Key
Indian equity indices ended the last trading day of week with decent gains,
tracking firm global cues. The markets made a positive opening, as India's
exports rose by 17.86% to $26.98 billion in October 2018 as compared to $22.89
Billion in October 2017. Exports bounced back in October to high double-digit
figures after the mild contraction in September as engineering goods,
pharmaceutical and chemical shipments picked up the pace. During the
April-October period of the current financial year, exports grew by 13.27% to
$191 billion. Optimism also spread on the street, with Fitch indicating that
India's strong growth outlook continues to stand out among peers and upgraded
its real GDP growth forecast at 7.8% for the current financial year ending
March 2019 (2018-19) from 7.3% forecasted earlier in April this year. Market
sentiments also got boosted with a private report stating that with bilateral
trade between India and the South American country Peru touching an all-time
high of $1.60 billion, the next round of talks for the free trade agreement
(FTA) between the two countries is scheduled to take place next month. In the
second half of the session, rally continued on the street, supported by Commerce
and Industry Minister Suresh Prabhu's statement that huge opportunities exist
for startups in agri sector to promote the growth of the segment. He also said
that innovation in agri sector was important for reducing wastage, increase
production, and cutting fertiliser use to enhance soil fertility. Investors
took note of Secretary of the Department of Industrial Policy and Promotion
(DIPP) Ramesh Abhishek's statement that the government will soon unveil a new
industrial policy which may include a dedicated chapter on the importance of
design. The street paid no heed towards a report showing that the trade deficit
for the month of October 2018 widened to $17.13 billion v/s $13.98 billion in
September on account of import growth again picked up. The deficit widened
despite a decline of 42.9% in gold imports to $1.68 billion. Imports during the
month also rose by 17.62% to $44.11 billion, leading to widening of trade
deficit. Finally, the BSE Sensex gained 196.62 points or 0.56% to 35,457.16,
while the CNX Nifty was up by 65.50 points or 0.62% to 10,682.20.
The US
markets ended choppy session mostly in green on Friday, with Dow Jones gaining
around half a percent, as comments from President Donald Trump once again
sparked hopes that a trade dispute with China could be resolved in the near
term. Trump expressed guarded optimism over US-China trade ties, telling
reporters that it may not be necessary to add new tariffs or raise existing
ones on Chinese imports, and that he does not want to put China in a bad
position. Trump and Chinese President Xi Jinping are scheduled to meet at the
sidelines of the G-20 summit in Buenos Aires later this month. Bucking the
trend, Nasdaq edged lower, as traders remained on sidelines amid lingering
uncertainty about the global economic outlook and renewed anxiety about Brexit.
Meanwhile, a report from the Fed showed a slight uptick in industrial
production in the month of October. The Fed said industrial production inched
up by 0.1 percent in October after rising by a downwardly revised 0.2 percent
in September. Industrial output rose for the fifth consecutive month in
October, with strength in the manufacturing sector outweighing softening
activity in mining production. Gains in the industrial sector came despite
monthly declines in the both the mining and utilities sectors. Street had
expected industrial production to rise by 0.2 percent compared to the 0.3
percent increase originally reported for the previous month. Dow Jones
Industrial Average jumped 123.95 points or 0.49 percent to 25,413.22 and
S&P 500 rose 6.07 points or 0.22 percent to 2,736.27, while Nasdaq was down
by 11.16 points or 0.15 percent to 7,247.87.
Halting
two-day winning streak, crude oil futures ended flat on Friday as traders
remained cautious on worries about excess supply globally and weak demand
outlook due to trade disputes. Though, oil prices edged higher earlier in the
session amid speculation that the Organization of Petroleum Exporting Countries
(OPEC) members will agree to a supply cut at their forthcoming meeting on
December 06. According to reports OPEC's de facto leader, Saudi Arabia wants
the cartel to cut output by about 1.4 million barrels per day, around 1.5% of
global supply. Benchmark crude oil futures for December settled unchanged at $56.46
a barrel on the New York Mercantile Exchange. January Brent crude gained 14
cents or 0.2 percent to settle at $66.76 a barrel on London's Intercontinental
Exchange.
