Indian equity benchmarks ended
the choppy day of trade on quiet note on Tuesday, as traders remained on
sidelines ahead of corporate results for the third quarter FY18 to be released
later this month. After a positive start, markets turned choppy and altered
between green and red throughout the session to end flat. Though, traders took
some support with report that the eight core industries growing by 6.8% in
November 2017, compared to the production during November 2016. The growth in
November was driven by a 16.6% increase in steel production over November 2016.
Traders also got some solace with government's decision to ease norms for
rectification of GST returns. The Finance Ministry has permitted businesses to
rectify mistakes in their monthly returns - GSTR-3B - and adjust tax liability,
a move that will help them file correct returns without fear of penalty. Better
than expected Nikkei India Manufacturing Purchasing Managers' Index (PMI) too
provided some comfort to the market participants. The seasonally adjusted
Manufacturing PMI rose to 54.7 in December from 52.6 in November, indicating a
healthy growth in manufacturing sector since December 2012. However, traders
remained concerned with report that retail inflation for industrial workers
rose to 3.97% in November 2017 as compared to 3.24% for the previous month,
mainly due to surge in prices of food items, kerosene and cooking gas. The
year-on-year inflation measured by monthly CPI-IW (Consumer Price
Index-Industrial Workers) stood at 3.97% for November, 2017 as compared to
3.24% for the previous month (October, 2017) and 2.59% during the corresponding
month (November 2016) of the previous year. The traders took note of report
which has pointed oil, inflation as risk factors, stating that India's economic
growth is likely to pick up in the New Year but rising oil prices and a firming
inflation may spoil the party. Finally, the BSE Sensex slipped 0.49 points to
33,812.26, while the CNX Nifty was up by 6.65 points or 0.06% to 10442.20.
The US markets closed higher on
Tuesday, on the first trading day of 2018, with major indexes rallying to
record levels in a broad rally that saw five of the 11 primary sectors gaining
more than 1% on the day. Both the S&P and the Nasdaq hit intraday records
in the final minutes of trading. They also ended at closing records, with the
Nasdaq finishing above 7,000 for the first time in its history. The Dow is less
than half a percentage point below its own record. The day's gain came despite
ongoing geopolitical uncertainty. On the economy front, business activity in
the US private sector was higher than expected in December, rising optimism
over the American economy. In a report, market research group IHS Markit said
that its Manufacturing Purchasing Managers' Index (PMI) rose to 55.1 in
December, from the prior reading of 55.0. It was the highest reading since
March 2015. The Dow Jones Industrial Average added 104.79 points or 0.42
percent to 24,824.01 and the Nasdaq gained 103.509 points or 1.50 percent to
7,006.90, and the S&P 500 edged higher by 22.20 points or 0.83 percent to
2,695.81.
Crude oil futures eased on
Tuesday after hitting mid-2015 highs in early trading, though the prices held near
the highest in more than two years amid turmoil in the Middle East but reports
of major pipelines in Libya and the UK restarting and U.S production soaring to
the highest in more than four decades capped the upmove. It was reported that repairs
have been finished on a Libyan oil pipeline damaged in a suspected attack last
week and production is restarting gradually. Benchmark crude oil futures for
January delivery ended lower by $0.05 at $60.37 a barrel on the New York
Mercantile Exchange. Brent crude for March delivery was down by 0.6 percent to
$66.34 a barrel on the ICE.
Indian
rupee continued its strong recovery momentum for the fourth consecutive day and
ended at a fresh five-month high on Tuesday, on sustained selling of the
American currency by exporters and banks. Sentiments got up-beat with report
that the eight core industries growing by 6.8% in November 2017, compared to
the production during November 2016. The growth in November was driven by a
16.6% increase in steel production over November 2016. Additional support also
came with report that the Nikkei India Manufacturing Purchasing Managers'
Index, or PMI, rose to a 5 year high of 54.7 in December from 52.6 in November.
The survey highlighted that strong business performance was underpinned by the
fastest expansions in output and new orders since December 2012 and October
2016 respectively. Besides, dollar losing sheen against some other currencies
overseas also supported the local unit. On the global front, euro climbed to a
four-month high against a broadly weaker dollar on Tuesday, the first trading
day of 2018, on optimism over a brightening economic picture in the euro zone.
Finally, the rupee ended at 63.48, 19 paise stronger from its previous close of
63.67 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 832.38 crore against gross
selling of Rs 843.68 crore, while in the debt segment, the gross purchase was
of Rs 125.22 crore with gross sales of Rs 7.28 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.53 crore, while there was no selling.
The US markets made a positive
start of the New Year as traders are expressed optimism about the outlook for
the markets and the economy going into the New Year. Both the S&P and the
Nasdaq hit intraday records in the final minutes of trading. The Asian markets
have made mostly a positive start and equities extended gains after a rally in
technology companies' boosted US stocks to record highs, while the Japanese
markets remained closed. The Indian markets consolidated in the last session
and paring their early gains ended flat, with traders eyeing third-quarter
corporate earnings results due later this month for directional cues. Today,
the start is likely to be in green on supportive global cues, traders may also
be reacting to the last day's report of
manufacturing PMI rising to 54.7 in December 2017 from 52.6 in November
on the back of robust improvement in the health of the sector since December
2012. Meanwhile, the government has notified lower 1 percent GST rates for
manufacturers who have opted for composition scheme as well as easier norms for
traders opting for it. The notification stipulates that manufacturers who have
opted for composition scheme will now have to pay 1 percent Goods and Services
Tax (GST) as against 2 percent earlier. Also, there will be some support with
the Rajya Sabha unanimously passing the Insolvency and Bankruptcy Code
(Amendment) Bill that replaces an Ordinance that prevents "unscrupulous persons
from misusing or vitiating the provisions of the Insolvency and Bankruptcy
Code". There will be some buzz in the telecom sector stocks, as the Telecom
Regulatory Authority of India (Trai) has released a detailed set of regulations
for interconnection pacts between operators and mandated a daily penalty of Rs
1 lakh per circle for non-compliance of these norms.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10442.20
|
10399.50
|
10490.05
|
BSE Sensex
|
33812.26
|
33689.04
|
33949.81
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Tata Motors
|
153.31
|
439.30
|
427.25
|
446.10
|
SBI
|
147.97
|
303.25
|
300.07
|
307.72
|
ONGC
|
128.78
|
196.85
|
195.40
|
197.90
|
NTPC
|
84.76
|
178.90
|
177.22
|
179.92
|
ICICI Bank
|
70.47
|
309.70
|
307.57
|
311.77
|
Coal India has reported provisional production of 54.63 MT in December 2017, as against a target of 58.89 MT.
Eicher Motors' motorcycle division has reported 17% rise in sales at 66,968 units in December 2017 as compared to 57,398 motorcycles sold in December 2016.
ONGC has made a significant oil and gas discovery to the west of its prime Mumbai High fields in the Arabian Sea.
M&M's Farm Equipment Sector has sold total 18,288 units during December 2017, as against 14,047 units December 2016, to register a growth of 30%.