Key Indian equity benchmarks took
U-turn to settle Thursday's trading session in green territory, with both
Sensex and Nifty gaining around 0.15% each. After a firm start, the key indices
remained positive for the most part of the day, as Reserve Bank of India (RBI)
come out with a new policy for overseas borrowings, allowing all eligible
entities to raise foreign funding under the automatic route and removing
sectoral curbs. All eligible borrowers can now raise external commercial
borrowings (ECB) up to $750m per fiscal under the automatic route. Traders got
encouragement after a working group of the Commerce and Industry Ministry came
out with a blueprint suggesting a host of long and short-term measures to
increase the size of India's economy to $ 5 trillion by 2025. It also added
that India's potential to achieve a $5 trillion GDP by 2024-25 is within the
realm of possibility. Some support also came with a report that Consumer
Sentiment Index rebounded in January on account of easing inflation, increasing
liquidity and stabilising US-China trade war. India Primary Consumer Sentiment
Index has risen over the previous month of November, signalling rising optimism
going ahead. However, the markets turned volatile during the noon deals, after
a US think tank claimed that H-1B workers are vulnerable to abuse and
frequently placed in poor working conditions, seeking reforms like a
substantial increase in wages to those holding the visa, popular among Indian
IT professionals. Weak cues from global markets also hit the trading
sentiments. But, the trade soon bounced back to end the session in green, amid
reports that the government simplified process for seeking income tax exemption
by startups on investments from angel funds and prescribed a 45-day deadline
for a decision on such applications. Adding some optimism, a private report
stated that India's growth to be the best in the Asian region in 2019. It is
also positive on the market with a Nifty target of 12,170 for the year end
which is a fourteen percent upside from current levels. Some comfort also came
with ICRA's latest report expressing confidence that mid-sized construction
players are likely to see significant growth opportunities, with improving
credit profiles and strengthening order book aided by the government's push
towards infrastructure development projects. Finally, the BSE Sensex gained
52.79 points or 0.15% to 36,374.08, while the CNX Nifty was up by 14.90 points
or 0.14% to 10,905.20.
Magnifying their gains for third
straight day, the US markets ended higher on Thursday on report that US
is considering lifting some tariffs on Chinese products in an effort
to elicit more concessions from China for a bilateral trade deal and to
stabilize the financial markets. Some support also came with report from the
Philadelphia Federal Reserve showing a significant acceleration in the pace of
growth in regional manufacturing activity in the month of January. The Philly
Fed said its index for current manufacturing activity in the region jumped to
17.0 in January from 9.1 in December, with a positive reading indicating
growth. Street had expected the index to tick up to 10.0. The much bigger than
expected increase by the headline index reflected a substantial acceleration in
new orders growth, as the new orders index surged up to 21.3 in January from
13.3 in December. Besides, a separate report from the Labor Department
unexpectedly showed a modest decrease in first-time claims for unemployment
benefits in the week ended January 12. The report said initial jobless claims
edged down to 213,000, a decrease of 3,000 from the previous week's unrevised
level of 216,000. Street had expected jobless claims to inch up to 220,000. The
less volatile four-week moving average also dipped to 220,750, a decrease of
1,000 from the previous week's unrevised average of 221,750. However, gains
remain capped as investors were increasingly worried that a government
shutdown, entering its 27th day, would deliver a more lasting impact to
economic growth in the first quarter. Dow Jones Industrial Average surged
162.94 points or 0.67 percent to 24370.10, Nasdaq gained 49.77 points or 0.71
percent to 7084.46 and S&P 500 was up by 19.86 points or 0.76 to 2635.96.
Crude oil futures ended lower on
Thursday, pressured by recent data showing a weekly climb in US crude
production. Uncertainty over whether the US and China will resolve a protracted
trade spat has weighed on investment sentiment and raised questions about the
health of China, one of the world's biggest importers of crude. However, oil
prices found some support with report that the Organization of the Petroleum
Exporting Countries (OPEC) stating member oil production fell in December as
the group appeared to get a jump on their pledge and that of close non-cartel
producers to cut daily output beginning in January. OPEC member output fell by
751,000 barrels a day to 31.6 million barrels a day in December. Benchmark
crude oil futures for February declined 24 cents or 0.5 percent to settle
$52.07 a barrel on the New York Mercantile Exchange. March Brent crude lost 14
cents or 0.2 percent to settle at $61.18 a barrel on London's Intercontinental
Exchange.
