Bears
back in the action on Thursday, as Indian equity indices registered sharp
losses of over 2% to settle the session in red territory. After a gap-down
opening, the markets remained under pressure, impacted by a private report
stating that private equity and venture capital (PE/VC) investments in India
declined 23% to $6.7 billion in the third quarter of this year as investors
adopted a cautious approach. On a year to date basis however, PE/VC investments
in India are higher by 17.4% and the investment tally also looks set to surpass
the previous year high driven by some large deals in the pipeline, provided
there is no major macro setback. Domestic sentiments also got hit with
Federation of Indian Export Organisations (FIEO) President Ganesh Gupta's
statement that the delay in Goods and Services Tax (GST) refunds is mainly
impacting small exporters who provide jobs in labour-intensive sectors. FIEO
President made an uproar about pending refunds of Rs 22,000 crore, noting that
this is creating liquidity problem for exporters and impacting overseas
shipments. Markets pain deepen, after United Nations' latest report noted that
India lost $80 billion from natural disasters in 20 years and also ranks fourth
among the top 10 countries that reported economic losses due to disasters.
Adding more anxiety among the investors, International Monetary Fund Managing
Director Christine Lagarde warned countries of the perils of a trade or a
currency war, saying they could be detrimental to global growth and hurt
innocent bystanders. The market participants paid no heed towards World Bank
Official's statement that an orderly depreciation of the rupee would increase
competitiveness and relieve some of the pressures in capital market. The street
even overlooked reports that the government will develop a Skill Index to
encourage competition between districts and improve their skill development and
training performance. Finally, the BSE Sensex plunged 759.74 points or 2.19% to
34,001.15, while the CNX Nifty was down by 225.45 points or 2.16% to 10,234.65.
The
US markets extended their losses for second straight day to end the session in
red on Thursday with the Dow Jones Industrial Average losing over 500 points,
as traders remained concerned about the outlook for the interest rates as well
as the escalating trade war between the US and China. Investors have pinned the
selloff on a variety of factors, including a sudden rise in long-dated interest
rates since late September. A bond-market selloff saw the yield on the 10-year
US. Higher yields raise borrowing costs for corporations. They also divert
investment away from stocks. On the economic front, the Labor Department said
its consumer price index inched up by 0.1% in September after rising by 0.2% in
August. Street had expected prices to increase by another 0.2%. Excluding food
and energy prices, core consumer prices also crept up by 0.1% in September,
matching the uptick seen in the previous month. Core prices had been expected
to rise by 0.2%. The report also said the annual rate of consumer price growth
slowed to 2.3% in September from 2.7% in August, while the annual rate of core
consumer price growth was unchanged at 2.2%. A separate report released by the
Labor Department unexpectedly showed a modest increase in first-time claims for
US unemployment benefits in the week ended October 6. The report said initial
jobless claims rose to 214,000, an increase of 7,000 from the previous week's
unrevised level of 207,000. Dow Jones Industrial Average declined 545.91 points
or 2.13 percent to 25,052.83, Nasdaq decreased 92.99 points or 1.25 percent to
7,329.06 and S&P 500 was down by 57.31 points or 2.06 percent to 2,728.37.
Extending
losses for second straight session, crude oil futures ended lower on Thursday
after a data showed US crude stockpiles have risen for a third straight week.
Prices also weighted by a global equity rout that raised concerns about the
economy and the outlook for energy demand. The US Energy Information
Administration's data showed that crude supplies in US to have climbed by 6
million barrels for the week ended October 5. That was much larger than what
traders had expected. Benchmark crude oil futures for November declined $2.20
or 3 percent to settle at $70.97 a barrel on the New York Mercantile Exchange.
December Brent crude was down by $2.83 or 3.4 percent to settle at $80.26 a
barrel on London's Intercontinental Exchanged.
