Extending previous session's
rally, boisterous benchmarks once again showcased an enthusiastic performance
on Friday, with frontline gauges surpassing their crucial 32,400 (Sensex) and
10,150 (Nifty) levels on sustained buying by fund and retail investors ahead of
Diwali. Sentiments remained jubilant since start, as key bourses made a gap up
opening and traded with traction through the session. Sentiments remained
up-beat with traders taking encouragement from double dose of good economic
news. India's industrial production grew at a nine-month high of 4.3% in August
due to good performance of mining, electricity and capital goods sectors, while
the retail inflation declined to 3.28% in September, compared to 4.39% during
the same month last year and 3.36% in the previous month. Adding to the
optimism, the International Monetary Fund lauded government's recent efforts to
lower the compliance burden under the Goods and Services Tax, but it also said
that efforts should also be made to lower the tax slabs and minimise
exemptions. Some support also came after the World Bank chief said that the
reforms undertaken by Prime Minister Narendra Modi have been significant and
the results would be reflected in the mid and long-term growth figures, days
after the global lender forecast that India's GDP may slowdown to 7% in 2017.
Investors took note of CRISIL's report which highlighted that banks are likely
to need nearly Rs 3.3 lakh crore this fiscal as provisioning for large NPA
accounts in the current financial year. The report said with the economic value
of assets underlying NPAs eroding with time, and resolutions are hard to come
by, banks would need to step up on provisioning, mainly for large corporate
NPAs. However, small amount of profit booking which took place in dying hour of
trade pulled markets to end off day's high. Finally, the BSE Sensex surged
250.47 points or 0.78% to 32,432.69, while the CNX Nifty was up by 71.05 points
or 0.70% to 10,167.45.
The US markets closed higher on
Friday, with Nasdaq recording an all-time high, as President Donald Trump
delivered a speech decertifying a nuclear agreement with Iran. Upbeat earnings
reports from banks and the highest consumer-sentiment reading in 13 years
supported modest buying. Against that backdrop, the Trump administration said
it won't certify Iran's compliance with a 2015 nuclear agreement, declaring
Tehran a regime that continues to sponsor terrorism and alleging that Iran
intimidated international expectations sent to inspect it from building up
nuclear armaments. The president also ended billions of dollars in subsidies to
insurers under the Affordable Care Act program. The White House said the
government can't lawfully make the payments as there is no appropriation for
them. On the economy front, the consumer-price index rose 0.5% in September,
the second increase in a row and the largest in eight months. Stripping out
volatile food and energy costs, core CPI rose at a much smaller 0.1% rate. A
reading on retail sales showed a rise of 1.6% in September, reflecting the
largest increase in 2½ years, coming in line with Wall Street expectations. The
University of Michigan's preliminary reading of the consumer-sentiment index
for October came in at 101.1, marking its highest level since 2004. The Dow
Jones Industrial Average added 30.71 points or 0.13 percent to 22,871.72, the
Nasdaq gained 14.29 points or 0.22 percent to 6,605.80, and the S&P 500
edged higher by 2.24 points or 0.09 percent to 2,553.17.
Crude oil futures moved higher on
Friday on signs of bullish demand from China and the US. Chinese crude imports
rose by roughly 1 million barrels a day in September to 9 million barrels a
day, while US consumer sentiment and retail sales were up last month, data
showed this morning. That eased investor concerns that global demand is set to
weaken over the next year. Traders also got some support
with Baker Hughes report that the number of active U.S. rigs drilling for oil
fell by 5 to 743 this week after posting a fall of 2 rigs last week. Benchmark
crude oil futures for November delivery ended higher by $0.85 or 1.7 percent at
$51.45 a barrel on the New York Mercantile Exchange. Brent crude for November
delivery added 0.63 cent to $56.88 a barrel on the ICE.
The
Indian rupee, extending its winning streak for fifth straight session,
appreciated to near three-week high
against dollar on Friday on continued selling of the US currency by banks and
exporters triggered by its weakness overseas. Sentiments remained buoyant as
industrial production grew to a 9-month high of 4.3% in August, while retail
inflation came in at 3.28% in September. The domestic unit also found support
with the World Bank chief's statement that the reforms undertaken by Prime
Minister Narendra Modi have been significant and the results would be reflected
in the mid and long-term growth figures. Besides, massive gains of domestic
equity market too kept the rupee on a firm ground. On the global front, dollar
fell against yen on Friday as market awaited the US inflation data due out
later in the day. Finally, the rupee ended at 64.92, 16 paise stronger from its
previous close of 65.08 on Thursday.
The
FIIs as per Friday's data were net sellers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4393.50 crore against gross selling
of Rs 4690.30 crore, while in the debt segment, the gross purchase was of Rs
552.68 crore with gross sales of Rs 569.14 crore.
The US markets bounced back and
ended higher in the last session, supported by some upbeat economic data,
including a Commerce Department report showing a substantial increase in retail
sales in the month of September. The Asian markets have made a green start with
some indices trading higher by about a percent in early deals after inflation
data in the U.S. added to evidence that global growth is continuing steadily
with limited price pressures in the American economy. The Indian market rallied
in the last session and the benchmarks touched new record highs on earnings
optimism. Today, the start of the holiday truncated week is likely to be in
green on positive global cues and traders on domestic front will be getting
encouragement with report that India's exports recorded a robust growth of
25.67 percent to $ 28.61 billion in September, mainly on account of rise in
shipments of engineering, chemicals, and
petroleum products. Imports too rose by 18.09 percent to $ 37.59 billion in
September from $ 31.83 billion in the year-ago month and the trade deficit
narrowed to 7-month low of $ 8.98 billion in the month under review from $ 9.07
billion in September 2016. Also there will be some support with IMF chief
Christine Lagarde's statement, who just days after the International Monetary
Fund (IMF) slashed India's GDP growth rate to 6.7 percent in 2017, slower than
the 7.2% it had forecast in April, has said that the Indian economy is on a
firm footing. Meanwhile, Finance Minister Arun Jaitley has said that he never
talked about any stimulus package for boosting economy. Noting that his
government had inherited a huge fiscal deficit just three-and-a-half years ago
of 4.6 per cent, he said that gradually India has been moving on a glide path,
which will continue. There will be lots of result reactions, while there will
be buzz from the primary markets too, as the Godrej Agrovet will make its debut
today, the initial public offer was oversubscribed 95.41 times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,167.45
|
10127.73
|
10199.53
|
BSE Sensex
|
32432.69
|
32284.09
|
32544.94
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Bharti Airtel
|
414.22
|
430.9
|
422.13
|
438.33
|
Bharti Infratel
|
169.47
|
449.95
|
436.83
|
459.03
|
SBI
|
156.98
|
252.10
|
249.75
|
254.90
|
ICICI Bank
|
144.02
|
271.3
|
267.72
|
274.77
|
Hindalco
|
122.77
|
266.60
|
262.85
|
269.00
|
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