Back home, Indian equity
benchmarks snapped the lackluster session with marginal gains on Monday, with
Nifty recapturing its crucial 8,700 level, while Sensex ended just shy of
28,100 mark. Markets made a gap-up opening with credit rating agency Crisil in
its latest report stating that revenues of companies in key sectors such as
automobiles, IT services, power, steel products, telecom services,
pharmaceuticals and FMCG are expected to grow 7 per cent in the July-September
2016 quarter, compared with a marginal 2 per cent in the year ago period.
Traders also took some encouragement with NITI Aayog Vice-Chairman Arvind
Panagariya's statement that India can become a $ 10 trillion economy in the
next 15 years, from the existing $ 2 trillion, like China did in last one and a
half decade. Some support also came with Finance Minister Arun Jaitley's statement
that India is at the world's centre stage more than ever before for ‘aspiring
to do better in an adverse' environment, though he also cautioned that by its
own yardstick, the country's current growth rate is not enough. However, market
participants booked most of their gains during the trade ahead of macro data
scheduled to be announced through the week starting with factory output numbers
later in the day. Gains also remained capped with the World Bank's new report
stating that India, the world's largest remittance recipient in 2015, may
receive a remittance of $ 65.5 billion this year, a drop of 5 percent due to
weak economic growth in remittances-source countries and cyclic low oil prices.
On the global front, European markets after weak start entered into green,
while the Asian markets ended mixed. Closer home, appreciation in Indian rupee
aided some sentiments. Finally, the BSE Sensex gained 21.20 points or 0.08% to
28,082.34, while the CNX Nifty ended up by 11.20 points or 0.13% to 8,708.80.
The US markets closed mostly
higher on Wednesday, after minutes from the Federal Reserve's September policy
meeting showed support for a rate rise relatively soon but implied a go-slow
approach. As for the Fed, minutes indicate that policy makers wanted more
evidence of full employment and gains in inflation before feeling confident in
raising rates, but the minutes also said a rate increase was in the cards
relatively soon. Several voting members of the Fed's policy committee stated
that a rate hike would be needed relatively soon. These officials pushed for
new language in the statement to reflect their growing sense of urgency. That
wording emphasized that the case for an interest-rate hike had strengthened,
but that the Fed policy committee had decided, for now, to wait for further
evidence of continued progress toward full employment and faster inflation. A
few Fed officials thought this statement might be misread as indicating that
the passage of time, rather than the accumulation of evidence, would be the key
factor in the US central bank's decisions at future meetings. On the economy
front, US job openings fell to an eight-month low in August and hiring was
little changed, suggesting some easing in labor market conditions amid an aging
economic recovery. The Dow Jones Industrial Average added 15.54 points or 0.09
percent to 18,144.20, S&P 500 was up 2.45 points or 0.11 percent to
2,139.18, while Nasdaq dropped 7.77 points or 0.15 percent to 5,239.02.
Crude oil futures showed a
volatile trade and ended lower on Wednesday, ahead of US inventories data that
may show oil stockpiles have further dwindled. Prices were also under pressure
with OPEC report that its oil production rose in September to the highest in at
least eight years and raised its forecast for 2017 non-OPEC supply growth,
pointing to a larger surplus next year despite the group's deal to cut output.
The producer cartel reportedly pumped 33.39 million barrels per day (bpd) last
month. Benchmark crude oil futures for November delivery was down $0.61 or 1.2
percent to $50.18 on the New York Mercantile Exchange. In London, Brent crude
for December delivery ended at $51.81, lower by $0.60 or 1.1 percent on the
ICE.
Indian
rupee, appreciated for second consecutive session on Monday due to selling of
American currency by banks and exporters. The domestic currency looked strong
from the very beginning and was supported by the positive gains in the local
equity markets. Sentiment got up-beat with NITI Aayog Vice-Chairman Arvind
Panagariya's statement that India can become a $ 10 trillion economy in the
next 15 years, from the existing $ 2 trillion, like China did in last one and a
half decade. Weakness of dollar against the some major currencies overseas
after weaker-than-expected US jobs data also supported the local currency.
Meanwhile, traders turned cautious ahead of macro data scheduled to be
announced through the week starting with factory output numbers later in the
day. On the global front, yen slipped against dollar on Monday as the Bank of
Japan may push back inflation target date. Finally, the rupee ended at 66.53,
14 paise stronger from its previous close of 66.67 on Friday.
The FIIs as per Monday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 3305.14 crore against gross
selling of Rs 3240.14 crore, while in the debt segment, the gross purchase was
of Rs 718.51 crore with gross sales of Rs 1736.60 crore.
The US markets after a lackluster
trade ended flat in the last session after the minutes of last month's monetary
policy meeting revealed that members of the Fed were divided regarding the
timing of further interest rate hikes. The Asian markets have made a mixed
start though the Japanese market has rebounded as the yen weakened against
dollar with Fed minutes of meeting reinforcing the case for an interest-rate
increase in 2016. The Indian markets had managed a modestly positive close in
last session before going for two days holiday. Today, the start is likely to
be a bit soft-to-cautious tailing the mixed global cues. Traders will also be
reacting to Industrial production data, which contracted once again for the
month of August. IIP dipped 0.7 percent in August due to a slump in
manufacturing and mining, in the manufacturing space, capital goods brought
about the maximum fall. Traders however may get some support in latter trade
with S&P Global Ratings, calling GST as the most important structural
reform till date by the Modi government and stating that the passage of the
indirect tax law gives it additional conviction of India clocking 8 percent
growth in the next few years. Also, the Government's revenue collection in
April to September -- the first half of the current fiscal -- saw indirect
tax-mop up growing at an impressive 26 percent. The total direct and indirect
tax collections at the end of September stood at Rs 7.35 lakh crore, almost
half the Rs 16.26 lakh crore target for 2016-17. There will be some buzz in oil
& gas sector, as Niti Aayog has shot down petroleum ministry's demand for
nearly Rs 10,000 crore of public money for building more strategic crude oil
reserves as the proposal strays from the agreed plan to rope in private sector
investments for crude storage beyond the existing 5 million tonnes. The gold
and jewellery stocks too will be in action on report that exports of gems and
jewellery grew by 11 percent to $ 14.43 billion during the first five months of
the current fiscal, driven largely by demand in India's major markets like the
US. Traders will also be eyeing the IT bellwether TCS earnings to be announced
later in the day.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8708.80
|
8693.23
|
8735.08
|
BSE Sensex
|
28082.34
|
28028.23
|
28176.55
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Tata Steel
|
116.42
|
418.40
|
411.37
|
423.07
|
SBI
|
94
|
256.60
|
255.00
|
259.25
|
Hindalco
|
81.58
|
160.75
|
158.77
|
162.77
|
ICICI Bank
|
60.1
|
250.10
|
248.43
|
252.48
|
ITC
|
50.47
|
240.10
|
238.90
|
241.95
|
- ITC will be divesting 100% of its
equity stake in US-based King Maker Marketing Inc for an estimated
consideration of $24 million.
- ONGC has inked a preliminary
agreement to take an operating stake in Gujarat government firm Gujarat State
Petroleum Corp KG basin gas block.
- BHEL has commissioned another 660
MW coal based supercritical thermal power plant in Uttar Pradesh.
- ACC has successfully stabilized
operations of the new Cement Grinding Unit in Jamul which went into commercial
production from September 14, 2016.
- Tata Motors Group global
wholesales in September 2016, including Jaguar Land Rover, were at 102,289
vehicles, higher by 5%, over September 2015.