NSE Intra-day chart (01 November 2019)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
 
Market Commentary 04 November 2019
Markets to get an optimistic start following positive Asian peers

 

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.
News Analysis