Indian equity bourses ended the
highly volatile day near their intraday low points. The start of the day was
slightly higher, amid the retirement fund body, Employment Provident Fund
Organisation's (EPFO) latest Provisional Estimate of Net Payroll data report
showing that India created 9,98,051 new jobs in the month of September 2019 as
against revised figure of 9,41,800 in August 2019. As per the report, the
maximum jobs were created in the age bracket of 22-25. But soon, markets turned
volatile, impacted by a private report stating that India's economic growth
probably hit a new low last quarter, with early forecasts showing expansion
below 5%. In the last hour of the trading session, key markets extended their
losses to settle in negative terrain, on the back of weak cues from the global
markets. Investors remained anxious with the Commerce and Industry Minister
Piyush Goyal's statement that the government did not join the mega free trade
agreement RCEP as the grouping did not address the outstanding issues and
concerns of India. The street paid no heed towards the Reserve Bank of India's
(RBI) latest data report stating that bank credit rose by 8.07 percent to Rs
98.47 trillion, while deposits grew 9.92 percent to Rs 129.98 trillion in the
fortnight ended November 6. Finally, the BSE Sensex lost 76.47 points or 0.19%
to 40,575.17, while the CNX Nifty was down by 30.70 points or 0.26% to
11,968.40.
The US markets ended lower on
Thursday after investors digested mixed headlines on the progress of trade
negotiations, with reports saying that China had invited American negotiators
to Beijing for face-to-face talks, even though the US Congress passed a bill
supporting protesters in Hong Kong late Wednesday. Liu voiced optimism over a
phase-one trade deal at a dinner in Beijing, though Liu also said he was
confused about trade demands by the US, but believes an agreement will be
reached. Thursday marked the third consecutive losing session for both the Dow
and S&P 500, while the Nasdaq closed lower for the second day in a row. On
the economic data front, existing home sales in the US rebounded by more than
expected in the month of October, according to a report released by the
National Association of Realtors (NAR). NAR said existing home sales jumped by
1.9 percent to an annual rate of 5.46 million in October after tumbling by 2.5
percent to a revised rate of 5.360 million in September. Street had expected
existing home sales to surge up by 1.4 percent compared to the 2.2 percent
slump originally reported for the previous month. Besides, the Labor Department
released a report showing first-time claims for US unemployment benefits came
in unchanged in the week ended November 16. The report said initial jobless
claims came in at 227,000, unchanged from the previous week's revised level.
Street had expected jobless claims to dip to 219,000 from the 225,000
originally reported for the previous week. With the unchanged figure, jobless
claims are hovering at their highest level since hitting 229,000 in the week
ended June 22. Meanwhile, the Labor Department said the less volatile four-week
moving average rose to 221,000, an increase of 3,500 from the previous week's
revised average of 217,500.
Magnifying their previous
session's gains, the crude oil futures ended higher on Thursday, finding
support from a report that the Organization of the Petroleum Exporting Countries
(OPEC) and its allies are likely to extend production cuts. OPEC and its
allies, including Russia, are likely to agree to extend crude production cuts
until mid-2020 when they meet next month. An existing agreement on output curbs
runs through March 2020. OPEC and its allies will meet on December 5 and
December 6 in Vienna. Besides, the US Energy Information Administration (EIA)
reported that domestic supplies of natural gas fell by 94 billion cubic feet
for the week ended November 8. Benchmark crude oil futures for January surged
$1.57 or 2.8 percent to settle at $58.58 a barrel on the New York Mercantile
Exchange. January Brent rose $1.57 or 2.5 percent to settle at $63.97 a barrel
on London's Intercontinental Exchange.
Indian
rupee ended tad higher against dollar on Thursday, owing to dollar sale by
exporters and banks. Traders took support with the retirement fund body,
Employment Provident Fund Organisation's (EPFO) latest Provisional Estimate of
Net Payroll data report showing that India created 9,98,051 new jobs in the
month of September 2019 as against revised figure of 9,41,800 in August 2019.
Moreover, dollar losing sheen against some other currencies overseas supported
the rupee. However, lackluster trade in local equity markets weighed on the rupee.
On the global front, dollar was weaker against other major currencies on
Thursday, with investors fixated on the latest developments in a bitter
16-month long trade dispute between the United States and China that has dealt
a blow to the world economy. Finally, the rupee ended at 71.76, 5 paise
stronger from its previous close of 71.81 on Wednesday.
The
FIIs as per Thursday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
5793.99 crore against gross selling of Rs 5366.03 crore, while in the debt
segment, the gross purchase was of Rs 978.36 crore with gross sales of Rs
3408.58 crore. Besides, in the hybrid segment, the gross buying was of Rs
175.15 crore against gross selling of Rs 118.72 crore.
The US markets ended lower on
Thursday as investors remained on sidelines on no concrete signs of progress on
US-China relations. Asian markets are trading mostly in green on Friday,
bouncing from a three-week low touched a day earlier, but gains were capped by
persistent worries over the status of trade negotiations between China and US.
Indian markets ended volatile session in red territory with marginal cut on
Thursday as investors booked profits and avoided long positions amid tepid
global cues. Today, the start of session is likely to be flat-to-negative amid
rise in crude oil prices. There will be some cautiousness as ratings agency
ICRA expects India's growth rate to further slowdown to 4.7% in second quarter
ended September 30, 2019, amid subdued domestic demand and weak investment
activity. Also, the Organisation for Economic Co-operation and Development
(OECD) marginally cut India's economic growth forecast for 2019 to 5.8%.
Traders will be concerned with report that claiming that India will need
another 22 years of sustained growth to become a developed country, former
Reserve Bank of India (RBI) governor C Rangarajan said that at the current
growth rate, India becoming a $5 trillion economy by 2025 is simply out of
question. However, markets participants may take some support later in the day
with positive leads from Asian peers. Traders may take note of report that India
and the United States are in talks to resolve trade issues and both New Delhi
and Washington hope to find an early solution. Besides, markets regulator
Securities and Exchange Board of India (SEBI) has asked listed companies to
disclose any loan default within 24 hours of any failure to repay principal or
interest amount to banks or financial institutions beyond 30 days. The decision
is aimed at addressing the gaps in the availability of information to
investors. There will be some buzz in the banking stocks with the Finance
Ministry's statement that public sector banks disbursed a record Rs 2.52 lakh
crore of loans during the festive month of October. There will be some reaction
in infra stocks with the government's statement that 566 national highway projects
are running behind schedule and no project has been put on hold. Meanwhile, CSB
Bank's initial public offering (IPO) will open for subscription on November 22
and has a price band of Rs 193 to Rs 195 per share.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,968.40
|
11,940.80
|
12,012.10
|
BSE Sensex
|
40,575.17
|
40,491.24
|
40,701.97
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ZEEL
|
2,430.87
|
345.15
|
322.23
|
366.03
|
Yes Bank
|
1,335.32
|
64.25
|
63.07
|
66.17
|
SBI
|
341.16
|
331.35
|
327.65
|
333.95
|
ICICI Bank
|
257.46
|
498.25
|
491.73
|
504.28
|
BPCL
|
223.13
|
514.10
|
500.40
|
538.40
|
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