Indian equity bourses gained
momentum on Thursday to settle in green terrain. Key indices started on a
positive note, after the Employees' State Insurance Corporation (ESIC) in its
latest payroll report showed that around 14.24 lakh jobs were created in July
2019, higher than 12.49 lakh in the previous month. Adding more relief, Union
minister Som Parkash said that the Centre is determined to bring economic
growth to 7-8% at the earliest, asserting that the government has taken many
steps to boost the economy. Separately, the SEBI eased the regulatory framework
for foreign portfolio investors (FPIs) and simplified KYC requirements for them
and permitted them to carry out off-market transfer of securities. Key
benchmarks remained positive throughout the trading day, amid a private report
stating that the Indian economy is expected to start its recovery from later
part of this fiscal thanks to the initiatives taken by the Reserve Bank for
policy rate transmission and steps by the government to boost growth. Domestic
sentiments also remained in optimistic mood, even though the United Nations
Conference on Trade and Development (UNCTAD) in its Trade and Development 2019
report projected India's gross domestic product (GDP) growth at 6% for 2019
from 7.4% in 2018. It said slowdown in growth rate is attributed to a sharp
fall to 5.8% in the first quarter of 2019. Finally, the BSE Sensex gained
396.22 points or 1.03% to 38,989.74, while the CNX Nifty was up by 131.00
points or 1.15% to 11,571.20.
The US markets ended lower on
Thursday on renewed political uncertainty following the release of the
whistleblower complaint that sparked the impeachment inquiry into President
Donald Trump. The document outlines concerns about Trump using the power of his
office to solicit interference from a foreign country in the 2020 US election.
This interference includes, among other things, pressuring a foreign country to
investigate one of the President's main domestic political rivals, the
complaint reads. The complaint relates to Trump's calls on Ukrainian President
Volodymyr Zelensky to conduct an investigation of former Vice President Joe
Biden, the frontrunner for the Democratic presidential nomination. Besides,
weakness on the markets also came following a report that Washington was
unlikely to extend a waiver that allows US firms to supply equipment to China
telecom equipment firm Huawei. On the economic front, the Commerce Department
released its final report on US gross domestic product in the second quarter,
showing the pace of GDP growth was unrevised from the previous estimate. The
report said real GDP increased at an annual rate of 2.0 percent in the second
quarter, unchanged from the previous estimate and in line with street
estimates. The unrevised 2.0 percent GDP growth in the second quarter still
reflects a notable slowdown compared to the 3.1 percent jump in the first
quarter. Meanwhile, a separate report from the National Association of Realtors
showed a much bigger than expected rebound in pending home sales in the month
of August. NAR said its pending home sales index surged up by 1.6 percent to
107.3 in August after plunging by 2.5 percent to 105.6 in July. Dow Jones
Industrial Average dropped 79.59 points or 0.30 percent to 26891.12, Nasdaq
declined 46.72 points or 0.58 percent to 8030.66 and S&P 500 was down by
7.25 points or 0.24 percent to 2977.62.
Crude oil futures ended slightly
higher on Thursday as traders continued to weigh global crude demand and supply
positions. However, oil prices were supported by the US government's move to
deploy defense equipment and security forces to Saudi Arabia to help prevent
attacks on the kingdom's oil infrastructure. Meanwhile, according to reports,
Saudi Arabia has restored most of its production capacity. Besides, the Energy
Information Administration (EIA) reported that US supplies of natural gas rose
by 102 billion cubic feet for the week ended September 20. The data were
expected to show a build of 93 billion cubic feet, on average, according to
S&P Global Platts. Benchmark crude oil futures for November declined 8
cents or 0.1 percent to settle at $56.41 a barrel on the New York Mercantile
Exchange. However, November Brent gained 35 cents or 0.6 percent to settle at
$62.74 a barrel on London's Intercontinental Exchange.
