Weakness hit over Indian equity
benchmarks on the last trading day of the week, with Sensex & Nifty closing
lower by over 150 and 50 points, respectively. Markets made a negative start of
the day, impacted with Fitch Ratings' statement that the steep cut in tax paid
by companies may stimulate investments and economic growth only in the medium
term, but it will lead to breach fiscal targets in the current fiscal itself.
But soon, indices entered into green terrain, as Finance Minister Nirmala
Sitharaman said that she is hoping the country's economy will start looking up
in the second half of the current financial year as consumption rises and banks
increase their lending operations. However, Indian markets failed to hold their
heads above their neutral lines and remained lackluster for the whole day,
after the Finmin report showed that total liabilities of the government
increased to Rs 88.18 lakh crore at end-June 2019 from Rs 84.68 lakh crore at
end-March 2019. According to the latest data, public debt accounted for 89.4
per cent of total outstanding liabilities at end-June 2019. The street paid no
heed towards IHS Markit's report that the steepest ever cut in tax that
companies pay will improve relative competitiveness of India and should help
boost corporate investment over the medium-term. Finally, the BSE Sensex fell
167.17 points or 0.43% to 38,822.57, while the CNX Nifty was down by 58.80
points or 0.51% to 11,512.40.
Extending their previous
session's losses, the US markets ended lower on Friday on reports that Trump
administration officials are discussing ways to limit US investors' portfolio
flows into China. The move will have repercussions for billions of dollars in
investment pegged to major indexes. The reports reflect the ever-changing
landscape of US-China relations that has kept traders reluctant to make
significant bets. On the economic front, Consumer sentiment in the US rebounded
by more than initially estimated in the month of September, according to a
report released by the University of Michigan. The report said the consumer
sentiment index for September was upwardly revised to 93.2 from the preliminary
reading of 92.0. Besides, durable goods orders in the US unexpectedly showed a
modest increase in the month of August, according to a report released by the
Commerce Department. The Commerce Department said durable goods orders rose by
0.2 percent in August after jumping by 2.0 percent in July. The continued
increase surprised participants, who had expected orders to slump by 1.0
percent. Meanwhile, a report released by the Commerce Department showed US
personal income rose in line with street estimates in the month of August,
although personal spending inched up by less than expected. The Commerce
Department said personal income climbed by 0.4 percent in August after ticking
up by 0.1 percent in July. Dow Jones Industrial Average fell 70.87 points or
0.26 percent to 26820.25, Nasdaq declined 91.03 points or 1.13 percent to
7939.63 and S&P 500 was down by 15.83 points or 0.53 percent to 2961.79.
Crude oil futures ended lower on
Friday as news reports tied to Iran sanctions, a cease-fire between Saudi
Arabia and Yemen, contributing to a loss of nearly 4% for the week. Oil prices
also dropped on reports that Trump administration officials were discussing
ways to limit the flow of US investors' portfolio flows into China, potentially
raising trade tensions between the two nations that would hurt energy demand.
Besides, traders took note of a report that the number of active oil rigs in
the US declined to 860, the lowest level in nearly 30 months. The number of
active US rigs drilling for oil fell for a sixth straight week, down by six to
713 this week. Benchmark crude oil futures for November dropped 50 cents or 0.9
percent to settle at $55.91 a barrel on the New York Mercantile Exchange.
November Brent fell 83 cents or 1.3 percent to settle at $61.91 a barrel on
London's Intercontinental Exchange.
Continuing
strong recovery momentum for the second day, Indian rupee ended higher against
US dollar on Friday, on dollar selling by exporters and banks. The rupee
sentiment was buoyed with report that Union Finance Minister Nirmala hoped the
economy will start looking up in the second half of the current financial year
as consumption rises and banks increase their lending operations. Traders also
found some support with IHS Markit's report that the steepest ever cut in tax
that companies pay will improve relative competitiveness of India and should
help boost corporate investment over the medium-term. On the global front, euro
held at its lowest level in more than two years on Friday as quarter-end rebalancing
flows boosted demand for the dollar, with investors unfazed by the latest
political news out of the United States. Finally, the rupee ended at 70.56, 32
paise stronger from its previous close of 70.88 on Thursday.
