Indian
equity benchmarks ended the sluggish day of trade with marginal losses on
Tuesday, as traders remained cautious with a report from domestic rating agency
Care Ratings, which said that employment generation has not kept pace with GDP
expansion and termed it as a 'major concern'. Such a scenario calls for
proactive measures from government and the recent infrastructure building
efforts will help, it noted and said that employment growth has not kept pace
with economic growth. Traders overlooked report that the government has
extended the last dates of filing GSTR-2 and GSTR-3. The last date for filing
of GSTR-2 for the month of July, 2017 is 31st October, 2017, while the last date for filing of
GSTR-3 for the month of July, 2017 stands extended to 11th December, 2017. Besides, Finance Secretary
Ashok Lavasa statement that India's
fiscal deficit is on the path of recovery, with showing an ease of about 90
percent of the budget estimate for the full year at the end of September from
the level of 96.1 percent at the end of August, too failed to provide support.
However, losses remained capped with SBI Research in its latest report
accessing that Indian economy is likely to improve to 6 percent in the second
quarter of the current fiscal year 2017-18, as against 5.7 percent growth in
the first quarter of FY18. It also said that Q2 growth might be in the lower
end of 6-6.5 percent band with an upward bias. Traders also took some comfort
with report that India
is expecting a significant improvement in ranking in the World Bank's ease of
doing business index on the back of several steps taken by the government like
bankruptcy law and host of other reforms. Traders also got some solace with few
foreign investment banks, who have started revising upwards their targets for
the benchmark indices on the back of bank recapitalisation programme,
infrastructure push and continued inflow of domestic savings into equities and
said that best is yet to come for Sensex and Nifty. Finally, the BSE Sensex
lost 53.03 points or 0.16% to 33,213.13, while the CNX Nifty was down by 28.35
points or 0.27% to 10,335.30.
The US
markets ended modestly higher on Tuesday, reflecting a positive reaction to the
latest batch of earnings news. Overall trading activity was relatively light, and
traders are looking ahead to key economic data and earnings news in the coming
days. The closely watched monthly jobs report due to be released on Friday is
likely to be in focus, with employment expected to jump by 300,000 jobs in
October. In economy news report from the Conference Board showed a substantial
improvement in consumer confidence in the month of October. Its consumer
confidence index jumped to 125.9 in October from an upwardly revised 120.6 in
September. Economists had expected the index to inch up to 121.0 from the 119.8
originally reported for the previous month. With the much bigger than expected
increase, the consumer confidence index reached its highest level since hitting
128.6 in December of 2000. The Dow Jones Industrial Average gained 28.50 points
or 0.1 percent to 23,377.24, the Nasdaq gained 28.71 points or 0.4 percent to 6,727.67,
and the S&P 500 edged higher by 2.43 points or 0.1 percent to 2,575.26.
Crude
oil futures extending their bull run ended at eight month high on Tuesday, as
investors looked ahead to inventory data expected to show crude supplies fell
last week amid ongoing optimism that Opec will agree to extend output cuts. OPEC
Secretary General Mohammad Barkindo said that "OPEC welcomes the clear guidance
from the crown prince of Saudi Arabia
on the need to achieve stable oil markets and sustain it beyond the first
quarter of 2018." Saudi Arabia Crown Prince Mohammed bin Salman said last week,
the kingdom would support extending output cuts in order to rid the market of
excess supplies. Benchmark crude oil futures for December delivery ended higher
by 23 cents or 0.4 percent at $54.38 a barrel on the New York Mercantile
Exchange. Brent crude for December delivery gained 0.8 percent to $61.37 a
barrel on the ICE.
Extending
its winning streak for second consecutive session, Indian rupee ended stronger
against US dollar on Tuesday, as the US Fed's two-day policy meet gets under
way. Exporters and banks continued to give the American currency a wide berth.
Rupee sentiments also got some support with SBI Research's latest report
accessing that Indian economy is likely to improve to 6% in the second quarter
of the current fiscal year 2017-18, as against 5.7% growth in the first quarter
of FY18. It also said that Q2 growth might be in the lower end of 6-6.5% band
with an upward bias. However, the dollar's strength against other currencies
overseas and weak domestic stock markets cast a shadow on the rupee's gains. On
the global front, Euro slipped by a fraction against the Dollar on Tuesday
after data showed a surprise fall in Eurozone inflation during October.
Finally, the rupee ended at 64.74, 11 paise stronger from its previous close of
64.85 on Monday.
The
FIIs as per Tuesday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 5148.68 crore against gross selling
of Rs 5092.79 crore, while in the debt segment, the gross purchase was of Rs
1903.85 crore with gross sales of Rs 1491.51 crore.
The US
markets made a modestly higher closing in the last session and though the buying
interest was somewhat subdued, the tech-heavy Nasdaq reached a new record
closing high. Traders are looking ahead to key economic data and earnings news
in the coming days. The Asian markets have made mostly a positive start of the new
month, Japanese market was trading near all-time highs, as American consumer
confidence data strengthened optimism in the growth outlook and investors shrugged
off the latest turmoil in Washington.
The Indian markets after a lackluster trade ended modestly lower in the last
session following the subdued trend in the other global markets. Today, the
start is likely to be in green amid positive global cues and traders will be
reacting to the report of India's ranking in the World Bank ease of doing
business survey for 2018 climbing a record 30 notches to 100, as a range of
regulatory and policy reforms put in place by the Union and state governments
over the past four years started delivering results. The survey also recognized
India as one of
the top five reformers in this year's assessment. Finance minister Arun Jaitley
has said the target of making it to the top 50 countries in the Doing Business
ranking now seems doable. Traders will also get some encouragement from the
economy front, as the Core sector growth hit a six-month high in September. The
index of eight core industries was up 5.2% in September, compared with 4.4% in
August and 5.3% in September last year. Also, fiscal deficit improved to 91.3% of
the budget estimate at the end of September from 96.1% at the end of August as
revenues picked up pace. Fiscal deficit is pegged at Rs 4.99 lakh crore at the
end of September, down about Rs 26,000 crore from August as second instalment
of corporate taxes allowed revenue to exceed spending in the month. The banking
space will keep buzzing, as the Country's largest lender, State Bank of India
has announced a cut in marginal cost-based lending rates (MCLR) across
maturities by 5 basis points.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10335.30
|
10316.93
|
10360.68
|
BSE Sensex
|
33213.13
|
33153.51
|
33283.53 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Axis Bank
|
396.56
|
523.15
|
501.30
|
537.00
|
ICICI Bank
|
190.51
|
300.10
|
297.85
|
302.80
|
SBI
|
164.56
|
305.80
|
302.12
|
311.67
|
Tata Steel
|
135.45
|
703.80
|
690.73
|
723.33
|
Yes Bank
|
118.11
|
314.25
|
310.62
|
318.57 |
- Tata
Steel has reported net profit of Rs 1017.78 crore for the quarter under review
as against a net loss of Rs 49.38 crore for the corresponding quarter in the
FY17.
- Bharti
Telecom, promoter firm of Bharti Airtel, will acquire additional 4.62% at
market price in the telecom major on or after November 3.
- Adani
Ports and Special Economic Zone has
raised Rs 1,600 crore by allotment of 16,000 Non-Convertible Debentures
- IOC
has received approval for augmenting its Koyali-Sanganer pipeline capacity up
to 6 MTPA.