Indian
benchmark indices staged a blockbuster performance on Wednesday by vivaciously
rallying close to a percent in the session and settling above the psychological
8,350 (Nifty) and 27,100 (Sensex) levels. Tuesday's optimism got spilled over
into the Wednesday's session helping the frontline indices in extending the
winning momentum for second successive session as investors are hoping that
Budget 2017 to be unveiled on February 1, would contain incentives for
companies to help prop up an economy being hit by a ban on higher-value cash
notes. Market percipients continued to build hefty positions across the board
as sentiments got a boost with Prime Minister Narendra Modi's statement that India
is on threshold of becoming most digitised economy in the world. While he also
declared his ambition to bring about a paradigm shift through a series of
historic changes, reiterating the government's commitment to reforms and
projecting India as a bright spot amid global gloom after having emerged as the
world's fastest-growing economy. Some support also came with Finance Minister
Arun Jaitley's statement that the Centre is still aiming to roll out the Goods
and Services Tax (GST) regime from April 1. He further said while most of the
issues have been resolved, there are a few critical issues that still need to
be addressed. However, caution prevailed ahead of President-elect Donald
Trump's first presser due later in the day and quarterly earnings from
blue-chip companies. Market participants also await the key quarterly corporate
results from software services firm TCS and Infosys. On the global front, Asian
markets ended mixed on Wednesday, as investors looked to US President-elect
Donald Trump's press conference later in the day for clues on his policies.
Finally, the BSE Sensex rallied 240.85 points or 0.90% to 27140.41, while the
CNX Nifty rose 92.05 points or 1.11% to 8,380.65.
The US
markets closed higher on Wednesday, following President-elect Donald Trump's
press conference, with the Nasdaq notching its fifth straight record close in a
row. The Dow Jones Industrial Average closed less than 50 points from the
psychologically-important 20,000 mark. US President-elect Donald Trump held his
first press conference since July. Investors also watched the confirmation
hearings of Rex Tillerson, Trump's nominee to head the State Department. Russia
and China were
major topics of discussion in the hearings. In a measure of how uncertainty
wasn't alleviated by the news conference, the CBOE Volatility at one time rose
more than 5%, though it remains well below its long-term average. Typically,
the so-called 'fear index' has an inverse correlation with stocks. Investors
will hear from several Fed officials over the next two days, including
Chairwoman Janet Yellen, and retail sales data are due Friday. The Dow Jones
Industrial Average added 98.75 points or 0.50 percent to 19,954.28, Nasdaq
gained 11.83 points or 0.21 percent to 5,563.65, while S&P 500 was up by 6.42
points or 0.28 percent to 2,275.32.
Crude
oil futures bounced back from last two session's fall and rallied on Wednesday,
after a report confirmed that OPEC production fell in December, even though
supply quotas were not required until the start of the new year. Output from
the group's 13 members fell by 280,000 barrels a day in December from a month
earlier, to 32.85 million barrels a day. Prices also got some support with
weakness in dollar following a news conference by U.S. President-elect Donald
Trump , which disappointed investors who had sent the currency to its highest
level in a week ahead of this news conference. Benchmark
crude oil futures for February delivery was up by $1.73 or 3.4 percent to $52.55
on the New York Mercantile Exchange. In London,
Brent crude for March delivery ended higher by $1.76 or 3.3 percent at $55.40
on the ICE.
Indian rupee ended weaker against US dollar on Wednesday,
on incremental dollar demand by banks and importers in view of strength of
American currency overseas. Sentiments remained dampened with the World Bank trimming
India's Gross Domestic Product (GDP) growth to 7 percent from
its earlier estimate of 7.6 percent on the back of demonetisation of high value
currency notes. Furthermore, Fitch Ratings also downgraded India's rating to 6.9 percent for 2016-17 from the earlier 7.4
percent due to 'uncertainty' over the benefits of demonetisation. However,
gains in equity market arrested some of the rupee's fall. On the global front,
dollar gained against the yen on Wednesday ahead of a widely-anticipated press
conference by President-elect Donald Trump, it is his first formal session
since winning the November 8, 2016
election. Finally, the rupee ended at 68.33, 15 paise stronger from its
previous close of 68.18 on Tuesday.
The FIIs as per Wednesday's data were net sellers in equity
and debt segments both. In equity segment, the gross buying was of Rs 3597.89
crore against gross selling of Rs 3711.12 crore, while in the debt segment, the
gross purchase was of Rs 729.43 crore with gross sales of Rs 2139.49 crore.
The US
markets ended higher despite a volatile trade in last session, reacting to President-elect
Donald Trump's comments during his first press conference in several months.
Though his comments made the drug stocks nervous and they went for sell-off.
The Asian markets have made a mixed start with some indices trading in red led
by the Japanese market which is down due to strength in yen against dollar after
Donald Trump's first press conference since his election victory gave scant
detail on policy. The Indian markets rallied in last session with the Sensex
hitting two months high after the World Bank said that the "adverse effects" of
demonetization will disappear in the medium term. Today, the start is likely to
be in green on mostly positive global cues and traders will be getting some
support with Finance Minister Arun Jaitley's statement that the implementation of
the Goods and Services Tax (GST), coupled with a digitised economy ushered in
by demonetisation, will make India's
economy "look much cleaner and bigger". However, there will be some
cautiousness too, as the RBI governor Urjit Patel ahead of the budget has
warned against squandering macroeconomic stability gains through giveaways and
said that high government debt was hurting India's
ratings. Meanwhile, NITI Aayog has estimated a growth rate of 8% for 2016-17 as
per a 'cautiously optimistic' prognosis it has laid out in the appraisal
document for the Twelfth Five-Year Plan, flagging the lack of reforms in land
acquisition, labour and simplification of administrative procedures as
impediments to growth. The review, however, does not take into account the
impact of demonetisation. Steel stocks are likely to remain in action on
reports of Chinese capacity shutdowns.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8380.65
|
8338.93
|
8405.68
|
BSE Sensex
|
27140.41
|
27020.94
|
27217.37 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Hindalco
|
241.45
|
174.95
|
169.05
|
178.25
|
ICICI Bank
|
177.87
|
264.7
|
261.50
|
268.00
|
SBI
|
134.15
|
252.15
|
249.70
|
253.90
|
Power Grid
|
122.83
|
189.8
|
186.67
|
192.17
|
Tata Steel
|
114.31
|
448.25
|
438.28
|
454.58 |
- Lupin
has received final approval for its Desoximetasone Cream USP, 0.05% and
Desoximetasone Cream USP, 0.25% from the United States Food and Drug
Administration.
- Tata
Motors Group global wholesales in December 2016, including Jaguar Land Rover,
were at 95,081 units, higher by 4%, over December 2015.
- Axis
Bank has opened new branch at Thadagam Road,
Coimbatore in state of Tamil Nadu.
- BPCL's
indirect subsidiary BISPL is planning to raise $600 million long term funds
from the international debt capital market.
- Bharti
Airtel will take a crucial step towards entering the financial services
business as it launches its Payments Bank operation across India
on January 12, 2017.