It turned out to be a
lackadaisical performance from the benchmark indices on Friday as they traded
in tight range and finished the session only with modest gains after showing
huge rally in last session. Investors got some comfort with CBEC Chairman Najib
Shah's statement that the GST Council may in future decide to reduce the tax
slabs under the Goods and Services Tax (GST) regime after analyzing the revenue
garnered and the compensation payouts to states. He said that any change in tax
slab is possible after assessing the revenues and the effect of exemptions and
deductions given in the new tax regime and analyzing it with the expenditure.
Some support also came with the reports that foreign portfolio investors (FPIs)
bought shares worth a net Rs 698.86 crore on December 08, 2016. Meanwhile, defending the ban on high-currency
notes, the government told the Supreme Court that it is not sitting around
doing nothing and all the problems will be over in another 10-15 days. On the
concern note, oil marketing companies declined after the government announced
0.75% discount on digital purchases of petrol and diesel from state owned
outlets, while Auto stocks slipped after the report that the total vehicle
sales across categories witnessed a decline of 5.48% at 15.63 lakh units during
the month of November 2016. Several pharma stocks also observed selling
pressure on the report that the Indian pharmaceutical industry will grow at a
slower pace due to sluggish growth in the US market, increased competition
leading to price erosion in high single digits and generic adoption reaching
saturation levels. On the global front, Asian equity markets made a mixed
closing on Friday as investors turned jittery after the European Central Bank
(ECB) trimmed the size of its asset purchase programme and also extended till
end 2017. Back home, finally, the BSE Sensex gained 52.90 points or 0.20% to
26747.18, while the CNX Nifty added 14.90 points or 0.18% to 8,261.75.
Extending their northward journey
for fifth day in a row, the US markets ended the Friday's session firmly in
green. The strength on Wall Street reflected a continuation of the upward
momentum seen following President-elect Donald Trump's surprise victory in last
month's elections. Reflecting the optimism about Trump being in the White
House, the University of Michigan released a report showing a much bigger than
expected improvement in consumer sentiment in the month of December. The
University of Michigan said the preliminary reading on its consumer sentiment
index for December came in at 98.0 compared to the final November reading of
93.8. Nonetheless, trading activity was somewhat subdued as traders looked
ahead to next week's Federal Reserve announcement. The Fed is widely expected
to raise interest rates by a quarter point, reflecting the first rate hike by
the central bank in a year. The Dow Jones Industrial Average surged 142.04
points or 0.72 percent to 19,756.85, Nasdaq gained 27.14 points or 0.50 percent
to 5,444.50, while S&P 500 was up by 13.34 points or 0.59 percent to
2,259.53.
Crude oil futures surged on Friday
despite signs of U.S. production surging in the next few months. Oil services
firm Baker Hughes said that the U.S. total weekly active drilling-rig count
skyrocketed by 27 to 624, the highest in almost a year. Trump has called for
increased oil production and lessening of environmental regulations which
restrict exploration and production in the US Traders remained optimistic about
the conference of OPEC and non-OPEC oil producing nations, where there is a
proposal afloat to link the production reductions of OPEC and other countries,
like Russia which has indicated it will contemplate a cut of about 300,000
barrels a day. Benchmark crude oil futures for January delivery surged by $0.66
or 1.3 percent to $51.50 on the New York Mercantile Exchange. In London, Brent
crude for February delivery ended higher by $0.47 or 0.89 percent at $54.35 on
the ICE.
Snapping
three days winning streak, Indian rupee depreciated against dollar on Friday
amid sustained foreign fund outflows. Sentiments remained dampened after the
ECB said it would reduce its monthly asset purchases to EUR 60 billion from
April, from the current level of EUR 80 billion. Also, dollar strengthened
against other currencies overseas too weighed on the rupee sentiments.
Meanwhile, Investors remained cautious ahead of key macro economic data - IIP
due later in the day and CPI in the next week. Also, outcome of Federal
Reserve's two-day policy meeting that will start next week. On the global
front, dollar rose broadly on Friday as US bond yields rose, while the euro
sank after the European Central Bank's decision to extend its debt-buying
programme, even as it cut the size of its purchases, disappointed currency
bulls. Finally, the rupee ended at 67.41, 6 paise weaker from its previous
close of 67.35 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 4352.68 crore against gross
selling of Rs 3609.50 crore, while in the debt segment, the gross purchase was
of Rs 803.32 crore with gross sales of Rs 3204.37 crore.
The US markets continued their
rally in a string of record-breaking trading days, with the S&P 500, Dow
Jones industrial average and Nasdaq each closing higher every day in the week.
Traders were eyeing key data, including reports on housing, inflation, consumer
spending and manufacturing apart from the crucial FOMC meeting in the next
week. The Asian markets have made a mixed start. The Indian markets despite
some choppiness managed to extend the gaining streak in last session, ending
modestly higher, today the start is likely to be cautious and all eyes will be
on global development and Fed meeting, traders will first be reacting to report
of Industrial production shrinking an annual 1.9% in October, worsening from a
0.7% rise in the previous month and 9.8 per cent growth in the year-ago month. Industrial
production has contracted in four out of seven months so far this fiscal. In
the April-October period, production declined 0.3 per cent compared with 4.8
per cent growth last year. However, traders may get some consolation with
government data showing robust growth in November indirect tax collection. Net
indirect tax collections grew 23.1 per cent in November from a year ago.
Overall, net indirect tax mop-up was up 26.2 per cent in April-November from a
year ago while net direct tax increased 15.1 per cent over this period. Total direct
and indirect tax collections at the end of November stood at Rs 9.64 lakh
crore, nearly 60 per cent of the budget target of Rs 16.26 lakh crore for FY17.
Marketmen will also look for any developments from the 6th meeting of the Goods
and Services Tax Council, which commenced on Sunday in the shadow of
demonetization, seeking to finalise three legislations -- Central GST,
Integrated GST and the Compensation law. There will be some scrip specific
actions with the Competition Appellate Tribunal (COMPAT), in a series of orders
sent back a case against DLF, set aside an order against Lupin and reduced
penalty on three auto companies. PSU oil marketing companies too will be
buzzing, as OPEC and non-OPEC producers on Saturday reached their first deal
since 2001 to curtail oil output jointly and ease a global glut.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
8,261.75
|
8244.15
|
8277.15
|
BSE
Sensex
|
26747.18
|
26702.07
|
26798.02
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
160.04
|
266.65
|
261.23
|
269.63
|
ICICI Bank
|
159.39
|
268.45
|
264.37
|
271.17
|
Bank of Baroda
|
102.78
|
162.05
|
158.58
|
164.13
|
Hindalco
|
95.43
|
182.10
|
179.62
|
184.02
|
Tata Power
|
95.04
|
77.05
|
75.63
|
77.98
|
- Mahindra & Mahindra will be
undertaking scheduled maintenance shutdown at some of its Automotive and
Tractor plants in December, 2016.
- Maruti Suzuki India has signed a
Memorandum of Understanding with Ola to train aspiring drivers-partners.
- Idea Cellular has launched two
unlimited voice calling recharge packs.
- Wipro has partnered with Microsoft
Accelerator to provide startups with greater opportunities to innovate and grow
their business.
- Bajaj Auto has launched the
Pulsar 220F at a price of Rs 91,201, ex-showroom Delhi and the new offering is
now BS4 compliant.