Indian benchmark equity indices
staged a blockbuster performance on the last day of the week, by vehemently
rallying by over one and half percent in the session and re-conquering their
several psychological levels. Sentiments got a boost after a government report
showed that India's fiscal deficit stood at Rs 4.88 lakh crore during
April-December or 87.9 percent of the full-year target, indicating an
improvement in its finances. The deficit was 100.2 percent of the full-year
target during the same period a year ago. The improvement is mainly on account
of buoyancy in tax collections, which have kept revenue deficit in check. Local
sentiments also got buttressed by strong rally in global markets as a rebound
in commodity prices and Bank of Japan's bold move to adopt negative interest
rates to stimulate the Japanese economy stoked global risk appetite for
equities. Some support also came with the buzz that Reserve Bank of India (RBI)
is likely to go for a final 25-bps repo rate at its policy review meet on
February 2, 2016. Appreciation in Indian rupee too aided sentiments. Snapping
its three-day losing streak, Indian rupee firmed up by 30 paise to 67.93
against the US dollar on fresh selling of the American currency by exporters.
On the global front, Asian markets ended higher on Friday, European markets too
gained. Back home, after getting dismal start, Indian benchmarks gained
momentum and entered into positive territory in early trade, tracking positive trade
in other regional markets. Thereafter, the frontline indices started their
northward journey and continued throughout the session as strong buying
interest was seen across the metal and oil and gas sector on the back of
rebound in commodity prices. Finally, the BSE Sensex surged 401.12 points or
1.64% to 24870.69, while the CNX Nifty ended up by 138.90 points or 1.87% to
7,563.55.
The US markets closed higher on
Friday, booking a second straight weekly gain but posting the worst January
performance since 2009. Friday's surge came amid a global equity rally
following a surprise decision by the Bank of Japan to push a key interest rate
into negative territory that some said could push the Federal Reserve to ease
up on its plans to steadily raise interest rates. On the economy front, the
economy bogged down at the end of 2015, raising questions about whether US
growth is losing momentum. Gross domestic product - the value of everything a
nation produces - expanded at a 0.7% annual rate from October to December. That
was a big markdown from 2% growth in the autumn and 3.9% growth in the spring,
even though it was largely expected. The Dow Jones Industrial Average added
396.66 points or 2.47 percent to 16,466.30, the Nasdaq was up 107.27 points or
2.38 percent to 4,613.95 while the S&P 500 gained 46.88 points or 2.48
percent to 1,940.24.
Crude oil futures extended their
rally on Friday, as rumors continued to swirl that Russia and OPEC could work
collaboratively to cut production as a means to stem a prolonged downturn in
global energy markets. Prices also got some support with Bank of Japan's
surprise stimulus announcement. Also, the oil services firm Baker Hughes said
Friday that US oil rigs declined for the sixth consecutive week last week
falling by 12 to 498 for the week ending on Jan. 22. Benchmark crude oil
futures for March delivery ended up by $0.44 or 1.31 percent to $33.66 a barrel
after trading in a range of $32.66 and $34.41 a barrel on the New York
Mercantile Exchange. In London, Brent crude for April delivery closed at $36.02,
up $1.22 or 3.48 percent on the ICE.
Snapping its three day losing
streak Indian rupee bounced back against dollar on Friday due to selling of the
greenback by banks and exporters. The domestic currency was looking strong from
the very beginning and was supported by the surge in the equity markets.
Further, sentiments also got a boost after a government report showed that
India's fiscal deficit stood at Rs 4.88 lakh crore during April-December or
87.9 percent of the full-year target, indicating an improvement in its
finances. On the global front, yen tumbled against the dollar and euro on
Friday after the Bank of Japan announced a surprise negative interest rate
policy, leading to forecasts that the greenback will hit 140 yen within two
years. Finally, the rupee ended at
67.79, 43 paise stronger from its previous close of 68.22 on Thursday.
The
FIIs as per Friday'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 5898.88
crore against gross selling of Rs 6281.84 crore, while in the debt segment, the
gross purchase was of Rs 1566.09 crore with gross sales of Rs 1182.25 crore.
The US markets surged in last
session supported by some good earnings and in reaction to the Bank of Japan's
surprise decision to introduce negative interest rates. The Asian markets have
made mostly a positive start and the Japanese market was heading for an almost
one-month high as yen was on track for its longest slump. However, the Chinese
shares got off to a weak start after an official measure of activity in the
factory sector fell to its lowest since mid-2012. The Indian markets went for a
rally in last session on some encouraging economic data and gains in the other
global markets. Today, the start of the new week and the month is likely to be
in green, though there will be some cautiousness too ahead of the RBI's
monetary policy announcement tomorrow. Also, the Standard & Poor's Ratings
Services has said that India will face challenges in sticking to the fiscal
consolidation roadmap as the expected revenues may not be fully realised and
subsidy cuts may be delayed. Meanwhile, Finance Minister Arun Jaitley has said
that the Congress will "see reason" and help in passage of GST legislation,
stuck in Rajya Sabha, in the Budget session of Parliament beginning next month.
Markets may get some support with, NITI Aayog Vice-Chairman Arvind Panagariya's
statement that India is expected to get on to a double-digit growth in the next
2-3 years if reform process continues. Steel stocks will kepp buzzing with
Union Minister Narendra Singh Tomar stating that additional steps will be taken
to protect domestic steel industry. Today, the auto stocks will be in action
once the monthly sales numbers starts trickling in. The PSU oil marketing
companies too are likely to react to the government's decision to hike the
excise duty on petrol by Re 1 per litre and Rs 1.50 on diesel, the third
increase this month, to mop up over Rs 3,200 crore in additional revenue,
netting in all Rs 17,000 crore in three months.
Support
and Resistance: NSE Nifty and BSE Sensex
Index
|
Previous close
|
Support
|
Resistance
|
CNX Nifty
|
7563.55
|
7452.35
|
7625.20
|
BSE Sensex
|
24870.69
|
24503.20
|
25075.04
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Vedanta
|
439.90
|
71.75
|
69.35
|
73.50
|
ICICI Bank
|
434.14
|
230.15
|
221.33
|
236.63
|
SBI
|
242.59
|
179.90
|
176.75
|
184.40
|
Yes Bank
|
174.13
|
746.80
|
682.13
|
780.48
|
Axis Bank
|
136.68
|
408.40
|
397.83
|
414.38
|
Yes Bank has reported 25.07% rise in its net profit at Rs 675.74 crore for the third quarter as compared to Rs 540.29 crore for the same quarter in the previous year.
Bank of Baroda has unveiled its Specialized Mortgage Store outfit 'Baroda SMS' in Mumbai at Sir PM Road, Fort, to cater to mortgage based retail business.
ICICI Bank has reported 4.47% rise in its net profit at Rs 3018.13 crore for the third quarter as compared to Rs 2889.04 crore for the same quarter in the previous year.
Maruti Suzuki India has reported 27.06% rise in its net profit after tax at Rs 1019.30 crore for the third quarter as compared to Rs 802.20 crore for the same quarter in the previous year.
Bharti Airtel and Axiata Group Berhad have signed a pact to merge their respective telecommunication subsidiaries in Bangladesh; namely, Robi Axiata and Airtel Bangladesh.