Indian equity benchmarks managed
to end Friday's trading session above their respective neutral lines. The start
of the day was slightly higher, taking support with State Bank of India's
report that credit growth in the system has picked up rapid pace beginning
September 2019 after lagging behind for several months in a row, on the back of
demand from housing, non-banking financial companies and micro, small and
medium enterprises sectors. But soon, indices turned volatile, after the growth
of eight core infrastructure industries contracted massively by 5.2% in
September 2019, as compared to same period of last year, due to a decline in
output of coal, crude oil, natural gas, cement, & electricity. Lackluster
trade persisted throughout the day, as India's manufacturing activity also
slowed down in the month of October. As per the survey report, the Nikkei India
Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure
indicator of manufacturing performance - slipped to a two-year low of 50.6 in
October from 51.4 in September. Benchmarks ended in green terrain but gains
remained capped, as the Controller General of Accounts (CGA) in its latest data
has showed that India's fiscal deficit reached nearly 93% of the Budget
Estimate (BE) at Rs 6.52 lakh crore in the first half (April-September) of the
current fiscal year (2019-20). Finally, the BSE Sensex gained 35.98 points or
0.09% to 40,165.03, while the CNX Nifty was up by 13.15 points or 0.11% to
11,890.60.
The US markets settled higher
with robust gains of around a percent on Friday amid better than expected US
jobs data. The Labor Department said non-farm payroll employment climbed by
128,000 jobs in October compared to street estimates for an increase of about
89,000 jobs. The report also showed substantial upward revisions to job growth
in September and August, with revised data showing employment jumped by 180,000
jobs and 219,000 jobs, respectively. With the upward revisions, employment
gains in September and August combined were 95,000 more than previously
reported. Despite the stronger than expected job growth, the report said the
unemployment rate inched up to 3.6 percent in October from 3.5 percent in
September. The uptick matched street estimates. The unemployment rate crept up
from the nearly 50-year low hit in the previous month as a 325-person jump in
the size of the labor force more than offset a 241,000-person increase in the
household survey measure of employment. Besides, renewed optimism about a
US-China trade deal added to the positive sentiment, as a report from China's
Xinhua News Agency said negotiators have reached consensus on principles.
Meanwhile, traders largely shrugged off a separate report from the Institute
for Supply Management showing a continued contraction in US manufacturing
activity in the month of October. The ISM said its purchasing managers index
crept up 48.3 in October from 47.8 in September, although a reading below 50
still indicates a contraction in manufacturing activity. Street had expected
the index to rise to 48.9. In the previous month, the index fell to its lowest
level since hitting 46.3 in June of 2009, the last month of the Great
Recession.
Crude oil futures ended sharply
higher on Friday after an unexpectedly robust US jobs report for October and in
the wake of another fall in the number of rigs drilling for crude. Besides,
stronger-than-expected data on Chinese manufacturing activity helped ease
concerns about energy demand outlook. Data from the US Labor Department said
non-farm payroll employment climbed by 128,000 jobs in October. According to
Baker Hughes, the rig count dropped to 691 in the week to November 01, 2019,
down 5 from previous week's count of 696. Meanwhile, data from IHS Markit
showed that in China, the manufacturing sector expanded at the fastest pace since
early 2017 in October. Benchmark crude oil futures for December surged $2.02 or
3.7 percent to settle at $56.20 a barrel on the New York Mercantile Exchange.
January Brent rose $2.07 or 3.5 percent to settle at $61.69 a barrel on
London's Intercontinental Exchange.
Indian
rupee ended marginally higher on Friday on selling of dollars by banks and
exporters. Local currency got some support with report that India and Germany
have agreed to deepen efforts to resume stalled negotiations for a free trade
agreement between India and the European Union (EU). Besides, dollar's weakness
against some currencies overseas supported the rupee. However, gains remain
capped as anxiety remained among the traders with data showing that the fiscal
deficit stood at Rs 6.52 lakh crore till September-end 2019, compared to Rs
5.95 lakh crore in the same period of the previous fiscal year. Low revenue
collections have become a reason to worry about the fiscal deficit. On the global
front, dollar edged lower on Friday as a U.S. employment report expected to
show a slowdown in job creation, highlighting concerns about the health of the
world's largest economy. Finally, the rupee ended at 70.81, 11 paise stronger
from its previous close of 70.92 on Thursday.
