Extending southward journey for
fourth straight session, Indian equity benchmarks ended the session on
pessimistic note, with frontline gauges ending below their crucial 36,900
(Sensex) and 11,150 (Nifty) levels. Markets started the session on an
optimistic note as sentiments remained upbeat with Prime Minister Narendra
Modi's statement that the size of Indian economy would double to $5 trillion by
2022, with manufacturing and agriculture contributing $1 trillion each. Some
support also came with report that India is hopeful of resolving the issue of
tariffs on steel and aluminium with the US soon and both sides are engaged in
finalising a trade package. Traders also got some support with report that the
Reserve Bank eased norms for companies in the manufacturing sector to raise
overseas funds and allowed Indian banks to market Masala Bonds in line with the
government's measures to prop up the rupee. Traders took note of State Bank of
India's report that Indian rupee may be set to recover as oil peaks out and
investors realize the currency has been sold off too heavily amid the
emerging-market rout. However, markets took U-turn and entered in red terrain
in second half of the session after former Union Finance Minister P.
Chidambaram blamed the government's heavy-handed approach to the NPA problem
for the sharp decline in export credit. He said despite government's claims of
taking steps to boost exports, the export credit had declined sharply to Rs 22,300
crore in June from Rs 39,000 crore in the same month in 2017. Sentiments also
remain dampened as the EEPC India said that at a time when the country is
grappling with the widening of the current account deficit (CAD), any move to
raise import duty on steel or steel products would severely hit India's crucial
engineering exports and rather lead to further expansion of the CAD. However,
markets somehow managed to end off their day's lows amid Employment Provident
Fund Organisation's (EPFO) data report that India created 9.51 lakh new jobs in
the month of July 2018. As per the report, total 9,51,423 new payrolls were
created during July 2018 as against 8,57,934 created in the previous month,
registering a growth of 10.90%. Finally, the BSE Sensex declined 279.62 points
or 0.75% to 36,841.60, while the CNX Nifty was down by 91.25 points or 0.81% to
11,143.10.
The US markets ended the
lackluster day of trade mostly in red terrain on Friday. Despite the choppy
trading on the day, the Dow climbed to another new record closing high. Next
week's Federal Reserve meeting also kept some traders on the sidelines amid a
quiet day on the U.S. economic front. The Fed is scheduled to announce it
latest monetary policy decision next Wednesday and is widely expected to raise
interest rates by another quarter point. The accompanying statement is likely
to attract considerable attention along with Fed Chairman Jerome Powell's press
conference as traders attempt to gauge the outlook for further rate hikes. Most
of the major sectors ended the day showing only modest moves, contributing to
the lackluster close by the broader markets. The S&P 500 slipped 1.08
points or 0.04 percent to 2929.67 and Nasdaq was down by 41.28 points or 0.51
percent to 7986.96, while Dow Jones Industrial Average surged 86.52 points or
0.32 percent to 26,743.50.
Crude oil futures settled higher
on Friday after briefly paring gains, as prices bounced around ahead of meeting
of major oil producers in Algiers over the weekend. A report suggesting that
major producers may increase production more in order to cover an expected
shortfall in output from Iran briefly knocked prices lower. However, gains
remain capped ahead of OPEC meeting at Algeria this weekend. OPEC and its
allies are scheduled to meet on Sunday to discuss how to discuss production
increases as U.S. sanctions restrict Iranian exports. Benchmark crude oil
futures for October added 46 cents or 0.7 percent to settle at $70.78 a barrel
on the New York Mercantile Exchange. November Brent crude gained 10 cents or
0.1% to settle at $78.80 a barrel on London's Intercontinental Exchanged.
Indian rupee appreciated against
the American currency due to selling of dollar by exporters as well as banks.
Traders took some support with report that the Reserve Bank eased norms for
companies in the manufacturing sector to raise overseas funds and allowed
Indian banks to market Masala Bonds in line with the government's measures to
prop up the rupee. Rupee sentiments were also supported with Prime Minister
Narendra Modi's statement that the size of Indian economy would double to $5
trillion by 2022, with manufacturing and agriculture contributing $1 trillion
each. On the global front, the dollar rebounded from early lows and edged
higher against most of its rivals but was still on track for its biggest weekly
drop in seven months as stronger equity markets and rising bond yields fuelled
a rush to buy riskier assets. Finally, the rupee ended at 72.20, 17 paise
stronger from its previous close of 72.37 on Wednesday.
The FIIs as per Friday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4286.89 crore against gross selling of Rs 6472.67 crore, while
in the debt segment, the gross purchase was of Rs 462.17 crore with gross sales
of Rs 2514.75 crore. Besides, in the hybrid segment, the gross buying was of Rs
10.73 crore against gross selling of Rs 9.42 crore.
The US markets ended mostly in
red on Friday, ahead of Federal Reserve meeting amid a quiet day on the U.S.
economic front. The Fed is scheduled to announce it latest monetary policy
decision on Wednesday and is widely expected to raise interest rates by another
quarter point. Asian markets were
trading mostly lower on Monday, as China canceled upcoming tariff talks with
the United States, while oil prices jumped after top producers including Russia
ruled out boosting crude output. Indian equity benchmarks, extending their
losing streak for fourth straight session, saw wild movements on either side on
Friday before finishing notably lower, dragged down by financials. Today, the
markets are likely to make cautious start on weak global cues as trade tension
continues to rise. Traders may remain concern on industry chamber CII's report
that over 40 per cent of Indian firms expect the Reserve Bank of India (RBI)
will go in for another interest rate hike in the current fiscal. A CII release
said that its quarterly Business Confidence Index (BCI), conducted during
July-September 2018, covered nearly 200 firms of varying sizes. In the current
survey, about 42 per cent of the respondents felt that the RBI will engage in
further interest rates hikes in 2018-19 as compared to the previous survey
where a majority of the respondents anticipated a cut or no change in policy
rates in 2018-19. Sentiments may also remain dampen with report that overseas
investors have pulled out a massive Rs 15,365 crore from the capital markets
till September 21, after putting in funds during the previous two months, on
widening current account deficit coupled with global trade tensions. However,
traders will get some support later in the day with Fitch Ratings increasing
India's growth forecast for the current fiscal to 7.8 percent, from 7.4 percent
projected earlier. In its Global Economic Outlook, Fitch, however, flagged
tightening of financial conditions, rising oil bill and weak bank balance
sheets as headwinds to growth. Some support may also come with report that the
southwest monsoon is expected to start withdrawing towards the end of this
month, nearly a month behind schedule. This year's delayed withdrawal is likely
to help the country avoid a drought situation, even as countrywide rainfall is
hovering on borderline drought conditions, measuring 10% below normal levels
since the beginning of the monsoon season. Meanwhile, State-run Garden Reach
Shipbuilders and Engineers will open its initial public offering for
subscription on September 24 with a price band of Rs 115-118 per share.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,143.10
|
10,890.77
|
11,371.12
|
BSE Sensex
|
36,841.60
|
36,060.41
|
37,556.01
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,935.53
|
226.50
|
200.63
|
269.83
|
Vedanta
|
423.61
|
230.45
|
222.60
|
236.80
|
SBI
|
393.08
|
270.60
|
256.18
|
282.23
|
ICICI Bank
|
341.69
|
317.10
|
305.73
|
331.08
|
Axis Bank
|
247.89
|
599.20
|
563.73
|
634.33
|
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