Indian equity bourses settled the
volatile day near their neutral lines on Monday. The start of the day was
positive, as Goods and Services Tax collection witnessed an impressive recovery
with a positive growth of 6% to Rs 1.03 lakh crore in November 2019 over
November 2018 collection. Some support also came 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. But, indices failed to hold early gains &
turned volatile, even though India's manufacturing activity made a marginal
improvement, surging to 51.2 in November from 50.6 in October. Sentiments got
hampered, after rating agency CRISIL sharply cut its growth forecast for the
current financial year to 5.1 per cent from an earlier estimate of 6.3 per
cent. The street also remained worried, amid a private report stating that
India's economic growth is expected to remain subdued in near future as the
slowdown has deepened and is likely to remain extended for a longer duration
than previously anticipated. Finally, the BSE Sensex gained 8.36 points or
0.02% to 40,802.17, while the CNX Nifty was down by 7.85 points or 0.07% to
12,048.20.
The US markets ended lower on
Monday after US manufacturing data showed a contraction in November and fresh
trade jitters put investors on the defensive. The Institute for Supply
Management (ISM) released a report showing manufacturing activity contracted
for the fourth straight month in November. The ISM said its purchasing managers
index edged down to 48.1 in November from 48.3 in October, with a reading below
50 indicating a contraction in manufacturing activity. Street had expected the
index to inch up to 49.2. The unexpected dip by the headline index was partly
due to faster rate of contraction in new orders, as the new orders index slid
to 47.2 in November from 49.1 in October. The employment index also fell to 46.6
in November from 47.7 in October, indicating employment in the manufacturing
sector contracted at a faster rate. On the inflation front, the prices index
climbed to 46.7 in November from 45.5 in October, but a reading below 50 still
indicates a drop in prices. Besides, a report released by the Commerce
Department showed an unexpected decrease in US construction spending in the
month of October. The Commerce Department said construction spending fell by
0.8 percent to an annual rate of $1.291 trillion in October after slipping by
0.3 percent to a revised $1.302 trillion in September. Street had expected
construction spending to climb by 0.4 percent compared to the 0.5 percent
increase originally reported for the previous month. The unexpected drop in
construction spending was partly due to a decrease in spending on private
construction, which tumbled by 1.0 percent to a rate of $956.3 billion in
October.
Crude oil futures ended higher on
Monday on reports Saudi Arabia wants the Organization of the Petroleum
Exporting Countries (OPEC) to deepen oil production cuts in order to anchor oil
prices before Saudi Aramco's initial public offering. The deal reportedly to be
discussed by OPEC and other oil producers at a meeting this week would add
about 400,000 barrels per day to existing cuts of 1.2 million barrels per day.
Besides, oil prices also got support from upbeat Chinese manufacturing data,
which helped alleviate concerns about the impact of the ongoing US-China trade
dispute. Benchmark crude oil futures for January rose 79 cents or 1.4 percent
to settle at $55.96 a barrel on the New York Mercantile Exchange. January Brent
gained 43 cents or 0.7 percent to settle at $60.92 a barrel on London's
Intercontinental Exchange.
Snapping
two day falling streak, Indian rupee ended marginally higher against dollar on
Monday on selling of dollars by banks and exporters. Traders took some support
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. However,
gains remain capped as anxiety remained among the traders with 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. On the global front,
British pound edged lower against the dollar on Monday as polls showed a
tightening UK election race, while an unexpected rebound in Chinese
manufacturing supported risk appetite. Finally, the rupee ended at 71.66, 8
paise stronger from its previous close of 71.74 on Friday.
The
FIIs as per Monday'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
5929.62 crore against gross selling of Rs 6680.77 crore, while in the debt
segment, the gross purchase was of Rs 1264.68 crore with gross sales of Rs
1073.71 crore. Besides, in the hybrid segment, the gross buying was of Rs 98.46
crore against gross selling of Rs 90.72 crore.
The US markets ended lower on
Monday, hit by a downbeat report on the manufacturing sector and a fresh
flare-up in trade tensions. Asian markets are trading mostly in red on Tuesday
after US President Donald Trump stunned markets with tariffs against Brazil and
Argentina, recharging fears about global trade tensions. Indian markets ended
almost flat after a volatile session on Monday amid weak economic numbers,
lower than expected auto sales and profit booking. Today, the start of session
is likely to be flat-to-negative tracking weakness in global markets. Investors
will be eyeing the Reserve Bank of India's (RBI) fifth monetary policy meet of
the financial year 2019-20 (FY20) that begins today, while the decision will be
out on December 5. There are expectation that RBI may cut repo rate by another
25 bps (basis points) to spur economic growth after official data showed
India's gross domestic product (GDP) collapsed to 4.5% in the July-September
quarter, the first time it's been below 5% since 2013. There will be some
cautiousness with a private report indicating that with the government trying
to revive a stuttering economy, the Goods and Services Tax (GST) mop-up for
November is expected to provide some respite, but it added that an improvement
in GST collections may not be a solution to all the worries of the government.
However, some support may come later in the day with Finance Minister Nirmala
Sitharaman's statement that gross direct tax collection increased by 5% till
November, and she allayed fears of corporate tax reduction impacting revenue
collection. Traders may take note of Commerce and Industry Minister Piyush
Goyal's statement that the value of India's overall exports rose about 8% to
$538.07 billion during 2018-19. Besides, the government aims to increase the
country's export of merchandise and services to $900 billion in 2019-20 and
raise India's share in world exports (goods and services) to 3.5%. Telecom
stocks will be in focus as the proposed tariff hike plan will come into effect
from today. The Cellular Operators Association of India (COAI) said that the
Indian telecom industry has taken first step towards improving its financial
health by hiking tariffs for the first time since 2016 - a much needed move for
the telcos to cover adjusted gross revenue (AGR) dues within 90 days. There
will be some reaction in reality stocks with a private report that loans worth
$14 billion (about Rs 1,000 crore) provided to real estate firms by banks,
NBFCs and housing finance companies (HFCs) are under severe stress and facing
issues of debt servicing.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,048.20
|
12,002.22
|
12,115.67
|
BSE Sensex
|
40,802.17
|
40,641.87
|
41,028.23
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in
Lacs)
|
Yes Bank
|
3,617.56
|
64.05
|
61.63
|
67.88
|
Bharti Airtel
|
557.36
|
458.60
|
447.23
|
477.78
|
ZEEL
|
340.43
|
292.80
|
282.33
|
305.13
|
Bharti Infratel
|
263.11
|
265.50
|
251.80
|
287.85
|
SBI
|
206.49
|
338.50
|
335.02
|
343.17
|
Reliance Industries' telecom arm -- Jio is all set to introduce New All-In-One plans with unlimited voice and data.
M&M has reported auto sales performance for November 2019 which stood at 41,235 vehicles, compared to 45,101 vehicles during November 2018, registering a fall of 9%.
Axis Bank is offering free door-step delivery of FASTags and anytime-anywhere recharge, with FASTag all set to become mandatory on all national highway toll plazas from December 1, 2019.
Tata Motors has reported domestic sales of 38,057 units for November 2019, as compared to 50,470 units for November 2018, posting a decline of 25%.