Indian benchmark equity indices halting four consecutive
session's losing streak emerged triumphant on Monday. The relentless and across
the board value picking ensured that the frontline indices settle closer to the
psychological 8,500 (Nifty) and 27,450 (Sensex) levels amid positive
developments on US election front as the FBI said Hillary Clinton would not
face charges over her use of a private e-mail server. The news lifted a cloud
over Clinton's presidential
campaign two days before the U.S.
election. On the domestic front, sentiments also got some support from reports
that foreign direct investment (FDI) into the country grew by over 30 percent
to $21.62 billion during the first half of 2016-17. During April-September of
2015-16, India
received FDI worth $16.63 billion. Furthermore, National Council of Applied
Economic Research (NCAER) pegged India's
GDP growth at 7.6 percent for the current fiscal on back of pick-up in rural
demand and positive signals on the manufacturing front. Adding the optimum
among the investors London's Deputy
Mayor for business Rajesh Agarawal said no country can overlook India
which is emerging as a strong country with a galloping economic growth rate. He
also said that India
and UK have
business and cultural ties for centuries and due to this Indians enjoy good
influence in various sectors in UK.
However, gains remained capped on the report that Reserve Bank of India (RBI)
is expected to maintain a status quo in the upcoming December meet and will go
for a 25 bps rate cut each in its February and April policy review meeting.
According to the report, the accommodative policy stance of the central bank
would be largely driven by weak global growth and the fact that inflation is
expected to be on track to its March-2017 target of 5 per cent. On the global
front, Asian markets settled on a positive note on Monday, while European
markets opened strong. Back home, finally, the BSE Sensex gained 184.84 points
or 0.68% to 27458.99, while the CNX Nifty rose 63.30 points or 0.75% to
8,497.05.
The
US markets made a sharp bounce back and moved higher on Monday and the major
averages regained ground after ending last Friday's trading at their lowest
closing levels in about four months. Traders' optimism strengthened with FBI once
again clearing Democratic presidential nominee Hillary Clinton of criminal
charges related to her use of a private email server while Secretary of State,
which seemed boosting her chances of emerging victorious on Election Day on
Tuesday. On the economy front, a report released by the Federal Reserve said
that consumer credit in the U.S.
increased by a little more than expected in the month of September. As per Fed
report consumer credit climbed by $19.3 billion in September after jumping by
an upwardly revised $26.8 billion in August. The Fed also said non-revolving
credit such as student loans and car loans increased by $15.1 billion in
September after surging up by $21.2 billion in August. The Dow Jones Industrial
Average surged by 371.32 points or 2.1 percent to 18,259.60, the Nasdaq soared 119.80
points or 2.4 percent to 5,166.17 and the S&P 500 ended higher by 46.34 points
or 2.2 percent to 2,131.52.
Crude
oil futures stabilized on Monday and moved a bit higher after witnessing significant
losses last week, as markets rallied on expectations Hillary Clinton will win a
close election against Donald. Also, OPEC reaffirmed its commitment to cutting
output. OPEC secretary-general Mohammed Barkindo said Monday the cartel is
committed to a planned cut in output to 32.5-33 million barrels per day to
address a supply glut. Though, major gains were capped with traders remaining
skeptical about production cut, as a number of key producers say they should be
exempt. Iran is
arguing they should be free to pump oil after years of crippling sanctions. Benchmark
crude oil futures for December delivery gained $0.88 or 1.9 percent to close at
$44.89 a barrel on the New York Mercantile Exchange. In London,
Brent oil futures for December delivery declined by $0.57 or 1.32 percent to $46.15
a barrel on the ICE.
Indian rupee depreciated against the US dollar on Monday,
after FBI said that Hillary Clinton would not face criminal charges over her
use of a private email server, easing worries over her US presidential bid. Sentiments also remained dampened with
report that Reserve Bank of India (RBI) is expected to maintain a status quo in
the upcoming December meet. According to the report, the accommodative policy
stance of the central bank would be largely driven by weak global growth and
the fact that inflation is expected to be on track to its March-2017 target of
5 per cent. However, strong gains in the domestic equity markets capped the
rupee losses. Finally, the rupee ended at
66.73, 3 paise weaker from its previous close of 66.70 on Friday.
The FIIs as per Monday's data were net buyers in equity and
debt segments both. In equity segment, the gross buying was of Rs 5125.38 crore
against gross sell of Rs 4632.80 crore, while in debt segment, the gross
purchase was of Rs 827.53 crore with gross sales of Rs 344.80 crore.
The US
markets surged in last session and all the major averages posted their biggest
one-day percentage gain since March 1, ahead of US
presidential election on improving prospects for Democrat Hillary Clinton to
win. Clinton is seen by investors
as offering greater certainty and stability. The Asian markets have made mostly
a positive start on Tuesday, with investor sentiment buoyed by improving
prospects for Democrat Hillary Clinton to win. The
Indian markets snapping four session losing streak closed with good gains in
last session on some upbeat earnings announcement and US
Presidential election output hopes. Today, the start is likely to be in green
and the markets will be extending the gains, though some cautiousness will be
seen too ahead of the US
presidential election and traders will also be eyeing the different
announcements from UK Prime Minister Theresa May, who is on Indian visit. Meanwhile,
a report has stated that GST benefits are likely to accrue over time rather
than immediately, though in the long run the indirect tax regime will boost
growth, lower costs and strengthen tax revenues. It added that it expects over
time, as the GST council widens the tax net, minimises the tax slabs and lower
the standard tax rates, the benefits will be substantial. There will be some
buzz in the hotel stocks, as the Hotel and Restaurant Association of Western
India (HRAWI) has said that the government's four-tier structure in Good and
Services Tax (GST), in which the service sector will be taxed at 18 percent,
will cause the tourism sector a major setback. The auto industry too will be in
action after it discussed with Revenue Secretary Hasmukh Adhia, the rate of
cess and definition of luxury cars under the GST regime, which is likely to
kick in from April next. There will be lots of scrip specific actions based on
earnings announcement.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8497.05
|
8473.72
|
8528.12
|
BSE Sensex
|
27458.99
|
27374.76
|
27567.19 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ITC
|
242.68
|
256.50
|
249.12
|
261.77
|
ICICI Bank
|
170.37
|
278.70
|
273.73
|
282.43
|
Hindalco
|
139.27
|
167.60
|
163.08
|
170.43
|
SBI
|
112.24
|
252.70
|
247.50
|
255.90
|
Tech Mahindra
|
70.39
|
444.85
|
433.78
|
452.68 |
- Maruti
Suzuki and its parent Suzuki Motor are working to develop low-cost hybrid
compact cars as they prepare to maintain their stronghold in the Indian market
with eco-friendly vehicles expected gain traction.
- State
Bank of India
is reportedly planning to raise Rs 5000 crore during the third quarter of the
current fiscal year.
- Tata
Motors' subsidiary -- Jaguar Land Rover (JLR) has reported its best ever
October retail sales of 46,325 vehicles, up 11% compared to October 2015.
- L&T-MHPS
Boilers, a joint venture of Larsen & Toubro and Mitsubishi Hitachi Power
Systems, Japan,
has signed a Technology Licence Agreement for Selective Catalytic Reduction
systems with MHPS.
- Reserve
Bank of India
has increased the foreign holding limit to 30% of the paid-up capital in Grasim
Industries under the portfolio investment scheme.