A
session after capitulating to late sell-off, Indian benchmark indices managed
to pull through a scintillating performance by rallying over a percentage point
on Tuesday, thanks to the hefty short covering in the beaten down Banking and
high beta Capital Goods counters. Sentiments got a boost with report that
Indian economy is expected to grow by 7.9 per cent in the next fiscal and may
progress at a similar pace over a couple of years extending beyond 2019. The
report also added that the various macro parameters show that India has and is
likely to perform better than its peers in the near term. Besides, firm global
cues coupled with the appreciation in rupee value against the dollar added to
the optimistic sentiments. However, gains remained capped with Reserve Bank of
India Governor Raghuram Rajan's statement that implementation remains the major
challenge for India's economy and if it can deliver on its promises the country
will be 'the place to be'. Furthermore, investors also remained cautious with
India's Group of 20 summit negotiator Arvind Panagariya's statement that India
would be very concerned if China were to allow a major devaluation in the yuan
currency, adding that he doubted Beijing would allow this to happen. He also
said that the strength of the Indian rupee against many currencies had
contributed to the weak export performance of Asia's third-largest economy. On
the global front, Asian markets bounced back in afternoon trade, European
equities too bounced back from 13-month lows on Tuesday. Back home, the frontline indices sooner than later capitalized on the
momentum and crossed the psychological 24,400 and 7,400 levels. Thereafter, the
indices kept oscillating in a narrow range through the day's trade. However,
hefty short covering in the late hours helped the indices to bounce to higher
levels but mild resistance around the 24,500 and 7,450 levels pushed the key
gauges back to a small extent by the end of trade. Finally, the BSE Sensex gained 291.47 points or 1.21% to
24479.84, while the CNX Nifty ended up by 84.10 points or 1.14% to 7,435.10.
The US markets closed mostly
higher on Tuesday, as the S&P 500 and Dow industrials managed to hold on to
minor gains amid a renewed rout in oil prices that took the wind out of an
early rally. Tuesday's fleeting rebound in stocks after a brutal two-week start
to the year came on report of a slowdown in Chinese economic growth which
spurred stimulus hopes and comforted investors who had feared worse. Meanwhile,
declining earnings continued to weigh on investor sentiment. On the economy
front, a gauge of home builder sentiment remained steady at 60 in January. That
was unchanged from a downwardly-revised reading in December. Readings over 50
signal improvement and readings in the low 60s show a gradual improvement,
which should bode well for future home sales in the year ahead. The index is
down from a 10-year high of 65 in October, but still higher than the overall
2015 average of 59. The sub-gauge that tracks current sales conditions rose 2
points to 67 in January, but the future sales component dipped 3 points to 63. The
Dow Jones Industrial Average added 27.94 points or 0.17 percent to 16,016.02,
the S&P 500 was up by 1.00 points or 0.05 percent to 1,881.33 while, the
Nasdaq was down 11.47 points or 0.26 percent to 4,476.95.
Crude oil futures collapsing
further plunged to 12-year lows amid supply glut and weakening demand concern. Fears
about demand from China hit crude oil prices after China's government said the
nation's economic growth rate eased to 6.8% for the fourth quarter and 6.9% for
2015. Investors continued to digest Iran's historic return to global energy
markets. In recent months, however, Iran has reportedly lined up customers to
purchase about 300,000 bpd, as financial restrictions continue to be eased. Benchmark
crude oil futures for February delivery declined by $0.80 or 2.62 percent to
close at $29.62 a barrel after trading in a range of $29.42 and $31.34 a barrel
on the New York Mercantile Exchange. In London, Brent oil futures for March
delivery was up by $0.29 or 1.02 percent to $28.84 a barrel on the ICE.
Indian
rupee after slipping to its fresh two years low in last session on poor trade
balance figures, bounced back on Tuesday, on fresh selling of the American
currency by exporters. Positive cues from other Asian currencies too supported
the rupee, though it pared most of its gains by last. The domestic currency
remained in optimistic mood from the very beginning and the positive start,
followed by good gains in the local equity markets strengthened the rupee
further. Also, it was said that RBI through state-owned banks sold dollars to
stem up the rupee. On the global front, the euro remained slightly lower
against the dollar on Tuesday after a report showing that German economic
sentiment deteriorated this month. Finally, the rupee ended at 67.65, 3 paise
stronger from its previous close of 67.68 on Monday.
The
FIIs as per Tuesday's data were net sellers in equity and in debt segments both.
In equity segment, the gross buying was of Rs 3131.97 crore against gross selling
of Rs 4998.03 crore, while in the debt segment, the gross purchase was of Rs 256.50
crore with gross sales of Rs 272.47 crore.
The US markets made a mixed
closing in last session, sensing some relief from heavy recent losses amid
hopes for stimulus from China's central bank. However, plunging oil prices
prevented a more robust rebound. The Asian markets have made a weak start, with
many of the indices reversing their last session gains trading down by 1-2
percent in early deals, as crude oil dipped below $28 a barrel and the
International Monetary Fund reinvigorated concerns about global growth. Indian
markets witnessed a relief rally in last session and surged by over a percent,
taking cues from the gains in regional peers and supported by some good
earnings. Today, the start is once again going to be in deep red tailing the
slump in Asian peers on global growth concern. The International Monetary Fund
(IMF) cut its global growth forecasts for the third time in less than a year.
The IMF cited a sharp slowdown in China trade and weak commodity prices that
are hammering Brazil and other emerging markets. Markets after a gap-down start
may get some comfort with minister of state for finance Jayant Sinha's
statement that the finance ministry and the Reserve Bank of India are working
in tandem on a comprehensive solution to the stressed assets held by banks
through asset-quality reviews followed by specific solutions. Also, a private
survey has stated that almost two-thirds of Indian CEOs (64 per cent) are
confident of their company's growth prospects over the next 12 months. Power
stocks will be in action, as the government will consider a new power tariff
policy which aims at promoting clean energy, better regulation of discoms and
faster rollout of investments. There will be some scrip specific movement based
on earnings announcements, with Reliance Industries third-quarter profit surged
39 per cent to Rs. 7,290 crore, an eight-year high, helped by a fall in global
crude oil prices
Support
and Resistance: NSE Nifty and BSE Sensex
Index
|
Previous close
|
Support
|
Resistance
|
CNX Nifty
|
7435.10
|
7378.58
|
7477.18
|
BSE Sensex
|
24479.84
|
24296.93
|
24613.04
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Vedanta
|
255.13
|
69.25
|
67.30
|
71.15
|
SBI
|
245.02
|
182.95
|
180.37
|
186.67
|
ICICI Bank
|
147.48
|
228.75
|
225.18
|
231.78
|
Axis Bank
|
142.16
|
393.00
|
380.67
|
400.67
|
Tata Motors
|
73.05
|
354.15
|
345.03
|
360.23
|
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Bharti Airtel, a leading global telecommunications company with operations in 20 countries across Asia and Africa, has added 25.10 lakh users in December, 2015.
Maruti Suzuki India will open 250 Nexa outlets by 2016-17, from 100 now and double its employees in these outlets to 5,000.
Idea Cellular, one of the biggest cellular carrier of the country, has added 12.48 lakh new mobile subscribers in December, 2015.
Zee Entertainment Enterprises will expand to Germany to launch a free-to-air TV channel by mid - 2016.