Indian equity benchmarks ended
Friday's session, the last trading day of Samvat 2076 on a positive note after
oscillating between gains and losses during the day, led by buying interest in
metal, realty and healthcare shares. The benchmarks had a gap-down opening, as
data released by the government showing that retail inflation inched up to 7.61
per cent in October, remaining above the comfort level of the Reserve Bank.
Inflation stood at 7.27 per cent in September 2020. It was 4.62 per cent in
October 2019. The rise in general inflation was mainly on account of elevated
food prices. Volatility struck bourses in late morning session as traders
remained concerned with report that India has reported 43,861 fresh Covid-19
cases in the past 24 hours. The total caseload now stands at 8,727,900. The
country's death toll has mounted to 128,686. However, local indices gave up all
of their initial losses and managed to close in green, as industrial
production, measured on the basis of Index of Industrial Production (IIP), grew
slightly by 0.2 per cent in September 2020 with higher output of mining and
power generation sectors. The IIP had contracted by 4.6 per cent in September
2019, while 7.36 per cent contraction posted in August 2020. Some support also
came with Finance Minister Nirmala Sitharaman's statement that perishable goods
are putting upward pressure on inflation and the government is working on both
short and medium-term measures for controlling price rise. Adding to the
optimism, auto industry body SIAM said that the stimulus measures announced by
the government would help in accelerating economic activity in many critical
sectors. It appreciates the proactive role being played by the government for supporting
a quick and sustainable revival of the economy. Finally, the BSE Sensex rose
85.81 points or 0.20% to 43,443.00, while the CNX Nifty was down by 29.15
points or 0.23% to 12,719.95.
The strength on markets came
following more upbeat reports on the coronavirus vaccine front, with Moderna
(MRNA) reporting positive results from a trial of its vaccine candidate.
Moderna said that the trial of its potential coronavirus vaccine has met the
statistical criteria pre-specified in the study protocol for efficacy, with a
vaccine efficacy of 94.5 percent. Chief Executive Officer of Moderna --
Stéphane Bancel said this is a pivotal moment in the development of our COVID-19
vaccine candidate. Since early January, we have chased this virus with the
intent to protect as many people around the world as possible. He added all
along, we have known that each day matters. This positive interim analysis from
our Phase 3 study has given us the first clinical validation that our vaccine
can prevent COVID-19 disease, including severe disease. On the economic front,
New York manufacturing activity unexpectedly expanded at a slower rate in the
month of November, according to a report released by the Federal Reserve Bank
of New York. The New York Fed said its general business conditions index fell
to 6.3 in November from 10.5 in October. While a positive reading still
indicates growth in regional manufacturing activity, Street had expected the
index to rise to 13.5. Looking ahead, the index for future business conditions
held steady at 33.9, suggesting that firms remained optimistic about future
conditions.
Crude oil futures ended higher on
Monday as strong economic data from China and Japan and hopes about
Organization of Petroleum Exporting Countries (OPEC) and allies continuing to
curb output helped ease concerns about energy demand outlook. The Organization
of Petroleum Exporting Countries and their allies are due to meet on Tuesday
and it is likely that the cartel will suggest changes to production quotas when
all the ministers meet on November 30 and December 1. Further, encouraging
reports on Covid-19 vaccine front contributed as well to oil's uptick. Close on
the heels of Pfizer's announcement last week about the phase 3 trial of its
virus vaccine proving more than 90% effective, Moderna announced over the
weekend that the late stage trial of its vaccine has proved 94.5% effective in
preventing the disease. Crude oil futures for December gained $1.21 or about 3
percent to settle at $41.34 a barrel on the New York Mercantile Exchange.
However, January Brent crude rose $1.00 or 2.4 percent to settle at $43.80 a
barrel on London's Intercontinental Exchange.
Indian rupee ended marginally
higher against dollar on Friday, on persistent selling of the American currency
by exporters. Traders remained positive as industrial production, measured on
the basis of Index of Industrial Production (IIP), grew slightly by 0.2 per
cent in September 2020 with higher output of mining and power generation
sectors. Meanwhile, Finance Minister Nirmala Sitharaman said that the Indian
economy is witnessing a strong recovery after a long and strict lockdown. On
the global front, dollar slipped on Friday and risk appetite in currency
markets eased, as worries about the economic fallout from surging COVID-19
cases in Europe and the United States tempered initial enthusiasm about a
possible vaccine. Finally, the rupee ended at 74.62, 2 paise stronger from its
previous close of 74.64 on Thursday.
The FIIs as per Friday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 12178.92 crore against gross selling of Rs
8619.87 crore, while in the debt segment, the gross purchase was of Rs 74.80
crore with gross sales of Rs 393.03 crore. Besides, in the hybrid segment, the
gross buying was of Rs 17.70 crore against gross selling of Rs 25.70 crore.
The US markets ended higher on
Monday following more upbeat news on the coronavirus vaccine front, with
Moderna (MRNA) reporting positive results from a trial of its vaccine
candidate. Asian markets are trading mostly in green on Tuesday as vaccine
hopes once again lifted Wall Street to record highs. Indian markets ended
modestly higher on Friday despite mixed global cues and worrying inflation data
for October. Indian equity, currency and debt markets remain closed on Monday
for Diwali Balipratipada. Today, the markets are likely to make optimistic
start on vaccine hopes tracking gains in global markets. Traders will be taking
encouragement as US-based biotechnology firm Moderna Inc said its vaccine
candidate has been found to be 94.5 percent effective in preventing COVID-19,
based on Phase 3 trials. Some support will also come with a private report that
the Indian economy is seen recovering faster than expected and the Reserve Bank
is likely to have come to an end of the rate easing cycle. However, market
participants may be concerned with government data India's exports fell 5.12
per cent to $24.89 billion in October, after recording positive growth in
September, on account of drop in shipments of petroleum products, gems and
jewellery, leather and engineering goods. Besides, trade deficit in October
narrowed to $8.71 billion as against $11.75 billion in the corresponding month
a year ago. There may be cautiousness with government data showing that the
wholesale price-based inflation rose to an eight-month high of 1.48 percent in
October, as manufactured products turned costlier. The WPI inflation was 1.32
percent in September and zero percent in October last year. This is the highest
level of Wholesale price index-based (WPI) inflation since February when it was
2.26 percent. There will be some buzz in aviation stocks as Civil aviation
minister Hardeep Singh Puri said that domestic aviation operations reached a
new high on occasion of Diwali as 2,25,097 passengers flew on 1,903 flights.
Gold relates stocks will be in focus with data from the Commerce Ministry
showing that gold imports, which have a bearing on the current account deficit,
declined 47.42 percent to $9.28 billion during April-October due to fall in
demand in the wake of the COVID-19 pandemic. There will be some reaction in
mining industry stocks with report that the Centre is planning to come out with
the proposed mining reforms in a month or so and the auction of mineral blocks
will kickstart two to three months after the amendments take place. There will
be lots of earnings reaction based on the performance of the companies.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
12,719.95
|
12,639.79
|
12,768.04
|
BSE
Sensex
|
43,443.00
|
43,156.83
|
43,625.71
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
State
Bank of India
|
706.76
|
229.45
|
222.81
|
233.36
|
ICICI
Bank
|
348.15
|
485.55
|
473.04
|
492.59
|
Tata
Motors
|
325.67
|
146.35
|
144.46
|
149.11
|
Axis
Bank
|
288.13
|
610.35
|
592.31
|
620.36
|
ITC
|
281.99
|
187.10
|
185.50
|
188.75
|
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