Last hour selling dragged the
markets down on Monday, with Sensex and Nifty giving up their crucial psychological
levels of 34,200 and 10,250, respectively. The key indices made a positive
start of the week, aided by a private report stating that India is likely to
emerge as the third-largest economy in the world in just over a decade from
now, surpassing Japan and Germany.
Traders got relief after the Finance Ministry extended the deadline for
filing the GSTR-3B summary return of sales for September by five days to
October 25. With this extension, businesses, which wish to claim input tax
credit (ITC) benefit for July 2017-March 2018 period, can do so till October
25. Adding some optimism, ASSOCHAM said that the Reserve Bank of India's
decision to incentivise banks will help NBFCs in tackling liquidity crunch. The
RBI allowed the banks to use government securities equivalent to their
incremental credit to NBFCs for a three-month period to meet their liquidity
coverage ratio requirements. However, in the last hour of the trade, the
markets erased all of their gains to end the session lower, despite firm cues from
global markets. The market participants got cautious as traders' body CAIT
warned that allowing central as well as state tax administrations to initiate
action against any taxpayer irrespective of jurisdiction would lead to
harassment of traders and complicate the tax system. Anxiety spread on the
street after job creation slowed down by 8.39 percent to stand at 8,94,769 in
August month as against the revised figure of 9,76,675 in July month. The trade
also got hit with the Reserve Bank of India's (RBI) report showing that India's
forex reserves declined by $5.14 billion during the week ended October 12, when
the rupee slipped to 74 and beyond against the US dollar. Meanwhile, the
Central Board of Direct Taxes (CBDT) said that the number of taxpayers earning
above Rs 1 crore per annum has risen to over 1.40 lakh in the country in the
last four years, depicting a growth of about 60 percent. Finally, the BSE
Sensex plunged 181.25 points or 0.53% to 34,134.38, while the CNX Nifty was
down by 58.30 points or 0.57% to 10,245.25.
The US markets closed mostly
lower in choppy trading session on Monday as early support from a rally in
China faded, with lower oil prices and disappointing earnings signals from
firms including Halliburton and Hasbro helping pull the market lower. Chinese stocks
surged higher amid optimism about additional stimulus to stimulate the world's
second largest economy after last week's disappointing Gross Doemstic Product
(GDP) data. After three top Chinese financial regulators stepped in to bolster
investor confidence last Friday, Chinese President Xi Jinping vowed unwavering
support for the country's private sector. Moreover, traders expressed some
uncertainty about the near-term outlook for the markets following recent
volatility. A lack of major US economic data also kept some traders on the
sidelines ahead of the release of reports on new home sales, durable goods
orders, and consumer sentiment in the coming days. The Federal Reserve is also
due to release its Beige Book, a compilation of anecdotal evidence on economic
conditions in the twelve Fed districts. The report may shed additional light on
the outlook for interest rates. Dow Jones Industrial Average slipped 126.93
points or 0.50 percent to 25,317.41 and S&P 500 was down by 11.90 points or
0.43 percent to 2,755.88, while Nasdaq gained 19.60 points or 0.26 percent to
7,468.63.
Crude oil futures ended slightly
higher on Monday with traders appearing a bit uncertain about the impact of US
sanctions on Iran on global crude supply. Traders were also closely following
the developments with regard to the ongoing US-Saudi Arabia spat. Meanwhile,
the Saudi Oil Minister Khalid al-Falih has reportedly said that the kingdom has
no intention of an oil embargo on Western consumers, despite the current crisis
following allegations that it murdered journalist Jamal Khashoggi. Benchmark
crude oil futures for November gained 5 cents or 0.1 percent to settle at
$69.17 a barrel on the New York Mercantile Exchange. December Brent crude edged
up by a nickel, or less than 0.1 percent to settle at $79.83 a barrel on
London's Intercontinental Exchanged.
Indian
rupee pared all of its gains and ended weaker against the American currency on
Monday, due to fresh demand for the American currency from banks and importers.
