Indian equity benchmarks ended
the lackluster day of trade in red terrain on Wednesday with frontline gauges
ending below their crucial 34,000 (Sensex) and 10,500 (Nifty) levels. Selling
which emerged in last leg of trade mainly played spoil sport for the markets
and dragged the markets lower. Markets after a cautious start gained traction
and traded in green terrain for most part of the day's trade, as sentiments
remained up-beat on report that the Securities and Exchange Board of India
(SEBI) board will consider proposals to ease compliance norms for insolvent
firms - especially with regard to trading, listing and de-listing, and
declaring results-at its meeting on Thursday. Traders also took some
encouragement with rating agency ICRA's expectations that gross value added
(GVA) growth to rise by 50 basis points in 2018-19 to 7 per cent, on the back
of normal monsoon, a commitment towards fiscal consolidation at the Central and
State level, and the commencement of broader efficiency gains related to Goods
and Services Tax (GST). Some support also came from report that the State Bank
of India's Composite Index, an indicator of manufacturing activity that helps
estimate periods of contraction and expansion, has showed that Indian
manufacturing activity in December improved marginally over the previous month
taken over a yearly period, while the index fell more sharply on a month-wise
comparison, amid the worries of GST rollout weighing down the manufacturing
sector. However, sharp sell-off in dying hour of trade dragged key gauges
lower, as traders opted to book profit with markets trading at all time high
levels. Traders also remained concerned with GST collections slipping to their
lowest in November as rates were cut on dozens of goods to make the new
national sales tax regime more acceptable. Total collections under the GST in
November slipped for the second straight month to Rs 80,808 crore, down from
over Rs 83,000 crore in the previous month. Investors took note that Grant
Thornton in its latest International Business Report (IBR) has said that
business leaders in India remained largely positive, but their level of
optimism has dropped to its lowest level in four years. Finally, the BSE Sensex
declined 98.80 points or 0.29% to 33,911.81, while the CNX Nifty was down by
40.75 points or 0.39% to 10,490.75.
The US markets closed slightly
higher on Wednesday, with major indexes halting a two-day skid, although
trading activity was subdued as investors found few fresh catalysts in what is
typically one of the lowest-volume weeks of the year. On the economy front,
pending-home sales ticked up 0.2% in November. The National Association of
Realtors (NAR) said that its index of pending home sales tracks real-estate
transactions in which a contract has been signed, but the deal hasn't closed.
The index reading was 109.5, where 100 is equal to the average level of
contract activity during 2001. That is 0.8% higher than a year ago. The housing market's biggest headwind remains
extremely lean levels of inventory available for sale. In November, NAR said
there were 3.4 months' worth of homes for sale, the lowest on record back to
1999. However, consumer confidence fell in December, a month after hitting a
17-year high, but the level of optimism among Americans this year was the
highest since 2000. The index slipped to 122.1 this month from a revised 128.6
in November. The Dow Jones Industrial Average added 28.09 points or 0.11
percent to 24,774.30 and the Nasdaq gained 3.087 points or 0.04 percent to
6,939.34, and the S&P 500 edged higher by 2.12 points or 0.08 percent to
2,682.62.
Crude oil futures turned lower on
Wednesday on some profit taking and as the prospect of prolonged supply
disruptions in Libya eased following an update from Libyan state oil firm NOC.
A day before, prices were lifted by supply interruptions in the North Sea and
Libya, where a bomb went off on a major pipeline. Benchmark crude oil futures
for January delivery ended lower by $0.33 at $59.64 a barrel on the New York
Mercantile Exchange. Brent crude for February delivery was down by 0.54 percent
to $65.90 a barrel on the ICE.
Continuing
its downward slide for the second day in a row, Indian rupee ended marginally
weaker against dollar on Wednesday, on the back of sustained month-end demand
for the US currency from importers and banks. Sentiments remained dampened with
Grant Thornton's latest International Business Report (IBR) stating that though
business leaders in India remained largely positive, their level of optimism
has dropped to its lowest level in four years. The rupee's losses were also
caused by late hour sell-off in domestic equity markets. However, losses were
limited with rating agency ICRA's expectations that gross value added (GVA)
growth to rise by 50 basis points in 2018-19 to 7%, on the back of normal
monsoon, a commitment towards fiscal consolidation at the Central and State
level, and the commencement of broader efficiency gains related to Goods and
Services Tax. On the global front, dollar eased against a basket of currencies
and fell against the euro on Wednesday in thin holiday trading, while a rally
in commodity prices helped push the Canadian and Australian dollars to their
highest levels in two months. Finally, the rupee ended at 64.15, 7 paise weaker
from its previous close of 64.08 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 3605.63 crore against gross selling of Rs 2351.22 crore, while
in the debt segment, the gross purchase was of Rs 1680.77 crore with gross
sales of Rs 1655.82 crore. Besides, in the hybrid segment, there was no buying
against gross selling of Rs 1.63 crore.
The US markets managed a modestly
positive close in the last session, though the trade remained lackluster, as
overall activity was light once again, as many traders remained away from their
desks following Christmas and ahead of the holiday on New Year's Day. The Asian
markets have made a green start and some of the indices were near the record
high. Japanese market too was in green as the Industrial production in the
country rose in November, fueled by strong growth in exports, Retail sales too
rebounded to top expectations. The Indian markets witnessed some late hour
selling that dragged the benchmarks lower in the last session. Today, the start
of the F&O series expiry session is likely to be cautious and lots of
volatility can be seen with the progress of the trade and as the traders balance
their positions to the new series. There will be some cautiousness in the
markets with the government decision to make additional borrowing of Rs 50,000
crore this fiscal through dated securities, a move that may put burden on the
fiscal deficit target of 3.2 percent of GDP. There will be buzz in the banking
sector, as the global rating agency Standard & Poor's (S&P) on the
basis of the economy and industry risk criteria has classified the Indian
banking sector under 'Group 5' along with countries such as Italy, Spain,
Ireland, the UAE and South Africa and has said that Banks' asset quality is
weak and has been deteriorating in the past four years, accentuated by
historically weak foreclosure laws. There will be some buzz in the insurance
sector stocks, as the Insurance Regulatory Development Authority of India
(IRDAI) issuing enabling regulations for undertaking offshore insurance
business from the only operational International Financial Services Centre
(IFSC), at Gujarat International Finance Tec City (GIFT). The auto stocks too
will be in focus, as the Lok Sabha has approved a bill to hike cess on luxury
vehicles from 15 to 25 per cent with a view to enhance funds to compensate
states for revenue loss following the rollout of GST.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10490.75
|
10455.87
|
10539.02
|
BSE Sensex
|
33911.81
|
33788.22
|
34086.68
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Sun Pharma
|
233.56
|
576.30
|
552.33
|
590.98
|
SBI
|
142.76
|
314.85
|
311.83
|
319.08
|
Vedanta
|
91.25
|
326.20
|
321.78
|
329.43
|
Yes Bank
|
89.12
|
315.15
|
312.68
|
318.28
|
ONGC
|
72.60
|
192.60
|
190.63
|
195.28
|
HDFC Bank has tied-up with Sohan Lal Commodity Management having operations across India and Myanmar in order to provide collateral management services.
M&M's chairman Anand Mahindra has picked 16.7% equity in Bayside Sports.
L&T's construction arm -- L&T Construction has won orders worth Rs 1125 crore across various business segments.
Yes Bank has become first to establish MTN Programme on Global Securities Market.