Indian equity benchmarks ended
the volatile day of trade marginally in red on Friday, as traders remained on
sidelines ahead of the Index of Industrial Production (IIP) and Consumer Price
Index (CPI) to be released next week. Markets started the session on
pessimistic note, as traders remained concerned about Moody's Investors
Service's statement that Indian economy will expand 7.4% in 2018, but the
growth will slow down to 7.3% in the next year as domestic demand tapers on
higher borrowing cost due to rising interest rates. It said the greatest
downside risk to India's growth prospects stem from concerns about its
financial sector. Market participants also remained cautious with a private
report stating that unemployment rate in the country rose to 6.9% in October -
the highest in two years. The estimated number of people employed during
October 2018 was 397 million. This was 2.4% lower than the rate in October
2017. Meanwhile, the finance ministry said that GST refund of Rs 82,775 crore
to exporters has been cleared as on October 31, which is 93.8% of the total such
claims with the tax authorities. The ministry said Rs 5,400 crore worth GST
refund is still pending with the government and that is being expeditiously
processed. However, markets pared all of their losses and turned green in noon
deals, as traders took some support from Finance Minister Arun Jaitley's
statement that demonetisation helped in tackling black money and expanding the
tax base. Sentiments also remained optimistic with a report stating that
demonetisation was a fundamental corrective without which the Indian economy
would have collapsed by now just like subprime crisis in the US. But, markets
once again turned pessimistic and entered into red terrain to end marginally in
red, as market participants turned cautious with a private report stating that
slowdown in Non-Banking Financial Companies (NBFC) disbursements could have a
negative impact on growth. It also said if this situation persists there will
be a negative impact on growth because credit availability is going to be that
much reduced for the aggregate economy. Finally, the BSE Sensex lost 79.13
points or 0.22% to 35,158.55, while the CNX Nifty was down by 13.20 points or
0.12% to 10,585.20.
The US markets ended the Friday's
trade in red terrain with major indices ending with a cut of around a percent,
as traders remain worried on renewed concerns about the outlook for interest
rates on the heels of the Federal Reserve's monetary policy announcement on
Thursday. The Fed left interest rates unchanged as widely expected but indicated
it remains on track to gradually raise rates despite signs of a slowdown in the
pace of growth in business investment. Adding to the concerns about interest
rates, the Labor Department released a report showing a much bigger than
expected increase in producer prices in the month of October. The Labor
Department said its producer price index for final demand climbed by 0.6
percent in October after rising by 0.2 percent in September. The traders had
been expecting another 0.2 percent uptick. Excluding food and energy prices,
core producer prices still rose by 0.5 percent in October after edging up by
0.2 percent in September. Core prices had been expected to rise by another 0.2
percent. Compared to the same month a year ago, producer prices in October were
up by 2.9 percent, reflecting acceleration from the 2.6 percent increase in
September. Meanwhile, the annual rate of growth in core consumer prices also
accelerated modestly to 2.6 percent in October from 2.5 percent in September. A
separate report from the University of Michigan showed a slight deterioration
in consumer sentiment in the month of November. The report said the consumer
sentiment index edged down to 98.3 in November from the final October reading
of 98.6. Street had expected the index to dip to 98.0. Dow Jones Industrial
Average declined 201.92 points or 0.77 percent to 25,989.30, Nasdaq fell 123.98
points or 1.65 percent to 7,406.90 and S&P 500 was down by 25.82 points or
0.92 percent to 2,781.01.
Extending southward journey for
tenth straight session, crude oil futures ended lower on Friday, as rising
output and fears of a drop in crude demand due to economic slowdown weighed on
the commodity once again. Higher output and the Trump administration's decision
to soften its sanctions on Iran by allowing eight top crude importers including
India and China, to temporarily continue buying Iranian oil, are the
significant factors behind oil's slide. Additionally, a slowdown in global
economic growth, triggered by US-China trade disputes has raised concerns that
oil demand will see a notable drop in the near term. Benchmark crude oil
futures for December fell 48 cents or 0.8 percent to settle at $60.19 a barrel
on the New York Mercantile Exchange. January Brent crude declined 47 cents or
0.7 percent to settle at $70.18 a barrel on London's Intercontinental Exchange.
