Indian equity benchmarks ended
the Tuesday's trade with a cut of around one third of a percent, as traders
opted to book profit after eight day winning streak ahead of November
derivatives expiry and release of September-quarter GDP data later in the week.
Markets started the session on pessimistic note on report that tax collection
under the Goods and Services Tax (GST) was lower at Rs 83,346 crore in October,
against a mop-up of over Rs 90,000 crore in September. The Finance Ministry
said that total collection stood at Rs 83,346 crore till November 27 for the
month of October and 50.1 lakh returns were filed for the month. Sentiments
also remained dampened with rating agency CRISIL enlightening that India's
competitiveness in the labour intensive export sectors has been on a declining
path in the last decade and needs significant structural reforms that need to
be addressed. The agency analyzed the competitiveness of the labour intensive
export sectors namely, gems & jewellery, leather & leather products and
readymade garments which showed that these have become less competitive over
the last decade. However, markets witnessed recovery and gained green terrain
with traders taking some solace with report that the government sticking to its
promise to lower the tax burden on India Inc is exploring the possibility of
reducing the corporate tax rates for larger firms as well. The exact quantum of
the cut in corporate tax rate is expected to be finalised closer to the
presentation of the Union Budget 2018-19, but revenue implications also have to
be factored in. Some comfort also came with report that Asian Development Bank
is expecting the Indian economy to pick up in the coming quarters and grow by 7
per cent this fiscal. Meanwhile, the Industry body, Federation of Indian
Chambers of Commerce and Industry (FICCI) in its latest Economic Outlook Survey
forecasted India's GDP growth to improve to 6.2 percent in Q2FY18 and rise
further to 6.7 percent in Q3FY18. Though, the recovery proved short lived with
selloff in last leg of trade once again pulled key gauges back into red
trajectory to end near intraday lows. Finally, the BSE Sensex declined 105.85
points or 0.31% to 33,618.59, while the CNX Nifty was down by 29.30 points or
0.28% to 10,370.25.
The US markets closed higher on
Tuesday, after bouncing around during the regular session as geopolitical
tensions and domestic developments pulled the market in different directions.
All three main indexes traded in record territory earlier but came off highs as
North Korea tested a ballistic missile for the first time in more than two
months. North Korea fired a ballistic missile which is believed to have flown
about 620 miles before landing in the water between the Korean Peninsula and
Japan. On the economy front, consumer confidence surged yet again in November,
with the index jumping to 129.5 from 125.9 in October. That's the highest
reading since November 2000 and easily exceeded the 124.8 forecast. Consumers
were even more optimistic about the next six months. An index of future
expectations rose to 113.3 from 109, besting a smaller increase in a gauge of
current conditions. The present situation index edged up to 153.9 from 152. The
S&P/Case-Shiller national index rose a seasonally adjusted 0.7% during the
three-month period ending in September, and was up 6.2% compared to the same
period a year ago. The Dow Jones Industrial Average added 255.93 points or 1.09
percent to 23,836.71, the Nasdaq gained 33.837 points or 0.49 percent to
6,912.36, and the S&P 500 edged higher by 25.62 points or 0.98 percent to
2,627.04.
Crude oil futures declined
further on Tuesday ahead of U.S. inventories data and amid ongoing investor
uncertainty concerning the outcome of the OPEC meeting this week with reports
suggesting Russia is reluctant to join in extending output curbs beyond March. Traders
remain uncertain about whether OPEC will announce a meaningful extension of its
supply quota plan with Russia. Earlier a joint OPEC and non-OPEC Committee
reportedly recommended extending output cuts through the end of 2018. Benchmark
crude oil futures for January delivery ended lower by $0.12 or 0.2 percent at
$57.99 a barrel on the New York Mercantile Exchange. Brent crude for January
delivery was down by $ 0.13 to $63.25 a barrel on the ICE.
Rising
for the second straight day, Indian rupee ended marginally stronger against
dollar, owing to dollar sale by exporters and banks. Traders took some support
with FICCI's latest Survey that India's GDP growth rate is expected to rise to
6.2 percent in the second quarter of the current fiscal as the adverse impact
of demonetisation and GST appears to be bottoming out. Though, lackluster trade
in the equity markets limited further appreciation of Indian currency. On the
global front, dollar held steady versus yen on Tuesday and held above a
two-month low, with the near-term focus on a possible Senate vote on a US tax
plan later in the week. Finally, the rupee ended at 64.41, 9 paise stronger
from its previous close of 64.50 on Monday.
The
FIIs as per Tuesday'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
7521.88 crore against gross selling of Rs 4518.00 crore, while in the debt
segment, the gross purchase was of Rs 603.79 crore with gross sales of Rs
696.82 crore.
The US markets ended higher in
the last session and the major averages climbed to new record closing highs, due
to news the Republican tax reform bill took another key step forward, as the
legislation was approved by the Senate Budget Committee. The Asian markets have
made a mixed start and some of the indices are trading in red after a North
Korean missile test. The Japanese market
was up as the yen declined with Federal Reserve chair nominee Jerome Powell
signal of a lighter touch on financial regulations. The Indian markets lost
their way completely in the final hours and ended with cut of over a quarter
percent in the last session, as traders went for profit taking following recent
sharp gains. Today, the start of the penultimate session of F&O series
expiry is likely to remain cautious on mixed regional cues and there will be
some concern with a private report, stating that both goods and services tax
(GST) collections as well as its compliance in the first four months since the
rollout of the new tax regime remain well be below the target, and the
situation is unlikely to improve in the near- term. Though, traders will be
taking some encouragement with Prime Minister Narendra Modi's statement who
called upon entrepreneurs from across the globe to make India their base for
the world. He said, India has emerged as one of the fastest-growing economies
and a happening place with immense opportunities in a number of areas. I assure
you of government support to ensure your success. Meanwhile, Minister for
Petroleum and Natural Gas, Dharmendra Pradhan has made a strong case for
inclusion of natural gas in the Goods and Services Tax, saying that if polluting
coal can be included, then the environment-friendly fuel certainly deserves a
place in the new regime. There will be buzz in the insurance pack, as the
global rating agency Moody's in its latest report has said that non-life
insurance sector is likely to maintain its double digit growth over the next
three to four years, aided by a higher economic expansion and increased
household spending.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10370.25
|
10347.12
|
10401.47
|
BSE Sensex
|
33618.59
|
33540.11
|
33733.61
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
NTPC
|
179.09
|
182.80
|
181.45
|
185.05
|
ITC
|
175.09
|
257.00
|
255.60
|
258.80
|
SBI
|
160.55
|
332.00
|
329.90
|
335.40
|
ICICI Bank
|
139.29
|
313.20
|
311.52
|
315.12
|
Power Grid
|
121.20
|
208.35
|
206.37
|
210.17
|
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ITC is planning to invest around Rs 10,000 crore in the coming years to strengthen food processing business.