Bears continued to be in a
dominant position on Tuesday, as key equity indices closed the trading session
lower for fourth consecutive session. After weak start, the markets remained in
negative territory for whole day, amid reports that the crude oil import bill
for India is expected to increase by $37 billion to $125 billion during the
current financial year (2018-19, or FY19) - a 42% spike over the 2017-18 (FY18)
bill of $88 billion. Domestic sentiments also got cautious with a private
report stating that India is the second-most underinsured country in the world
with an insurance gap of $27 billion (approximately Rs 1.98 lakh crore).
Anxiety remained among the investors with another private report stating that
the government doesn't have centralised information as yet on prosecutions
launched against persons identified for suspicious cash deposits. Responding to
an RTI filing by FE, the I-T department, however, said 11.8 lakh of the 23.5
lakh persons identified for suspicious post-demonetisation deposits and sent
notices to by it on the e-filing portal replied to the queries raised. The
street also got worried after Moody's Investors Service in its latest report
stated that the profitability of Indian banks is distinctively weak compared
to those in BRICS nations. The report explained that system wide asset quality
in India is weak due to stressed public sector banks, which dominate the
sector. However, market participants failed to take any sense of relief with
EEPC India's statement that the government is responding well to the rising
trade tensions between the world's two largest economies, maintaining a stance
that serves the cause of Indian exporters best, realising how critical exports
are for the country's big macro picture. Investors also overlooked Commerce
Secretary Anup Wadhwan's statement that Indian exports will reach a record-high
figure both in rupee and US dollar terms during the current financial year.
Even firm tax collection data also failed to support the markets during the
trading session. The net direct tax collection in India grew by 15.7% on
year-on-year basis to reach Rs 4.89 lakh crore in the current fiscal till third
week of October. This marks over 42% of the full-year direct tax collection
target of Rs 11.5 lakh crore for the fiscal ending March 31, 2019. Finally, the
BSE Sensex slipped 287.15 points or 0.84% to 33,847.23, while the CNX Nifty was
down by 98.45 points or 0.96% to 10,146.80.
The US markets erased most of the
early losses but still settled in red territory on Tuesday as a big drop in the
Chinese market revived fresh questions about the global economy. The early
sell-off on Wall Street reflected an extension of the significant weakness seen
in overseas markets, which came amid worries about global economic growth and
mounting geopolitical tensions. Besides, earnings reports from two industrial
giants at the heart of the economy flashed warning signs. On top of that some
150 companies were slated to report earnings including several megacap
companies, with investors seeking the degree to which higher interest rates are
impacting the economy, as the Federal Reserve has indicated it will continue to
tighten monetary policy by year's end. Caterpillar (CAT) plummeted by 7.6
percent even though the heavy equipment maker reported third quarter results
that exceeded street estimates. Investors seem disappointed Caterpillar
reaffirmed its full-year earnings guidance rather than raising its forecast.
The company's comments about the impact of tariffs also weighed on the stock.
Diversified manufacturer 3M Co. (MMM) also tumbled by 4.4 percent after
reporting weaker than expected third quarter results and cutting its full-year
guidance. On the other hand, shares of McDonald's (MCD) moved sharply higher
after the fast food giant reported quarter earnings and revenues that beat
expectations. Dow Jones Industrial Average fell 125.98 points or 0.50 percent
to 25,191.43, Nasdaq declined 31.09 points or 0.42 percent to 7,437.54 and
S&P 500 was down by 15.19 points or 0.55 percent to 2,740.69.
Crude oil futures declined on
Tuesday amid speculation of a possible drop in demand for oil due to
uncertainty about the outlook for global economic growth and on expectations
that US crude inventories may have risen for a fifth straight week. Traders shrugged
off fears about the impact of US sanctions against Iranian Oil on global crude
supply after Saudi Arabia pledged to make up for the loss of Iranian oil, by
playing a responsible role in the market. Benchmark crude oil futures for
December declined $2.93 or 4.2 percent to settle at $66.43 a barrel on the New
York Mercantile Exchange. December Brent crude fell $3.39 or 4.3 percent to
settle at $76.44 a barrel on London's Intercontinental Exchanged.