Traders remained cautious with the Reserve Bank of India's (RBI) report showing
that India's forex reserves declined by $5.14 billion during the week ended
October 12, when the rupee slipped to 74 and beyond against the US dollar. The
RBI's weekly statistical supplement showed that overall forex reserves
decreased to $394.46 billion from $399.60 billion reported for the week ended
October 5. Adding pessimism among investors, job creation slowed down by 8.39
percent to stand at 8,94,769 in August month as against the revised figure of
9,76,675 in July month. Besides, dollar's strength against major global
currencies overseas along with late hour selloff in the domestic equity
markets, weighed on the rupee sentiment. On the global front, euro failed to
hold early-session gains on Monday as investors focused on the likelihood of
further political uncertainty in Europe over Italy's spending plans, despite a
large drop in Italian government borrowing costs. Finally, the rupee ended at
73.56, 24 paise weaker from its previous close of 73.32 on Friday.
The FIIs as per Monday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 6896.90 crore against gross selling of Rs 7557.58 crore, while
in the debt segment, the gross purchase was of Rs 1073.74 crore with gross
sales of Rs 1224.10 crore. Besides, in the hybrid segment, the gross buying was
of Rs 1.48 crore against gross selling of Rs 1.36 crore.
The US markets closed mostly
lower on Monday, as investors braced for a deluge of earnings against the
backdrop of higher interest rates and concerns about global growth. Asian
markets were trading in red on Tuesday, following weak trade on Wall Street, as
investors remain cautious over mounting geopolitical tensions around the world.
Indian markets wiped out all of their early gains to settle in red territory
for third straight session on Monday, due to late sell-off in oil & gas,
consumer durables, PSU, IT and infrastructure stocks amid crude again rising
past $80 a barrel. Today, the markets are likely to make negative start tacking
weak trade in other Asian counterparts amid global growth concerns. There will
be some cautiousness with a private report stating that India is the
second-most underinsured country in the world with an insurance gap of $27
billion (approximately Rs 1.98 lakh crore). traders will react negatively to
another private report that the crude oil import bill for India is expected to
increase by $37 billion to $125 billion during the current financial year
(2018-19, or FY19) - a 42% spike over the 2017-18 (FY18) bill of $88 billion.
However, some support may come later in the day with the Central Board of
Direct Taxes (CBDT) data showing that the net direct tax collection in the
country grew by 15.7% on year-on-year basis to reach Rs 4.89 lakh crore in the
current fiscal till third week of October. This marks over 42% of the full-year
direct tax collection target of Rs 11.5 lakh crore for the fiscal ending March
31, 2019. Traders may take note of report that the Central government expressed
hope exports would touch an all-time high in 2018-19. There will be some buzz
in the banking sector stocks with Moody's Investors Service's statement that
the profitability of Indian banks is distinctively weak compared to those in
BRICS nations, but it will improve from next fiscal as asset quality
stabilises. On capitalisation, Moody's said it is the weakest for Indian banks
with a tangible common equity ratio of 8.7% at the end of 2017. There will be
some reaction in sugar sector stocks with report that a second bailout package
for sugar industry could be in the offing as the food ministry plans to float a
Cabinet note seeking loan incentives for ethanol producers. This will be in
addition to the sugar package announced in June. There will be lots of earnings
reaction based on the performance of the companies, to keep the markets
buzzing.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,245.25
|
10,176.65
|
10,361.20
|
BSE Sensex
|
34,134.38
|
33,895.20
|
34,561.13
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
336.34
|
211.50
|
205.88
|
219.73
|
ICICI Bank
|
335.94
|
327.10
|
318.85
|
332.60
|
Indiabulls Housing
Finance
|
277.11
|
327.10
|
413.80
|
489.60
|
SBI
|
199.33
|
260.35
|
257.87
|
264.42
|
Vedanta
|
137.66
|
213.55
|
207.85
|
219.25
|
NTPC is planning to start biomass co-firing across all its coal-based thermal power stations in a view to reduce greenhouse gas emissions and cut pollution.
Hero MotoCorp has launched the new Destini 125 scooter.
TCS has launched TCS BaNCS for Payments V12 at SIBOS 2018.
SBI is planning to raise up to Rs 25,000 crore in FY19, including up to Rs 5,000 crore through bonds to meet capital adequacy norms.