Snapping their two-day
record-setting streak, Indian equity benchmarks ended Friday's trade on a
pessimistic note with losses of more than half a percent, as investors were
cautious ahead of the release of the Gross Domestic Product (GDP) data for the
September quarter slated for later in the day. Markets traded in negative note
since the beginning, amid discouraging cues from global peers. Sentiments
remained dampened with CRISIL's report that for states, balancing the fiscal
math while continuing to spend on infrastructure capital expenditure (capex)
will be challenging. Selling got intensified in the afternoon session, as sentiments
on the street weakened further with a private report that India's economy
probably expanded at its weakest pace in more than six years in the quarter to
September, as consumer demand and private investment weakened further and a
global slowdown hit exports. Traders also took a note of chief Economic Adviser
K V Subramanian's statement that the cut in corporate tax rate was required to
boost investments as the virtual cycle that spurs growth in the economy has not
been functioning as expected for the last few quarters. Finally, the BSE Sensex
lost 336.36 points or 0.82% to 40,793.81, while the CNX Nifty was down by 95.10
points or 0.78% to 12,056.05.
The US markets closed lower with
losses of around half percent on Friday, ending a four-day winning streak, as
traders cashed in on recent gains amid concerns rising tensions between the US
and China over the situation in Hong Kong could impact ongoing trade talks.
After President Donald Trump signed two bills in support of pro-democracy
protesters in Hong Kong, a spokesman for China's Foreign Ministry threatened
strong countermeasures. Foreign Ministry spokesman Geng Shuang accused the US
of interfering in China's internal affairs and violating international law and
the basic norms governing international relations. Geng said China will take
strong counter-measures in response to the US behavior that interferes in
China's internal affairs and undermines China's interests. He added no one
shall underestimate China's determination in safeguarding national sovereignty,
security and development interests. Besides, trading activity remained
relatively light, with many traders still away from their desks following the
Thanksgiving Day holiday on Thursday. A lack of major US economic data is also
kept some traders on the sidelines along with the early close for the markets,
which came at 1 pm ET.
Crude oil futures ended deeply in
red with loss of over five percent on Friday as the much-anticipated approval
of a production-cut extension at next week's Organization of Oil Exporting
Countries (OPEC) meeting grew more doubtful following speculative reports.
Saudi Arabia probably will indicate it is no longer willing to compensate for
excessive production by other members of the OPEC. Further, Russian Energy
Minister Alexander Novak said he would prefer if OPEC and its non-OPEC allies
made a decision closer to April on whether to extend their now three-year-old
production coordination pact. Besides, the sell-off in oil prices also came
amid concerns rising tensions between the US and China over the situation in
Hong Kong could impact ongoing trade talks. Benchmark crude oil futures for
January dropped $2.94 or 5.1 percent to settle at $55.17 a barrel on the New
York Mercantile Exchange. January Brent fell $1.44 or 2.3 percent to settle at
$62.43 a barrel on London's Intercontinental Exchange.
Extending
weakness for the second day, Indian rupee ended lower against dollar on Friday,
as good demand for the greenback from importers. Traders remain concerned with
a private report that India's economy probably expanded at its weakest pace in
more than six years in the quarter to September, as consumer demand and private
investment weakened further and a global slowdown hit exports. Some caution
also prevailed in the markets ahead of the release of the Gross Domestic
Product (GDP) data for the September quarter slated for later in the day. Heavy
losses in the domestic equity market along with dollar's strength against major
global currencies overseas also weighed on the domestic unit. On the global
front, euro hovered around its lowest levels for this month on Friday as the
dollar held its poise on hopes that the United States and China would be able
defuse their damaging tariff war with a preliminary trade deal. Finally, the
rupee ended at 71.74, 12 paise weaker from its previous close of 71.62 on Thursday.
The
FIIs as per Friday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
5966.66 crore against gross selling of Rs 4338.97 crore, while in the debt
segment, the gross purchase was of Rs 731.42 crore with gross sales of Rs
2596.20 crore. Besides, in the hybrid segment, the gross buying was of Rs 55.91
crore against gross selling of Rs 57.73 crore.
The US markets ended in red on
Friday as trade tensions resurfaced after China warned it would retaliate
against President Donald Trump's decision to ratify a bill backing protesters
in Hong Kong. Asian markets are trading mostly higher on Monday as data
releases showed Chinese factory activity springing a positive surprise in
November. Indian markets ended lower on Friday as heavyweight auto, banking and
IT stocks paced the declines amid concerns about India's economy. Today, the
markets are likely to make a cautious start ahead of Manufacturing PMI data to
be out later in the day. Investors will also be eyeing Services PMI data and
outcome of the Reserve Bank of India's (RBI) policy meeting to be release later
in the week. As per a private report said RBI may cut interest rates for the
sixth straight time to support growth. There will be some cautiousness with the
government data showing that the Gross Domestic Product (GDP) growth for the
second quarter (July-September) of the financial year 2019-20 dropped to 4.5%,
the weakest pace in more than six years, due to weak consumer demand, slowing
factory activities and negative impacts of the prolonged monsoon. Also, output
of eight core infrastructure industries contracted by 5.8% in October,
indicating the severity of economic slowdown. Though, some respite may come
later in the day with Finance minister Nirmala Sitharaman's statement that
several significant steps in structural reforms have been taken in the past few
months and responses/interventions addressing the needs of the economy will
continue, indicating more relief measures could be on the anvil if so needed.
Some support may also come with report that festive season demand helped the
government collect Rs 1.03 lakh crore in goods and services tax (GST) in the
month of November, up 6% over the same month last year. During the month of
November, the GST collection on domestic transactions witnessed a growth of
12%, highest during the year. Traders
may take note of Union Minister Dharmendra Pradhan's statement that the current
economic slowdown is temporary and a result of the ongoing global trade war
between the US and China. There will be some buzz in the infra stocks with the
finance minister's statement that the Union government will unveil a series of
infrastructure projects this month as part of a plan to invest Rs 100 trillion
($1.39 trillion) in the sector over the next five years, in a push to improve
the country's economy. There will be some reaction in telecom stocks as telecom
operators Bharti Airtel and Vodafone Idea decided to raise their tariff plans
from December. The auto sector stocks will also be in action, reacting to their
monthly sales numbers.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,056.05
|
11,999.83
|
12,129.83
|
BSE Sensex
|
40,793.81
|
40,590.92
|
41,069.96
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
4,283.32
|
68.30
|
65.90
|
72.35
|
Bharti Infratel
|
523.05
|
276.30
|
248.27
|
294.07
|
ZEEL
|
350.62
|
293.05
|
276.87
|
316.62
|
Adani Ports
|
301.11
|
382.05
|
373.58
|
387.73
|
SBI
|
230.82
|
341.85
|
338.68
|
346.93
|
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