Daily Newsletter
NSE Intra-day chart (25 November 2019)
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 26 November 2019
Benchmarks to get an optimistic start taking lead from global markets

 

Bulls made a comeback over Dalal Street on Monday, with the Sensex and the Nifty ending higher by around 1.30% each. The start of the day was firm, after the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) jumped to Rs 76,773 crore at the end of October from Rs 76,611 crore at September-end. Adding some comfort among market participants, a survey by the National Statistical Office (NSO) showed that urban unemployment rate dropped to the lowest level in four quarters at 9.3 per cent during January-March 2019. Extending their earlier gains, key equity benchmarks settled the trading session near their intraday high points, on account of firm cues from European markets. Domestic sentiments got a boost, as the Organisation for Economic Cooperation and Development (OECD) forecasted Indian economy to grow 6.2% in 2020 and further to 6.4% in 2021. Further, investors also remained encouraged, with the Commerce and industry minister Piyush Goyal's statement that reform momentum towards self-certification, labour laws and environment clearance will boost investment and production. Finally, the BSE Sensex rose 529.82 points or 1.31% to 40,889.23, while the CNX Nifty was up by 159.35 points or 1.34% to 12,073.75.

 

The US markets ended higher on Monday on optimism about a US-China trade agreement after a tabloid run by China's ruling Communist Party discounted negative reports and said the economic superpowers are very close to a phase one deal. A private report said China remains committed to continuing talks for a phase two or even a phase three deal with the United States. President Donald Trump and Chinese President Xi Jinping have also recently made positive comments about a potential trade deal despite reports of complications arising that could delay the agreement until next year. Meanwhile, reports on the merger-and-acquisition front also generated positive sentiment, as the deals suggest companies remain confident even with the uncertainty created by the US-China trade dispute. Shares of The Medicines Company (MDCO) moved sharply higher after the biopharmaceutical company agreed to be acquired by Swiss drugmaker Novartis for $9.7 billion or $85 per share in cash. Jeweler Tiffany (TIF) also showed a strong move to the upside after agreeing to be acquired by France's LVMH for $16.2 billion or $135 per share in cash. Discount broker Charles Schwab (SCHW) also reached an agreement to acquire rival TD Ameritrade (AMTD) in an all-stock transaction valued at approximately $26 billion. Besides, the pro-democracy opposition in Hong Kong swept to a resounding victory in weekend elections, winning a commanding majority in the vote for 452 district council seats. District councils have little power, but the showing could put pressure on the government to negotiate with protesters demanding democratic elections for the city's legislature and chief executive. The result is also seen as a defeat for Beijing, which has pushed Hong Kong to crack down on protests.

 

Crude oil futures ended higher on Monday as worries about outlook for energy demand subsided a bit after positive comments from the US and China raised optimism about a phase one trade deal between the two countries. Besides, expectations that oil output cuts will be extended until mid-2020 by Organization of the Petroleum Exporting Countries (OPEC) and allies contributed as well to oil's uptick. The OPEC meeting is scheduled to take place on December 5 in Vienna. Benchmark crude oil futures for January gained 24 cents or 0.4 percent to settle at $58.01 a barrel on the New York Mercantile Exchange. January Brent rose 26 cents or 0.4 percent to settle at $63.65 a barrel on London's Intercontinental Exchange.

 

Erasing all of its initial gains, Indian rupee ended marginally weaker against the US dollar on Monday, due to increased demand of the greenback from the importers and the banks. Traders remained cautious with report that the government raised concerns over fake invoices being generated in the business-to-business (B2B) segment which is impacting GST collections. The domestic currency was also weighed down by dollar's strengthen against some other currencies. However, losses were limited as some optimism remained among the traders with RBI's report that India's forex reserves rose by $441 million to a fresh lifetime high of $448.249 billion in the week to November 15 on an increase in core currency assets. On the global front, euro edged lower against the dollar on Monday as investors remained cautious about the outlook for the euro zone economy in the near term. Finally, the rupee ended at 71.74, 3 paise weaker from its previous close of 71.71 on Friday.