Indian
rupee trimmed most of its early gains but still managed to end higher against
the American currency on Friday, on continued dollar selling by banks and
exporters. Sentiments remained positive with Fitch indicating that India's
strong growth outlook continues to stand out among peers and upgraded its real
GDP growth forecast at 7.8% for the current financial year ending March 2019
(2018-19) from 7.3% forecasted earlier in April this year. The domestic unit
also found support from strong gains in local equity markets along with
dollar's weakness against some currencies overseas. However, gains were capped
as anxiety remained among the traders with a report showing that the trade
deficit for the month of October 2018 widened to $17.13 billion v/s $13.98
billion in September on account of import growth again picked up. The deficit
widened despite a decline of 42.9% in gold imports to $1.68 billion. Imports
during the month also rose by 17.62% to $44.11 billion, leading to widening of
trade deficit. On the global front, British pound clawed back losses on Friday
as Prime Minister Theresa May clung to her Brexit plan after the resignation of
key ministers threw the divorce deal into doubt. Finally, the rupee ended at
71.93, 4 paise stronger from its previous close of 71.97 on Thursday.
The FIIs as per Friday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 6094.36 crore against gross selling of Rs 4180.94 crore, while
in the debt segment, the gross purchase was of Rs 1794.00 crore with gross
sales of Rs 1420.34 crore. Besides, in the hybrid segment, the gross buying was
of Rs 1.30 crore against gross selling of Rs 0.69 crore.
The US
markets closed mostly in green on Friday as President Donald Trump said China
wants to make a deal on trade. He stated China has provided a large list of
trade items the communist country is willing to compromise on but argued any
trade deal has to be reciprocal. Asian markets were trading mostly higher on
Monday after a buying spree on Wall Street kept up investor optimism into a new
week. Indian equity markets on Friday continued their rising streak for the
second day to end with gains of over half a percent. Sustained FII inflows and
strengthening of rupee fuelled the uptrend. Today, the start of the new week is likely
to be on positive side amid supportive global cues. Traders will be getting
some encouragement with former Niti Aayog Vice Chairman Arvind Panagariya
stating that the government has made a huge progress in implementing reforms
including some difficult structural ones such as the Goods and Services Tax (GST)
and Insolvency and Bankruptcy Code (IBC) that previous governments had
difficulty in introducing. He also said
that the Centre should stick to the fiscal deficit target for 2018-19. Meanwhile, the government expects to garner
at least Rs 50 billion through share buyback offers of state-run companies,
including Coal India, in the current financial year. Also, Prime Minister
Narendra Modi will chair a meeting with top industrialists and policy makers
today to brainstorm on measures required to realise his vision of India
breaking into the top 50 in the World Bank's ease of doing business index.
However, there may be some cautiousness as the government may push the Reserve
Bank of India (RBI) to allow more active participation by government nominees to
the central board in the decision-making process and keep them informed about
key regulatory issues. The RBI board is scheduled to meet today amid an
escalation in tension between the government and the regulator over liquidity,
curbs on weak banks, capital requirements and the transfer of reserves among
other things. A move may undermine investor confidence in the world's
fastest-growing major economy. The Textiles and apparel sector's stocks will be
in action on report that Textiles and apparel exports jumped by a staggering
33% in October on account of higher overseas demand. The country's textile and
apparel exports stood at Rs 1,986 billion for October 2018 as against Rs 1,489
billion in the corresponding month last year. There will be some buzz in the Renewable
Energy stocks as Indian Renewable Energy Development Agency (IREDA) said the
government is planning incentives to promote renewable power and it has already
issued tenders for setting up 26-GW clean energy capacities. IREDA Chairman K S
Popli said India is planning to produce 50 GW (from clean energy sources) in
the next few years.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,682.20
|
10,643.85
|
10,707.85
|
BSE Sensex
|
35,457.16
|
35,339.07
|
35,560.55
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
881.02
|
191.00
|
185.28
|
199.23
|
ICICI Bank
|
299.73
|
367.55
|
363.63
|
373.38
|
SBI
|
248.06
|
290.90
|
285.07
|
294.27
|
Bharti Airtel
|
225.73
|
332.75
|
310.90
|
345.70
|
ITC
|
126.36
|
276.55
|
275.10
|
278.15
|
Mahindra & Mahindra is planning to invest as much as Rs 1,000 crore in Karnataka in order to build a facility for the development and manufacturing of electric vehicles.
ITC is eyeing at portfolio expansion in its food division to achieve the stated vision of the company of achieving Rs 1 lakh crore turnover from FMCG by 2030.
Infosys has completed the formation of a joint venture with Temasek, the global investment company headquartered in Singapore.
ONGC is eyeing at production enhancement contracts and enhanced oil recovery techniques to boost oil and gas output from old and matured fields.