Weak economic data pushed the
markets to end flat on Monday's trading session. The start of the day was
marvelous, aided by Niti Aayog Vice-Chairman Rajiv Kumar's statement that 70
lakh jobs were created in the financial year 2017-18 alone. He said that growth
in sales of transport vehicles, huge disbursement of Mudra loans and EPFO data
show that enough opportunities for employment. Domestic sentiments were also
boosted after the Indian manufacturing sector accelerated further in the month
of November, buoyed by healthier inflows of new orders. As per the survey
report, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a
composite single-figure indicator of manufacturing performance - improved to 54
in November from 53.1 in October. Some support also came with Economic Affairs
Secretary Subhash Chandra Garg's statement that foreign investors have put in
Rs 10,925 crore in equity and debt instruments in November. FPIs investment at
Rs 4,786 crore in equity and Rs 6,139 crore in debt, together at Rs 10,925
crore, is the highest during the financial year. Meanwhile, Newly-appointed
Revenue Secretary Ajay Bhushan Pandey said his focus would be to improve the tax-GDP
ratio and increase compliance by making the system more taxpayer friendly.
However, in noon deals, the key indices turned volatile to end the session flat
with marginal gains, impacted by reports that India's economic growth slowed
down 7.1% in July-September quarter (Q2) of current fiscal year (FY19) after
touching over a two-year high of 8.2% in April-June quarter (Q1), as
consumption demand moderated and farm sector displayed signs of weakness.
Traders were also cautious, as Goods and Services Tax (GST) collection dropped
to Rs 97,637 crore in November 2018 as compared to Rs 1 lakh crore collected
previous month. Of the Rs 97,637 crore collected, central GST (CGST) collection
was Rs 16,812 crore, state GST (SGST) was Rs 23,070 crore, integrated GST
(IGST) was Rs 49,726 crore (including Rs 24,133 crore collected on imports) and
cess was Rs 8,031 crore (including Rs 842 crore collected on imports). Adding
more worries, India's core sector output also grew at a slower pace of 4.8% in
October 2018, as compared to 5% in October 2017, due to contraction in the
production of crude oil, natural gas and fertilizer. Sentiments also got hit,
with the Controller General of Accounts' latest data report indicating that
India's fiscal deficit, the gap between expenditure and revenue, in the first
seven months of current financial year (FY19) came in at Rs 6.24 lakh crore or
103.9% of the FY19 Budget target, on the back of lower revenue collections.
Finally, the BSE Sensex rose 46.70 points or 0.13% to 36,241.00, while the CNX
Nifty was up by 7.00 points or 0.06% to 10,883.75.
The US markets ended higher with
gains of over one percent on Monday after the US and China over the weekend called
a temporary truce to their trade war, triggering relief buying of perceived
riskier assets such as equities. The two sides agreed to launch negotiations to
reduce trade tensions and discuss forced technology transfer,
intellectual-property protection, non-tariff barriers, and cyber and
agriculture issues, among other concerns. Trump and Xi agreed to a 90-day truce
in the escalating trade war between the world's two largest economies as they
work to reach a long-term trade deal. Trump also agreed not to raise the
tariffs on $200 billion worth of Chinese goods to 25% from 10% on January 01 as
planned. However, if the two countries are not able to reach an agreement by
the end of the time period, the 10% tariffs on Chinese goods will be raised to
25%. On the economic front, according to a report released by the Institute for
Supply Management (ISM), manufacturing activity in the US unexpectedly grew at
a faster rate in the month of November. The ISM said its purchasing managers
index climbed to 59.3 in November after falling to 57.7 in October, with a
reading above 50 indicating growth in manufacturing activity. Street had
expected the index to edge down to 57.5. The unexpected rebound by the headline
index was partly due to strong demand, as the new orders index jumped to 62.1
in November from 57.4 in October. Meanwhile, the Commerce Department released a
report showing an unexpected dip in US construction spending in the month of
October. The Department said construction spending edged down by 0.1% to an annual
rate of $1.309 trillion in October after slipping by 0.1% to a downwardly
revised rate of $1.311 trillion in September. Dow Jones Industrial Average
jumped 287.97 points or 1.13 percent to 25826.43, S&P 500 surged 30.20
points or 1.09 percent to 2790.37and Nasdaq was up by 110.98 points or 1.51
percent to 7441.51.
