Indian equity bourses managed to
end Friday's volatile session at record closing highs, on account of firm cues
from other Asian markets. The trading day was started on firm note, as DPIIT
Secretary Guruprasad Mohapatra expressed optimism that India will soon break
into the top 50 in the World Bank's ease of doing business ranking. Adding some
relief among market participants, a private report indicated that it expects
the Reserve Bank of India to cut the repo rate to 4.9% by March 2020 and 4.35%
by September 2020 if global growth slows, and also said fiscal deficit is
anticipated to slip to 3.8% of the GDP this year. But, volatility hit the
street in noon deals, after investments through participatory notes (P-notes)
in the Indian capital market dropped to Rs 69,670 crore at the end of November.
The total value of investments via P-notes in the Indian markets (including
equity, debt, and derivatives) declined by Rs 7,103 crore to Rs 69,670 crore by
the end of November from Rs 76,773 crore at October-end. Finally, benchmarks
settled the day with only marginal gains, as credit rating agency, Fitch
Ratings cut India's GDP growth forecast for 2019-20 fiscal year to 4.6 percent
on the deterioration in business and consumer confidence. Finally, the BSE
Sensex gained 7.62 points or 0.02% to 41,681.54, while the CNX Nifty was up by
12.10 points or 0.10% to 12,271.80.
Continuing southward journey, the
US markets settled at new record highs on Friday after encouraging US economic
data. Traders continue to wait to hear the details of the agreement, but the
news of the deal has still helped eliminate some of the uncertainty hanging
over the markets. The Commerce Department released a report showing US economic
growth in the third quarter was unrevised from the previous estimate. The
Commerce Department said real gross domestic product jumped by 2.1 percent in
the third quarter, unchanged from the estimate released last month and in line
with street expectations. The unrevised GDP growth in the third quarter
reflects a modest acceleration from the 2.0 percent increase seen in the second
quarter. A separate report from the Commerce Department showed a notable
acceleration in the pace of personal income growth in the month of November.
The report said personal income climbed by 0.5 percent in November after
inching up by a revised 0.1 percent in October. Street had expected personal
income to rise by 0.3 percent compared to the virtually unchanged reading
originally reported for the previous month. The Commerce Department said
personal spending also climbed by 0.4 percent in November following a 0.3
percent increase in October. The spending growth matched street estimates.
Crude oil futures ended notably
lower on Friday with losses of around a percent, as data from Baker Hughes
showed a big increase in rig count in the US. According to a report released by
Baker Hughes, rigs count in the US increased for a second straight week, rising
by as much as 18 to 685 this week. As per the report, the total active US rig
count also climbed by 14 to 813. Despite optimism on the trade front and the
ongoing Organization of the Petroleum Exporting Countries (OPEC) output cuts,
oil prices drifted lower in the session as traders looked keen on taking some
profits ahead of the year-end holiday period. Benchmark crude oil futures for
February declined 74 cents or 1.2 percent to settle at $60.44 a barrel on the
New York Mercantile Exchange. February Brent fell 40 cents or 0.6 percent to
settle at $66.14 a barrel on London's Intercontinental Exchange.
Extending
weakness for the second day, Indian rupee ended marginally lower against dollar
on Friday, as good demand for the greenback from importers. Traders remain
concerned as credit rating agency, Fitch Ratings cut India's GDP growth
forecast for 2019-20 fiscal year to 4.6 percent on the deterioration in
business and consumer confidence. However, losses remain capped as some
optimism remained among the traders with Prime Minister Narendra Modi's
statement that the Indian economy has the resilience to reverse the current
slowdown and return to high growth trajectory and he exhorted corporates to
take bold investment decisions to help push up GDP growth. On the global front,
dollar was largely steady against other major currencies on Friday but set for
its best week in a month thanks to a stronger tone to economic data. Finally,
the rupee ended at 71.12, 9 paise weaker from its previous close of 71.03 on
Thursday.
The
FIIs as per Friday'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
5401.92 crore against gross selling of Rs 4565.49 crore, while in the debt
segment, the gross purchase was of Rs 1553.72 crore with gross sales of Rs
3007.85 crore. Besides, in the hybrid segment, the gross buying was of Rs 8.04
crore against gross selling of Rs 8.46 crore.
The US markets ended higher on
Friday powered higher by new signs of economic strength that have followed a
calming in trade tensions. Asian markets are trading mostly in red on Monday,
with subdued volumes, as investors count down to the holiday break. Indian
markets continued their record-breaking streak and ended higher with marginal
gains on Friday led by gains in Banking, IT and metal stocks. Today, the start
of futures and options (F&O) expiry week is likely to be cautious amid
weakness in Asian peers. There will be some volatility during the week as the
December series F&O contracts expire on Thursday, December 26. There will
be some cautiousness with Assocham president Niranjan Hiranandani's statement
that the economy is facing a liquidity problem and demand recession, and it
requires measures to lift consumption, including reduction in goods and
services tax and personal income tax and improved credit flow, to revive.
However, some support may come later in the day with report that the foreign
portfolio investors seem to have flocked to the Indian capital market in a big
way in 2019 with a net inflow of over Rs 1.3 lakh crore, including Rs 97,250
crore in equities -- the highest in last six years. Traders may take note of
minister for road transport & highways and MSMEs Nitin Gadkari's statement
that India must increase its share in global trade to 8-10% to become a $5
trillion economy. There will be some buzz in the metal stocks with World Steel
Association's (worldsteel) latest report showing that India's crude steel
output fell for the second straight month in November, declining 2.8 per cent
to 8.934 million tonne (MT). Telecom stocks will be in focus with Telecom
Secretary Anshu Prakash's statement that India as a destination for telecom is
world class and the spectrum auction could be expected to be utilised well by
the telcos given India's communication potential. There will be some reaction
in infra stocks with report that the government's endeavour for world-class
infrastructure will continue unabated with commitment to pump in another Rs 15
lakh crore in the highways sector in this five-year term. Meanwhile, Titan
Company, UltraTech Cement, Nestle India will be included in BSE Sensex with
effect from December 23. On the other side, Tata Motors, Tata Motors DVR,
Vedanta and Yes Bank will be removed from the index.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,271.80
|
12,251.73
|
12,292.88
|
BSE Sensex
|
41,681.54
|
41,608.45
|
41,782.30
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
3,596.48
|
51.40
|
48.63
|
53.83
|
SBI
|
518.40
|
337.85
|
332.30
|
341.45
|
Tata Motors
|
488.18
|
175.95
|
173.30
|
180.15
|
Vedanta
|
471.72
|
144.25
|
141.47
|
148.77
|
ICICI Bank
|
276.92
|
546.10
|
540.40
|
550.65
|
Titan Company has incorporated Titan Global Retail LLC, Dubai, as a subsidiary company of Titan Holdings International FZCO, Dubai, which in turn is a wholly owned subsidiary of the Company.
Bajaj Finance has invoked pledged shares of Karvy Data Management Services.
NTPC's JV -- Energy Efficiency Services has signed a MoU with Baghirathi Sustainability India to explore the possibilities of promoting EVs in India.
Zee Entertainment Enterprises is aiming to further strengthen its regional portfolio in India.