Extending
northward journey for third straight session, Indian equity benchmarks ended
the Wednesday's trade with a gain of around a percent, recapturing their
crucial 40,600 (Sensex) and 11,900 (Nifty) levels ahead of the US Presidential
election outcome. As per the report, Democratic candidate Joe Biden was leading
marginally against Donald Trump. Markets started the session on an optimistic
note as terming elevated food prices a temporary phenomenon, Economic Affairs
Secretary Tarun Bajaj said it should be back to normal soon on the back of
arrival of new crops and government measures for improving supply of essential
commodities. Separately, he said Finance Minister Nirmala Sitharaman will soon
announce the next set of stimulus package to boost the coronavirus-hit economy.
Markets turned jittery and lost all of their initial gains in middle of the
day's trade as US election verdict could still swing either way. The election
has turned out to be much tighter than anticipated with new challenges
emerging. Sentiments also weighed down with the government data showing that
after recording positive growth in September, India's exports declined 5.4
percent to $24.82 billion in October on account of dip in shipments of
petroleum products, gems and jewellery, leather, and engineering goods.
Besides, trade deficit in October narrowed to $8.78 billion as against $11.76
billion, as imports also fell 11.56 percent to $33.6 billion during the month
under review. But, buying in last leg of trade helped markets to end above
their crucial levels as purchasing managers' index (PMI) for services rising to
54.1 from 49.8 in September. Adding optimism, Finance Secretary Tarun Bajaj
stated that Indian economy is recovering fast and will soon be back on rails as
all the parameters have started showing improvement. He said we are actually
seeing an improvement in all parameters generally and we are expecting further
improvement in the month of November and this should continue. Finally, the BSE
Sensex rose 355.01 points or 0.88% to 40616.14, while the CNX Nifty was up by
95.00 points or 0.80% to 11908.50.
The US markets ended higher on Wednesday,
extending their previous session's gains, as traders reacted to the results of
the US elections, which have yet to reach a definitive conclusion. Democratic
candidate Joe Biden is currently in the lead in the race for the presidency,
with the latest projections giving the former vice president 248 electoral
college votes. Biden is also leading in Nevada and Michigan, which would give
him the 270 electoral college votes needed to unseat President Donald Trump.
However, Trump has called for a recount in Wisconsin and has filed to halt
counting of ballots in Michigan, suggesting the outcome of the race could be
still be up for grabs. Democrats currently seem unlikely to take control of the
Senate, potentially leading a divided government if Biden is in fact the next
president. On the economic data front, Private sector employment in the US
increased by much less than expected in the month of October, according to a
report released by payroll processor ADP. ADP said private sector employment
rose by 365,000 jobs in October after spiking by an upwardly revised 753,000
jobs in September. Street had expected private sector employment to surge by
650,000 jobs compared to the jump of 749,000 jobs originally reported for the
previous month. Meanwhile, Growth in US service sector activity slowed by more
than expected in the month of October, according to a report released by the
Institute for Supply Management (ISM). The ISM said its services PMI dipped to
56.6 in October from 57.8 in September, although a reading above 50 still
indicates growth in the service sector. Street had expected the index to edge
down to 57.5.
Crude oil futures ended higher on Wednesday buoyed by data
showing a drop in crude inventories in the week ended October 30. According to
the data released by Energy Information Administration, crude oil inventories
in the US fell 7.99 million barrels in the week ended October 30, against
expectations for a build of 890,000 barrels. Gasoline inventories were up 1.5
million barrels last week, while distillate stockpiles fell by 1.585 million
barrels in the week, after falling 4.491 million barrels a week earlier. A
report from the American Petroleum Institute on Tuesday showed US crude
inventories fell by 8 million barrels last week. Crude oil futures for December
rose $1.49 or 4% percent to settle at $39.15 a barrel on the New York Mercantile
Exchange. January Brent crude gained $0.90 or 2.3 percent to settle at $40.61 a
barrel on London's Intercontinental Exchange.
