Bulls retained full charge over
Dalal Street on Tuesday, with Sensex & Nifty ending higher by around 2.30%
each. After a fabulous start, indices remained firm for the whole day, aided
with Minister of State for Finance Anurag Thakur's statement that the economy
is not in recession and India recorded the highest average growth among the G-20
nations during 2014-19. The minister also mentioned about continuous measures
being taken by the government to improve the overall investment climate and
boost the economic growth. Adding some comfort, Finance Minister Nirmala
Sitharaman said that the money raised through disinvestment will be used to
develop infrastructure, which will have multiplier effect on the economy and
not bridging revenue deficit. Key benchmarks extended their northward journey
in the second half of the trading session to settle near their intraday high
points, after Niti Aayog CEO Amitabh Kant termed the Union Budget pragmatic and
said the government is determined to bring Indian economy back to a high
trajectory growth path. He further said if the government will be able to achieve
disinvestment target of 2020-21 then the Budget will be very successful.
Besides, Reserve Bank of India Governor Shaktikanta Das headed six-member rate
setting panel started its three-day brainstorming meeting in the backdrop of
Union Budget projecting a widening of fiscal deficit amid slowing economy and
hardening inflation. Finally, the BSE Sensex gained 917.07 points or 2.30% to
40,789.38, while the CNX Nifty was up by 271.75 points or 2.32% to 11,979.65.
The US markets ended sharply
higher on Tuesday on the heels of strength in overseas markets, with Chinese
stocks rebounding following the nosedive seen as trading resumed on Monday.
Traders seem to expect China to announce additional stimulus to boost the
economy amid the fallout from the coronavirus outbreak. Private reports said
that China's central bank could cut its key lending rate as well as banks'
reserve requirement ratios (RRRs) in the coming weeks to support economic
growth. The report came a day after the People's Bank of China (PBOC) unveiled
liquidity injection measures to the tune of more than 1 trillion yuan. The PBOC
also injected another 400 billion yuan in liquidity. The coronavirus has now
claimed 425 lives and infected more than 20,000 people in mainland China. On
the economic front, partly reflecting a significant rebound in durable goods
orders, the Commerce Department released a report showing new orders for US
manufactured goods spiked by more than anticipated in the month of December.
The Commerce Department said factory orders surged up by 1.8 percent in
December after tumbling by a revised 1.2 percent in November. Street had
expected factory orders to jump by 1.2 percent compared to the 0.7 percent
decrease originally reported for the previous month. The bigger than expected
rebound in factory orders came as durable goods orders soared by 2.4 percent in
December after plunging by 3.1 percent in November. The rebound was unrevised
from the previously reported data. New orders for non-durable goods also showed
a significant increase, surging up by 1.1 percent in December after climbing by
0.7 percent in November.
Crude oil futures ended lower on
Tuesday on concerns over the outlook for energy demand amid the rapidly
spreading coronavirus outbreak in China. US prices below $50 a barrel for the
first time in more than a year. Market participants were worried that the
spread of the virus could have a substantial economic impact on the
second-largest economy and the biggest importer of crude oil. As of midnight
Monday, China had 20,438 diagnosed coronavirus cases, with 425 deaths,
according to China's National Health Commission. Oil Prices dropped even as the
Organization of the Petroleum Exporting Countries and its allies considered
deeper production cuts to stem a coronavirus-inspired tumble in the commodity
that entered a bear market a day ago. Crude oil futures for March declined 50
cents or 1 percent to settle at $49.61 a barrel on the New York Mercantile
Exchange. April Brent fell 49 cents or 0.9 percent to settle at $53.96 a barrel
on London's Intercontinental Exchange.
Indian
rupee strengthened against dollar on Tuesday on increased selling of the
American currency by exporters and banks. Sentiments remained positive with
Minister of State for Finance Anurag Thakur's statement that the economy is not
in recession and India recorded the highest average growth among the G-20
nations during 2014-19. The minister also mentioned about continuous measures
being taken by the government to improve the overall investment climate and
boost the economic growth. A spectacular relief rally in local equities coupled
with softening crude oil prices also supported the forex sentiment. However,
gains remain capped as anxiety remained among the traders with Fitch Ratings'
statement that India is expected to clock a GDP growth of 5.6% in the next
financial year, as Budget 2020 has not materially altered its view on the
country's growth outlook. On the global front, Sterling fell to nearly a
six-week low on Tuesday, extending the previous day's losses, undermined by
dollar strength across the board and renewed hard Brexit fears after Prime
Minister Boris Johnson's tough tone on European Union trade talks. Finally, the
last traded price of rupee was 71.27, 11 paise stronger from its previous close
of 71.38 on Monday.
