresh restrictions in several areas where the virus is reportedly spreading
fast. Crude oil futures for November declined $1.17 or 2.9 percent to settle at
$39.43 a barrel on the New York Mercantile Exchange. December Brent crude fell
$1.13 or 2.6 percent to settle at $41.72 a barrel on London's Intercontinental
Exchange.
Indian rupee ended weaker against
dollar on Monday, on emergence of demand for the greenback from importers.
Traders took note of report that foreign portfolio investors (FPI) have
invested Rs 1,086 crore on a net basis so far in October in Indian markets,
tracking encouraging factors including improved GST collection, acceleration in
economic activity and positive global cues. Meanwhile, RBI in its latest data
has showed that between 2015-16 and 2019-20, digital payment volumes have grown
at a compounded annual growth rate of 55.1 per cent - from 5.93 billion
transactions in the year to March 2016 to 34.35 billion transactions in the
year to March 2020. On the global front; dollar held near three-week lows on
Monday amid optimism about fiscal stimulus in the United States, while the yuan
fell after China's central bank changed its policy on yuan reserves. Finally,
the rupee ended at 73.28, 12 paise weaker from its previous close of 73.16 on
Friday.
The FIIs as per Monday's data were
net seller in equity segment, while net buyer in debt segment. In equity
segment, the gross buying was of Rs 4611.36 crore against gross selling of Rs
5866.02 crore, while in the debt segment, the gross purchase was of Rs 3220.40
crore with gross sales of Rs 296.67 crore. Besides, in the hybrid segment, the
gross buying was of Rs 4.22 crore against gross selling of Rs 29.73 crore.
The US markets ended higher on
Monday as technology stocks helped to lead the markets higher, as reflected by
the significant advance by the tech-heavy Nasdaq. Asian markets are trading in
red on Tuesday as traders remained cautious ahead of Chinese trade figures for
September which are expected to be released later in the day. Indian markets
ended slightly higher after paring most gains on Monday as the power failure in
Mumbai disrupted the trading activity. Today, the start of session is likely to
be pessimistic amid weakness in Asian peers. Also, weak macro-economic data may
dampen the sentiments in the markets. The government data showed that
Industrial production declined by 8 percent in August, mainly due to lower output
of manufacturing, mining and power generation sectors. Also, retail inflation
rose to 7.34 percent in September, mainly on account of higher food prices.
Investors will track the Supreme Court's hearing on a batch of petitions
seeking a waiver of interest on loans during the moratorium period and seeking
an extension of the moratorium. Besides, Finance Minister Nirmala Sitharaman
said that no consensus was reached on the borrowing for a shortfall in GST
compensation cess. Traders will be taking encouragement with Niti Aayog
Vice-Chairman Rajiv Kumar's statement that the fresh stimulus package announced
by Finance Minister Nirmala Sitharaman to boost domestic demand will give a
much-needed push to economic activity. Some support will come in as India Inc cheered
Finance Minister Nirmala Sitharaman's announcement of payment of cash in lieu
of LTC and Rs 10,000 festival advance to government employees, saying these
measures will boost demand while instilling a feel good factor in the people
and energize growth. Also, India witnessed a major drop of 54,265
new Covid-19 cases, taking the tally to 7,173,565 and the death toll
reached 109,894. For the fifth day in a row, the number of active Covid-19
cases remained below 900,000. Traders may take note of Ficci President Sangita
Reddy's statement that there is a need for convergence between self-reliance
and globalization. Meanwhile, the Securities and Exchange Board of India (SEBI)
is planning to impose an additional charge on the redemption of debt funds in
stressed schemes to ensure sufficient liquidity to meet redemption stress.
Telecom stocks will be in focus reacting to the Telecom Regulatory Authority of
India's (TRAI) latest telecom subscription data report. Reliance Jio added 3.55
million subscribers in July 2020, while Vodafone Idea lost 3.7 million users.
Bharti Airtel added 3.26 million wireless subscribers during the month. There
will be some reaction in aviation stocks with Union Civil Aviation Minister
Hardeep Singh Puri's statement that the total number of passengers flying in a
single day increased to 1,78,431 on October 11.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,930.95
|
11,858.09
|
12,012.94
|
BSE
Sensex
|
40,593.80
|
40,352.31
|
40,870.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
State
Bank of India
|
691.26
|
198.70
|
195.31
|
204.01
|
ITC
|
662.51
|
172.20
|
169.74
|
174.94
|
Wipro
|
529.66
|
377.50
|
371.14
|
381.84
|
Tata
Motors
|
392.79
|
135.90
|
132.71
|
139.36
|
ICICI
Bank
|
257.43
|
404.05
|
399.84
|
409.14
|
SBI's subsidiary -- SBI General Insurance is expecting to increase its market share among the private sector non-life players to 8.5 percent by March.
JSW Steel has raised Rs 4000 crore through rated, listed, secured, redeemable, NCDs and allotted 40,000 NCDs bearing a face value of Rs 10,00,000 each on private placement.
Tech Mahindra has expanded its strategic alliance with BMC Software to enable digital transformation for global enterprises.
Coal India has allocated 13.86 million tonnes coal in the first five months of FY21 under the spot e-auction scheme, registering a year-on-year increase of 49.5 percent.