Indian equity benchmarks
witnessed consolidation on Monday amid volatility, as traders remained on
sidelines ahead of GST Council meeting, slated later during the week which is
expected to consider lowering of the 28 percent GST rate on certain common use
items. After a cautious start markets traded choppy in first half, as
sentiments remained dampened on foreign brokerage report which highlighting
adverse macroeconomic impact of rise in crude oil prices, said every $10 per
barrel rise in the price will worsen India's fiscal balance by 0.1 percent and
current account balance by 0.4 percent of GDP. At the same time, it also
estimated that every $10/bbl rise in crude oil price would hit the central
government's fiscal balance by 0.1 percent of GDP. It also added that every
$10/bbl rise in crude oil price would increases CPI inflation by 0.6-0.7
percentage points. Markets gained momentum and entered into green terrain in
second half of trade to hit all time record highs. Traders took some
encouragement with report that government could consider a proposal to stagger
deadlines for filing of monthly returns under the Goods and Services Tax for
small and large firms. The move would ensure that the rush towards the last few
days gets partly dissipated and leads to lower burden on the IT systems as well
that often leads to large delays in uploading of returns and invoices. Some
support also came with Prime Minister Narendra Modi's statement that the
recently introduced GST regime will further improve India's ranking in the ease
of doing business and pointed that the recent ranking did not take into account
implementation of GST. However, profit booking which emerged in dying hour of
trade mainly dragged key indices near neutral lines and domestic bourses ended
flat. Finally, the BSE Sensex gained 45.63 points or 0.14% to 33,731.19, while
the CNX Nifty was down by 0.70 points or 0.01% to 10,451.80.
The US markets closed higher on
Monday, with all three main equity benchmarks finishing at all-time highs on
the same day for the 26th time in 2017, marking a fresh record for simultaneous
closing highs in a calendar year for the trio. The previous record was 26
closing records hit in 1995 for all three benchmarks, matched last Friday. Healthy
corporate earnings and megamerger talks between chip makers Broadcom and
Qualcomm kept stocks in positive territory despite unsettling developments in
Saudi Arabia where more than five dozen princes, ministers and prominent
businessmen were purged over the weekend. The Atlanta Federal Reserve's GDPNow
forecast model showed that the US economy is on track to grow at a 3.3 percent
annualized pace in the fourth quarter based on the latest data on US payrolls
and business inventories. Separately, a Federal Reserve quarterly survey showed
that loan officers at US banks reported easing standards for business loans
while terms for commercial real estate loans remained unchanged. The Dow Jones
Industrial Average added 9.23 points or 0.04 percent to 23,548.42, the Nasdaq
gained 22.001 points or 0.33 percent to 6,786.44, and the S&P 500 edged
higher by 3.29 points or 0.13 percent to 2,591.13.
Crude oil futures extended their
surge on Monday after Saudi Arabia Crown Prince Mohammed bin Salman, through an
anti-corruption crackdown made a series of moves to consolidate his power. The anti-corruption
drive led by Saudi Arabia Crown Prince resulted in wave arrests of prominent
Saudi Arabian including royals, ministers and investors, fuelling political
risk in the region. The anti-corruption crackdown comes as optimism grew for an
extension to the output-cut agreement beyond March amid comments from Saudi
energy minister Khalid al-Falih. Benchmark crude oil futures for December
delivery ended higher by $1.71 or 3.1 percent at $ 57.35 a barrel on the New
York Mercantile Exchange. Brent crude for January delivery was up by 3.3
percent to $64.11 a barrel on the ICE.
Indian
rupee depreciated against dollar on Monday, due to fresh dollar demand from
banks and importers amid foreign fund outflows. Sentiments remained down-beat
with a private report highlighting adverse macroeconomic impact of rise in crude
oil prices, said every $10 per barrel rise in the price will worsen India's
fiscal balance by 0.1 percent and current account balance by 0.4 percent of
GDP. Sentiments were also dampened by lackluster trade in the equity markets.
However, dollar's weakness against some currencies overseas restricted the
rupee's fall. On the global front, dollar was little changed on Monday after
investors took profits on its best weekly performance this year, with wariness
about the status of the US economy and tax reform plans setting the tone.
Finally, the rupee ended at 64.68, 13 paise weaker from its previous close of
64.55 on Friday.
The
FIIs as per Monday'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
4688.52 crore against gross selling of Rs 4240.13 crore, while in the debt
segment, the gross purchase was of Rs 1608.72 crore with gross sales of Rs
1813.89 crore.
The US markets moved modestly
higher in the last session making another record high for the major averages, amid
optimism about the economy and the likelihood of passage of the republican tax
reform plan. The Asian markets have made mostly a positive start and some of
the indices have surged around a percent as President Donald Trump tried to
tackle trade on his Asia tour. The Japanese Nikkei reached its highest level in
more than 21 years. The Indian markets turned to consolidation mood in last
session, traders remained on sideline ahead of more earnings due this week. Today,
the start is likely to be good on positive global cues and traders will be
drawing encouragement with reports that the government is considering a major
overhaul of the goods and services tax (GST) as suggested by a ministerial
panel. It has been reported that the government may review the requirement of
filing at least three returns every month under the GST regime with a view to
easing compliance burden of taxpayers. Meanwhile, ahead of the first
anniversary of demonetisation, Finance Minister Arun Jaitley has said that
excessive cash in the economy has "its own cost" and India is
gradually moving towards digital transactions. There will be some buzz in the
engineering sector stocks, on report that Indian engineering exports are
benefiting from an impressive turnaround in demand in most of the developed
economies, including the US and Europe. The oil companies too may see some
action as the international crude oil prices edged lower on Tuesday after
posting the biggest gains in six weeks a day earlier. There will be lots of
important earnings announcement to keep the markets buzzing for the day.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10451.80
|
10413.55
|
10490.25
|
BSE Sensex
|
33731.19
|
33592.91
|
33858.95
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Tata Motors
|
194.57
|
462.90
|
448.30
|
472.75
|
SBI
|
171.43
|
329.00
|
323.63
|
332.18
|
ONGC
|
163.63
|
199.25
|
193.42
|
202.77
|
ICICI Bank
|
163.49
|
316.10
|
311.75
|
320.35
|
Hindalco
|
105.82
|
272.95
|
264.43
|
278.03
|
ITC is planning to invest Rs 10,000 crore to set up food processing facilities on a pan India basis.
Power Grid Corporation of India is planning to raise around Rs 3,000 crore through masala bonds.
Tech Mahindra is planning to train an additional 10,000 employees on automation in 2017.
Tata Steel has commissioned the country's largest Coke Dry Quenching facility at the Kalinganagar Industrial Complex in Jajpur district of Odisha.