After rallying for eight sessions
in a row, Indian equity benchmarks took a breather on Thursday as it ended
around half percent lower, as investors' booked profits in banking, financial
services, utilities and energy stocks amid lackluster global cues. Markets made
negative start and stayed in red for whole day, as traders were concerned with
the RBI's statement that the GDP is likely to contract by 8.6 percent for the
July-September period, which means India will enter into a recession for the
first time in history in the first half of this fiscal with two successive
quarters of negative growth due to the COVID-19 pandemic. Some concerns also
came with rating agency ICRA's report that the aggregate debt of 12 major
states is estimated to worsen significantly, and their capital spending might
decline sharply because of lower-than-expected goods and services tax (GST)
revenue and shortfall in Centre's devolution. It added that this could lead to
a 1-2 per cent contraction in Q4FY21. Weak trade continued over the Dalal
Street in second half of the session, as traders remained on sidelines ahead of
the macro economic data -- industrial production and inflation data --
scheduled to be announced later in the day. Sentiments remained down-beat even
after Finance Minister Nirmala Sitharaman announced 12 measures under
AtmanirbharBharat 3.0 to revive the economy. She also said Indian economy is
seeing a strong recovery taking root in the economy, as seen by increased goods
and service tax collections and other metrics. The new announcements comes a
day after the government approved a Rs 1.45-trillion package by extending the
production-linked incentive (PLI) scheme to 10 more sectors. The latest approval
is in addition to the already announced Rs 51,311-crore PLI for three sectors.
With this, the total incentives under the PLI schemes come to Rs 2 trillion.
Finally, the BSE Sensex fell 236.48 points or 0.54% to 43,357.19, while the CNX
Nifty was down by 58.35 points or 0.46% to 12,690.80.
The US markets ended in red on
Thursday as the recent surge in coronavirus cases across the US and Europe has
led to renewed concerns about the economic outlook. According to data from John
Hopkins University, the US reported more than 144,000 new coronavirus cases on
Wednesday, a new one-day record high. The seven-day average of new cases has
skyrocketed to more than 127,400, reflecting a 35 percent spike compared with a
week ago. The jump in new cases has been accompanied by notable increases in
hospitalizations and deaths, suggesting the surge is not only due to increased
testing. The latest wave of coronavirus cases has led to concerns about the
economic impact of new restrictions and lockdowns. On the economic data front,
a report released by the Labor Department showed a bigger than expected
decrease in first-time claims for US unemployment benefits in the week ended
November 7th. The Labor Department said initial jobless claims fell to 709,000,
a decrease of 48,000 from the previous week's revised level of 757,000. Street
had expected jobless claims to dip to 735,000 from the 751,000 originally
reported for the previous week. With the bigger than expected decrease, jobless
claims fell to their lowest level since before lockdowns were imposed in
mid-March. The report said the less volatile four-week moving average also slid
to 755,250, a decrease of 33,250 from the previous week's revised average of
788,500.
Crude oil futures ended lower on
Thursday as the continued rise in coronavirus cases across the US and several
European countries raised concerns about energy demand. Further, Oil prices
were also hurt by data showing an increase in U.S. crude inventories in the
week ended November 6. According to the data from Energy Information
Administration (EIA), crude stockpiles rose by 4.3 million barrels last week
compared to expectations for a draw of 913,000 barrels. Crude oil futures for
December fell 33 cents or 0.8 percent to settle at $41.12 a barrel on the New
York Mercantile Exchange. However, January Brent crude rose 25 cents or 0.6% to
settle at $44.05 a barrel on London's Intercontinental Exchange.
Indian rupee tumbled against
dollar on Thursday, on account of sustained dollar demand from importers and
banks amid selling pressure in domestic equities. Sentiments remained fragile
with Reserve Bank of India (RBI) official's statement that the country's GDP is
likely to contract by 8.6 percent for second quarter of current financial year
(Q2FY21), which means India will enter into a recession for the first time in
history in the first half of this fiscal with two successive quarters of
negative growth due to the COVID-19 pandemic. On the global front, dollar
steadied on Thursday as investors tempered bullish expectations about a
COVID-19 vaccine that is unlikely to avert a grim winter in Europe and the
United States as the pandemic's second wave intensifies. Finally, the rupee
ended at 74.64, 28 paise weaker from its previous close of 74.36 on Wednesday.
The FIIs as per Thursday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 16852.30 crore against gross selling of Rs 8272.29 crore,
while in the debt segment, the gross purchase was of Rs 485.40 crore with gross
sales of Rs 406.11 crore. Besides, in the hybrid segment, the gross buying was
of Rs 20.87 crore against gross selling of Rs 39.77 crore.
The US markets ended lower on
Thursday amid a pickup in Covid-19 hospitalizations and renewed talks of
lockdowns and restrictions to curb the virus's spread. Asian markets are
trading in red on Friday following on from selloffs in the United States and
Europe as investors feared the economic impact of an accelerating rise in
coronavirus infections. Indian markets ended lower on Thursday, snapping 8
sessions of gains after a slew of announcements by the Finance Minister Nirmala
Sitharaman to boost the economy failed to impress the Street. Losses in the
benchmarks were led by banks and financials. Today, the last day of the Samvat
2076 is likely to see markets opening lower amid weak global cues. Weak
macro-economic data may also dampen sentiments in domestic markets. Retail
inflation soared to a 77-month high in October led by a surge in food prices.
The inflation based on the Consumer Price Index (CPI) was 4.62 percent for the
same period a year ago. India's index of industrial output for the month of
September was at 0.2 percent versus -8 percent in August, as per the Index of
Industrial Production (IIP) data released by the government on November 12.
Also, there will be some cautiousness with report that India has reported
43,861 fresh Covid-19 cases in the past 24 hours. The total caseload now stands
at 8,727,900. The country's death toll has mounted to 128,686. However, traders
may be taking encouragement later in the day as Union Finance Minister Nirmala
Sitharaman announced 12 fresh stimulus measures under the Atmanirbhar 3.0
stimulus package, amounting to Rs 2.65 lakh crore. The fresh stimulus package,
which has been in the works for more than three months, focused on helping
stressed sectors, middle income groups, MSMEs and more. Some support may also
come as the Reserve Bank of India said it will conduct simultaneous purchase
and sale of government securities under Open Market Operations (OMO) for an
aggregate amount of Rs 10,000 crore each on November 19. The decision was taken
after a review of the current liquidity and financial conditions. There will be some reaction in fertilizer
industry stocks after Finance Minister Nirmala Sitharaman announced a Rs
65,000-crore fertilizer subsidy for farmers as part of her stimulus package to
boost the economy.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
12,690.80
|
12,630.05
|
12,746.35
|
BSE
Sensex
|
43,357.19
|
43,141.84
|
43,558.25
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
State
Bank of India
|
588.59
|
226.80
|
223.85
|
231.55
|
Tata
Motors
|
561.46
|
151.20
|
149.51
|
153.36
|
ITC
|
463.68
|
188.00
|
184.99
|
189.89
|
Hindalco
Industries
|
408.06
|
208.60
|
204.76
|
211.91
|
Coal
India
|
357.38
|
122.10
|
119.90
|
125.40
|
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Maruti Suzuki India has offered customers festival edition variants of three of its best-selling cars; Alto, Celerio and WagonR.