Bulls made comeback on Dalal
Street after a day's break, with key gauges garnering gains of around a percent
on Friday. Sentiments remained up-beat since start, as traders took some
encouragement with Commerce and Industry Minister Suresh Prabhu's statement
that he is working closely with the finance ministry and other departments to
firm up policy initiatives along with fiscal incentives to give a fillip to
industrial growth and job creation. Markets continued with jubilation
throughout the day after World Bank President Jim Yong Kim said that the Goods
and Services Tax (GST) is going to have a hugely positive impact on the Indian
economy. He added that the recent slowdown in India's economic growth is an aberration
mainly due to the temporary disruptions in preparation for the GST, pointing
out that it will get corrected in the coming months. Some support also came
with Minister of Railways and Coal Piyush Goyal's statement that India is
undergoing a change in the economic narrative and rebranding itself with
technology driving growth. Adding to the
optimism, retirement fund body EPFO is mulling to give its subscribers an
option to set aside a higher proportion of their provident fund money for
equity asset class. EPFO has been raising the amount it invests in equities
since 2015, when it started with 5% of the corpus. Its investment in FY16 was
Rs 6,577 crore, rising to Rs 14,982 crore or 10% of its incremental corpus in
the following year. Meanwhile, investors were eyeing the GST Council meet where
it is expected to provide relief to businesses by tweaking rates and
procedures. The package of measures expected to be taken up by the council may
include an increase in the threshold limit for the composition scheme to Rs
1-1.5 crore from Rs 75 lakh to aid micro, small and medium enterprises, a more
liberal exemption limit, and a lower compliance burden with quarterly rather
than monthly filing apart from steps to boost exports. Finally, the BSE Sensex
surged 222.19 points or 0.70% to 31,814.22, while the CNX Nifty was up by 91.00
points or 0.92% to 9,979.70.
The US markets made a mixed
closing on Friday, and the Dow and S&P 500 ended streak of records following
the release of a report from the Labor Department showing an unexpected
decrease in employment in the US in the month of September. Though despite the
mixed performance on the day, the major averages all posted strong gains for
the week. The report from the Labor Department said that non-farm payroll employment
fell by 33,000 jobs in September after climbing by an upwardly revised 169,000
jobs in August. Economists had expected employment to rise by 90,000 jobs. The
Labor Department said a sharp decline in employment in food services and
drinking places and below-trend growth in some other industries likely
reflected the impact of Hurricanes Harvey and Irma. However, the report showed
the unemployment rate dipped to 4.2 percent in September from 4.4 percent in
August. With the unexpected decrease, the unemployment rate fell to its lowest
level since hitting a matching rate in February of 2001. The Dow Jones
Industrial Average declined by 1.72 points or 0.01 percent to 22,773.67 and the
S&P 500 edged lower by 2.74 points or 0.11 percent to 2,549.33, while the
Nasdaq gained 4.82 points or 0.07 percent to 6,590.18.
Crude oil futures once again
ended in red on Friday as investors braced for a potential disruption to some
oil production in the Gulf of Mexico as Tropical Storm Nate is expected to
arrive as a Hurricane on Sunday, amid renewed oversupply concerns as the wide
gap between Crude and Brent prices is expected to incentivize US producers to
ramp up production and exports. Ongoing geopolitical uncertainty in Iraq too
weighed down the sentiments, as the fallout over an independence referendum in
Iraq's Kurdistan region threatens to disrupt supply. Benchmark crude oil
futures for November delivery ended lower by $1.49 or 2.95 percent at $59.29 a
barrel on the New York Mercantile Exchange. Brent crude for November delivery lost
2.23 percent to $55.70 a barrel on the ICE.
Piling
on previous session's losses, Indian rupee weakened further against the
American currency on Friday on heavy dollar demand from corporates and
importers. This is the second consecutive session when the rupee is traded
lower against dollar. Investors failed to get solace with Commerce and Industry
Minister Suresh Prabhu's statement that he is working closely with the finance
ministry and other departments to firm up policy initiatives along with fiscal
incentives to give a fillip to industrial growth and job creation. Besides,
dollar's gain against other currencies overseas put pressure on the rupee, but
good going in the domestic equity market prevented the rupee from falling
further. On the global front, dollar edged higher on Friday and is on track for
its fourth consecutive week of gains as investors continued to cut their short
bets against the greenback on a growing view that bond markets have underpriced
the extent of US rate increases. Finally, the rupee ended at 65.37, 22 paise
weaker from its previous close of 65.15 on Thursday.
The
FIIs as per Friday'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 3242.78
crore against gross selling of Rs 3922.74 crore, while in the debt segment, the
gross purchase was of Rs 1167.83 crore with gross sales of Rs 525.42 crore.
The US markets made mostly a
lower closing on mixed jobs data in the last session, though it showed a spike
in hourly wages that bolstered the odds for tighter monetary policy, pushing
the chances of a December hike to nearly 80 percent. The Asian markets have
mostly made a positive start and the Chinese market were up returning from long
holidays, though other indices in the region like Japan, South Korea and Taiwan
are closed for holidays. The Indian markets surged in last session showing a
consistent trade since beginning as investors remained hopeful of some positive
outcome from the GST Council meeting. Today, the start is likely to be in green
though there will be some cautiousness too on geopolitical concern after report
emerged that North Korea to mark a major anniversary this week may do another
missile test. Also, as though the GST breather given to small and medium
enterprises (SMEs) and exporters will address their liquidity issues, large
corporates are disappointed as the GST Council didn't address many key issues
such as anti-profiteering laws, transition credit issues and denial of certain
input credit. Meanwhile, Revenue Secretary Hasmukh Adhia has said that the
government will clear pending GST refunds of exporters by November-end and over
the next six months no tax will be levied on exports as the Council has decided
to revert to the pre-GST era. Finance Minister Arun Jaitley has said that government's
initiatives like Swachh Bharat, Goods and Services Tax (GST) and demonetisation
are having desired impact, the latter two resulting in increasing tax
compliance and squeezing quantum of cash in the economy. There will be buzz in
the oil & gas sector stocks, as the Prime Minister Narendra Modi will hold
a high-profile meeting with CEOs of foreign and Indian companies, as the
government seeks big-ticket investment in its vast, rapidly growing energy
market.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9,979.70
|
9927.75
|
10010.50
|
BSE Sensex
|
31814.22
|
31683.26
|
31894.73
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
254.48
|
271.95
|
270.18
|
274.08
|
NTPC
|
157.87
|
176.05
|
172.13
|
178.98
|
SBI
|
119.32
|
256.75
|
253.27
|
259.07
|
Axis Bank
|
113.43
|
503.35
|
500.73
|
506.48
|
Tata Steel
|
94.65
|
691.45
|
673.07
|
701.82
|
IndusInd Bank has tied-up with Vakrangee for Bharat Bill Payment System platform to deliver wide range of bill payment services from Vakrangee Kendra outlets.
Tata Steel has reported 18% rise in its saleable steel production to 5.98 MT in April-September FY18 compared to 5.06 MT in the same period last year.
Tata Motors' subsidiary -- Jaguar Land Rover has reported total retail sales of 65,097 vehicles in September, up 6.6% compared to September 2016.
Reliance Industries and Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc. have signed agreements to divest all of its interest in certain upstream assets in north-eastern and central Pennsylvania.