Crude oil futures closed higher
on Monday as optimism ahead of the Organization of the Petroleum Exporting
Countries (OPEC) meeting grew after Russian President Vladimir Putin said he
and Saudi Crown Prince Mohammed Bin Salman agreed to extend output cuts on the
sidelines of the weekend G-20 summit. Another support for crude also came after
Alberta Premier Rachel Notley, who said she has ordered oil companies in the
Canadian province to cut production by nearly 9% next year. Canada is the
fourth-largest oil producer in the world. Benchmark crude oil futures for
January surged $2.02 or 4 percent to settle $ 52.95 a barrel on the New York
Mercantile Exchange. February Brent crude rose $2.23 or 3.8 percent to settle
at $ 61.69 a barrel on London's Intercontinental Exchange.
Snapping
its four-day winning streak, Indian rupee ended considerably weaker against
dollar on Monday, amid a spike in crude oil prices. Sentiments turned
pessimistic with reports that India's economic growth slowed down 7.1% in
July-September quarter (Q2) of current fiscal year (FY19) after touching over a
two-year high of 8.2% in April-June quarter (Q1), as consumption demand
moderated and farm sector displayed signs of weakness. Some anxiety was also
among the local traders with the Controller General of Accounts' latest data
report indicating that India's fiscal deficit, the gap between expenditure and
revenue, in the first seven months of current financial year (FY19) came in at
Rs 6.24 lakh crore or 103.9% of the FY19 Budget target, on the back of lower
revenue collections. On the global front, dollar weakened across the board on
Monday as investor demand for riskier assets rose following the US-China truce.
Finally, the rupee ended at 70.46, 88 paise weaker from its previous close of
69.58 on Friday.
The FIIs as per Monday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 12233.36 crore against gross
selling of Rs 12391.59 crore, while in the debt segment, the gross purchase was
of Rs 1712.88 crore with gross sales of Rs 1565.63 crore. Besides, in the
hybrid segment, the gross buying was of Rs 0.48 crore against gross selling of
Rs 0.93 crore.
The US markets ended sharply
higher on Monday after President Trump and President Xi Jinping agreed to a
temporary truce in the trade war between the United States and China. Asian
markets were trading mostly in red on Tuesday as a relief rally sparked by a
truce in the US-China trade war gave way to doubts on whether the two countries
are able to resolve their differences before a 90-day deadline. Paring most of
the early gains, Indian equity markets ended Monday's session flat with
positive bias on firm global cues, though upside remained capped as investors
turned cautious over disappointing macro-economic data and a rise in global
crude oil prices. Today, the start of the session is likely to be mildly soft
following weakness in its other Asian counterparts amid uncertainty about the
future of US-China trade relations. There will be some cautiousness with Crisil
cutting India's growth forecast for current fiscal to 7.4% on the back of weakening
GDP growth and lower global trade forecasts. India's growth in the
July-September quarter slipped to 7.1% from 8.2% in the April-June quarter. It
added that India's export, which saw a revival in early part of 2018, could
likely see a slower growth. Traders will also be concerned about ICRA's
statement that India's current account deficit is likely to rise to 3% of GDP
in the July-September quarter of current fiscal, from 2.4% in the preceding
quarter, driven mainly by high crude oil prices. Traders will also be reacting
to a private report that the recent move by the US government to change the
method of H-1B visa allotment is a mixed bag for India. It added that while the
move is expected to have a negative impact on the Indian technology services
industry. Meanwhile, the finance ministry said Rs 91,149 crore has been issued
so far to exporters as Goods and Services Tax (GST) refunds, which are 93.77%
of total claims with the tax authorities. It also said Rs 6,053 crore worth GST
refund is still pending with the government and that is being expeditiously
processed.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,883.75
|
10,839.00
|
10,934.85
|
BSE Sensex
|
36,241.00
|
36,078.40
|
36,424.88
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,047.21
|
178.00
|
169.03
|
183.23
|
Sun Pharmaceutical
|
614.92
|
455.40
|
444.03
|
463.88
|
ICICI Bank
|
234.27
|
355.50
|
352.10
|
358.90
|
Vedanta
|
162.35
|
202.95
|
200.85
|
205.20
|
SBI
|
157.72
|
286.80
|
284.07
|
288.72
|
Hero MotoCorp has reported sales of 610,252 units of two-wheelers for the month of November 2018.
Sun Pharmaceutical including its subsidiaries has received final approval from US FDA for its ANDA for generic version of Ganirelix Acetate Injection, 250 mcg/0.5 mL.
Larsen & Toubro's construction arm -- L&T Construction has won orders worth Rs 1,127 crore across two business segments.
Coal India has reported provisional coal production of 52.09 MT in November 2018, as against 51.26 MT reported during corresponding month of previous year.