Indian
rupee ended marginally lower against US dollar on Tuesday, due to fresh demand
for the American currency from banks and importers. Traders remained cautious
with reports that the crude oil import bill for India is expected to increase
by $37 billion to $125 billion during the current financial year (2018-19, or
FY19) - a 42% spike over the 2017-18 (FY18) bill of $88 billion. Moreover,
weakness in local stocks, which slipped for a fourth-straight session, also
weighed on the rupee. However, the local currency trimmed most of its initial
losses, as traders found some support with report that the net direct tax
collection in the country grew by 15.7% on year-on-year basis to reach Rs 4.89
lakh crore in the current fiscal till third week of October. This marks over
42% of the full-year direct tax collection target of Rs 11.5 lakh crore for the
fiscal ending March 31, 2019. On the global front, euro rose on Tuesday before
a meeting of the European Commission on Italy's budget that could see Brussels
take the unprecedented step of rejecting it and demanding changes. Finally, the
rupee ended at 73.57, 1 paise weaker from its previous close of 73.56 on
Monday.
The FIIs as per Tuesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4864.68 crore against gross selling of Rs 5307.94 crore, while
in the debt segment, the gross purchase was of Rs 125.57 crore with gross sales
of Rs 933.17 crore. Besides, in the hybrid segment, the gross buying was of Rs
0.55 crore against gross selling of Rs 2.26 crore.
The US markets ended lower on
Tuesday as steep slide came after major US companies reported gloomy results
and guidance. Asian markets were trading mostly in red on Wednesday following
weakness on Wall Street amid concerns about the corporate earnings outlook in
an environment of tightening financial conditions. Extending southward journey
for the fourth straight session, Indian markets settled in red territory on
Tuesday following weakness in global markets on growth concerns, while higher
crude prices and weaker rupee continue to weigh on the sentiments. Today, the
markets are likely to make cautious start of penultimate session of F&O
expiry amid weak global cues. There will be some cautiousness with a private
report that liquidity crunch may hurt economic growth. the report penciling in
a few basis points shave off in economic growth in the December quarter if the
hoarding of cash by banks and mutual funds continue threatening on-lending
non-banking finance companies, the lifeline of lakh of medium and small
enterprises. Traders may react to another private report that Private Equity
(PE) investments moderated to $14.60 billion during January-September period,
owing to macroeconomic concerns, market volatility and valuations of companies.
Meanwhile, emerging markets guru Mark Mobius urged the Indian government to
accelerate reforms and ease rules for exports to take advantage of the ongoing
trade war globally. He said India has a potential to attract overseas
investment and it can take advantage of the weak rupee and trade war to grab a
bigger share of the exports market. There are enormous opportunities. There
will be some buzz in the non-banking financial companies (NBFCs) stocks with
report that the Reserve Bank of India (RBI) has cancelled the Certificate of
Registration of 31 NBFCs. NBFCs have been under pressure recently due to fears
of a liquidity crisis, high valuations and asset liability mismatches. Also,
there will be some reaction in pharma sector stocks with ICRA's report that the
domestic pharmaceutical industry is likely to register a moderate growth at 7-9
per cent in the period between FY18 and FY21. There will be lots of important
earnings announcements too, to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,146.80
|
10,092.07
|
10,211.82
|
BSE Sensex
|
33,847.23
|
33,702.01
|
34,033.18
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
282.94
|
213.20
|
207.57
|
217.77
|
ICICI Bank
|
215.10
|
322.85
|
317.93
|
328.18
|
SBI
|
202.06
|
255.65
|
254.10
|
258.10
|
Indiabulls Housing
Finance
|
176.27
|
734.65
|
688.73
|
775.73
|
Tata Motors
|
155.89
|
170.65
|
168.23
|
174.38
|
Bharti Airtel has collaborated with Google to truly simplify its customer service experience by integrating its customer care with the Artificial Intelligence-powered Google Assistant.
Cipla's wholly owned subsidiary -- Cipla Medpro South Africa has completed the acquisition of 100% stake in Mirren on October 22, 2018.
Bajaj Finance has reported a rise of 54.46% in its net profit at Rs 923.47 crore for Q2FY19 as compared to Rs 597.87 crore for Q2FY18.
Maruti Suzuki's premium urban offering S-Cross has achieved the milestone of 1 lakh cumulative sales.