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NSE Intra-day chart (19 October 2017)
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Market Commentary 23 October 2017
Markets to make positive start on firm global cues

The Indian markets ended marginally in red on the last session of Samvat 2073, led by the financial stocks as Axis Bank reported a surge in bad loans for the September quarter and there was caution for similar results from other banks too. The Sensex closed at 32,584, 4,654 points, or over 16.67 per cent, higher while the Nifty gained 18.38% from the level where the index traded on Day 1 of Samvat 2073. Markets remained in rally mood throughout the Samvat year amid demonetisation drive announced just after Diwali that sought to curb the menace of black money in the economy and then in second half the implementation of goods and services tax (GST) bill. The gains were propelled by hopes of government reforms and a second straight year of good monsoon rains, which were expected to spur consumption. On Thursday a short muhurat trading was conducted on both the stock exchanges for an hour between 6.30 and 7.30 pm to mark the auspicious beginning of a new Hindu accounting year, Samvat 2074. Muhurat session typically sees a rangebound trade and markets generally remain flat but this time it was heart break for the markets when the major averages lost over half a percent in just one hour of trade. The weakness persisted since beginning and indices kept on drifting lower till the last. The mid cap stocks too suffered decline albeit marginal, while the smallcap stocks witnessed some buying, but it was mainly the large cap and especially the banking stocks that dragged the markets lower for the session. Finally the Sensex ended lower by 194.39 points or 0.60% to 32,389.96, while Nifty ended down 64.30 points or 0.63% to 10,146.55.


The US markets ended mostly higher over the course of the trading session on Friday following the mixed performance seen in the previous session. With the upward move on the day, the major averages once again reached new record closing highs. Sentiments remained up-beat on report that Senate Republicans approved a budget resolution that will serve as the legislative vehicle for their tax reform plan. The non-binding budget resolution unlocks the reconciliation process, allowing Republicans to pass their tax reform plan with a simple 51-vote majority in the Senate. The Senate voted 51 to 47 in favor of the measure, with the vote largely coming down along party lines. Senator Rand Paul, R-Ken., was the only Republican to vote against the resolution. Positive sentiment was also generated by a report from the National Association of Realtors showing an unexpected rebound in existing home sales in the month of September. The Dow Jones Industrial Average added 165.59 points or 0.71 percent to 23,328.63, the Nasdaq gained 23.98 points or 0.36 percent to 6,629.05, and the S&P 500 edged higher by 13.11 points or 0.51 percent to 2,575.21.


Crude oil futures moved higher on Friday after the  report showed the U.S. rig count fell for a third consecutive week. Also, the political tensions in the Kurdistan region continued to disrupt crude supplies offsetting signs of wavering U.S. demand. A report showed that Oil exports from Iraq's Kurdistan towards the Turkish port of Ceyhan were flowing at average rates on Friday of 216,000 barrels per day versus the usual flows of 600,000 bpd. Meanwhile, oilfield services firm Baker Hughes said that its weekly count of oil rigs operating in the United States fell by 7 to 736. Benchmark crude oil futures for November delivery ended higher by $0.18 at $51.47 a barrel on the New York Mercantile Exchange. Brent crude for November delivery added 0.33 cents to $57.56 a barrel on the ICE.


Indian rupee ended flat against US dollar on Wednesday ahead of a long Diwali weekend. Additionally, the dollar rose to a position of strength overseas along with weak trade in domestic equity market, mainly pressurised the home unit. Traders failed to get relief with a member of the Prime Minister's Economic Advisory Council (EAC) Surjit Bhalla's statement that the government is likely to stick to its fiscal deficit target of 3.2 percent of GDP, and may accelerate sales of government stakes in lenders and other companies as part of an effort to recapitalise banks. On the global front, dollar edged higher on Wednesday, as markets awaited further news on the possible appointment of a hawk as Fed chair and progress on US tax reforms. Finally, the rupee ended unchanged from its previous close of 65.03 on Tuesday.


The FIIs as per Wednesday's data were net sellers in equity segment, while they were net buyers in debt segment. In equity segment, the gross buying was of Rs 4508.26 crore against gross selling of Rs 4760.54 crore, while in the debt segment, the gross purchase was of Rs 1351.41 crore with gross sales of Rs 843.32 crore.


The US markets ended on firm note on Friday, as traders remained optimistic on report that Senate Republicans approved a budget resolution that will serve as the legislative vehicle for their tax reform plan. Asian markets have made a positive start on Monday as the dollar spiked to more than three-month highs against the yen following a snap election in Japan on Sunday. The Indian markets witnessed setback on Muhurat trading on Thursday as traders remained on sidelines ahead of Diwali holiday. Today, the start is likely to be in green amid firm global cues. Traders will be looking to buy fundamentally strong stocks after a long weekend. Traders will be getting some encouragement with revenue secretary Hasmukh Adhia's statement that Policymakers are considering steps to ease the compliance burden related to the goods and services tax (GST) on small businesses and to make product classification for taxation less complicated. Meanwhile, the Securities and Exchange Board of India (Sebi) is looking to tighten listing norms to prevent fly-by-night operators from getting listed on stock exchanges. Some support may also come with report that foreign investors have poured a whopping $2 billion into the Indian debt markets so far this month due to lower currency volatility coupled with positive real interest rates. Foreign portfolio investors (FPIs) however pulled out Rs 3,408 crore ($523 million) from equities on account of profit booking during this period. There will be some buzz in the gold and jewellery related stocks, as India tightened gold import norms for nominated agencies by restricting them from importing the yellow metal only for export purposes and not for selling in the domestic market. Port and Shipping related stocks too may see some action, as Union Minister Nitin Gadkari has said a blueprint of 142 expansion projects has been finalised to modernise 12 major ports and develop new harbours at a cost of about Rs 90,000 crore. 


Support and Resistance: NSE (Nifty) and BSE (Sensex)



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Axis Bank





Bharti Airtel






  • Power Grid Corporation of India has been declared as the successful bidder under TBCB to establish Eastern Region Strengthening Scheme -XXI on Build, Own Operate and Maintain basis.
  • BPCL is planning to raise up to Rs 2,000 crore during the current financial year through private placement of unsecured non-convertible debentures subject to market conditions.
  • Axis Bank has reported 35.51% rise in its net profit at Rs 432.38 crore for the quarter ended September 30, 2017 as compared to Rs 319.08 crore for the same quarter in the previous year.
  • Bharti Airtel is looking to phase out its 3G services in two years in order to cut cost.
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