In a volatile session, Indian
equity benchmarks managed to settle higher on Monday, led by buying interest in
banking shares after ICICI Bank and IndusInd Bank reported strong September
quarter earnings. Key gauges made optimistic start, as traders took some
support with Ficci President Sangita Reddy's statement that 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. But, markets soon slipped in red
territory, as traders got anxious 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. However, in late hour of trading session, domestic bourses gave up
all the losses and ended with minor gains, taking support from the Ministry of
Finance's statement the Goods and Services Tax (GST) revenue collections for
the month of October 2020 were Rs 1,05,155 crore, which is 10 percent higher
than October 2019. This made it the first time monthly revenues crossed the Rs
1 lakh crore mark in FY21. Some support also came as India's manufacturing
sector activity improved for the third straight month in October with companies
raising output to the greatest extent in 13 years amid robust sales growth. The
headline seasonally adjusted IHS Markit India Manufacturing Purchasing
Managers' Index (PMI) rose from 56.8 in September to 58.9 in October, and
pointed to the strongest improvement in the health of the sector in over a
decade. Finally, the BSE Sensex rose 143.51 points or 0.36% to 39,757.58, while
the CNX Nifty was up by 26.75 points or 0.23% to 11,669.15.
The US markets ended higher on
Monday on the eve of Election Day, despite selling in technology shares.
Sentiment got boost after the report from the Institute for Supply Management
(ISM) showed growth in US manufacturing activity accelerated by much more than
expected in the month of October. The ISM said its purchasing managers index
climbed to 59.3 in October from 55.4 in September, with a reading above 50
indicating growth in manufacturing activity. Street had expected the index to
inch up to 55.8. Manufacturing performed well for the third straight month,
with demand, consumption and inputs registering growth indicative of a normal
expansion cycle, said Timothy R. Fiore, Chair of the ISM Manufacturing Business
Survey Committee. He added while certain industry sectors are experiencing
difficulties that will continue in the near term, the overall manufacturing
community continues to exceed expectations. Meanwhile, a separate report from
the Commerce Department showed construction spending in the US increased by
less than expected in the month of September. Among the prominent gainers today
were shares from the energy sector. These stocks saw some brisk buying after
crude oil prices moved higher despite persisting worries about outlook for
energy demand.
Crude oil futures ended higher on
Monday lifted by data showing another expansion in US manufacturing sector
activity. Strong manufacturing data from China and the Euro area helped ease
worries about outlook for energy demand. The manufacturing sector in China
continued to expand in October, and at a faster rate, the latest survey from
Caixin revealed with a manufacturing PMI score of 53.6, up from 53.0 in
September. Meanwhile, markets were also looking ahead to the outcome of the US
presidential election. Crude oil futures for December rose $1.02 or 2.9 percent
to settle at $36.81 a barrel on the New York Mercantile Exchange. January Brent
crude gained $1.03 or 2.7 percent to settle at $38.97 a barrel on London's
Intercontinental Exchange.
Continuing previous session
drubbing, Indian rupee depreciated significantly against dollar on Monday, on
account of sustained dollar demand from importers and banks. Sentiments were
impacted amid 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. Traders ignored report that
Indian manufacturing activity continued to improve in the month of October,
amid robust sales growth. On the global front, dollar held steady on Monday as
investors readied for this week's US presidential election, while a surge in
global coronavirus cases continued to weigh on sentiment. Finally, the rupee
ended at 74.42, 32 paise weaker from its previous close of 74.10 on Thursday.
The FIIs as per Monday's data
were net seller in equity segment, while net buyer in debt segment. In equity
segment, the gross buying was of Rs 12403.88 crore against gross selling of Rs
13809.83 crore, while in the debt segment, the gross purchase was of Rs 1465.70
crore with gross sales of Rs 985.56 crore. Besides, in the hybrid segment, the
gross buying was of Rs 65.26 crore against gross selling of Rs 74.80 crore.
The US markets ended higher on
Monday as investors geared up for an event-packed week centered around the US
presidential election. Asian markets are trading in green on Tuesday as
investors shrugged off US election jitters and took hope in strong factory output
data in China, Europe and the United States, although the dollar and gold
firmed on political uncertainty. Indian markets ended higher on Monday after a
volatile session led mainly by robust gains in banking and financial stocks.
Today, the markets are likely to get optimistic start following overnight gains
on Wall Street and positive cues from Asian peers. Traders will be taking
encouragement with the economic think-tank NCAER's statement that its Business
Confidence Index (BCI) rose 41.1 per cent in the July-September 2020 period,
indicating signs of improvement. Some support will some as the Finance Ministry
released Rs 6,000 crore as the second tranche to 16 States and three Union
territories under its special window to states for meeting the GST compensation
cess shortfall. Also, India has reported a decline in the number of fresh
Covid-19 cases to 37,592 in the past 24 hours. The total caseload stands at
8,266,914. The country's death toll has mounted to 123,139. Besides, the
government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) for
MSMEs by one month till November 30, as the scheme has so far failed to meet
the target of Rs 3 lakh crore. The scheme was valid till October-end. However,
there may be some cautiousness as four former Reserve Bank governors warn that
domestic banks, which have the highest bad loan pile in the world, pose a huge
risk to the recovery of the pandemic-ravaged economy unless the government
rescues them. Meanwhile, the Reserve Bank of India has extended trading hours
for currency and rupee markets including forex derivatives, government
securities, commercial paper and certificates of deposit by 90 minutes. The
revised trading hours for rupee and bond markets are from 10 am to 3:30 pm as
per Indian Standard Time as against 2 pm earlier. The revised timings will be
effective from November 9, 2020. There will be some buzz in the telecom stocks
with a private report that telecom sector's revenue growth picked up to about 5
per cent in the September quarter against 1 per cent in the June quarter after
relaxation of lockdown curbs. There will be some reaction in hospitality
industry stocks as hospitality industry body FHRAI urged the government to
provide soft loans to the hotel and restaurant sector as businesses are finding
it difficult to sustain themselves amid the COVID-19 pandemic. There will be
lots of important earnings announcements too, to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
11,669.15
|
11,575.81
|
11,744.06
|
BSE
Sensex
|
39,757.58
|
39,405.65
|
40,038.76
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
ICICI
Bank
|
726.99
|
417.45
|
408.70
|
424.50
|
State
Bank of India
|
526.00
|
196.05
|
191.65
|
198.85
|
Reliance
Industries
|
458.58
|
1,877.45
|
1,815.40
|
1,983.25
|
Tata
Motors
|
403.89
|
132.85
|
131.30
|
134.20
|
Axis
Bank
|
375.97
|
522.65
|
501.26
|
537.86
|
M&M has commenced the deliveries of the latest version of its iconic SUV, Thar.
HDFC has reported 55.72% fall in its consolidated net profit attributable to owners at Rs 4599.68 crore for Q2FY21 as against net profit of Rs 10388.61 crore for Q2FY20.
Coal India has reported rise in its production by 18.7% to 46.80 MT in October 2020 compared to 39.50 MT of coal in October last year.
Hero MotoCorp has sold 806,848 units of motorcycles and scooters in October 2020 - its highest-ever sales in any single month.