The
FIIs as per Friday'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
17987.58 crore against gross selling of Rs 6857.25 crore, while in the debt
segment, the gross purchase was of Rs 2351.83 crore with gross sales of Rs
3809.93 crore. Besides, in the hybrid segment, the gross buying was of Rs 40.26
crore against gross selling of Rs 40.71 crore.
The US markets ended in red on
Friday amid report that Trump administration officials are discussing ways to
limit US investors' portfolio flows into China. Asian markets are trading mixed
on Monday as investors await the release of the China Purchasing Managers'
Index expected later in the day. Indian markets ended lower on Friday with
losses of around half a percent each on account of selling pressure in metal,
pharma and auto stocks. Today, the start of new week is likely to be cautious
amid mixed Asian cues and ahead of the Reserve Bank of India's (RBI) monetary
policy decision later this week. The RBI is likely to cut the key policy rate
again, the fifth in row, to complement the government's measures like reducing
corporate tax and promoting credit offtake to spur economic activity during the
festive season amid range-bound inflation. There will be some cautiousness with
the RBI's data showing that India's forex reserves declined by $388 million to
$428.572 billion for the week ended September 20 due to a slide in core
currency and gold assets. In the week to September 20, foreign currency assets,
a major component of overall reserves declined by $125 million to $396.670
billion. Though, some support may come later in the day with Union road transport
minister Nitin Gadkari stating that using bio-fuels can reduce crude oil
imports which will help save foreign exchange on one hand also achieve the
$5-trillion GDP goal by 2025. Some support may also come with report that after
remaining net sellers for the past two months, foreign investors infused a net
Rs 7,714 crore into the domestic capital markets in September following a slew
of economic reforms by the government. Traders may take note of report that the
government will soon constitute a working group on the proposed new industrial
policy which is aimed at promoting emerging sectors, reducing regulatory
hurdles and making India a manufacturing hub. Besides, in a boost to Prime
Minister Narendra Modi's ambitious target of India breaking into top 50 nations
on the World Bank's ease of doing business ranking, the country has figured
among the 20 countries that have improved the most on the list. Auto stocks
will be in focus with report that the much-awaited vehicle scrappage policy
that has gone for a Cabinet approval is likely to see stringent registration
and fitness norms for pre-2005 manufactured vehicles. Investors will also be
eyeing release of September sales data of auto companies. There will be some
reaction in consumer durable industry stocks with report that the consumer
durable industry hopes to have double-digit growth during the festive season
sales, despite concerns of economic slowdown. Meanwhile, Indian Railway
Catering and Tourism Corporation (IRCTC), the online ticketing, tourism and the
catering arm of railways, is scheduled to launch its initial public offering
(IPO) today. The price band has been fixed between Rs 315-320 apiece. Minimum
lot size is 40 shares.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,512.40
|
11,476.90
|
11,570.75
|
BSE Sensex
|
38,822.57
|
38,700.99
|
39,025.76
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
3,068.68
|
48.75
|
47.13
|
51.63
|
Tata Motors
|
458.76
|
119.90
|
117.92
|
122.17
|
SBI
|
378.52
|
281.20
|
278.78
|
284.83
|
ZEEL
|
270.27
|
273.55
|
266.90
|
284.95
|
ICICI Bank
|
194.33
|
449.20
|
444.38
|
452.93
|
Tata Motors' wholly owned subsidiary -- JLR is all set to launch half a dozen electrified models in India over next 12-18 months.
M&M's subsidiary -- Gromax Agri Equipment has launched new deluxe variant of tractors - Trakstar DLX in Madhya Pradesh.
Wipro's subsidiary -- WIN Automation Business has launched industrial automation and factory automation solutions specifically for the tyre industry.
NTPC is all set to start commercial operation of Unit-1 of 800 MW of Lara Super Thermal Power Station with effective from September 30, 2019.