Indian equity bourses ended
Wednesday's session at fresh record closing highs. After a fabulous start,
indices remained bullish, aided with Commerce & Industry Piyush Goyal's
statement that India's service sector can help achieve the Central government's
target of $5 trillion GDP. He said the service sector has the potential to be
the largest job creators in the country & over the next five years, it has
the potential to contribute $3 trillion out of the $5 trillion GDP target set
by the government. However, in noon deals, some of gains got trimmed, as
Moody's showed that Indian states face difficulties in reducing deficits,
constraining the country's ability to meet medium-term fiscal consolidation
goals as economic growth slows. But, in the last leg of the trade, key bourses
gained traction to reach near their intraday high points, tracking firm cues
from global markets. Domestic sentiments remained positive, amid a report
stating that net investment of equity and debt reported by foreign portfolio
investors (FPIs) stayed bullish with net buying logged at Rs 4,677.75 crore
from Indian equities. Market participants also remained encouraged with another
private report indicating that the Reserve Bank of India (RBI) is expected to
cut interest rates in its December bi-monthly monetary policy and again before
July. Finally, the BSE Sensex surged 199.31 points or 0.49% to 41,020.61, while
the CNX Nifty was up by 63.00 points or 0.52% to 12,100.70.
Extending their the upward trend
seen over the past few sessions, the US markets closed at new records on
Wednesday, supported by rosier US economic data and trade deal hopes. Revised
data released by the Commerce Department showed the US economy grew by more
than initially estimated in the third quarter. The Commerce Department said
real gross domestic product jumped by 2.1 percent in the third quarter compared
to the previously estimated 1.9 percent increase. Street had expected the pace
of GDP growth to be unrevised. With the upward revision, the GDP growth in the
third quarter represents an acceleration from the 2.0 percent increase in the
second quarter. The stronger than previous estimated growth reflects upward
revisions to private inventory investment, non-residential fixed investment,
and consumer spending. Besides, the Commerce Department released a report showing
US personal income came in nearly flat in the month of October, while personal
spending rose in line with Street estimate. The report said personal income
inched up by less than a tenth of a percent in October after rising by 0.3
percent in September. Street had expected another 0.3 percent increase.
Meanwhile, the Commerce Department said disposable personal income, or personal
income less personal current taxes, edged down by 0.1 percent in October after
climbing by 0.3 percent in the previous month.
Crude oil futures ended lower on
Wednesday, after moving higher over the two previous sessions, on unexpected
increase in inventories. The Energy Information Administration (EIA) released a
report unexpectedly showing a weekly increase in crude oil inventories. Crude
inventories rose by 1.6 million barrels in the week ended November 22 as
compared to Street estimate for a decrease of about 0.3 million barrels. The
American Petroleum Institute had reported on Tuesday that US crude supplies
rose by roughly 3.6 million barrels for the week ended November 22. Besides,
The EIA said gasoline inventories also surged up by 5.1 million barrels during
the week, while distillate fuel inventories increased by 0.7 million barrels.
Benchmark crude oil futures for January fell 30 cents or 0.5 percent to settle
at $58.11 a barrel on the New York Mercantile Exchange. January Brent lost 21
cents or 0.3 percent to settle at $64.06 a barrel on London's Intercontinental
Exchange.
Indian
rupee continued its upward momentum for the second day on Wednesday on
persistent selling of the American currency by exporters. Sentiments got
up-beat with Commerce & Industry Piyush Goyal's statement that India's
service sector can help achieve the Central government's target of $5 trillion
Gross Domestic Product (GDP). He said the service sector has the potential to
be the largest job creators in the country and over the next five years it has
the potential to contribute $3 trillion out of the $5 trillion GDP target set
by the government. The rupee also derived its strength from strong gains in the
local equity markets as well as easing crude oil prices. On the global front,
dollar pushed higher on Wednesday boosted by yet more talk of a deal to resolve
the US-China trade dispute. Finally, the rupee ended at 71.35, 15 paise
stronger from its previous close of 71.50 on Tuesday.
The
FIIs as per Wednesday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
39364.23 crore against gross selling of Rs 34848.90 crore, while in the debt
segment, the gross purchase was of Rs 896.07 crore with gross sales of Rs
2115.10 crore. Besides, in the hybrid segment, the gross buying was of Rs 24.03
crore against gross selling of Rs 20.28 crore.
The US markets ended higher on
Wednesday supported by rosier US economic data and ongoing hopes for a US-China
trade deal. Asian markets are trading mixed on Thursday as concerns that
tensions over Hong Kong could stymie a US-China trade deal cast a pall over
Thanksgiving cheer from unexpectedly positive US economic data. Indian markets
ended higher on Wednesday, with both Sensex and Nifty at their record closing
highs led by gains in banking, auto, metal, and IT stocks. Today, the start of
F&O series expiry session is likely to be slightly negative amid mixed cues
from Asian peers. There will be some cautiousness with report indicating that a
majority of economy watchers were quick to point out that Q2FY20 growth rate
will be lower than the 5 per cent rise seen in April-June quarter, especially
due to the havoc caused by Monsoon rains across India. However, traders may
take note of Finance Minister Nirmala Sitharaman's statement that economic
growth might have slowed down but there was no impending threat of a recession.
Defending the current state of the Indian economy, the finance minister said
that every step that had been taken by the government was aimed at development.
Meanwhile, markets regulator SEBI came out with a framework pertaining to
preferential issue as well as institutional placement of units by a listed real
estate investment trust (REIT) and infrastructure investment trust (InvIT).
There will be some buzz in the textile stocks with report that the Indian
textile industry can become a $300 billion industry by 2030 and create an
additional 35 million jobs. As per the report, this can be achieved if the
industry enhanced its focus on exporting higher value added products,
modernisation and sustainable business practices. Cement stocks will be in
focus with ICRA's report that the domestic cement demand growth is expected to
taper to around 4% in FY2020 from a double-digit growth rate of 13.3% in the
previous fiscal year. There will be some reaction in infra stocks with Union
Minister Piyush Goyal's statement that the Centre has chalked out a plan
envisaging an investment of Rs 100 lakh crore in the infrastructure sector over
the next five years.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,100.70
|
12,065.60
|
12,125.35
|
BSE Sensex
|
41,020.61
|
40,887.62
|
41,114.68
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,546.12
|
68.25
|
66.27
|
69.62
|
ZEEL
|
387.04
|
319.50
|
310.63
|
329.13
|
SBI
|
339.71
|
343.55
|
336.55
|
348.05
|
ICICI Bank
|
298.67
|
505.50
|
501.25
|
512.80
|
Tata Motors
|
295.28
|
165.90
|
164.17
|
168.47
|
Coal India has liquidated 35 MT of coal from its pithead stock in the first half of the current fiscal 2019-20.
Yes Bank is planning to raise funds by issue of equity/ equity linked securities through permissible modes, subject to necessary shareholders/ regulatory approvals.
Tata Motors has christened its upcoming flagship SUV as Gravitas.
Ashok Leyland has signed a MoU with Axis Bank to enter into a strategic financing partnership for two years.