Extending winning streak for
fourth straight day, Indian equity benchmarks once again settled at fresh
record closing high levels, though gains remained minimal with traders turning
cautious ahead of the corporate results season kicking in this week. Markets
traded mostly in green during the day with traders taking some support from
report that the Commerce and Industry Ministry is mulling incentives for States
that play a proactive role in promoting exports as it will help boost economic
growth. However, markets entered into red in noon deals with sentiments turning
down-bear with report that Moody's Investors Service and its Indian arm ICRA in
a joint report have flagged anxiety about the growing delinquencies in the
affordable housing segment, which are expected to continue in the calendar year
2018. Sentiments also remained dampened with the rating agency Crisil
attributing the continuing slowdown to the after-effects of the demonetisation
exercise, the Goods and Services Tax (GST) implementation and weakness in
agriculture, rating agency, CRISIL in its latest report has maintained its
projection of India's economic growth in 2018-19 to 7.6 percent on the low
base. Recovery in last leg of trade
mainly helped markets to end at fresh record closing high levels with traders
taking some solace with report that the government's revenue collection
continued its rising trend, mainly on account of income tax mop-up from individuals.
India's net direct tax collections, which are made up of personal and corporate
taxes, rose to Rs 6.56 lakh crore during the April-December period of the
financial year 2018. The collection indicates that 67% of the annual budget
target of direct taxes (Rs 9.8 lakh crore) has been achieved. Finally, the BSE
Sensex gained 90.40 points or 0.26% to 34,443.19, while the CNX Nifty was up by
13.40 points or 0.13% to 10,637.00.
The US markets closed at fresh
record highs on Tuesday, with the S&P 500 and Nasdaq registering a sixth
straight gain for 2018. The upbeat sentiment that has kept the 2017 global
stock rally running into the New Year still has a grip on the market. On the
economy front, the number of job openings in the US fell to a six-month low of
5.88 million in November from 5.93 million in the prior month. The chief reason
- another late-in-the-year hiring surge. About 5.5 million people were hired
and 5.2 million lost their jobs in November. The increase in hiring was the
second largest during the current eight-and-a-half-year-old expansion. The peak
occurred a month earlier in October. The share of people who left jobs on their
own, known as the quits rate, was 2.4% among private-sector employees. That
number has barely budged in the past year but remains near a post-recession
high. The decline in job openings took place mostly in a catchall category
known as other services as well as transportation, warehousing and real estate.
Hiring in those areas rose sharply in November. The Dow Jones Industrial
Average added 102.8 points or 0.41 percent to 25,385.80, the Nasdaq gained
6.192 points or 0.09 percent to 7,163.58, and the S&P 500 edged higher by
3.58 points or 0.13 percent to 2,751.29.
Crude oil futures extended their
gains and ended higher on Tuesday as ongoing optimism over OPEC-led production
cuts offset fears US output could surge above a 47-year high. OPEC appears
determined to end the global supply glut with disciplined output quotas in
2018. Though, in the wake of OPEC-led production cuts, non-Opec members led by
the U.S. have ramped up production, stoking fears of a slowdown in rebalancing
of oil markets amid excess global supplies. Benchmark crude oil futures for February
delivery ended higher by $1.23 or 1.99 percent at $62.96 a barrel on the New
York Mercantile Exchange. Brent crude for March delivery was up by 1.39 percent
to $68.72 a barrel on the ICE.
Falling
for the second consecutive session, Indian rupee depreciated against dollar on
Tuesday, on increased demand for the US currency from importers. Sentiments
remained down-beat with rating agency Crisil attributing the continuing
slowdown to the impacts of the demonetisation, GST implementation and weakness
in agriculture, though it has maintained its FY19 growth estimate at 7.6 per
cent on the low base. Some cautiousness also prevailed ahead of key economic
data i.e. November IIP and December CPI data, scheduled to be released on
January 12. However, a modest recovery in local equities capped the rupee fall
to some extent. On the global front, dollar dropped against yen on Tuesday
after the Bank of Japan trimmed the amount of its buying of Japanese government
bonds. Finally, the rupee ended at 63.71, 21 weaker from its previous close of
63.50 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 5662.53 crore against gross selling of Rs 5064.02 crore, while
in the debt segment, the gross purchase was of Rs 2251.09 crore with gross
sales of Rs 1365.80 crore. Besides, in the hybrid segment, the gross buying was
of Rs 1.72 crore against gross selling of Rs 9.66 crore.
The US markets ended at fresh
record closing highs in the last session, though major averages were off their
best levels of the day, with a lack of major U.S. economic data keeping some
traders on the sidelines. The Asian markets have made a mixed start and some of
the indices in the region are down by quarter to half a percent, taking a
breather as investors consider the impact of a jump in bond yields. The Japanese
market too was lower as the yen strengthened for a second day, after the Bank
of Japan made a small cut to purchases of long-dated Japanese government bonds.
The Indian markets despite a choppy session managed a positive close in last
session and the major indices notched their fresh record highs. Today, the
start is likely to be mildly in green with traders taking some support with the
World Bank projecting India's growth rate to 7.3 per cent in 2018 and 7.5 for
the next two years. It said that with an
"ambitious government undertaking comprehensive reforms", India has "enormous
growth potential" compared to other emerging economies. The 2018 Global
Economics Prospect released by the World Bank also said that India, despite
initial setbacks from demonetisation and Goods and Services Tax (GST), is
estimated to have grown at 6.7 per cent in 2017. Traders will also be eyeing
the meeting organised by government think tank NITI Aayog, and attended by a
host of ministers including Finance Minister Arun Jaitley, NITI Aayog
functionaries and leading economists. Prime Minister Narendra Modi will
interact with leading economists and sectoral experts to deliberate on economic
policy roadmap for promoting growth and employment. There will be some concern
in the oil companies as the international oil prices hit their highest levels
since 2014. Telecom stocks too will be in focus as the Telecom Commission (TC)
has decided to relax spectrum holding caps, giving a boost to M&As and
spectrum sale.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10637.00
|
10607.35
|
10662.90
|
BSE Sensex
|
34443.19
|
34361.72
|
34506.34
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Coal India
|
276.39
|
304.05
|
296.80
|
311.15
|
ITC
|
257.38
|
270.55
|
266.20
|
273.45
|
SBI
|
155.75
|
304.30
|
301.90
|
308.10
|
Yes Bank
|
132.83
|
341.35
|
331.67
|
346.92
|
Tata Motors
|
126.29
|
437.55
|
432.53
|
443.03
|
Coal India has received approval for revision of Non-Coking coal prices with effect from January 9, 2018.
IndusInd Bank and Dynamics Inc. at the 2018 Consumer Electronics Show announced plans to introduce the first battery-powered, interactive payment cards to the Indian market in 2018.
Adani Ports and Special Economic Zone has added two new dredgers to become the largest fleet in the country.
Maruti Suzuki India will showcase a concept compact car with ‘SUV like characters' in the upcoming Auto Expo with an aim to tap on increasing preference for utility vehicles in the market.