Indian equity benchmarks managed
to keep their head above water and went home with slender gains, extending
their winning streak to sixth day. Markets started with caution but gradually
gained momentum and traded with traction in first half of the session, as
traders took some support with rating agency Moody's latest report where it
expecting an improvement in the credit profiles of India Inc next year, driven
by better sales as it expects GST-related disruptions to wane, leading to an
all-round recovery in economic activities. Some support also came with NITI
Aayog vice-chairman Rajiv Kumar's statement that India GDP growth rate in Q2 is
likely at 6.2-6.3% and for the full year could be closer to 7% and for Second-half
growth has to be 7.5%. The Budget for 2018-19 should focus on the social sector
and an attempt should be made to provide universal health insurance cover to
citizens. Markets also find some support with private report highlighting that
Corporate India witnessed significant deal activity in the September quarter
this year, as private equity invested $8.7 billion and M&A transactions
attracted $2.1 billion. The investment of private equity and venture capital
increased 180 percent in value terms over the last year to reach $8.7 billion
in the July-September quarter of 2017. However, markets took U-turn and entered
into red terrain with traders turning cautious on the back of rally in oil
prices which continued to reduce expectations of rate cuts ahead of the Reserve
Bank of India's policy meeting early next month. Traders took note on report
that the government is likely to tighten the Insolvency and Bankruptcy Code
(IBC) through an ordinance to ensure that wilful defaulters and promoters of
companies in loan default over an extended period of time won't be able to get
their hands back on assets during the resolution process. Also, there will be
buzz with the Cabinet giving its nod for constitution of the 15th Finance
Commission that will decide the tax-sharing formula between the Centre and
states for five years beginning FY21. Its recommendations will have to be in
place before April 1, 2020. Though, recovery in last leg of trade helped
markets to end marginally in green. Finally, the BSE Sensex gained 26.53 points
or 0.08% to 33,588.08, while the CNX Nifty was up by 6.45 points or 0.06% to
10,348.75.
The US markets remained closed on
Thursday on account of 'Thanksgiving Day' holiday.
Crude oil futures bounced higher
on Thursday, erasing earlier losses as optimism that the market is rebalancing
resurfaced in holiday-thinned trade. Trade volumes were light on Thursday, with
U.S. markets closed for the Thanksgiving holiday. Crude prices also got some
support with an announcement by TransCanada revealing that it would slash oil
deliveries to the United States by 85% or more on its keystone crude pipeline. Benchmark
crude oil futures for December delivery ended higher by $0.18 or 0.31 percent
at $58.20 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude for January delivery was up by $0.02 to $63.32 a barrel on the ICE.
Indian
rupee ended considerably stronger against the US dollar on Thursday, on
continuous selling of the US currency by exporters and banks. Sentiments
remained up-beat with NITI Aayog vice-chairman Rajiv Kumar's statement that
India's GDP growth rate in Q2 is likely at 6.2-6.3% and for the full year could
be closer to 7% and for Second-half growth has to be 7.5%. The domestic
currency also got some support with Moody's latest report where it expecting an
improvement in the credit profiles of India Inc next year, driven by better
sales as it expects GST-related disruptions to wane, leading to an all-round
recovery in economic activities. Besides, weakness of dollar in the overseas
market also boosted the value of rupee against the dollar. On the global front,
broadly weaker dollar was nursing losses at two-month lows against yen on
Thursday after the minutes of the Federal Reserve's November meeting showed
that some officials remain concerned about low inflation. Finally, the rupee
ended at 64.57, 35 paise stronger from its previous close of 64.92 on
Wednesday.
The
FIIs as per Thursday'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
4760.36 crore against gross selling of Rs 5003.72 crore, while in the debt
segment, the gross purchase was of Rs 435.15 crore with gross sales of Rs
383.00 crore.
The US markets remained closed in
last session on account of Thanksgiving Day holiday, unable to give any cues to
the other markets. The Asian markets have made mostly a lower start though the
impact of sudden sell-off that sent Chinese equities plunging was slowly
receding. The Japanese market too has made a soft start after a holiday as the
yen strengthened. The Indian markets extended their gaining streak in the last
session, led by buying in some bluechips and on hopes that economic growth will
pick up momentum on reforms initiatives. Today, the start is likely to be a bit
cautious on sluggish regional cues. Though, some support will come with a
private report stating that the slowdown in the economy has bottomed out, and
going forward, the pace of recovery will depend on initiatives the government
takes to boost the growth momentum, especially private investment. Also, the
Union minister Suresh Prabhu has said that the commerce and industry ministry
is chalking out a "proper" business plan based on market research in
its bid to promote exports of goods and services. He added that a proper market
segmentation is the need of the hour to understand the potential of domestic
goods and services. Traders will also be getting some support with Sebi's plan
to ease takeover rules to speed up the resolution of insolvency proceedings for
stressed companies as local lenders seek to recover about Rs 9 lakh crore from
entities rendered unviable by the mounting debt pile. Meanwhile, President Ram Nath Kovind has
approved an ordinance to introduce changes to the Insolvency and Bankruptcy Code
which is aimed at tightening the current framework amid rising number of
insolvency cases. There will be some buzz in PSU oil companies, as the
government has exempted the merger of oil and gas PSUs from the purview of
competition watchdog CCI.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10348.75
|
10312.60
|
10379.60
|
BSE Sensex
|
33588.08
|
33480.86
|
33682.75
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
133.38
|
334.95
|
332.18
|
337.18
|
Axis Bank
|
107.24
|
544.15
|
537.20
|
549.45
|
ICICI Bank
|
99.99
|
319.45
|
316.27
|
321.57
|
Hindalco
|
96.82
|
255.25
|
250.65
|
259.25
|
ITC
|
75.24
|
258.15
|
256.13
|
260.43
|
RIL has issued and allotted on private placement basis the sixth tranche of unsecured non-convertible redeemable debentures aggregating to Rs 2,500 crore.
Maruti Suzuki has unveiled the limited edition of one of its best-selling hatchback Swift at a price of Rs 5.45 lakh.
Bharti Airtel has launched Rs 448 unlimited prepaid plan bundled with unlimited calls, free national roaming, free SMS and 70 GB internet data.
TCS has entered into partnership with Eastern Communications for OSS/BSS transformation.