Falling for 3rd straight session,
Indian equity benchmarks ended Friday's session with marginal losses, dragged
by losses in telecom, auto and banking sectors amid weak global cues. After
making cautious start, markets gained momentum to enter into green zone, as
traders found some solace with Prime Minister Narendra Modi's statement that
the Indian economy is getting back on track faster than expected as a timely
lockdown and various relief measures announced by the government helped address
issues faced by all sections of society and all economic sectors due to the
COVID-19 pandemic. Some respite also came with report that the Reserve Bank of
India will conduct the second Open Market Operations (OMOs) purchase of State
Developments Loans (SDLs), aggregating Rs 10,000 crore, on November 5, 2020.
However, key gauges erased all their gains and turned negative in late morning
session, as some cautiousness came with the government data showed that the
growth of eight core infrastructure industries contracted by 0.8 percent in
September 2020 as compared to same period of last year, mainly due to decline
in production of crude oil, natural gas, refinery products and cement. The
production of eight core sectors had contracted 5.1 percent in September 2019.
Some anxiety also came as the government's fiscal deficit rose to Rs 9.14 lakh
crore, about 114.8 percent of the annual budget estimate, during the first six
months of the current financial year, mainly on account of poor revenue
realisation. But, benchmarks managed to trim some of their losses in late
trade, taking support from Union Minister Nitin Gadkari's statement that micro,
small and medium enterprises (MSMEs) are the backbone of the Indian economy and
can help in boosting exports. He said we are giving highest priority for how we
can reduce our import and increase our exports. Finally, the BSE Sensex fell
135.78 points or 0.34% to 39,614.07, while the CNX Nifty was down by 28.40
points or 0.24% to 11,642.40.
The US markets ended lower on
Friday, with the tech-heavy Nasdaq showing a particularly steep drop, on
negative reaction to earnings news from a number of big-name tech companies.
Shares of Apple (AAPL) slumped by 5.6 percent after the tech giant reported
better than expected fiscal fourth quarter earnings but a steep decline in
iPhone sales. Apple also failed to provide guidance for the current quarter.
Social media giant Facebook (FB) also came under pressure after reported third
quarter results that exceeded estimates but warning of a significant amount of
uncertainty looking ahead. Shares of Amazon (AMZN) also moved notably lower
after the online retail giant reported third quarter results that beat
estimates but provided a disappointing forecast for operating income in the
fourth quarter. Twitter (TWTR) also posted a steep loss after the social media
giant reported third quarter earnings that exceeded estimates but weaker than
expected user growth. Lingering concerns about the recent spike in coronavirus
cases also weighed on Wall Street along with uncertainty about next week's
presidential election. Meanwhile, traders shrugged off some upbeat economic
data, with a report from the Commerce Department showing personal income
rebounded by more than anticipated in the month of September. The Commerce
Department said personal income climbed by 0.9 percent in September after
tumbling by a revised 2.5 percent in August. The report also showed a bigger
than expected increase in personal spending, which surged up by 1.4 percent in
September. A separate report from the University of Michigan showed consumer
sentiment improved slightly more than initially estimated in the month of
October. The report showed the consumer sentiment index for October was
upwardly revised to 81.8 from the preliminary reading of 81.2.
Extending their losses for third
straight session, crude oil futures settled lower on Friday on concerns about
the outlook for energy demand amid a continued spike in coronavirus cases. The
number of new COVID-19 cases in the United States reached a new record high on Thursday,
with health experts expecting cases to soar going forward and death rates to
triple by mid-January. 88,521 new coronavirus cases were reported in the US on
Thursday, according to data from Johns Hopkins University, an increase of 9,540
cases compared to Wednesday. Uncertainty about the outcome of next week's
presidential elections also generated selling pressure as recent polls show
Democratic nominee Joe Biden leading President Donald Trump. Crude oil futures
for December fell $0.38 or 1.1 percent to settle at $35.79 a barrel on the New
York Mercantile Exchange. December Brent crude dropped $0.51 or 1.4 percent to
settle at $37.14 a barrel on London's Intercontinental Exchange.
