Tuesday turned out to be a choppy
day of trade for Indian equity benchmarks, with frontline gauges ending
slightly in red, as traders remained on sidelines ahead of the US Federal
Reserve and Bank of Japan's meetings later this week. After a cautious start,
frontline gauges traded near neutral lines swinging between green and red for
most part of the day. Investors stayed away from picking any risky assets ahead
of meeting of Prime Minister Narendra Modi with Finance Minister Arun Jaitley
and other top officials to take stock of the situation and the discussion for
remedial measures to bolster growth. PM will analyse the economic situation
with Jaitley and secretaries of the finance ministry and explore options to stimulate
the economy. Some concern also crept in the market on report that the Centre
could be forced to cut infrastructure spending, as GST glitches have hit
revenue. Lower-than-expected tax collections and sluggish growth have upset the
government`s budget calculations. However, losses remained capped as traders
took some solace with Moody's latest report that India is likely see increased
foreign direct investment (FDI) inflows on the back of reforms such as
introduction of the goods and services tax and the bankruptcy code. Some
support also came with Union Minister for Road Transport, Highways and Shipping
Nitin Gadkari's statement that the government has managed to save bank loans
worth Rs 300,000 crore to the road sector from turning into non-performing
assets (NPAs). Finally, the BSE Sensex slipped 21.39 points or 0.07% to
32,402.37, while the CNX Nifty was down by 5.55 points or 0.05% to 10147.55.
The US markets closed higher on
Tuesday, with all three main US stock indexes ending at all-time highs, as
Federal Reserve policy makers began a two-day policy meeting in which they're
expected to finalize the details of their plan to begin slowly shrinking the
central bank's $4.5 trillion balance sheet. President Donald Trump gave his
first address to the United Nations General Assembly, and at one point stated
that the US was ready, willing and able to act against North Korea militarily,
and that the US would totally destroy the country if necessary. Markets were
little impacted by the speech. On the economy front, the US current account
deficit jumped to its highest level since 2008 in the second quarter amid a
decline in both secondary and primary income. The current account deficit,
which measures the flow of goods, services and investments into and out of the
country, increased to $123.1 billion from a downwardly revised $113.5 billion
in the first quarter. That was the highest level since the fourth quarter of
2008. The Dow Jones Industrial Average added 39.45 points or 0.18 percent to
22,370.80, the Nasdaq gained 6.68 points or 0.10 percent to 6,461.32 and the
S&P 500 edged higher by 2.78 points or 0.11 percent to 2,506.65.
Crude oil futures coming off the
highs of the day ended lower on Tuesday, as investors looked ahead to weekly
data from the U.S. on stockpiles of crude and refined products to weigh what
the impact of recent storm activity was on supply and demand. Crude oil
initially rallied on comments from an Iraq oil minister saying that OPEC
members are committed to cutting supplies through 2018, but a stronger dollar
weighed on commodity prices. Benchmark crude oil futures for October delivery ended
lower by 43 cents or 0.9 percent at $49.48 a barrel on the New York Mercantile
Exchange. Brent crude for October delivery fell by 0.42 cent to $55.06 a barrel
on the ICE.
Indian
rupee extending weakness for the second day depreciated against dollar on
Tuesday due to increased demand for the American currency from banks and
importers. Investors remained cautious ahead of the US Federal Reserve's
two-day policy meeting beginning later today. Some cautiousness also crept
ahead of meeting of Prime Minister Narendra Modi with Finance Minister Arun
Jaitley and other top officials to take stock of the situation and the
discussion for remedial measures to bolster growth. PM will analyze the
economic situation with Jaitley and secretaries of the finance ministry and
explore options to stimulate the economy. Besides, strength in the US dollar
against some other currencies overseas coupled with lackluster trade in the
equity markets also weighed on the sentiment of the domestic currency. Finally,
the rupee ended at 64.32, 19 paise weaker from its previous close of 64.13 on
Monday.
The FIIs as per Tuesday'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 3389.47 crore against gross
selling of Rs 3468.29 crore, while in the debt segment, the gross purchase was
of Rs 631.90 crore with gross sales of Rs 598.40 crore.
The US markets continued their
record breaking spree and all three of the major averages ended the session at
record closing highs in continuation of the upward momentum seen on Wall Street
over the past several sessions. Though, there was some cautiousness ahead of
the Federal Reserve's monetary policy announcement on Wednesday. The Asian
markets have made a mixed start and some of the indices are mildly in red, as
investors girded for another round of geopolitical tensions after U.S.
President Donald Trump threatened to annihilate North Korea. The Indian markets
after a lackluster trade ended marginally in red in the last session, as
caution crept in ahead of a two-day policy meeting of the US Federal Reserve.
Today, the start is likely to be in green though cautiousness will persist amid
geopolitical tensions and ahead of U.S. monetary policy decision. There will be
concern in the market with SBI Research stating that economy has been on a
downslide since September 2016 and the slowdown is real and not technical,
calling for more public spending to arrest the slide. The report advocated
upping of spends by the government as a solution to the problem at hand.
Meanwhile, exporters fearing that a staggering Rs 65,000 crore could get stuck
in GST refunds have asked the government to fast-track the refund process and
avoid further deterioration in their liquidity situation. The 22nd meeting of
the GST Council, chaired by Union Finance Minister Arun Jaitley, will be held
on October 6 to deliberate on GSTN glitches and ironing out issues faced by
exporters. There will be buzz in the telecom stocks, as telecom regulator, the Telecom Regulatory
Authority of India (Trai), more than halved the interconnect usage charge (IUC)
from October 1 and said the fee will be scrapped from 2020, in a move that it
said would benefit consumers. IUC has been reduced to 6 paise a minute from 14
paise a minute and to zero starting January 1, 2020. There will be buzz from
the primary market too, as the SBI Life Insurance (SBI Life) Rs 8,400 crore
initial public offering (IPO) set to hit the market today.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10147.55
|
10125.35
|
10174.35
|
BSE Sensex
|
32402.37
|
32332.63
|
32498.11
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ITC
|
338.82
|
267.85
|
264.63
|
270.53
|
Tata Motors
|
282.08
|
423.65
|
415.87
|
429.57
|
SBI
|
143.31
|
267.80
|
265.90
|
270.25
|
GAIL
|
89.28
|
420.85
|
412.43
|
426.08
|
ICICI Bank
|
75.59
|
294.65
|
291.00
|
296.90
|
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