 

The FIIs as per Monday's data were net buyers in both equity and debt segments. In equity segment, the gross buying was of Rs 5376.66 crore against gross selling of Rs 4769.72 crore, while in the debt segment, the gross purchase was of Rs 676.66 crore with gross sales of Rs 268.21 crore. Besides, in the hybrid segment, the gross buying was of Rs 41.02 crore against gross selling of Rs 1.41 crore.

 

The US markets ended in green on Monday amid increasing expectations that China and the US will reach a so-called phase one trade deal. Asian markets are trading mostly higher on Tuesday amid optimism over US-China trade talks and a fresh wave of merger and acquisition activity. Indian markets ended higher on Monday with Sensex hitting a fresh closing high of 40,889.23, driven by gains mainly in telecom, metal and auto stocks. Today, the markets are likely to make optimistic start following firm global cues. Traders will be taking some encouragement with the payroll data of Employees' State Insurance Corporation (ESIC) showing that around 12.23 lakh jobs were created in September as compared to 13.38 lakh in August 2019. As per the report, gross enrolments of new subscribers with the ESIC were 1.49 crore during the entire 2018-19 fiscal. Besides, the Central GST collection so far this fiscal stood at Rs 3.26 lakh crore, which is around half the government's target for 2019-20. The Budget Estimates for Central Goods and Services Tax (GST) for 2019-20 has been fixed at Rs 6,63,343 crore. Some support will also come with Union Minister Nitin Gadkari's statement that the government is in the process of launching Digital data-based credit ratings of Micro, Small and Medium Enterprises (MSME), to help entrepreneurs to get bank loans on the basis of these credit ratings. However, there may be some cautiousness as Indian government think tank NITI Aayog cautioned the government that the path to a $5-trillion economy by 2025 is plagued with several hindrances. It added that while the nominal gross domestic product (GDP) growth rate was a mere 8 per cent in the first quarter of this fiscal, it has to be at least 12.4 per cent on an average for achieving that target. Meanwhile, Finance minister Nirmala Sitharaman in Lok Sabha introduced the Taxation Laws (Amendment) Bill, 2019 that seeks to replace the ordinance, issued on September 20, to slash corporate tax rate to 22% without incentives and 15% for new manufacturing entities. There will be some buzz in the banking stocks with Minister of State for Finance Anurag Thakur's statement that the gross non-performing assets (NPAs) of scheduled commercial banks (SCBs) have declined by nearly Rs 98,000 crore to Rs 9.38 lakh crore by June-end this year. Telecom stocks will be in focus as a report said with the Cabinet allowing telecom operators to defer payments due for airwaves bought via auction until the end of March 2022, a committee of secretaries constituted to look at relief package for the debt-laden and loss-making sector has been wound-up. There will be some reaction energy stocks as the Indian Minister of New and Renewable Energy expressed confidence that the country will overachieve on its target to have 175 gigawatts of renewable energy capacity operational by 2022.

 

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

 

Index

Previous close

Support

Resistance

NSE Nifty

12,073.75

11,967.50

12,132.25

BSE Sensex

40,889.23

40,544.85

41,082.66

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank

1,719.23

63.75

62.20

65.40

Bharti Airtel

334.84

451.40

429.95

464.25

Tata Steel

276.12

419.50

408.00

426.00

SBI

275.61

336.10

330.47

339.62

Tata Motors

261.31

166.10

161.80

168.50

 

  • NTPC is planning to raise around Rs 10,000 crore through green bonds for acquisition of the government's stake in THDCIL and NEEPCO. 
  • The coal ministry has asked Coal India to either expedite the operationalization of 110 additional blocks allotted to it or return the mines to the government. 
  • SBI has raised Rs 3,813.60 crore through perpetual bonds to fund its business growth.  
  • Power Grid has been declared as the successful bidder in two Intra-State Transmission System Projects of UP State under Tariff Based Competitive Bidding.
News Analysis