A session after displaying a distressing performance,
Indian equity indices have managed to pull through a dazzling performance by
vivaciously rallying around percentage points on Thursday, thanks to the hefty
short covering in the beaten down Metal, Banking and Realty counters. The
relentless across the board value picking ensured that the frontline indices
settle over the psychological 8,500 and 27,500 levels amid the tentative
recovery in risk appetite globally. Marketmen across Europe
and Asia brushed aside the shock of the Trump victory in
the US
election. Trump pledged in his speech Wednesday to unify a deeply divided
nation, helping to calm jitters in global financial markets. Investors had
worried because his campaign promises carried few policy details, making him an
unknown quantity compared with his rival, Hillary Clinton, seen as a safe
choice. On the domestic front, sentiments remained up-beat with Union Finance
Minister Arun Jaitley's statement that tax collections will go up considerably
in the medium-to-long term as more people will come under the tax net due to
the demonetisation of Rs 500 and Rs 1,000 currency notes. According to him, the
step by the government to crack down on black money, terror financing and
corruption not merely nudges the economy towards a cashless society but is a
significant push in that direction. The move will establish credibility of the
Indian economy in the world and will also expand the country's GDP. Some support
also came with report that the Centre's net tax kitty rose up to Rs 8.51 lakh
crore between April and October 2016. Net direct tax collections jumped up
10.66% to Rs 3.77 lakh crore in October, while direct tax mop-up was more
robust and increased 26.7% to Rs 4.85 lakh crore. On the global front, Asian
markets ended higher on Thursday, while European counterparts appeared to be in
a sanguine mood in early deals. Back home, finally, the BSE Sensex gained
265.15 points or 0.97% to 27517.68, while the CNX Nifty rose 93.75 points or
1.11% to 8,525.75.
The US
markets made a mixed closing on Thursday following the rally of previous
session, while the Dow extended the rally mood and reached record closing high,
the tech heavy Nasdaq ended in negative territory. There was some encouragement
with S&P Global Ratings retaining sovereign ratings of the U.S.
The rating was affirmed at 'AA+' with stable outlook and reflects the expected
smooth transition of power. On the U.S.
economic front, the Labor Department released a report before the start of
trading showing a bigger than expected drop in initial jobless claims in the
week ended November 5th. The report said initial jobless claims fell to
254,000, a decrease of 11,000 from the previous week's unrevised level of 265,000.
Economists had expected jobless claims to edge down to 263,000. The Dow Jones
Industrial Average surged by 218.19 points or 1.2 percent to 18,807.88 and the
S&P 500 rose 4.22 points or 0.2 percent to 2,167.48, but the Nasdaq
declined by 42.28 points or 0.8 percent to 5,208.80.
Crude
oil futures turned lower on Thursday snapping their gaining streak, on strength
in dollar and a report showing OPEC's oil production rising to record highs in
October. The International Energy Agency (IEA) in its latest report said that
OPEC crude output rose by 230,000 barrels a day to a record high of 33.83
million barrels a day in October. The IEA said OPEC faces a significant
challenge in curbing production to meet levels discussed at a recent meeting in
Algiers. Prices were also held in
check after data showing a 2.4-million-barrel increase in U.S.
crude inventories last week, adding to concerns about oversupply. Benchmark
crude oil futures for December delivery dropped $0.61 or 1.4 percent to close
at $44.66 a barrel on the New York Mercantile Exchange. In London,
Brent oil futures for December delivery declined by $0.08 or 0.17 percent to $46.43
a barrel on the ICE.
The FIIs as per Thursday's data were net sellers in equity
segment, while they were net buyers in debt segment. In equity segment, the
gross buying was of Rs 5175.86 crore against gross selling of Rs 7220.38 crore,
while in debt segment, the gross purchase was of Rs 1351.69 crore with gross
sales of Rs 747.55 crore.
Snapping two days gaining streak, Indian
rupee ended weaker against dollar on Thursday, due to fresh demand for the
American currency from banks and importers. The investors failed to get any
sense of relief with Union Finance Minister Arun Jaitley's statement that tax
collections will go up considerably in the medium-to-long term as more people
will come under the tax net due to the demonetisation of Rs 500 and Rs 1,000
currency notes. According to him, the step by the government to crack down on
black money, terror financing and corruption not merely nudges the economy
towards a cashless society but is a significant push in that direction. On the
global front, dollar jumped to its highest level in two weeks and continued to
reverse brief initial losses from the surprise election of businessman Donald
Trump as U.S. president, as markets awaited more clarity on his economic policy.
The US
markets made a mixed closing in last session with financial stocks moving
higher amid optimism about reduced regulation under Trump. The Asian markets
have made a mixed start, there was cautiousness in the regional currency
markets amid speculation the Federal Reserve will boost interest rates to cap
inflation as a Donald Trump-led administration steps up spending. The Indian
markets rebounded in last session, covering most of the losses of previous one,
as riskier assets staged a dramatic reversal following Donald Trump's stunning
upset in the U.S.
presidential election. Today, the start is likely to be mildly in green and the
markets will show some cautiousness tailing the mixed global cues. There will
be some support with the International Monetary Fund (IMF) supporting India's
efforts to fight corruption through the currency control measures announced
this week, but it has stressed taking care to minimise disruptions in the
economy. Meanwhile, Finance minister Arun Jaitley has said that the government
will continue tax reforms, even as he criticised global agencies for not fully
appreciating the efforts made by the government. He also said that the government
will meet its target of reining in fiscal deficit at 3.5% of GDP. There will be
buzz in India Inc, with Reserve Bank of India (RBI) in a step to address
corporate stress, making sweeping changes to existing loan recast schemes,
given lenders additional time up to 180 days for hammering out a restructuring
package under the scheme for sustainable structuring of stressed asset (S4A).
Previously, the time limit was 90 days. The Tata group stock will be in action
again with independent directors of Tata Chemicals reposing their faith on
Cyrus Mistry leadership amidst the Tata Sons move to remove his as Chairman
from all operating Tata Group companies. There will be lots of earnings
announcements too, to keep the markets in action.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8525.75
|
8491.48
|
8579.23
|
BSE Sensex
|
27517.68
|
27402.00
|
27688.41 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
State Bank of India
|
502.28
|
281.30
|
269.63
|
288.58
|
ICICI Bank
|
264.89
|
292.60
|
286.73
|
298.43
|
Bank of Baroda
|
199.38
|
165.00
|
157.90
|
169.20
|
Hindalco
|
162.75
|
175.75
|
169.38
|
179.73
|
ITC
|
115.67
|
251.05
|
246.73
|
254.18 |
- Hero MotoCorp, the world's largest two-wheeler
manufacturer, has launched new Dawn 125 Motorcycle at the ongoing EICMA
Motorcycle show in Milan.
- Axis Bank has rolled out an augmented reality enabled
feature on its Mobile App that empowers home seekers to search and locate
properties which are pre-approved by the bank for financing.
- Sun Pharmaceutical Industries' consolidated profit shot up
90.2 percent year-on-year to Rs 2,471 crore in the quarter ended September
2016, driven by operating income and lower finance cost.
- Cipla has reported 34.75% fall in its consolidated net profit
at Rs. 354.34 crore for the quarter ended September 30, 2016 as compared to Rs. 543.02 crore for the same quarter in
the previous year.
- ITC is partnering the NHAI in its initiative to develop
eco-friendly national highways by spearheading an extensive tree plantation
initiative along the highways in the country.