The
FIIs as per Friday's data were net buyers in both equity and debt segments. In
equity segment, the gross buying was of Rs 9171.42 crore against gross selling
of Rs 7181.58 crore, while in the debt segment, the gross purchase was of Rs
1557.51 crore with gross sales of Rs 500.95 crore. Besides, in the hybrid
segment, the gross buying was of Rs 2.93 crore against gross selling of Rs 0.21
crore.
The US markets ended in green on
Friday after the government's October employment report showed
better-than-expected job growth. Asian markets are trading higher on Monday as
growing optimism over US-China trade talks and upbeat US job data boosted
global investors' appetite for riskier assets. Indian markets ended marginally
higher on Friday after a volatile session as markets consolidated after scaling
new highs. Today, the markets are likely to make positive start of new week
following firm cues from Asian peers. Traders will be getting some
encouragement with report that continuing their buying streak for the second
straight month, overseas investors pumped in a net Rs 16,464 crore into the
Indian capital markets in October amid positive domestic and global cues. Also,
the Reserve Bank of India's (RBI) data showed that India's forex reserves
increased by $1.832 billion to a new lifetime high of $442.583 billion in the
week ended October 25, helped by a jump in core currency assets and value of
gold. Some support will also come with report that highlighting India's
economic growth, Prime Minister Narendra Modi said the country is among the top
10 destinations for foreign direct investment (FDI) in the world and had
received $286 billion of FDI in the last five years. Traders may take note of
the International Monetary Fund's (IMF) statement that led by India, South Asia
is moving towards becoming center of global growth and could contribute about
one-third of the world's growth by 2040. However, there may be some
cautiousness with report that in more financial worries for the government, the
Goods and Services Tax (GST) collection dropped 5.29% to Rs 95,380 crore in the
month of October 2019, on year-on-year basis. Traders may be concerned with the
Organisation for Economic Co-operation and Development's (OECD) statement that
India's gross domestic product (GDP) could grow 6.6% in 2020-24, lower than its
2013-17 average of 7.4%. Besides, data from the Centre for Monitoring Indian
Economy (CMIE) showing that the unemployment rate in India rose to a three-year
high of 8.5% in October, with rural joblessness pushing it up, while urban
joblessness rate was 8.9%, in villages it stood at 8.3%. Meanwhile, the finance
ministry has said it was committed to following a glide path to reduce fiscal
deficit notwithstanding slowdown in the economy impacting revenue collections.
There will be some reaction in power stocks with report that power producers'
total outstanding dues owed by distribution companies rose around 37% to Rs
69,558 crore in September 2019 over the same month last year, reflecting stress
in the sector. Coal stocks will be in focus with data showing that India's coal
imports increased by 9.3% to 126.91 million tonnes (MT) in the first six months
of the ongoing fiscal.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,890.60
|
11,849.87
|
11,924.82
|
BSE Sensex
|
40,165.03
|
40,025.07
|
40,294.14
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
4,315.75
|
66.60
|
63.78
|
70.63
|
ZEEL
|
617.99
|
309.50
|
275.53
|
328.98
|
SBI
|
448.94
|
313.55
|
309.77
|
316.17
|
Tata Motors
|
406.14
|
175.05
|
172.30
|
177.90
|
Tata Steel
|
241.11
|
399.50
|
384.03
|
408.93
|
Bajaj Auto has registered a fall of 9% in total sales to 463,208 units in October 2019 against 506,699 units in October 2018.
HCL Technologies has launched dedicated Google Cloud Business Unit to accelerate enterprise cloud adoption worldwide.
IOC has commenced delivery of fuel for ships that is compliant with the International Maritime Organisation's low sulphur mandate.
Bharti Airtel has rebranded its fixed-line broadband service as Airtel Xstream Fibre and reduced prices of some of the plans by up to 10 per cent.