The Indian equity markets snapped
the calendar year 2015 on a solid note with an optimism of a great year ahead.
Revival in corporate earnings, a stable monsoon after two successive drought
years and progress on tax reforms can be key domestic triggers for the markets
in 2016. Today, after training in tight range near neutral line for most part
of the session, the key gauges managed to gain some momentum and ended the
session with the gain of over half a percent. Sentiments got some support with
the report that foreign portfolio investors (FPIs) bought shares worth a net Rs
152.20 crore on December 30, 2015. Besides, short-covering by speculators in
view of December series expiry in the futures and options space also supported
the upside. Markets also derived some encouragement with falling oil prices and
ensuing mitigation of India's current account deficit. However, gains remained
capped with the head of the International Monetary Fund (IMF) Christine
Lagarde's statement that global economic growth will be 'disappointing' next
year. She said the prospect of rising interest rates in the US and an economic
slowdown in China were contributing to uncertainty and a higher risk of
economic vulnerability worldwide. Furthermore, Finance minister Arun Jaitley
said that subdued global economy and moderate private sector investment will
continue to pose challenge in the next year. On the global front, Asian shares
turned mixed on the final trading day of 2015, while many of them were not
trading for the day. Back home, the markets got off to a positive start despite
the mixed cues from the global peers. Investors remained cautious early in the
day but sentiments improved as the day progressed. The bourse moved in a narrow
range with a positive bias and touched their intraday lows in late morning
trade. However, second half of the session saw the key gauges capitalize on the
momentum and spurt to session's highest levels in dying hour. However, a mild
profit booking in dying moments of trade ensured that the key indices shut
shops off the intraday highs. Finally, the BSE Sensex gained 157.51 points or
0.61% to 26117.54, while the CNX Nifty ended up by 50.10 points or 0.63% to
7,946.35.
The US markets closed lower on
Thursday, ending the final trading day of 2015 with a whimper rather than a
bang, as the S&P 500 Index and the Dow Jones Industrial Average both
snapped multiyear winning streaks. The minutes of the December Federal Open
Market Committee meeting will be released in coming weeks, possibly giving
clues on the timing of the next US interest-rate move. On the economy front,
new applications for US unemployment benefits jumped by 20,000 to 287,000 in
the seven days ended December 26. This is the largest weekly increase since
February. Claims are at their highest level since the week of July 4. The
average of new claims over the past month, meanwhile, rose by 4,500 to a
seasonally adjusted 277,000. The four-week average smooths out sharp
fluctuations in the more volatile weekly report and is seen as a more accurate
predictor of labor-market trends. The Dow Jones Industrial Average lost 178.84
points or 1.02 percent to 17,425.03, the Nasdaq was down 58.44 points or 1.15
percent to 5,007.41 and the S&P 500 dropped 19.42 points or 0.94 percent to
2,043.94.
Crude oil futures recovering from
the last session's steep fall, inched higher on Thursday, trimming brutal
losses that saw prices drop to 6-year lows in December, but were still down for
second year after a race to pump by Middle East crude producers and U.S. shale
oil drillers created an unprecedented global glut. Benchmark crude oil futures
for February delivery ended up by $ 0.44, or 1.2 percent to $37.04, after
trading in a range of $36.22 and $37.79 a barrel on the New York Mercantile
Exchange. In London, Brent crude for February delivery closed at $36.76, up $0.30
on the ICE.
Indian rupee appreciated against
dollar on Thursday on account of dollar
selling by banks and exporters. Sentiment remained up beat after Qatar agreed
to lower gas prices for India. Additionally, smart rally in the local equity
markets also added to the positive milieu of Indian currency. Investors overlooked
Finance Minister Arun Jaitley's statement that the subdued global economy and
moderate private sector investment will continue to pose challenge in the next
year. On the global front, euro declined on Thursday, as European shares made a
soft start, tracking weakness in Chinese market, ahead of the New Year break. Finally,
the rupee ended at 66.14, 25 paise stronger against its previous close of 66.39
on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In the equity segment gross buying was of Rs 2093.56 crore against gross
selling of Rs 2111.39 crore, while in the debt segment, the gross purchase was
of Rs 845.24 crore with gross sales of Rs 376.06 crore.
The US markets turned lower on
the last day of the year and major indices ended down by around a percent. The
trading activity was relatively light and the sentiments were impacted by a
Labor Department report showing a bigger than expected increase in initial
jobless claims in the week ended December 26th. The Asian markets have once
again made a mixed start, with most of the indices closed for trade. Meanwhile,
China's first official indicator of the year signalled that manufacturing
conditions recovered some lost ground in December. The Indian markets ended the
year on a very optimistic note, gaining over half a percent despite volatility,
traders went for short covering on the expiry day of the F&O series. Today,
the start of the New Year is likely to be soft-to-cautious, while some of the
Asian peers are still not trading the US markets weakness is likely to weigh on
the sentiments. Traders will also be concerned with the Indian core sector
growth contracting by 1.3% in November after expanding for six consecutive
months, mainly dragged down by a sharp slowdown in electricity production and a
contraction in cement and steel output. Also, there will be some concern with
report that India's external debt rose 1.7% to $483.2 billion at the end of
September from the level in March due to long-term liabilities, especially
commercial borrowings and non-resident Indian deposits. The oil & gas and
power stocks will be in action after Qatar nearly halved the price of gas it
sells under a 25-year contract and waived a payment liability of Rs 12,000
crore arising from India's refusal to import the committed number of shipments
in 2015. The PSU oil marketing companies too may see some action, as the Petrol
price has been cut by 63 paise per litre while diesel rate was lowered by Rs
1.06 a litre.
Support
and Resistance: CNX Nifty and BSE Sensex
Index
|
Previous close
|
Support
|
Resistance
|
CNX Nifty
|
7946.35
|
7906.48
|
7970.88
|
BSE Sensex
|
26117.54
|
25990.42
|
26196.14
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
115.58
|
224.45
|
223.45
|
226.00
|
Bank of Baroda
|
88.96
|
156.65
|
154.10
|
159.10
|
Hindalco
|
88.03
|
84.75
|
83.47
|
85.77
|
Panjab Natioanl
Bank
|
81.69
|
115.70
|
114.63
|
117.28
|
Vedanta
|
80.1
|
90.40
|
89.48
|
91.88
|
Bharti Airtel has acquired the remaining balance paid up share capital i.e. 26 percent of Augere and with the said acquisition, Augere has become a wholly owned subsidiary of the company.
Tata Motors, one of India's largest manufacturers of automobile and commercial vehicles, is planning to assemble Automated Manual Transmission kits in India.
In order to revive its presence in the region, Maruti Suzuki, one of the leading car makers in India, is planning to commence exports of its new premium hatchback Baleno to the European Union.
Global auto parts major, Bosch has plans to suspend all production activity at its Bengaluru and Bidadi plants for two days from December 30 in order to adjust to the market demand.
Housing Development Finance Corporation has sold its 2.12 per cent stake in healthcare firm Indraprastha Medical Corporation through open market sale.