Extending
gains for the second straight session, Indian rupee ended considerably stronger
against dollar on Friday, on account of selling of American currency by banks
and exporters amid softening crude oil prices. Traders took encouragement with
Finance Minister Arun Jaitley's statement that demonetisation helped in
tackling black money and expanding the tax base. Demonitisation is a key step
in a chain of important decisions taken by the Government to formalise the
economy. Traders shrugged off Moody's Investors Service's report that Indian
economy will expand 7.4% in 2018, but the growth will slow down to 7.3% in the
next year as domestic demand tapers on higher borrowing cost due to rising
interest rates. On the global front, dollar gained versus the euro and sterling
on Friday as the US Federal Reserve kept interest rates steady but reaffirmed
its monetary tightening stance, setting the stage for a rate hike in December.
Finally, the rupee ended at 72.50, 50 paise stronger from its previous close of
73.00 on Tuesday.
The FIIs as per Friday'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 4016.71 crore against gross
selling of Rs 4288.11 crore, while in the debt segment, the gross purchase was
of Rs 276.38 crore with gross sales of Rs 123.11 crore. Besides, in the hybrid
segment, the gross selling was of Rs 0.09 crore against no buying.
The US markets ended sharply
lower on Friday on renewed concerns about the outlook for interest rates on the
heels of the Federal Reserve's monetary policy announcement on Thursday. Asian
markets were trading mixed on Monday, as investors fretted about the outlook
for global growth. Indian markets ended Friday's choppy trading session in red
territory with marginal cut, led by a fall in information technology (IT) and
metal stocks amid weak global cues as the US Fed hinted at a rate hike next
month. Today, the markets are likely to make cautious start ahead of
macro-economic data amid mixed Asian cues. Market-men will be eyeing the macro
economic data of industrial production and consumer price inflation to be
released after the market hours. Traders will be concerned with former RBI
Governor Raghuram Rajan's statement that demonetisation and the Goods and
Services Tax (GST) are the two major headwinds that held back India's economic
growth last year, and asserted that the current 7% growth rate is not enough to
meet the country's needs. There will be some cautiousness with Federation of
Indian Export Organisation (FIEO) President Ganesh Gupta's statement that
exports of over half of the 30 sectors closely monitored by the Commerce
Ministry were in the negative zone in September. Overall exports in September
were contracted by 2.15% to $27.95 billion mainly due to the base impact.
However, he expressed hope that the export growth would be better in the coming
months as the order books are healthy. Traders may take note of a report that
former vice-chairman of Niti Aayog Arvind Panagariya has cautioned that the
recent government move to raise import duties on a host of products in a bid to
contain current account deficit (CAD) can be counter-productive and does not
augur well for the economy. Meanwhile, the SEBI has shortlisted seven firms,
including Wipro and L&T Infotech, to build a private data storage cloud,
automate its inspection of brokers and enhance analytics capabilities, as the
regulator is eyeing a technological leap in surveillance and investigation
functions. There will be some buzz in auto sector stocks with the Society of
Indian Automobile Manufacturers' (SIAM) data showing that domestic passenger
vehicle sales rose 1.55% to 2,84,224 units in October as against 2,79,877 units
in the same month last year. also, there will be some reaction in sugar sector
stocks with report that saddled with surplus stock, sugar mills in India have
contracted to export about 8,00,000 tonnes of the sweetener so far to countries
like Middle East and Sri Lanka.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,585.20
|
10,546.85
|
10,621.55
|
BSE Sensex
|
35,158.55
|
35,017.42
|
35,293.48
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
407.54
|
227.90
|
217.60
|
233.80
|
Tata Motors
|
223.42
|
195.25
|
191.25
|
200.00
|
SBI
|
192.01
|
283.25
|
281.30
|
286.35
|
ICICI Bank
|
151.31
|
356.85
|
353.47
|
359.17
|
ITC
|
150.35
|
277.25
|
275.53
|
279.33
|
Mahindra & Mahindra has acquired 100% stake in Mahindra Automotive Mauritius on November 06, 2018.
Reliance Industries has raised Rs 3,000 crore through a privately placed debenture issue.
Infosys and Nokia have formed an alliance to develop solutions powered by new-age technologies like artificial intelligence and machine learning.
GAIL India has awarded contract for the purchase of 616 km of line pipe worth Rs 1,100 crore for the Barauni - Guwahati pipeline.