Recovering from its all-time low, Indian rupee ended stronger
against dollar on Thursday, on fresh selling of the US currency by exporters
and banks. Investors' sentiments turned positive with International Monetary
Fund (IMF) report that India's debt is lower than the best or emerging market
economies in the world, India's debt was substantially less than the global
debt as percentage of world Gross Domestic Product (GDP). Besides, the dollar
losing muscle against other currencies overseas helped the domestic currency,
rebound. However, gains remained capped as anxiety remained among the traders ahead
of key economic data for August IIP and September CPI. On the global front,
dollar weakened on Thursday following an overnight drop in US Treasury yields,
though moves in foreign exchange markets were far more contained than the
global rout in stocks. Finally, the rupee ended at 74.12, 9 paise stronger from
its previous close of 74.21 on Wednesday.
The
FIIs as per Thursday's data were net sellers in equity and debt segments both.
In equity segment, the gross buying was of Rs 5939.01 crore against gross
selling of Rs 7021.59 crore, while in the debt segment, the gross purchase was
of Rs 96.11 crore with gross sales of Rs 2090.04 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.61 crore against gross selling of Rs 0.04
crore.
The
US markets extended losses to end lower on Thursday, as investors continued to
fret over rising bond yields and the prospect of higher interest rates. Asian
markets were trading mostly in green on Friday, even though they opened in red
as traders took a breather after a global rout sparked by fears over higher US
interest rates. After rallying over a percent gain in previous session, Indian
markets witnessed bloodbath on Thursday with both Sensex and Nifty falling over
2% each, weighed down by sell-off across global markets spooked by escalating
global trade tensions and warnings of a growth slowdown. Today, the markets are
likely to make positive start amid falling oil prices. Marketmen will be eyeing
the macro economic data of industrial production and consumer price inflation
to be released after the market hours. Traders will be getting encouragement
with Ficci's latest quarterly survey showing that India's manufacturing sector
output is expected to register robust growth in the July-September quarter on
account of higher production even as the hiring outlook for the sector remains
subdued. The survey also revealed that exports to rise in the second quarter.
Traders will also be reacting to the Revenue Department of the Finance
Ministry's statement that the government yet again increased import duty on
several electronic items and telecom equipment to rein in current account
deficit (CAD) and stabilise the rupee. Besides, Finance Minister Arun Jaitley
said the number of direct taxpayers is expected to double to 7.6 crore during
the five-year term of the present government on account of various initiatives
like rationalisation of tax structure, lowering of rates and anti-black money
measures. However, there may be some cautiousness with Reserve Bank of India's
data showing that the Central Bank remained net seller of the US dollar in
August, as it sold $2.323 billion of the greenback in the spot market. There
will be some reaction in oil marketing companies (OMCs) with report that
allaying concerns about the return of fuel subsidy regime, Finance Ministry
said the government asking oil PSUs to subsidise petrol and diesel prices by Re
1 per litre was a one-time thing and it does not intend to ask them to do it
again.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
10,234.65
|
10,136.85
|
10,334.20
|
BSE
Sensex
|
34,001.15
|
33,708.06
|
34,309.71
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes
Bank
|
946.80
|
240.20
|
214.92
|
267.22
|
SBI
|
462.91
|
262.15
|
258.00
|
268.90
|
HPCL
|
448.20
|
207.95
|
183.93
|
224.18
|
IOC
|
279.79
|
131.00
|
123.02
|
136.47
|
BPCL
|
219.88
|
278.15
|
263.40
|
288.70
|
M&M has introduced leasing for retail buyers, a unique ownership experience for customers of its personal range of vehicles.
NTPC has participated for 160 MW Solar capacities in Uttar Pradesh and has won the entire capacity bid by it.
ONGC is planning to buy 27 drilling rigs, in a bid to replace nearly half of its ageing onland rigs.
IOC will invest Rs 5,463 crore in setting up city gas distribution network for retailing CNG to automobiles and piped cooking gas to households in seven districts.