The
FIIs as per Tuesday's data were net buyers in both equity and debt segments. In
equity segment, the gross buying was of Rs 9548.40 crore against gross selling
of Rs 7697.83 crore, while in the debt segment, the gross purchase was of Rs
1358.51 crore with gross sales of Rs 1155.36 crore. Besides, in the hybrid
segment, the gross buying was of Rs 2.29 crore against gross selling of Rs 2.66
crore.
The US markets ended higher on
Tuesday as fears of a heavy economic impact from the coronavirus outbreak waned
after China's central bank intervened. Asian markets are trading in green on
Wednesday on hopes of additional Chinese stimulus to lessen the economic impact
of the coronavirus outbreak. Indian markets ended significantly higher on
Tuesday, as investors opted for low-level buying in beaten-down stocks,
tracking firm global cues and the recent slide in crude prices. Today, the
markets are likely to make flat-to-positive start tracking positive cues from
global markets. Investors will be eyeing services PMI data for the month of
January due later in the day. Also, The RBI's Monetary Policy Committee meeting
will be closely monitored by the domestic market participants. Traders will be
taking some support with report that India and the US are set to seal a trade
deal during President Donald Trump's planned visit to India in the last week of
this month. Some support will also come with report that the Foreign Direct
Investment (FDI) in India has been increasing on an annual basis and was at
$34.90 billion till November of this fiscal. The FDI stood at $62 billion in
the full 2018-19 fiscal, while at $60.90 billion in 2017-18 and $60.22 billion
during 2016-17. Though, some cautiousness may come with report that direct tax
collections from April 2019 to February 3, 2020, are at Rs 7.40 lakh crore
versus the revised budget estimates of Rs 11.70 lakh crore. Investors may take
note of Moody's Investors Service's statement that economic growth projections
made by Finance Minister Nirmala Sitharaman in her Budget for 2020-21 appear
ambitious given the structural and cyclical challenges facing the Indian
economy. Stating that growth outlook will remain weak, it has put real GDP
growth during the current fiscal ending March 31 at 4.9 per cent, slightly
below the government's forecast of 5 per cent. For the next fiscal, it
estimated real GDP growth of 5.5 per cent, lower than 6-6.5 per cent projected
by the government's Economic Survey. Meanwhile, Markets regulator SEBI came out
with a common application form for registration of foreign portfolio investors
in order to enhance operational flexibility and ease of access to Indian
capital market. NBFCs stocks will be in focus with rating agency CRISIL's
report that realty exposure of non-banking financial companies (NBFCs), which
is out of moratorium, has a bad loan ratio of over 10 per cent as of September
2019 and the fear is rest of the book under moratorium may go the same way.
There will be lots of important earnings announcements too, to keep the markets
in action.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,979.65
|
11,846.65
|
12,049.40
|
BSE Sensex
|
40,789.38
|
40,331.58
|
41,033.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,382.31
|
34.95
|
34.13
|
36.08
|
SBI
|
511.42
|
306.25
|
299.72
|
310.17
|
Tata Motors
|
490.35
|
165.70
|
161.73
|
169.13
|
ITC
|
357.68
|
215.65
|
210.67
|
219.12
|
ZEEL
|
229.76
|
244.50
|
232.77
|
262.12
|
Bajaj Auto has registered a fall of 3% in total sales to 394,473 units in January 2020 against 407,150 units in January 2019.
L&T's construction arm has been awarded an order by Etihad Rail Company PJSC for the design and build of freight handling facilities at 7 strategic locations across UAE.
IOC has reported product sales volumes including exports at 23.409 MT for the third quarter of FY20.
Tata Motors has commenced bookings for its Harrier BSVI range, with the introduction of the much- awaited Automatic Transmission variants.