Indian equity benchmarks extended
their southward journey for third straight session with frontline gauges ending
below their crucial 11,250 (Nifty) and 37,200 (Sensex) levels. Markets started
the session on an optimistic note with report that the finance ministry on
September 18 asked ministries to shortlist commodities and goods for import
curbs by increasing customs duty, to ease the pressure on the rupee and keep
the widening Current Account Deficit (CAD) on check. Besides, Finance Minister
Arun Jaitley made a case for blending subsidy with investment to augment farm
sector growth and make it sustainable and self-sufficient. Some support came
with a report stating that Indian farmers and US manufacturers of medical
devices could be among the main winners in a trade package under negotiation,
as the US and India look to remove long-standing irritants to ties. Traders
took note of a private report that India has deferred its plan for a second
time to impose retaliatory tariff worth close to $235 million on 29 American
products by 45 days to November 2. However, markets took U-turn and entered
into red terrain in last leg of trade with India Ratings' report that though
the Centre may manage to achieve the debt-to-GDP ratio target of 40% by FY23,
the states achieving the 20% target looks difficult as most of them have not
budgeted so far. Markets extended losses to end near intraday lows with report
that SEBI has changed the fee structure for the Rs 25-trillion mutual fund (MF)
industry, a decision that will hit the profits of asset management companies
(AMCs) but result in savings for investors. Adding to the pessimism, a private
report added that the country's rainfall deficit in the ongoing monsoon season
widened to 10%, hovering on borderline drought conditions, following
below-normal showers every month - a pattern of consistent shortfall not seen
since 2004. Sentiments also got hit with another report that there has been a
steep decline in economic confidence in India over the past year. Finally, the
BSE Sensex declined 169.45 points or 0.45% to 37,121.22, while the CNX Nifty
was down by 44.55 points or 0.39% to 11,234.35.
The US markets ended
significantly in green terrain on Thursday, as traders continued to shrug off
concerns about the escalating trade dispute between the U.S. and China. Traders
also took some encouragement with upbeat economic data, with a report from the
Labor Department showing initial jobless claims unexpectedly dipped to their
lowest level in nearly fifty years in the week ended September 15th. The Labor
Department said jobless claims edged down to 201,000, a decrease of 3,000 from
the previous week's unrevised level of 204,000. The street had expected jobless
claims to rise to 210,000. With the unexpected decrease, jobless claims fell to
their lowest level since hitting 197,000 in November of 1969. A separate report
from the Conference Board showed a continued increase by its index of leading
economic indicators in the month of August. The Conference Board said its
leading economic index rose by 0.4 percent in August after climbing by an
upwardly revised 0.7 percent in July. Meanwhile, the National Association of
Realtors released a report showing existing home sales were unexpectedly flat
in August, with sales growth in the Northeast and Midwest offset by downturns
in the South and West. Dow Jones Industrial Average surged 251.22 points or
0.95 percent to 26,656.98, the S&P 500 gained 22.80 points or 0.78 percent
to 2930.75 and Nasdaq was up by 78.19 points or 0.98 percent to 8,028.23.
After hitting two-month high in
previous session, crude oil futures failed to hold momentum and drifted down to
end lower on Thursday after President Donald Trump in a tweet called for the
Organization of the Petroleum Exporting Countries (OPEC) to maintain lower
crude-oil prices. Trump's comments came ahead of a closely watched meeting in
Algiers of a committee made up of representatives of OPEC members and its
outside allies on September 23. Traders also probably weighed the prospects of
a possible drop in demand for crude amid escalating trade tensions between the
US and China. Benchmark crude oil futures for October declined 32 cents or 0.5
percent to settle at $70.80 a barrel on the New York Mercantile Exchange.
November Brent crude fell 70 cents or 0.9% to settle at $78.70 a barrel on
London's Intercontinental Exchanged.
Snapping its 2 days continuous
drubbing, Indian rupee recovered against the American currency on Friday
following selling of dollar by exporters as well as banks. Support came with
report stating that the finance ministry on September 18 asked ministries to
shortlist commodities and goods for import curbs by increasing customs duty, to
ease the pressure on the rupee and keep the widening Current Account Deficit
(CAD) on check. Rupee sentiments also remained positive with another report
stating that Indian farmers and US manufacturers of medical devices could be
among the main winners in a trade package under negotiation, as the US and
India look to remove long-standing irritants to ties. On the global front, the
US dollar was lower against other currencies on Wednesday amid trade war
tensions while the pound rose after better than expected inflation data.
Finally, the rupee ended at 72.37, 60 paise stronger from its previous close of
72.97 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4698.23 crore against gross selling of Rs 5801.96 crore, while
in the debt segment, the gross purchase was of Rs 372.65 crore with gross sales
of Rs 551.06 crore. Besides, in the hybrid segment, the gross selling was of Rs
0.28 crore against on buying.
The US markets jumped higher on
Thursday as traders took some support with a report from the Labor Department
showing initial jobless claims unexpectedly dipped to their lowest level in
nearly fifty years in the week ended September 15. Asian markets were trading
mostly in green on Friday as investors viewed Beijing's and Washington's fresh
exchange of import tariffs as less harmful than initially feared. Extending
losses for third straight session, the Indian markets ended a volatile trading
day in the red territory on Wednesday due to higher crude oil prices. Besides,
heavy losses in finance stocks added pressure on the markets. Today, the
markets are likely to make gap-up opening tacking firm global cues. Traders
will be getting some encouragement with Prime Minister Narendra Modi's
statement that the size of Indian economy would double to $5 trillion by 2022,
with manufacturing and agriculture contributing $1 trillion each. Also, there
will be some support with report that India is hopeful of resolving the issue
of tariffs on steel and aluminium with the US soon and both sides are engaged
in finalising a trade package. Traders will be getting some support with report
that the Reserve Bank eased norms for companies in the manufacturing sector to
raise overseas funds and allowed Indian banks to market Masala Bonds in line
with the government's measures to prop up the rupee. However, there may be some
cautiousness with EEPC India's statement that raising the import duty on steel
or steel products will widen the current account deficit and severely hit
engineering exports from the country. Meanwhile, the federation of chambers of
commerce and industry (FICCI) has called for a joint meeting between the
industries and the government to chalk out a strategy balancing expenditure,
and boosting economic growth. There will be some buzz in select banking sector
stocks with rating agency Moody's statement that the proposed merger of Bank of
Baroda, Vijaya Bank and Dena Bank is credit positive because the merger would
provide scale efficiencies and help improve the quality of corporate
governance.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,278.90
|
11,228.08
|
11,370.58
|
BSE Sensex
|
37,290.67
|
37,107.20
|
37,609.79
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
407.59
|
271.50
|
267.05
|
279.40
|
Vedanta
|
182.56
|
230.10
|
227.28
|
232.63
|
Yes Bank
|
161.85
|
319.20
|
315.25
|
325.95
|
ICICI Bank
|
159.42
|
320.95
|
317.07
|
324.77
|
Reliance
Industries
|
112.66
|
1,210.75
|
1,199.83
|
1,222.83
|
SBI is planning to install solar panels over around 10,000 ATMs across the country in the next two years.
ONGC's overseas subsidiary ONGC Videsh is planning to exit Kazakhstan's Satpayev block since it could not find commercially exploitable oil.
Tata Steel has completed the acquisition of 51% equity stake in Creative Port Development.
TCS' strategic business unit TCS iON has entered into a strategic business partnership with The Training Room.