Profit
booking which took place in last leg of trade played spoil sport for the Indian
equity benchmarks and pulled them to end flat on Friday. Key gauges made a
positive start and traded mostly in green but in tight band throughout the
session, as traders taking encouragement with credit rating agency Fitch's
report that the recent recapitalisation plan announced by the government for
public sector banks will provide substantial funds to the lenders to address the
capital shortages that has a major negative impact on their ratings. Meanwhile,
markets regulator SEBI revising the framework for 'block deals' by providing
two separate trading windows of 15 minutes each and increasing the minimum
order size to Rs 10 crore. The move is aimed at ensuring confidentiality of the
large trades and stable prices for such transactions. Adding to the optimism,
Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek
expressed hope that India's
ranking is likely to improve significantly in the World Bank's ease of doing
business report, as they have worked very hard. The government's optimism
regarding the improvement in India's
rank comes on the back of reforms taken to improve the efficiency in granting
construction permits, starting a business and resolving insolvency. Sentiments
also got some support with Niti Aayog CEO Amitabh Kant's statement who pitched
for channeling insurance and pension funds for financing infrastructure
projects as also for a complete re- examination of the Viability Gap Funding
(VGF) scheme. However, markets witnessed sharp selloff in final hour of trade,
with traders opting to book all of their initial profit to pull benchmarks
lower and end mixed with negative bias. Finally, the BSE Sensex rose 10.09
points or 0.03% to 33,157.22, while the CNX Nifty was down by 20.75 points or
0.20% to 10323.05.
The US
markets closed higher on Friday, with the S&P 500 and Nasdaq Composite
closing at records, fueled by large gains in technology shares following
better-than-expected quarterly results from heavyweights. The dollar was rising
across the board after the House of Representatives passed a budget resolution,
which was viewed as an encouraging sign for tax cuts. According to the
analysis, released by Trump's Council of Economic Advisers cutting the
corporate tax rate to 20% would speed up economic growth enough to eventually
make the US
economy 3 to 5% larger than it otherwise would be. The New York Federal Reserve
upgraded its estimate of US gross domestic product growth for the fourth
quarter, based on upbeat data on durable goods orders and new home sales in
September and stronger-than-forecast GDP growth in the third quarter. The
regional central bank's 'Nowcast' model calculated the economy was expanding at
an annualized pace of 3.05% in the fourth quarter, faster than the 2.61% rate
calculated last week. The Dow Jones Industrial Average added 33.33 points or
0.14 percent to 23,434.19, the Nasdaq gained 144.49 points or 2.20 percent to 6,701.26,
and the S&P 500 edged higher by 20.67 points or 0.81 percent to 2,581.07.
Crude
oil futures surged on Friday to its highest since February, with global
benchmark Brent crude rising above $60 per barrel, on support among the world's
top producers for extending a deal to rein in output and as the dollar
retreated from three-month peaks. Saudi Arabia
and Russia
declared their support for extending an OPEC-led deal to cut supplies for
another nine months. Traders even over looked report from oil services firm Baker
Hughes, which said that the number of rigs drilling for oil in the US
rose this week by one to 737. Benchmark crude oil futures for December delivery
ended higher by $1.26 or 2.4 percent at $53.90 a barrel on the New York
Mercantile Exchange. However, Brent crude for December delivery gained $1.14 or
1.9 percent to $60.44 a barrel on the ICE.
Snapping 2-day winning streak Indian rupee ended
considerably weaker on Friday against the American currency, on increased
month-end demand for the US currency from importers. The dollar's gains against some
other currencies overseas coupled with lackluster trade in the equity markets
also weighed negatively on the domestic unit. On the global front, the euro
slipped for a second day on Friday on track for its biggest weekly loss of the
year on the back of falling bond yields after the European Central Bank
extended its bond buying well into next year. Finally, the rupee ended at
65.05, 23 paise weaker from its previous close of 64.82 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 11584.53
crore against gross selling of Rs 10204.39 crore, while in the debt segment,
the gross purchase was of Rs 1975.59 crore with gross sales of Rs 1316.58
crore.
The US
markets moved higher in the last session and the tech-heavy Nasdaq and the
S&P 500 climbed to new record closing highs. The gains were in reaction to
upbeat earnings news from several well known companies and a report from the
Commerce Department showing stronger than expected economic growth in the third
quarter. The Asian markets have made mostly a higher start following Wall
Street close at fresh record highs on Friday. Though, the Chinese market was
cautious despite its industrial profit growth accelerating further in September.
The Indian markets after a lackluster trade and paring all the early gains made
a flat closing in the last session, as mixed earnings results prompted traders
to book some profits at higher levels. Today, the start of the new data heavy
week is likely to be flat-to-cautious and traders will be reacting to the
meeting outcome of the ministerial panel working to make GST composition scheme
more attractive, which suggested slashing tax rate to 1 per cent for
manufacturers and restaurants, while easier norms for traders opting for it. Traders
will also be eyeing the urgent meeting of the ministry of corporate affairs to
discuss if there are 'grey areas' in the Companies Act that needs to be
addressed, after several directors went to courts against their debarment by
the government. The ministry in September cancelled registration of over 200,000
defaulting companies and, by extension, it had also debarred over 300,000 directors
of companies. There will be some buzz in the auto sector stocks too as the
Union road transport ministry has approved the timeline for the implementation
of system which requires all cars manufactured after July 1, 2019, to be
equipped with airbags, seat-belt reminders, alert systems for speeds beyond 80kmph,
reverse parking alerts, as well as manual override over the central locking
system for emergencies.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10323.05
|
10300.85
|
10355.70
|
BSE Sensex
|
33157.22
|
33082.25
|
33259.35 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Yes Bank
|
809.07
|
307.05
|
299.23
|
314.18
|
ICICI Bank
|
368.89
|
301.15
|
289.28
|
309.23
|
SBI
|
275.81
|
311.05
|
306.23
|
319.73
|
ITC
|
229.68
|
269.35
|
265.87
|
274.42
|
IOC
|
143.32
|
414.95
|
402.90
|
434.50 |
- Cipla's subsidiary, InvaGen Pharmaceuticals Inc., has
received final approval for its ANDA for Sevelamer Carbonate Tablets, 800 mg,
from the USFDA.
- BPCL is planning to raise $500 million from the market to
fund expansion of Bina, Kochi, Mumbai and Numaligarh refineries.
- Bharti Airtel has launched Voice over Long Term Evolution
services across Gujarat.
- ITC has reported a marginal rise of 5.59% rise in its net
profit at Rs 2639.84 crore for Q2FY18 as compared to Rs 2500.03 crore for
Q2FY17.