Snapping
four days depreciating streak, Indian rupee ended higher against dollar on
Thursday, on persistent selling of the American currency by exporters.
Sentiments turned optimistic as a working group of the Commerce and Industry
Ministry came out with a blueprint suggesting a host of long and short-term
measures to increase the size of India's economy to $ 5 trillion by 2025. It
also added that India's potential to achieve a $5 trillion GDP by 2024-25 is
within the realm of possibility. Some support also came with a report that Consumer
Sentiment Index rebounded in January on account of easing inflation, increasing
liquidity and stabilizing US-China trade war. India Primary Consumer Sentiment
Index has risen over the previous month of November, signaling rising optimism
going ahead. On the global front, dollar took a breather on Thursday following
its recent strong gains against key rivals, while sterling steadied after
British Prime Minister Theresa May's government won a no-confidence vote in
parliament. Finally, the rupee ended at 71.03, 21 paise stronger from its
previous close of 71.24 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 3928.07 crore against gross selling of Rs 3999.10 crore, while
in the debt segment, the gross purchase was of Rs 810.20 crore with gross sales
of Rs 1775.80 crore. Besides, in the hybrid segment, there was no buying and
selling.
The US markets extended their
gains for third straight session on Thursday on optimism the US would ratchet
back tariffs on Chinese imports, a conflict that has rattled financial markets
in recent months. Asian markets were trading higher on Friday, as hopes for a
thaw in the US-China trade conflict fed investor appetites for risk assets.
Indian markets ended Thursday's session flat, as gains in IT and financials
stocks were offset by losses in healthcare and consumer stocks. Investors were
also cautious ahead of Q3 results by Reliance Industries and Hindustan
Unilever. Today, the markets are likely to make optimistic start mirroring firm
cues from global markets. Traders will be getting encouragement with India
Ratings and Research (Ind-Ra), a Fitch Group company, report stating that the
country's economy is likely to grow a tad higher at 7.5 per cent in 2019-20 on
account of steady improvement in major sectors -- industry and services. It
further said Gross Domestic Product (GDP) growth would have been even better
but for the global headwinds caused by an abrupt rise in crude oil prices and
strengthening of the US dollar, among other factors. Traders may also take note
of report that ahead of the monetary policy review, India Inc has urged the
Reserve Bank of India (RBI) to cut interest rate and reserve ratio to prop up
growth. Industry chambers suggested various measures to ease tight liquidity
situation and reduce high cost of credit in the light of consistently falling
inflation. There will be some buzz in the rubber industry related stocks with
Union minister for commerce and Industry and Civil Aviation Suresh Prabhu's
statement that the government is developing a National Rubber Policy to address
various issues concerning the sector. The policy by the commerce and industry
ministry will address issues that will boost productivity. Prabhu said the
rubber industry will continue to grow faster, create more employment
opportunities, increase exports and add to the economic output of India. Also,
there will be some reaction in agriculture related stocks with report that
farmers could get annual income support of Rs 15,000 per hectare if the Niti
Aayog's proposal for an upfront subsidy through direct benefit transfer is
accepted. The Aayog has suggested that all subsidies for agriculture, including
fertiliser, electricity, crop insurance, irrigation and interest subvention be
replaced by income transfer. There will be some important earnings
announcements too to keep the markets buzzing.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,905.20
|
10,856.35
|
10,942.35
|
BSE Sensex
|
36,374.08
|
36,207.11
|
36,504.73
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
605.35
|
201.50
|
197.98
|
207.28
|
SBI
|
159.75
|
297.40
|
293.88
|
302.63
|
ICICI Bank
|
131.72
|
374.60
|
372.28
|
377.43
|
Indian Oil Corporation
|
116.44
|
137.65
|
135.87
|
138.87
|
ITC
|
106.01
|
293.95
|
290.87
|
296.32
|
SBI is planning to sell over Rs 15,000 crore worth bad loans belonging to Essar Steel to recover its dues from the debt-laden steel maker.
L&T has signed a definitive agreement on January 16, 2019 to acquire Ruletronics (UK), Ruletronics Systems Inc. (US) and Ruletronics Systems.
Tech Mahindra and Alfresco have extended their global partnership to offer new Machine Learning Solutions for the digital customer.
HUL has reported a rise of 8.90% in its net profit at Rs 1,444 crore for Q3FY19 as compared to Rs 1,326 crore for Q3FY18.