Daily Newsletter
NSE Intra-day chart (17 February 2020)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
DII Investments(Rs. Cr)
DateBuy ValueSale ValueNet Value
 
Market Commentary 18 February 2020
Markets to open in red following Asian peers

 

Indian equity benchmarks ended the choppy day of trade with a cut of around half a percent on Monday. Markets started the session slightly in green as traders took encouragement with Finance Minister Nirmala Sitharaman's statement that if required, the government would take more steps beyond the announcements made in the Union Budget 2020-21 to boost economic activities. Sentiments also got some support with the Reserve Bank of India's (RBI) data showing that the country's foreign exchange reserves rose by $1.701 billion to a lifetime high of $473 billion in the week to February 7 on account of increase in foreign currency assets. But traders turned pessimistic and key gauges entered into red terrain as some cautiousness crept in with the commerce ministry's data showing that the country's exports contracted for the sixth month in a row by 1.66% in January to $25.97 billion. Imports too declined by 0.75% $41.14 billion, leaving a trade deficit of $15.17 billion during the month under review. Markets extended losses in second half of the trade as sentiments remained dampened on report that Global rating agency Moody's said that India's economic recovery is likely to be shallow and expand at a slower pace of 5.4 per cent in Calendar 2020 than the earlier estimate of 6.6 per cent. Traders were eyeing the outcome of Finance Minister Nirmala Sitharaman's press conference. Nirmala Sitharaman's is holding an interactive session with trade and industry representatives, intellectuals, influencers, economics professors, professionals on Budget 2020 in Bengaluru today. Adding to the worries, the data showed that investments in the Indian capital market through participatory notes (P-notes) continue to decline and hit a nearly 11-year low of Rs 64,537 crore till the end of December 2019. Finally, the BSE Sensex lost 202.05 points or 0.49% to 41,055.69, while the CNX Nifty was down by 67.65 points or 0.56% to 12,045.80.

 

The US markets were closed on Monday on account of Washington's Birthday. 

 

Indian rupee strengthened against dollar on Monday, as bankers and exporters took to selling of American currency. Market participants took some support with Reserve Bank Governor Shaktikanta Das' statement that momentum is gathering pace on credit growth and expressed hope that transmission of rate cuts will improve further in the coming days. However, gains remain capped as Moody's Investors Service slashed India's growth forecast to 5.4 percent for 2020 from 6.6 percent projected earlier on slower than expected economic recovery. On the global front, euro was on the back foot on Monday, as concerns mounted about weakening economic growth in Europe at a time financial markets and policy makers fret about a new threat to the global economy from a fast spreading coronavirus in China. The last traded price of rupee was 71.29, 8 paise stronger from its previous close of 71.37 on Friday.

 

The FIIs as per Monday'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 3973.43 crore against gross selling of Rs 5115.48 crore, while in the debt segment, the gross purchase was of Rs 5073.78 crore with gross sales of Rs 3752.62 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.87 crore against gross selling of Rs 0.96 crore.

 

The US markets remained closed on Monday for the President's Day federal holiday. Asian markets are trading mostly in red in early deals on Tuesday as the new coronavirus outbreak continued to roil companies amid expectations it would cause a slowdown. Indian markets ended lower on Monday after Moody's Investors Service cut its 2020 growth projection for India to 5.4% from 6.6% forecast earlier, citing growing concerns over the economic fallout of the novel coronavirus outbreak. Today, the markets are likely to get a weak start following other Asian peers amid rising coronavirus threats. There will be some cautiousness with Care Ratings' report that performance of companies during the quarter ended December of the financial year 2019-20 was weak with contraction in revenue and moderation in the growth rate of net profits. It added that the decline in profits, despite the cut in corporate tax, can be attributed to high growth in interest expenses and depreciation. Traders will also be concerned with a report that the International Monetary Fund (IMF) has stated that the goods and services tax (GST) collections in India have been below potential. The organisation said that multiple rates along with exemptions and implementation challenges have affected the GST collections in India. Moreover, WTO (World Trade Organisation) said that growth in world merchandise trade is expected to remain weak in early 2020 and coronavirus outbreak may dampen trade prospects further. However, some respite may come later in the day as a US-based think tank World Population Review in its report said that India emerged as the world's fifth largest economy by overtaking the UK and France in 2019. It added that India is developing into an open-market economy from its previous autarkic policies. Besides, a private report said that payment of adjusted gross revenue dues of Rs 1.20 lakh crore by telcos will reduce the fiscal deficit for 2019-20 to 3.5% of the GDP from the revised estimate of 3.8% of the GDP. Traders may take note of report that Commerce and Industry Minister Piyush Goyal has asked the industry to look for ways to expand the country's export basket by adding more value-added products and cut shipments of raw materials. Meanwhile, capital markets regulator SEBI on Monday decided to amend its investment manager eligibility norms for Infrastructure Investment Trusts and also permit fast-track issuance of units to existing investors in REITs and InvITs. There will be some buzz in the Steel stocks with Union Minister Dharmendra Pradhan's statement that the impact of Coronavirus outbreak will be felt on the global steel industry for at least two to three years, as China is the largest producer of the alloy. The minister also asked Indian steel companies to enhance output, particularly special steel, to grab a larger global market share. There will be some reaction in power stocks with crisil's report that as many as 3 GW of solar projects worth Rs 16,000 crore could be at risk of penalties for missing their respective scheduled commercial operation date (SCOD) if the impact of novel coronavirus on trade with China prolongs. 

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

12,045.80

12,002.00

12,124.60

BSE Sensex

41,055.69

40,917.40

41,307.16

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank

1,160.76

37.15

35.80

39.30

SBI

369.51

314.20

310.18

319.68

ONGC

366.66

99.95

98.20

102.30

Tata Motors

328.93

169.10

166.52

171.52

Bharti Airtel

229.24

564.85

558.00

570.20

 

  • Bharti Airtel and Nokia, a global telecommunications equipment and service provider, have partnered to offer private LTE based Industry 4.0 solution to enterprises. 
  • Tata Elxsi has partnered with Tata Motors in developing their unified Connected Vehicle Platform that powers the Nexon EV range of electric cars. 
  • Tech Mahindra has collaborated with Virsec, a US based cyber security company delivering a radically new approach to protect against advanced targeted attacks. 
  • ICICI Bank has raised Rs 945 crore by issuing Basel III compliant bonds on private placement basis.
News Analysis