Indian equity benchmarks started
the Diwali week on a very strong note, with Sensex and Nifty hitting all time
highs and ending above their crucial 32,600 and 10,200, respectively for the
first time ever. Markets started the trade with gap-up opening, as sentiments
remained jubilant with report that India's exports recorded a robust growth of
25.67 percent to $ 28.61 billion in September, mainly on account of rise in
shipments of engineering, chemicals, and petroleum products. Imports too rose
by 18.09 percent to $ 37.59 billion in September from $ 31.83 billion in the
year-ago month and the trade deficit narrowed to 7-month low of $ 8.98 billion
in the month under review from $ 9.07 billion in September 2016. Some support
also came with IMF chief Christine Lagarde's statement, who just days after the
International Monetary Fund (IMF) slashed India's GDP growth rate to 6.7
percent in 2017, slower than the 7.2% it had forecast in April, said that the
Indian economy is on a firm footing. Traders booked most of their initial gains
in afternoon session, but fresh amount of buying in late trade helped markets
to end near intraday high levels. Sentiments turned positive with data showing
that India's annual wholesale price inflation (WPI) eased to 2.60% in September
from the provisional 3.24% in the previous month. Build up inflation rate in
the financial year so far was 0.97% compared to a build up rate of 3.44% in the
corresponding period of the previous year. Adding to the optimism, Niti Aayog
Vice Chairman Rajiv Kumar said that slowdown in India's economic growth that
began in 2013-14 has bottomed out and Gross Domestic Product (GDP) is likely to
grow 6.9 to 7 percent in the fiscal 2017-18 and 7.5 percent in 2018-19. Traders
also took some support with the private report indicating that India's economy
will grow by more than 10% annually in the coming decade, buoyed by
demographics, reforms and globalization. Finally, the BSE Sensex surged 200.95
points or 0.62% to 32,633.64, while the CNX Nifty was up by 63.40 points or
0.62% to 10,230.85.
The US markets closed higher on
Monday, with all three major indexes logging another round of records, as
investors looked ahead to key corporate earnings reports that could set the tone
for trading and determine whether the lofty levels of the equity market are
justified. Wide-ranging comments from President Donald Trump on tax cuts and
health-care reforms following a luncheon meeting with Senate Majority Leader
Mitch McConnell did not move the market. However, both issues are critical for
stocks as lower taxes are seen as crucial to supporting a continued market
rally. On the economy front, the New York Fed reported that its Empire State
manufacturing index climbed to a three-year high of 30.2 in October from 24.4
in September. Any reading over zero indicates improving conditions. The general
optimism index improved even though some of the key components actually
worsened, like new orders, which fell to 18 from 24.9. Shipments did improve,
however, to a reading of 27.5 from 16.2, and the number of employees rose to
15.6 from 10.6. Other indexes of note showed that delivery time fell to 3.1
from 14.6, inventories dropped to negative 7.8 from positive 6.5, and prices
paid and received both declined. The Dow Jones Industrial Average added 85.24
points or 0.37 percent to 22,956.96, the Nasdaq gained 18.21 points or 0.28
percent to 6,624.01, and the S&P 500 edged higher by 4.47 points or 0.18
percent to 2,557.64.
Crude oil futures extended their
gains on Monday after conflict between Iraqi and Kurdish forces broke out in
the oil-rich city of Kirkuk raising concerns over supply disruptions in the
region and on hopes for further demand from China. The Iraqi government began a
military assault on the independence efforts of the nation's Kurdish minority,
disrupting supplies from some key oil fields. Benchmark crude oil futures for November
delivery ended higher by $0.42 or 0.8 percent at $51.87 a barrel on the New
York Mercantile Exchange. Brent crude for November delivery added 0.61 cent to
$57.78 a barrel on the ICE.
Indian
rupee ended over three-week high against US dollar on Monday, on persistent
selling of the greenback by banks and exporters on the back of lower dollar
overseas. The currency gained for the sixth consecutive session, its longest
winning streak since February. Traders took some encouragement with report that
India's exports recorded a robust growth of 25.67% to $28.61 billion in
September, mainly on account of rise in shipments of engineering, chemicals,
and petroleum products. Imports too rose by 18.09% to $37.59 billion in
September from $31.83 billion in the year-ago month and the trade deficit
narrowed to 7-month low of $8.98 billion in the month under review from $9.07
billion in September 2016. Some strength also came with data showing that
India's annual wholesale price inflation (WPI) eased to 2.60% in September from
the provisional 3.24% in the previous month. Besides, good gains in domestic
equity market too kept sentiment highly buoyant. On the global front, dollar
fell against yen on Monday on the weaker-than-expected US consumer price index
for September released last week.
Finally, the rupee ended at 64.72, 20 paise stronger from its previous
close of 64.92 on Friday.
The
FIIs as per Monday'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
5505.38 crore against gross selling of Rs 7060.48 crore, while in the debt
segment, the gross purchase was of Rs 887.31 crore with gross sales of Rs
436.75 crore.
The US markets extended their
gains in last session and with the continued upward move, the major averages
once again climbed to new record closing highs. However, traders were reluctant
to make significant moves ahead of key earnings news later this week. The Asian
markets have made a mixed start with some indices trading marginally in red in
early deals, as concerns about North Korea reemerged, while the Japanese market
was up on speculation that the next head of the Federal Reserve will be more
hawkish. The Indian markets hit the record highs in the last session on some encouraging
quarterly earnings and favorable comments on the Indian economy from the World
Bank and IMF. Today, the start of the day is likely to be marginally in green
but there will be some cautiousness too with the flare up of geopolitical
tension after North Korea's deputy U.N. ambassador warned a nuclear war may
break out any moment. On the domestic front traders will be getting some
support with statement of NITI Aayog
Vice-Chairman Rajiv Kumar, who has pitched for fiscal stimulus to boost growth
with a rider that additional expenditure should be used only for increasing
productivity and capital expenditure. He said that faced with slowing economic
growth, the industry has been clamouring for a stimulus package from the
government. Meanwhile, the International Monetary Fund has suggested India to
consider setting up an independent fiscal council, saying this institution has
contributed to better outcomes in the countries where it has been introduced.
Pharma stocks are likely to be under pressure on a proposed amendment to the
four-year-old Drug Price Control Order (DPCO), which aims to bring
non-scheduled drugs under price control by changing the price setting method.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10230.85
|
10189.65
|
10257.50
|
BSE Sensex
|
32633.64
|
32490.27
|
32732.16
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Bharti Airtel
|
190.57
|
453.3
|
437.73
|
463.33
|
Reliance Industries
|
146.34
|
876.8
|
861.40
|
892.10
|
Hindalco
|
146.33
|
271.40
|
268.30
|
273.70
|
ICICI Bank
|
128.48
|
274.25
|
271.07
|
276.72
|
Vedanta
|
122.51
|
335.20
|
327.10
|
339.60
|
Induslnd Bank and Bharat Financial Inclusion have received approval from their respective board for merger of the two entities to create a stronger and more sustainable platform for Financial Inclusion.
Bharti Airtel and Millicom International Cellular S.A., through their respective subsidiaries, have concluded the deal to combine their operations in Ghana.
SBI has inked a MoU with the Odisha government's Directorate of Treasuries and Inspection for integration of SBI e-Pay with cyber treasury.
HCL Technologies has decided to discontinue its joint venture agreement with DXC Technology and formed a new IP partnership with the company.