Rally continued on the Dalal
Street for the second straight day on Thursday. The start of the day was
fabulous, as the Union Cabinet approved changes to the insolvency law,
including a provision to ring-fence successful resolution applicants from
criminal proceedings with regard to offences committed by previous promoters of
a company. The amendments to the Insolvency and Bankruptcy Code are aimed at
removing certain difficulties being faced during insolvency resolution process
to realise the objects of the Code and to further ease doing of business. Firm
trade persisted during the whole day, also because of positive cues from global
markets. Key equity indices traded at their intraday fresh highs in the second
half of the trading session, taking support with Former President Pranab
Mukherjee's statement that certain things that are happening would have its
impact and he was not worried over the economic slowdown. Mukherjee, further
said there is nothing wrong in public sector banks needing capital infusion.
Market participants remained optimistic ahead of GST Council meeting, headed by
Finance Minister Nirmala Sitharaman, which is schedule on December 18 in the
backdrop of lower-than-expected GST collection and pending compensation to many
states. Finally, the BSE Sensex gained 169.14 points or 0.42% to 40,581.71,
while the CNX Nifty was up by 61.65 points or 0.52% to 11,971.80.
The US markets closed higher on
Thursday, with S&P 500 and Nasdaq Composite indexes ending at record highs,
while the Dow Jones Industrial Average saw a new intraday record, after
President Donald Trump said that the US and China were nearing a big deal that
could avoid fresh tariffs, planned to go in effect December 15, and potentially
roll back some existing duties. The latest developments on the trade front come
as Trump is meeting with top trade advisers to discuss current plans to raise
tariffs on $160 billion worth of Chinese goods on December 15. Besides, a
private report said officials circulated talking points ahead of the meeting
downplaying the repercussions the new tariffs would have on the US economy. On
the economic data front, first-time claims for US unemployment benefits jumped
by much more than expected in the week ended December 7, according to a report
released by the Labor Department. The report said initial jobless claims surged
up to 252,000, an increase of 49,000 from the previous week's unrevised level
of 203,000. Street had expected jobless claims to edge up to 213,000. With the
much bigger than expected increase, jobless claims reached their highest level
since hitting 257,000 in September of 2017. Meanwhile, with higher prices for
goods offsetting lower prices for services, the Labor Department released a
report showing US producer prices came in unchanged in the month of November.
The Labor Department said its producer price index for final demand was flat in
November after climbing by 0.4 percent in October. Street had expected prices
to rise by 0.2 percent.
Crude oil futures ended higher on
Thursday after President Donald Trump hinted that the US was very close to
enter into a trade deal with China. Besides, optimism about the reception of
Saudi Arabia's behemoth oil refinery initial public offering during its second
day of trading also provided a lift to oil markets. However, the International
Energy Agency (EIA) in its report has said it still expected global crude
inventories to rise by 700,000 barrels a day in the first three months of the
year, despite OPEC+ efforts to balance the market, though it did trim its 2020
non-OPEC oil supply growth forecast by 200,000 barrels a day to 2.1 million
barrels a day. Benchmark crude oil futures for January surged 42 cents or 0.7
percent to settle at $59.18 a barrel on the New York Mercantile Exchange.
February Brent gained 48 cents or 0.8 percent to settle at $ 64.20 a barrel on
London's Intercontinental Exchange.
Indian rupee ended marginally
higher for seventh consecutive day against US dollar on Thursday on selling in
American currency by banks and exporters. Traders found solace with Piyush
Goyal's statement that the government has carried out a number of reforms in
various sectors and it is a continuous process for improvement in the economy.
Market participants remained optimistic ahead of GST Council meeting, headed by
Finance Minister Nirmala Sitharaman, which is schedule on December 18 in the backdrop
of lower-than-expected GST collection and pending compensation to many states.
Traders also remained on sidelines ahead of Consumer Price Index (CPI) data for
November scheduled to be released today. On the global front, pound reached the
highest since March as British voters headed to the polls to decide between
Conservatives hoping to deliver Brexit in January and a Labour Party promising
a second referendum. Finally, the rupee ended at 70.83, 2 paise stronger from
its previous close of 70.85 on Wednesday.
The
FIIs as per Thursday's data were net buyers in both equity and debt segments.
In equity segment, the gross buying was of Rs 4941.73 crore against gross
selling of Rs 4557.64 crore, while in the debt segment, the gross purchase was
of Rs 2110.35 crore with gross sales of Rs 1554.84 crore. Besides, in the
hybrid segment, the gross buying was of Rs 8.73 crore against gross selling of
Rs 9.08 crore.
The US markets ended in green on
Thursday on reports that the United States and China reached a tentative trade
deal. Asian markets are trading higher on Friday amid reports that US and
Chinese negotiators have agreed in principle to an initial phase one trade
deal. Indian markets ended higher for second straight session on Thursday led
by gains in banking, auto and metal shares. Today, the start of session is
likely to be positive following firm global cues. Some support will come with
Union Minister Rao Inderjit Singh's statement that Indian economy is resilient
and there is no cause for apprehension on decline in GDP with a slew of steps
directed at boosting it. He added that the government has been undertaking
various measures to boost GDP growth. However, weak macro-economic data may put
pressure on sentiments. The National Statistical Office (NSO) data stated that
industrial production shrank for third consecutive month in October by 3.8 per
cent, mainly due to output fall in manufacturing, mining and electricity
sectors, showing signs of economic slowdown. Besides, rising food prices pushed
the retail inflation in November to over three-year high of 5.54 per cent, on
the back of costlier vegetables, pulses and protein rich items. Also, there may
be some concern as S&P Global Ratings forecast India's 2019-20 gross
domestic product (GDP) to grow at 5.1 per cent and warned of a rating downgrade
if an economic recovery does not happen. Meanwhile, the government may impose
anti-dumping duty on a chemical used in polyester fibres and films, imported
from five countries as the commerce ministry has launched an investigation for the
same. There will be some buzz in the telecom stocks as ratings firm ICRA
maintained a negative outlook for the Indian telecom industry, saying that
recovery measures by beleaguered telcos will not be able to sustain the massive
blow dealt by the Supreme Court order on adjusted gross revenue (AGR). Auto
stocks will be in focus with report that the domestic electric vehicle (EV)
market is projected to grow 36 percent annually between 2019 and 2026 as the
market has gained traction following the implementation of the second phase of
the EV incentives scheme in April. Also, there will be some reaction in textile
stocks with report that India's cotton yarn production is expected to remain
largely stable at current levels and increase only marginally about 1.5-2.5% to
reach 4,200-4,250 million kilogram (mkg) in FY20, despite high prices of the
fibre and subdued demand.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,971.80
|
11,935.37
|
12,006.87
|
BSE Sensex
|
40,581.71
|
40,477.38
|
40,699.34
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
3,981.99
|
45.35
|
42.50
|
48.50
|
Tata Motors
|
661.39
|
173.35
|
165.60
|
178.00
|
SBI
|
378.04
|
321.85
|
315.95
|
325.35
|
Power Grid
|
357.15
|
184.75
|
181.08
|
188.38
|
ZEEL
|
153.59
|
284.30
|
278.75
|
288.30
|
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Reliance Industries' wholly-owned subsidiary -- RSBVL has acquired equity shares of NowFloats Technologies for a cash consideration of Rs 141.63 crore.
ITC is aiming to garner up to 20 per cent of the Rs 7,400 crore frozen food market in India in next three years with the firm expanding its offering in the category.
Tech Mahindra has bagged largest smart city project worth Rs 500 crore from Pimpri Chinchwad Municipal Corporation, Asia's richest municipal corporation.