Wednesday turned out to be a
daunting day of trade for Indian equity benchmarks where frontline gauges
clobbered out of shape, tumbling below their crucial 31,200 (Sensex) and 9,750
(Nifty) levels, as traders opted to remain on sidelines on penultimate day of
September F&O expiry. Markets failed to take any advantage of positive
start and soon entered into negative terrain. Afterwards, market never looked
confident of recovering and gradually extended its losses till end to close
near intraday lows, as sentiments remained dampened on report that collections
under goods and services tax declined to Rs 90,669 crore for August from a
revised figure of Rs 94,063 crore for July. Of the tax collected, Rs 14,402
crore have come in as Central GST, Rs 21,067 crore as State GST and Rs 47,377
crore as Integrated GST, which is levied on inter-state movement of goods and
imports and Rs 7,823 crore as compensation cess. Some cautiousness also crept
with report that the Asian Development Bank (ADB) expecting the RBI to go for
another round of rate cut in the latter part of 2017-18 in view of sluggish
economic activities but does not see possibility of any major fiscal stimulus.
Markets extended losses in last leg of trade on report that India slipped one
place to rank 40th in Global Competitiveness Index out of 137 countries
surveyed, while Switzerland, the US and Singapore were ranked as the top three
countries. Meanwhile, the Indian Army has conducted another surgical strike at
Naga Insurgent Camp, Myanmar border. There was no casualty to Indian forces
during surgical strike but there are heavy casualties at Naga Insurgent camp in
Myanmar border. Traders overlooked Niti Aayog Vice Chairman Rajiv Kumar's statement
that the extra fiscal stimulus will help the economy do well and there is no
harm in relaxing the fiscal deficit target to allow for more capital
expenditure in order to lift the slowing Indian economy. Finally, the BSE
Sensex declined 439.95 points or 1.39% to 31,159.81, while the CNX Nifty was
down by 135.75 points or 1.38% to 9,735.75.
The US markets closed higher on
Wednesday, with the Dow industrials ending a four-day losing streak as
President Donald Trump and congressional Republicans touted a sweeping tax
overhaul. Republican leaders unveiled a plan to overhaul the US tax code that
looks to sharply reduce tax rates on businesses and many individuals. One of
the reasons markets have risen throughout 2017 is the prospect of tax reform
passing, which is expected to be a tailwind for markets. However, the
Republican-controlled Congress was unable to pass health-care reform despite
several attempts and versions, and it is unclear how likely it was that
tax-reform could be passed. On the economy front, orders for durable or
long-lasting goods such as passenger planes rose sharply in August and business
investment strengthened again in a good showing for the US economy.
Durable-goods orders climbed 1.7% last month. The increase stemmed mainly from
a big batch of orders for commercial aircraft. Bookings surged 45%. Demand was
higher for most other manufactured goods, but bookings grew at a slower pace.
Orders minus transportation edged up 0.2%. A key measure of business
investment, meanwhile, showed more muscle. So-called core capital-goods orders advanced
0.9% and rose for the eighth time in the past nine months. The Dow Jones
Industrial Average added 56.39 points or 0.25 percent to 22,340.71, the Nasdaq
gained 73.1 points or 1.15 percent to 6,453.26, and the S&P 500 edged
higher by 10.2 points or 0.41 percent to 2,507.04.
Crude oil futures moved higher on
Wednesday after data from the U.S. Energy Information Administration (EIA) showed
domestic crude stockpiles declined for the first time in four weeks as refiners
raised output. The EIA said in its weekly report that crude oil inventories
fell by 1.8 million barrels in the week ended September 22. The report also
showed that gasoline inventories rose by 1.1 million barrels, while distillate
inventories including diesel, declined by 814,000 barrels. Total U.S. crude oil
inventories stood at 471.0 million barrels as of last week, which the EIA
considered to be at the upper half of the average range for this time of year. Benchmark
crude oil futures for November delivery ended higher by $0.25 or 0.5 percent at
$52.13 a barrel on the New York Mercantile Exchange. Brent crude for November
delivery lost 26 cent to $57.66 a barrel on the ICE.
