Extending northward journey for
fourth straight session, Indian equity benchmarks ended the Tuesday's trade at
all time closing high levels, with frontline gauges recapturing their crucial
33,800 (Sensex) and 10,450 (Nifty) levels. Markets started the session on
optimistic note with traders continued getting strength with the assembly
election results announced yesterday. Blue chips soared during the trade after
victory of Bharatiya Janata Party (BJP) in his home state of Gujarat and
Himachal Pradesh, raising hopes of continued reforms. Traders also took
encouragement with the private report highlighting brighter growth prospects
for India by FY20 and beyond. India's growth prospect is likely to see a
slowdown in the next two years followed by recovery in the medium term, with
2019-20 GDP expected at around 7.6 per cent. Meanwhile, the government has
sought Parliament's approval to spend a net additional Rs 33,380 crore ($5.21
billion) in new spending in the fiscal year to March 2018. The additional
spending will be on top of an approved spending of Rs 21.4 lakh crore in the
annual budget. Markets extended its rally in last leg of trade to end near
intraday highs after Finance Ministry in its year end review report stated that
overall fundamentals of the economy remained strong in the current financial
year, on the back of firm macroeconomic indicators, improvement in World Bank's
ease of doing business ranking and sovereign rating upgrade by Moody's. Market
participants shrugged off report that the government seeking Parliament's
approval to spend a net additional Rs 333.8 billion ($ 5.21 billion) in new
spending in the fiscal year to March 2018. The additional spending will be on
top of an approved spending of $ 334.9 billion in the annual Budget. Also,
investors ignored India Ratings' report where it has warned that the farm debt
waivers announced by the five large states together will widen the combined
fiscal deficit of the states by Rs 1,07,700 crore or 0.65 percent of GDP this
financial year. Finally, the BSE Sensex soared 235.06 points or 0.70% to
33,836.74, while the CNX Nifty was up by 74.45 points or 0.72% to 10,463.20.
The US markets closed lower on
Tuesday, as the House of Representatives, passed a bill that would deliver
sweeping corporate tax cuts. The process hit a procedural snag after US markets
closed, however, which will force the House to vote again on the package on
Wednesday. On the economy front, the deficit in the broadest measure of US
trade fell in the July-September quarter to $100.6 billion, the smallest
imbalance in three years. The current account trade imbalance declined by 19.2
percent from a second quarter deficit of $124.4 billion. Meanwhile, housing
starts ran at a seasonally adjusted annual rate of 1.297 million in November.
That's 3.3% higher than a revised October pace, and 12.9% higher than a year
ago. Permits, which foreshadow future starts activity, ticked down 1.4% to a
1.298 million rate. Permits are 3.4% higher compared to a year ago. The Dow
Jones Industrial Average lost 37.45 points or 0.15 percent to 24,754.75, the
Nasdaq dropped 30.908 points or 0.44 percent to 6,963.85, and the S&P 500
edged lower by 8.69 points or 0.32 percent to 2,681.47.
Crude oil futures bounced back
and ended higher on Tuesday, amid mixed signals on global production next year.
OPEC says it will continue to curb production in an effort to re-balance oil
markets, but U.S. shale output may surge. Also, the investors mulled over the
prospect of fresh Middle East supply disruptions amid rising geopolitical
tensions in the region after reports Saudi air defences intercepted a missile
fired at Riyadh. Meanwhile, traders will be keeping a close eye on weekly US
inventories data over the next 24 hours. Benchmark crude oil futures for
January delivery ended higher by $0.31 or 0.54 percent at $57.47 a barrel on
the New York Mercantile Exchange. Brent crude for February delivery was up by
$0.37 to $63.77 a barrel on the ICE.
Indian
rupee ended higher against the dollar on Tuesday, with the American currency
coming under heavy selling by banks and exporters. Sentiment got up-beat with
the private report highlighting brighter growth prospects for India by FY20 and
beyond. The report also stated that India's growth prospect is likely to see a
slowdown in the next two years followed by recovery in the medium term, with
2019-20 GDP expected at around 7.6%. Optimism remained among the investors with
Union Finance Ministry's latest report stating that overall fundamentals of the
economy remained strong in the current financial year, on the back of firm
macroeconomic indicators, improvement in World Bank's ease of doing business
ranking and sovereign rating upgrade by Moody's. Besides, gains in the local
equity markets for the four consecutive sessions along with dollar's slide
against some currencies overseas, too supported the rupee surge. On the global
front, euro rose slightly against dollar on Tuesday, as investors took a
cautious view over how much tax reforms, if passed, would boost the US economy.
Finally, the rupee ended at 64.03, 20 paise stronger from its previous close of
64.23 on Monday.
The
FIIs as per Tuesday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4984.26 crore against gross selling
of Rs 4866.07 crore, while in the debt segment, the gross purchase was of Rs
856.83 crore with gross sales of Rs 143.00 crore.
The US markets ended marginally
in red in the last session, giving up some of their previous session gains on
profit taking as traders cashed in on the strength seen in recent sessions.
Though House Republicans voted to approve the first major tax reform
legislation in several decades, cutting tax rates for businesses and
individuals. The Asian markets have made a mixed start and some indices in the
region are down by around a quarter percent, with investors awaiting the final
votes on U.S. tax-cut legislation. The Indian markets extended gains in the
last session to end at record highs, on firm global cues and BJP's win in both
Gujarat and Himachal Pradesh. Today, the start is likely to be mildly
soft-to-cautious on tepid global cues and traders will be eyeing the final
Senate vote on U.S. tax-cut legislation. Traders will however be getting some
support with Commerce & Industry Minister Suresh Prabhu's statement that
the government is working on a strategy to boost share of services in total
exports from the country. There will be buzz in the PSU banking stocks with
global rating agency Moody's latest report that capital raising by a number of
public sector banks (PSBs), including PNB and UBI, is credit positive because
it will help improve their loss-absorbing buffers. Moody's said that it signals
improved access to the equity capital markets and will reduce PSBs' dependence
on fund infusion from the government. Some action can be seen in the oil
companies stocks, as the Finance minister Arun Jaitley has said that the Centre
favours including petroleum products in the ambit of the Goods and Services Tax
(GST) but it would want a consensus with the States before taking such a step.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10463.20
|
10422.07
|
10488.27
|
BSE Sensex
|
33836.74
|
33714.88
|
33910.33
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
147.41
|
319.80
|
318.05
|
321.90
|
ICICI Bank
|
131.35
|
313.70
|
309.87
|
316.17
|
Vedanta
|
129.48
|
316.25
|
311.45
|
319.05
|
Power Grid
|
113.25
|
202.60
|
200.20
|
204.00
|
Tata Motors
|
96.87
|
420.10
|
411.07
|
425.42
|
Bharti Airtel through its subsidiaries has entered into a definitive agreement with Millicom under which Airtel Rwanda will acquire 100% equity interest in Tigo Rwanda.
HDFC is planning to raise Rs 2,000 crore by issuing debt securities on private placement basis.
M&M is targeting a revenue growth of 20% in the next financial year from its diesel genset business after entering the high kVA segment.
Maruti Suzuki India has inked an agreement with the Skill Development Ministry to impart training to youth and enhance their employment potential.