Indian
rupee strengthened against dollar on Thursday, on good bouts of dollar-selling
by banks and exporters. Traders took support with a private report stating that
the Indian economy is expected to start its recovery from later part of this
fiscal thanks to the initiatives taken by the Reserve Bank for policy rate
transmission and steps by the government to boost growth. Some optimism also
came in with Union minister Som Parkash's statement that the Centre is
determined to bring economic growth to 7-8% at the earliest, asserting that the
government has taken many steps to boost the economy. That apart, the rupee
derived its strength from strong gains in the local equity markets. On the
global front, dollar edged lower but held close to its recent highs on Thursday
as investors struggled to make sense of U.S. President Donald Trump's mixed
signals on a trade deal with China. Finally, the rupee ended at 70.88, 16 paise
stronger from its previous close of 71.04 on Wednesday.
The FIIs as per Thursday'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 7209.67 crore against gross
selling of Rs 7561.99 crore, while in the debt segment, the gross purchase was
of Rs 832.72 crore with gross sales of Rs 759.30 crore. Besides, in the hybrid
segment, the gross buying was of Rs 3.38 crore against gross selling of Rs 3.75
crore.
The US markets ended in red on
Thursday as traders monitored the latest trade developments and assessed a
whistleblower complaint against President Donald Trump that was released. Asian
markets are trading lower on Friday as the release of a whistleblower complaint
against US President Donald Trump heightened uncertainties about the global
economy, already reeling from Sino-US trade war. Indian markets ended the
F&O expiry session on positive note, riding on optimism of a likely
US-China trade deal and softening crude oil prices. Today, the markets are
likely to make negative start amid weak global cues. There will be some
cautiousness with Fitch Ratings' statement that the steep cut in tax paid by
companies may stimulate investments and economic growth only in the medium
term, but it will lead to breach fiscal targets in the current fiscal itself.
It expects India to miss its fiscal deficit target of 3.3% of GDP for the
current financial year by about 40 basis points following last week's decision
to reduce corporate tax rates, resulting in the loss of an estimated Rs 1.45
trillion in tax revenue. Though, some support may come later in the day on
report that Union Finance Minister Nirmala hoped the economy will start looking
up in the second half of the current financial year as consumption rises and
banks increase their lending operations. She also said private sector banks
were not facing any liquidity crisis while exuding confidence that demand would
return and motivate the economy to move at a faster rate. Meanwhile, a panel
set up by the Reserve Bank of India (RBI) has recommended that the central
bank's liquidity framework be made flexible enough to adapt to conditions when
the system requires liquidity to be in surplus mode. Under the current setup,
system liquidity is required to be in a small deficit, which could be an
impediment when surplus liquidity is essential. There will be some buzz in the
telecom stocks with ICRA's statement that after scaling a high propelled by 4G
network expansion, the capex intensity of the telecom industry is expected to
witness moderation till the point there is technology upgrade to 5G, which is
still some time away. Banking stocks will be in focus with the RBI's data
showing that bank credit and deposits grew at 10.26% and 10.02% to Rs 97.01
lakh crore and Rs 127.22 lakh crore, respectively, in the fortnight ended
September 13.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,571.20
|
11,488.08
|
11,632.58
|
BSE
Sensex
|
38,989.74
|
38,724.54
|
39,206.50
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,496.70
|
51.05
|
49.65
|
53.35
|
SBIN
|
790.06
|
281.85
|
275.93
|
288.83
|
Tata Motors
|
458.66
|
124.50
|
122.45
|
126.90
|
ICICI Bank
|
409.09
|
451.95
|
440.78
|
460.88
|
Zee Entertainment
Enterprises
|
390.01
|
286.70
|
274.77
|
294.12
|
HDFC Bank and IOCL have launched a co-branded fuel credit card for users from non-metro cities and towns.
Cipla has launched Daptomycin for Injection, 500mg/vial, single-dose vial, AP-rated generic equivalent of Cubicin for Injection in the United States.
Mahindra Electric, the electric vehicle arm of M&M, has launched the Treo electric three-wheeler in two variants -- Treo and Treo Yaari, in Kerala.
NTPC has signed a MoU with the Himachal Pradesh government to set up two hydro projects totalling 520 MW in the state.