Caught
in a downward spiral for the third straight session, Indian rupee ended
considerably weaker against the US dollar on Wednesday, on account of heavy
foreign fund outflows and month-end dollar demand. Investors remained cautious
with report that the Asian Development Bank (ADB) expecting the RBI to go for
another round of rate cut in the latter part of 2017-18 in view of sluggish
economic activities but does not see possibility of any major fiscal stimulus.
Some anxiety also spread among the investors as India has been ranked as the
40th most competitive economy -- slipping one place from last year's ranking --
on the World Economic Forum's global competitiveness index, which is topped by
Switzerland. Moreover, the fall in the rupee was also triggered by dollar's
appreciation overseas against a basket of major currencies along with extremely
bearish local equity markets. On the global front, US dollar rose against yen
on Wednesday, on expectation of a US rate hike by the end of this year.
Finally, the rupee ended at 65.70, 26 paise weaker from its previous close of
65.44 on Tuesday.
The
FIIs as per Wednesday's data were net sellers in equity and debt segments both.
In equity segment, the gross buying was of Rs 3807.82 crore against gross
selling of Rs 5464.14 crore, while in the debt segment, the gross purchase was
of Rs 1516.98 crore with gross sales of Rs 2147.97 crore.
The US markets showed some
recovery and ended higher in the last session with the tech heavy Nasdaq
outperforming its other counterparts, in a positive reaction to the release of
a Republican tax reform plan, which calls for a reduction in the corporate tax
rate to 20 percent. The Asian markets have once again made a mixed start with
some indices trading in red, as investors began to assess the implications of
the much-anticipated tax proposal. The Japanese market was though trading in
green as the yen weakened against dollar on optimism over the health of the
U.S. economy. The Indian markets got pummeled further and deposed another over
a percent in last session with major benchmarks declining for the seventh straight
session and losing their crucial support levels. Today, the start of the
F&O series expiry session is likely to remain cautious with India Ratings'
report that India's GDP growth estimate for the ongoing financial year 2017-18
is likely to come down to 6.7 per cent from 7.4 per cent earlier as “the
combined effect of demonetisation and introduction of goods and services tax
(GST) is proving to be more disruptive for the economy than was expected
earlier. Traders will also be concerned with the rupee continuing its bear run
and plunging to its lowest level in six-and-a-half months. Markets may see some
recovery in the latter part of the trade as the traders will settle their
positions and cover shorts going to new series. Also, there will be some support
with Prime Minister Narendra Modi's statement that traders across the country
are 'positive' about GST and accepting the new taxation arrangement but they
need 'handholding' so that their problems can be resolved. He urged the chief
secretaries to use the district administration in this regard, so that small
traders are facilitated to access and adopt the new system. Niti Aayog vice
chairman Rajiv Kumar too has said that the economic downturn which began in the
last two years of UPA II regime has bottomed out and the growth will improve in
the next two quarters. There will be some buzz in the telecom sector, as the
Communications Minister Manoj Sinha has said that the telecom industry is expected to generate
revenue of $38.25 billion by 2017-end, registering a compounded annual growth
rate of 5.2 percent between 2014 and 2017.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9735.75
|
9659.75
|
9866.40
|
BSE Sensex
|
31159.81
|
30907.92
|
31604.58
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
178.54
|
276.40
|
272.95
|
282.30
|
ITC
|
175.34
|
258.50
|
255.03
|
263.73
|
SBI
|
170.81
|
250.40
|
246.63
|
257.03
|
Vedanta
|
118.60
|
310.35
|
306.40
|
316.60
|
Reliance Industries
|
84.34
|
799.15
|
787.87
|
818.07
|
Wipro has entered into partnership with CloudGenix Inc. to offer open and managed SD-WAN services.
Hindustan Uniliver has forayed into e-commerce business. The company is planning to sell premium tea through its own portal.
NTPC has successfully commissioned 50 MW capacity at its Rojmal Wind Energy Project in Gujarat.
Larsen & Toubro's construction arm -- L&T Construction -- has won orders worth Rs 2170 crore across various business segments.