Indian rupee
ended weaker against the US dollar on Wednesday tracking decline in other
emerging market currencies, after the dollar pared losses as early results in
the U.S. presidential election showed a very tight race. Democratic candidate
Joe Biden has secured 238 electoral votes so far, while Donald Trump has won
213. A candidate needs to win 270 electoral votes to capture the presidency.
Adding pessimism, Commerce Ministry in its latest data has showed that India's
merchandise exports fell by 5.4 percent to $24.82 billion in October 2020 as
compared to $26.23 billion in the same month a year ago, on account of dip in
shipments of petroleum products, gems and jewellery, leather, and engineering
goods. Exports during April- October 2020-21 were $150.07 billion, exhibiting a
negative growth of 19.05 percent over the same period last year. On the global
front, U.S. dollar jumped and riskier currencies wilted on Wednesday as early
results in the presidential election showed a tight race, surprising currency
investors who had been betting on a decisive victory for Democrat Joe Biden.
Finally, the rupee ended at 74.76, 35 paise weaker from its previous close of
74.41 on Tuesday.
The FIIs as per
Wednesday's data were net buyer in both equity and debt segment. In equity
segment, the gross buying was of Rs 8746.25 crore against gross selling of Rs
7203.27 crore, while in the debt segment, the gross purchase was of Rs 2213.27
crore with gross sales of Rs 637.01 crore. Besides, in the hybrid segment, the
gross buying was of Rs 1.54 crore against gross selling of Rs 17.55 crore.
The US markets rallied on Wednesday as
election results continued to roll in. Asian markets are trading mostly higher
in early deals on Thursday following positive close from US markets. Indian
equity benchmarks ended with notable gains on Wednesday's trading session after
Finance Secretary Tarun Bajaj said that Indian economy is recovering fast and
will soon be back on rails as all the parameters have started showing improvement.
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 pandemic-hit economy coming back on rails at more speed
than expected, Union minister Prakash Javadekar said citing factors like
increased demand of power and higher GST collections. He said an increase in
rail freight collection, higher goods and services tax mop-up, rise in power
demand and improved FDI inflows indicate that the economy was doing better in
the second quarter of the current financial year. Further, some support may
come as the Directorate General of Foreign Trade (DGFT) has said while October
data looked promising for exports, the situation will improve further in the
coming months due to collaborative efforts of all the stakeholders. Director
General of Foreign Trade Amit Yadav has said since April, when there was a huge
downfall in exports, it has made good progress and is going to rise in the
coming months. Meanwhile, the finance ministry has said the economy has been
recovering at a fast pace and would likely to reach pre-Covid-19 levels by the
end of the current fiscal year. It, however, cautioned that the second wave of
the pandemic could derail the recovery and warned against the breach of social
distancing. However, there will be some cautiousness later in the day as
companies garnered over Rs 75,000 crore from capital markets in September, a
decline of 31 per cent from the preceding month, with private placement of debt
instruments continuing to be the most preferred route for financing business.
The funds were mopped up mainly for business expansion plans, loan repayments
and working capital requirements. There will be some buzz in auto stocks as ratings
agency Icra said Commercial vehicles (CV) volumes are expected to shrink 25-28
per cent this fiscal amid multiple headwinds along with the pandemic impact,
and the outlook for the sector remains negative on the back of continuing
challenges. 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
|
11,908.50
|
11,800.05
|
11,973.30
|
BSE Sensex
|
40,616.14
|
40,230.57
|
40,847.61
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
NTPC
|
1,175.78
|
207.00
|
200.36
|
211.31
|
State Bank of India
|
481.82
|
504.65
|
493.79
|
516.89
|
ICICI Bank
|
475.19
|
85.10
|
84.04
|
86.64
|
Tata Motors
|
446.76
|
135.90
|
134.26
|
137.26
|
Reliance Industries
|
434.27
|
437.05
|
427.56
|
444.26
|
Titan Company has launched its first international Tanishq store in Dubai as part of expanding regions outside India.
Kotak Mahindra Bank has reduced its Home Loan interest rates by a further 15 basis points (bps) to 6.75% p.a. with effect from November 1, 2020.
Tata Motors' wholly owned subsidiary -- Jaguar Land Rover has commenced bookings for its all-electric SUV Jaguar I-PACE.
SBI has reported a rise of 48.22% in its consolidated net profit at Rs 5403.81 crore for Q2FY21 as compared to net profit of Rs 3645.83 crore for Q2FY20.