Indian equity bourses closed
Monday's trading in green terrain, with Sensex & Nifty reclaiming their
crucial levels of 38,200 & 11,300, respectively. After a positive start,
indices slipped into red, as the World Bank slashed its economic growth
forecast for India to 6% for the current fiscal (FY20) from its April
projection of 7.5%. It also warned that the severe slowdown could further
weaken the country's stuttering financial sector. But soon, recovery staged
over markets, as India's Wholesale price index (WPI) inflation fell sharply at
0.33% in the month of September 2019 as against 1.08% (provisional) for the
previous month and 5.22% during the corresponding month of the previous year.
In second half of the trading session, key markets traded near their intraday
high points, amid Reserve Bank of India's (RBI) report which showed that
India's foreign exchange reserves increased by $4.239 billion to hit a record
high of $437.833 billion as on October 4. However, most of the gains got
trimmed in the last leg of the trade, amid reports India's factory output
growth, measured by the Index of Industrial Production (IIP), contracted by
1.1% in August, recording the poorest performance in seven years due to a sharp
decline in production of capital goods and consumer durable. The IIP had shown
a growth of 4.8% in August 2018. Finally, the BSE Sensex gained 87.39 points or
0.23% to 38,214.47, while the CNX Nifty was up by 36.10 points or 0.32% to
11,341.15.
The US markets ended marginally
lower on Monday on renewed uncertainty about a trade deal with China. President
Donald Trump announced on Friday that the US and China have reached a very
substantial phase one deal, although reports suggest China wants another round
of talks before signing the agreement. China may send a delegation led by Vice
Premier Liu He to finalize a written deal that could be signed at the
Asia-Pacific Economic Cooperation summit next month in Chile. China wants Trump
to also scrap a planned tariff hike in December in addition to the hike
scheduled for this week. Trump said the deal includes up to $40 to $50 billion
in Chinese purchases of US agricultural products as well as Chinese concessions
on intellectual property and financial services. In exchange for the
concessions by China, the US agreed to hold off on an increase in tariffs
originally scheduled for this week. Meanwhile, the choppy trading on markets
came amid light volume due to the Columbus Day holiday. Besides, investors also
were eyeing developments in negotiations over Britain's exit from the European
Union, after optimism that a deal could be reached rose Friday following
productive negotiations between UK Prime Minister Boris Johnson and Irish Prime
Minister Leo Varadkar on the difficult question of the customs border between
Britain's Northern Ireland and the Republic of Ireland.
Crude oil futures ended lower on
Monday as fading optimism about US-China trade deal raised concerns about the
outlook for energy demand. China has reportedly asked for more talks with the
US before signing phase one of a trade deal that President Donald Trump announced
on Friday. Besides, Brexit concerns also weighed as well on the commodity.
Britain and the European Union said that a lot of work remains to be done to
secure an agreement on Britain's departure from the bloc. On the geopolitical
front, Saudi Arabia has denied any involvement on last week's apparent attack
on an Iranian oil tanker near the Saudi Arabian city of Jeddah. Benchmark crude
oil futures for November declined $1.11 or 2 percent to settle at $53.59 a
barrel on the New York Mercantile Exchange. December Brent dropped $1.16 or 1.9
percent to settle at $59.35 a barrel on London's Intercontinental Exchange.
Continuing strong recovery
momentum for the second straight day, Indian rupee ended higher against US
dollar on Friday, on dollar selling by exporters and banks. The rupee sentiment
was buoyed with Reserve Bank of India's (RBI) report which showed that India's
foreign exchange reserves increased by $4.239 billion to hit a record high of
$437.833 billion as on October 4. Traders also found some support with India's
Wholesale price index (WPI) inflation fell sharply at 0.33% in the month of
September 2019 as against 1.08% (provisional) for the previous month and 5.22%
during the corresponding month of the previous year. Besides, good going in the
local equity markets supported the rupee. On the global front, dollar rose on
Monday as investors headed into safer assets after they became more cautious
that progress was being made toward a comprehensive US-China trade deal.