Indian money market remained closed on Friday on account of
Id-e-Milad.
The FIIs as per Thursday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 7621.27 crore against gross selling of Rs 8493.38 crore, while
in the debt segment, the gross purchase was of Rs 370.62 crore with gross sales
of Rs 1010.95 crore. Besides, in the hybrid segment, the gross buying was of Rs
14.59 crore against gross selling of Rs 18.37 crore.
The US markets tumbled on Friday
triggered by a selloff in tech heavyweights following their underwhelming
business updates, with a record rise in coronavirus cases and nerves over the
presidential election adding to a downbeat mood. Asian markets are trading
mostly higher on Monday as data showed China's manufacturing activity grew in
October. Indian markets ended lower on Friday dragged by losses in banks, FMCG
and auto sectors. Today, the start of November month is likely to be positive
tacking gain in Asian markets coupled with hopes of reviving growth in Indian
economy. Investors will be eyeing Markit Manufacturing PMI data for October,
slated to be declared later in the day. Traders will be taking encouragement as
Ficci President Sangita Reddy said India's strategy of dealing with the
COVID-19 crisis has paid off and the country's economy is set to bounce back
and emerge stronger. She said it was time to take bold actions and push the
growth agenda vigorously. Some support will come as Goods and Services Tax
(GST) collections in October 2020 were Rs 1.05 lakh crore, making it the first
time monthly revenues crossed the Rs 1 lakh crore mark in FY21. Also, foreign
portfolio investors (FPIs) turned net buyers in October in Indian markets by
putting in Rs 22,033 crore as participant sentiment was driven by resumption of
economic activities and robust quarterly corporate results among others.
However, there may be some cautiousness with a private report that the
pandemic-induced growth contraction and additional spending to support the
needy amounting to a little over 2 percent of the economy are likely to push
the combined fiscal deficit to 13 percent of GDP this fiscal - nearly double of
the past year. Besides, India has reported a daily jump of 46,441 Covid-19
cases, even as the tally has soared to 8,222,231. The country's death toll has
mounted to 122,642. Banking stocks are likely to be in focus as the Supreme
Court gets ready to hear the loan moratorium case. There will be some buzz in
the power stocks with the power ministry data showing that India's power
consumption grew 13.38 per cent to 110.94 billion units (BU) in October this
year, mainly driven by buoyancy in industrial and commercial activities.
Electricity consumption in the country was recorded at 97.84 BU in October
2019. Sugar industry stocks will be in limelight as Food and Commerce Minister
Piyush Goyal said the government is currently not considering an extension of
sugar export subsidies for the 2020-21 season that commenced this month in view
of stable international sugar prices. Meanwhile, Equitas Small Finance Bank
will debut on the bourses today. The IPO has garnered a 1.95 times subscription
for its 11.58 crore equity shares at the issue price of Rs 33 apiece.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,642.40
|
11,535.59
|
11,749.09
|
BSE
Sensex
|
39,614.07
|
39,241.21
|
39,987.59
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
Indian
Oil Corporation
|
547.69
|
79.55
|
78.40
|
81.30
|
Tata
Motors
|
511.29
|
132.65
|
130.46
|
134.66
|
State
Bank of India
|
415.20
|
189.25
|
186.26
|
192.11
|
NTPC
|
407.36
|
87.60
|
86.35
|
88.80
|
ICICI
Bank
|
272.26
|
392.60
|
386.20
|
400.85
|
IOC has reported over 12-fold jump in its net profit attributable to equity holder at Rs 6025.81 crore for Q2FY21 as compared to net profit of Rs 468.04 crore for Q2FY20.
TCS has launched ThisRun, a new worldwide community for runners, reinforcing its long-standing commitment to global marathon and running partnership platforms.
Wipro has strengthened relationship with IBM to expand IBM Hybrid Cloud Practice.
M&M's subsidiary company -- Mahindra Electric Mobility has launched its new electric 3-wheeler cargo model Treo Zor.