Indian equity indices settled
with notable gains on Tuesday. The start of the day was firm, aided with Union
Minister Anurag Thakur's statement that India is not facing 5 per cent economic
slowdown and continues to be the fastest growing economy in the world. Thakur
also said that a number of steps are being taken by the government to
strengthen the economy that includes merger of banks and tax concessions to
industries. The street remained optimistic, amid reports that India has the
potential for very rapid economic growth over the next decade which will lift
people out of poverty and allow the government to invest in health and
education priorities in an exciting way. Despite some volatility during the
session, bourses managed to keep their heads above water for the whole day,
taking support with Finance Minister Nirmala Sitharaman's statement that the
government has implemented major reforms in the last five years to build the
investment climate in the country for becoming a $5 trillion economy. Investors
took a note of Finance Commission chairman NK Singh's statement that the
government must complete unfinished tax reforms to improve the woefully
inadequate tax buoyancy witnessed in the past one-and-a-half years, while advocating
that simple direct tax code should be implemented soon & that the GST
Council ought to go to the drawing board to address compliance issues. Finally,
the BSE Sensex rose 185.51 points or 0.46% to 40,469.70, while the CNX Nifty
was up by 55.60 points or 0.47% to 11,940.10.
The US markets ended mostly lower
on Tuesday, with the Dow Jones Industrial Average and S&P 500 retreating
from records, on disappointing earnings results and doubts about a US - China
trade deal. Shares of Home Depot moved sharply lower after the home improvement
retailer reported weaker than expected third quarter revenues and lowered its
full-year sales forecast. Department store chain Kohl's (KSS) also posted a
steep loss after reporting weaker than expected third quarter results and
cutting its annual guidance. Meanwhile, in a continuation of the market' recent
trend of shrugging off negative reports on the trade front, traders seemed
unfazed by President Donald Trump threatening higher tariffs on Chinese goods
if an agreement is not reached. However, the Nasdaq notched a record finish on
the strength of technology shares. On the economic data front, a report
released by the Commerce Department showed a substantial rebound in new
residential construction in the month of October. The Commerce Department said
housing starts surged up by 3.8 percent to an annual rate of 1.314 million in
October after plunging by 7.9 percent to a revised rate of 1.266 million in
September. Street had expected housing starts to jump by 5.1 percent to a rate
of 1.320 million from the 1.256 million originally reported for the previous
month. Despite the notable rebound, housing starts remain below the more than
twelve-year high of 1.375 million set in August. The report said single-family
housing starts climbed by 2.0 percent to a rate of 936,000 in October, while
multi-family starts surged up by 8.6 percent to a rate of 378,000.
Crude oil futures ended deeply
lower on Tuesday amid rising concerns about excess supply in the market. Street expects the Energy Information
Administration (EIA) on Wednesday to report a fourth straight weekly climb in
crude inventories. A survey called for a increase of 1.6 million barrels for
the week ended November 15. Both crude benchmarks marked the lowest front-month
contract settlements since October 31. Besides, the Organization of the
Petroleum Exporting Countries is slated to hold a two-day gathering beginning
December 5 in Vienna, with its core members and major outside producers like
Russia - part of an oil group known as OPEC+. Benchmark crude oil futures for
December dropped $1.84 or 3.2 percent to settle at $55.21 a barrel on the New
York Mercantile Exchange. January Brent fell $1.53 or 2.5 percent to settle at
$60.91 a barrel on London's Intercontinental Exchange.
Indian
rupee ended marginally higher on Tuesday on selling of dollars by banks and
exporters. Local currency got some support with Union Minister Anurag Thakur's
statement that India is not facing 5 per cent economic slowdown and continues
to be the fastest growing economy in the world. Thakur also said that a number
of steps are being taken by the government to strengthen the economy that
includes merger of banks and tax concessions to industries. Besides, positive
trend in equity market also supported the rupee. However, further gains were
restricted as some concern came with a private report indicating that India's
real Gross Domestic Product (GDP) growth is likely to average at 5 per cent in
calendar year 2019, as against 7.4 per cent last year, before picking up to 6.3
per cent in 2020 and 6.8 per cent the next year. On the global front, dollar
fell against yen on Tuesday as receding hopes for a preliminary trade deal
between the United States and China hurt demand for the greenback. Finally, the
rupee ended at 71.71, 13 paise stronger from its previous close of 71.84 on
Monday.
The
FIIs as per Tuesday's data were net sellers in both equity and debt segments.
In equity segment, the gross buying was of Rs 4371.79 crore against gross
selling of Rs 4900.65 crore, while in the debt segment, the gross purchase was
of Rs 573.35 crore with gross sales of Rs 1471.44 crore. Besides in the hybrid
segment, the gross buying was of Rs 55.72 crore against gross selling of Rs
31.76 crore.
The US markets ended mostly lower
on Tuesday on disappointing earnings results and doubts about a US-China trade
deal. Asian markets are trading in red on Wednesday as the Sino-US trade talks
produced nothing but a stream of conflicting messages. Indian markets ended
volatile session in green territory on Tuesday on fresh buying in energy,
telecom, power and oil & gas stocks. Today, the start of session is likely
to be pessimistic following weakness in Asian peers. There will be some
cautiousness with ratings agency CARE Ratings' report that the pace of
employment growth in India slowed in the last two years with job creation
growing 3.9% in 2017-18 and 2.8% in 2018-19. The ratings agency highlighted
that core industries have witnessed virtually negative growth in headcount,
with crude oil just about maintaining the employment level. However, traders
may take note of report that the government categorically stated that it does
not intend to revise its fiscal deficit target of 3.3 percent of gross domestic
product (GDP) for the current financial year notwithstanding the slowdown in
economic activities. Minister of State for Finance Anurag Thakur said
expenditure of various ministries and departments of the government is as per
the estimates approved by Parliament. Meanwhile, markets regulator SEBI has
said trading and clearing members should compulsorily collect upfront certain
margins from their clients in the cash segment. There will be some buzz in the
reality stocks with a private report indicating that housing sales of nine
major real estate companies, which are listed on stock exchanges, increased
marginally 2 percent to Rs 5,520 crore during the second quarter of 2019-20.
Telecom stocks will be in focus with report that the telecom regulator will
wait for operators to report their new tariffs to the authority before taking a
view on whether the revised pricing is within the regulatory framework. There
will be some reaction in banking stocks with report that Finance Minister
Nirmala Sitharaman told lawmakers that the country's state-run banks have
reported frauds worth Rs 95,760 crore ($13.34 billion) in the first six months
of FY20.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,940.10
|
11,894.95
|
11,972.05
|
BSE Sensex
|
40,469.70
|
40,325.23
|
40,579.15
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,392.29
|
64.15
|
62.38
|
66.58
|
Bharti Airtel
|
627.87
|
439.35
|
425.32
|
449.52
|
SBI
|
413.72
|
330.40
|
324.40
|
334.10
|
ICICI Bank
|
279.39
|
493.50
|
488.23
|
500.38
|
Bharti Infratel
|
257.84
|
250.55
|
232.22
|
264.37
|
Tata Steel is planning to cut 3,000 jobs in its European operations, amid oversupply and flat demand in the continent.
Bharti Airtel is going to appropriately increase price offerings in the month beginning December.
TCS has expanded its partnership with Virgin Atlantic, one of the UK's leading airlines, to create innovative customer experiences.
Maruti Suzuki's Mini-SUV S-PRESSO, marks its presence amongst country's top 10 bestselling cars within a month of its launch.