Reversing their losses, Indian
equity bourses ended Thursday's trading session on higher note. Markets made a
flat start of the day, after India's retail inflation based on Consumer Price
Index quickened to 16-month high of 4.62% in October from 3.99% in September
2019, on the back of higher food prices. Volatility witnessed over the street,
as Moody's Investors Service cut India's economic growth forecast for current
year to 5.6 per cent from 5.8 per cent estimated earlier, saying GDP slowdown
is lasting longer than previously expected. It expected economic activity to
pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent, respectively, but
the pace to remain lower than in the recent past. However, in the last hours of
the trade, key indices staged smart recovery, amid reports that India's
Wholesale price index (WPI) inflation again eased to 0.16% in the month of
October 2019 as against 0.33% for the previous month and 5.54% during the
corresponding month of the previous year. Investors took some support with SBI
report showing that credit growth picked up rapid pace beginning September -
jumping by Rs 1.08 lakh crore - mainly helped by housing, NBFC and lately MSME.
The report further said the week up to Diwali has shown an increase in currency
in circulation of Rs 30,871 crore from the previous week, thereby showing that
people have been demanding cash in the festive season. Finally, the BSE Sensex
rose 170.42 points or 0.42% to 40,286.48, while the CNX Nifty was up by 31.65
points or 0.27% to 11,872.10.
The US markets ended mostly lower
on Thursday on persisting worries around US-China trade relations. Further,
declines in Cisco Systems and Walmart also tempered the excitement around
markets. The prospect of a US - China trade deal remains the main factor
sustaining a rally that has pushed US stocks record highs in the past five
weeks. Trump administration officials are frustrated that China has not offered
enough concessions to justify a reduction in US tariffs on Chinese goods, a
longstanding demand from Beijing that has become further entrenched in recent
weeks. Earlier, the Chinese Commerce Ministry said the US and China were
holding in-depth discussion on the partial trade agreement, emphasizing that
the cancellation of tariffs was important to concluding a deal. However, Trump
administration officials confirmed China has ended a ban on American chicken,
paving the way for the US to export more than $1 billion in poultry and poultry
parts to the Asian country. On the economic data front, after reporting an
unexpected decrease in producer prices in the previous month, the Labor
Department released a report showing US producer prices rebounded by slightly
more than anticipated in the month of October. The Labor Department said its
producer price index for final demand climbed by 0.4 percent in October after
falling by 0.3 percent in September. Street had expected producer prices to
rise by 0.3 percent. Besides, a report released by the Labor Department showed
first-time claims for US unemployment benefits increased by much more than
expected in the week ended November 9. The report said initial jobless claims
climbed to 225,000, an increase of 14,000 from the previous week's unrevised
level of 211,000. Street had expected jobless claims to inch up to 215,000.
Crude oil futures ended lower on
Thursday after US government report revealed that domestic crude inventories
rose for third straight week. The Energy Information Administration (EIA)
reported that US crude supplies rose by 2.2 million barrels for the week ended
November 8. The data came out a day later than usual because of Monday's
Veterans Day holiday. Crude supplies were forecast to increase by 1 million
barrel. The American Petroleum Institute on Wednesday reported a decline of
541,000 barrels. Besides, the EIA data showed a supply increase of 1.9 million
barrels for gasoline, but distillate stocks fell by 2.5 million barrels.
Benchmark crude oil futures for December fell 35 cents or 0.6 percent to settle
at $56.77 a barrel on the New York Mercantile Exchange. January Brent lost 9
cents or 0.1 percent to settle at $62.28 a barrel on London's Intercontinental
Exchange.
Snapping
three day falling streak, Indian rupee staged a smart recovery against dollar
on Thursday, following heavy dollar selling from banks and exporters.
Sentiments turned optimistic with reports that India's Wholesale price index
(WPI) inflation again eased to 0.16% in the month of October 2019 as against
0.33% for the previous month and 5.54% during the corresponding month of the
previous year. Traders overlooked Moody's Investors Service report stating that
it cut India's economic growth forecast for current year to 5.6 per cent from
5.8 per cent estimated earlier, saying GDP slowdown is lasting longer than
previously expected. On the global
front, pound was flat against the euro and dollar on Thursday as investors
await signs of how next month's general election could play out. Finally, the
rupee ended at 71.96, 13 paise stronger from its previous close of 72.09 on
Wednesday.
The
FIIs as per Thursday'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
7989.83 crore against gross selling of Rs 6470.96 crore, while in the debt
segment, the gross purchase was of Rs 505.46 crore with gross sales of Rs
1483.08 crore. Besides, in the hybrid segment, the gross buying was of Rs 30.87
crore against gross selling of Rs 17.90 crore.
The US markets ended mostly in
red Thursday after Cisco's dour forecast raised worries of a global economic
slowdown and overshadowed strong results from big box retailer Walmart. Asian
markets are trading mostly higher on Friday as traders awaited further updates
on a partial US-China trade deal. Indian markets ended volatile session in
green territory on Thursday helped by fag-end buying in mainly banking and IT
stocks and easing wholesale inflation. Today, the markets are likely to make
positive start tracking Asian peers. Traders will be taking encouragement with
report that even after the flurry of sops given to various industries after the
budget, Union MSME Minister Nitin Gadkari has said the government will create a
special financial scheme for 10 industry segments which are import-driven. He
said the government has created a scheme to support industries where imports
are high by providing special financial assistance. Traders may take note that
in a relief to taxpayers, the government extended the due dates for filing GST
annual returns for 2017-18 to December 31 and for the financial year 2018-19,
to March 31 next year. The dates for filing the reconciliation statement has
also been extended accordingly. In another relief, it has also decided to
simplify the two GST forms by making various fields of these forms as optional.
Market participants may take note of report that the government has so far
mopped up Rs 6 lakh crore or less than 50 percent of the total tax collection
target of Rs 13.35 lakh crore for the current fiscal. However, there may be
some cautiousness with SBI research report stating that surplus rainfall in
August and September is likely to keep food and vegetable prices elevated going
forward, and retail inflation may average at around 4 per cent in FY20.
Meanwhile, in order to streamline the process, markets regulator SEBI has
categorized modifications in futures contract specifications pertaining to
quality parameters for commodity derivatives. Telecom stocks will be in focus
after Bharti Airtel and Vodafone Idea posted record losses in the September
quarter, ravaged by an unfavorable Supreme Court verdict on adjusted gross
revenues. There will be some reaction in leather industry related stocks with
Council for Leather Exports' (CLE) statement that the ongoing US-China trade
war provides huge opportunities to leather exporters to increase their
shipments to America. It added that the sector's exports grew about seven per
cent to the US in the past four months.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,872.10
|
11,817.95
|
11,910.95
|
BSE Sensex
|
40,286.48
|
40,092.78
|
40,414.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,951.15
|
68.75
|
66.97
|
70.67
|
SBI
|
436.18
|
306.00
|
300.63
|
310.43
|
ICICI Bank
|
353.96
|
498.65
|
488.32
|
504.42
|
Vedanta
|
260.65
|
144.00
|
141.00
|
148.75
|
Tata Motors
|
254.33
|
167.05
|
164.93
|
169.73
|
Wipro has partnered with Telecom Infra Project to drive 5G adoption in the global communications service provider and enterprise markets.
Tata Motors' board has approved the pricing and tenure of $300 million fund raise, through bonds to be issued later this month.
ITC has entered into Share Subscription Agreement and Shareholders' Agreement to acquire up to 33.42% of the share capital of Delectable Technologies.
Tech Mahindra has entered into a partnership with Mahindra TEQO to create digital solutions for the global renewable energy industry.