Finally, the rupee ended at 71.23, 21 paise stronger from its previous close of
71.02 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
4326.42 crore against gross selling of Rs 4894.54 crore, while in the debt
segment, the gross purchase was of Rs 2044.49 crore with gross sales of Rs
843.95 crore. Besides, in the hybrid segment, the gross buying was of Rs 32.87
crore against gross selling of Rs 28.98 crore.
The US markets ended marginally
in red on Monday as investors concluded the trade deal with China will not lead
to significantly lower trade barriers or foster global economic growth in the
near term. Asian markets are trading mostly higher on Tuesday as some investors
held out hope that Britain still had a chance to avoid a messy exit from the
European Union at key negotiations this week. Indian markets ended with modest
gains on Monday, extending their winning streak to second consecutive session
with firm global cues. Today, the markets are likely to make optimistic start
tracking firm cues from Asian peers amid fall in crude oil prices. Investors
will be eyeing balance of trade data to be released later in the day. Traders
will be getting some encouragement with Minister of State for Finance Anurag
Thakur's statement that Indian economy is structurally and fundamentally very
strong and the current slowdown, which is cyclical in nature, would not affect
it much. He also exuded confidence that India would achieve the target of
becoming $5 trillion economy by 2024-25. Though, some cautiousness may come as
the data released by the Central Statistics Office (CSO) showed that India's
retail inflation rate grew 3.99% in September which is very close to the Reserve
Bank of India's (RBI) target level of 4%. The retail inflation for August was
3.21%. Also, former RBI Governor Raghuram Rajan has expressed concern over
India's fiscal deficit figures, stating that it is the likely reason behind the
slowdown in Indian economy. He also criticised the government over its populist
decision-making which failed to focus on economic growth. Meanwhile, Corporate
Affairs Secretary Injeti Srinivas said the government is examining suggestions
to raise the threshold of Rs 1 lakh default to invoke the Insolvency and
Bankruptcy Code (IBC) to reduce the number of cases in the NCLT. Banking stocks
will be in focus as RBI governor Shaktikanta Das will meet the heads of the
state-run banks on October 15. The meeting is likely to discuss NPA resolution,
potential stressed assets, restructuring of MSME loans and stress in the realty
sector are among the issues which are likely to feature at the meeting. There
will be some buzz in the oil and gas stocks as Oil Minister Dharmendra Pradhan
made a vehement appeal to Finance Minister Nirmala Sitharaman for bringing jet
fuel and natural gas under the ambit of GST to reduce multiplicity of taxes and
improve business climate. There will be some reaction in telecom stocks as
Telecom Minister Ravi Shankar Prasad assured the industry of reforms in
spectrum pricing, and said auctions will take place in the current financial
year. Also, healthcare stocks will be in focus with Icra's report that the
healthcare sector is on a recovery path after two previous years of muted
performance marred by several regulatory measures. There will be some result
announcements to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,341.15
|
11,280.65
|
11,411.05
|
BSE Sensex
|
38,214.47
|
38,015.84
|
38,463.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,237.27
|
40.10
|
38.77
|
41.47
|
Tata Motors
|
680.49
|
127.85
|
123.57
|
131.07
|
SBI
|
282.65
|
255.45
|
253.17
|
258.57
|
ONGC
|
194.60
|
135.25
|
130.68
|
138.13
|
ICICI Bank
|
172.11
|
428.85
|
424.43
|
434.83
|
Sun Pharmaceutical Industries' one of wholly-owned subsidiaries has commercialized CEQUA 0.09% in the US.
Bharti Airtel has closed its 3G network in Haryana and migrated customers to 4G services.
Maruti Suzuki India has selected five startups for Proof of Concept under its Mobility & Automobile Innovation Lab program.
Hindustan Unilever has reported a rise of 23.42% in its consolidated net profit at Rs 1,818 crore for Q2FY20 as compared to Rs 1,473 crore for Q2FY19.