Indian equity benchmarks took
winning spree to 6th day on Friday, with both the larger peers, Sensex and
Nifty, closing higher by around 0.65% each. Key indices made a negative start
of the day but soon turned positive, taking support with Union Finance Minister
Nirmala Sitharaman's statement that investors can find no better place in the
world than India that has a democracy loving and capitalist respecting
environment. She added that the government was continuously working to bring
reforms. Domestic sentiments remained enthusiastic with a private report
stating that India has emerged as third largest ecosystems for more successful
start-ups right behind China and US but ahead of Britain and Israel. Bourses
hold their strong gains throughout the day to settle higher, despite weak cues
from global markets. Market participants got comfort, with a private report
stating that corporate tax rate cut is clearly a positive for India which would
move the country up the ladder in terms of attractiveness for foreign direct
investment. Separately, recognizing the role of innovation as a key driver of
growth and prosperity for India, NITI Aayog with Institute for Competitiveness
as the knowledge partner has released the India Innovation Index (III) 2019.
Karnataka, Tamil Nadu, Maharashtra, Telangana and Haryana have been ranked as
top five most innovative major states in NITI Aayog's first Innovation Index.
Finally, the BSE Sensex gained 246.32 points or 0.63% to 39,298.38, while the
CNX Nifty was up by 75.50 points or 0.65% to 11,661.85.
The US markets ended higher on
Monday on renewed optimism about the completion of phase one of a US-China
trade deal following comments from President Donald Trump and Chinese Vice
Premier Liu He. Liu He said Washington
and Beijing have laid the groundwork for success in the first phase of its
attempt to carve out a resolution to its trade disagreement. China and the US
have made substantial progress in many aspects, and laid an important
foundation for a phase one agreement. President Donald Trump pronounced his
optimism on the likelihood of a deal, saying it was coming along great. He also
claimed issues in phase two of the deal would be a lot easier to work out than
those in phase one. The strong corporate results reported last week also made
traders hopeful as earnings season gets into full swing in the coming days.
McDonald's, Procter & Gamble, UPS, Caterpillar, eBay, Ford, Microsoft,
Tesla, Twitter, Amazon, and Intel are just a few of the companies due to report
their results this week. Besides, UK British Prime Minister Boris Johnson was
forced to ask the European Union for a three-month extension to the October 31
deadline to exit from the trade bloc, representing the latest setback for the
British leader and the country's years long attempt to forge an orderly
separation. The Germany's economic affairs minister said he thought the EU
would approve the extension request. Johnson is seeking another vote on his
Brexit proposal in Parliament, but UK House of Commons Speaker John Bercow
rejected his bid, saying a new vote would be repetitive and disorderly.
Crude oil futures ended lower on
Monday as worries about global economic slowdown and possible drop in near term
energy demand weighed on the commodity. Meanwhile, Kuwait and Saudi Arabia were
having discussions to restart production in oil fields that they manage
jointly, which could deliver some 500,000 barrels a day in crude, pressuring
prices. The fields Khafji and Wafra have been shut for the past four years.
Besides, Russia said that it failed to comply to its commitments in September
to curb production, citing increases in natural-gas condensate production ahead
of winter. The current output pact between the Organization of the Petroleum
Exporting Countries and its allies to cut 1.2 million barrels a day runs
through March 2020. Benchmark crude oil futures for November fell 47 cents or
0.9 percent to settle at $53.31 a barrel on the New York Mercantile Exchange.
December Brent dropped 46 cents or 0.8 percent to settle at $58.96 a barrel on
London's Intercontinental Exchange.
Indian
rupee ended tad higher against dollar on Friday, owing to dollar sale by
exporters and banks. Traders took some support with Union Finance Minister
Nirmala Sitharaman's statement that investors can find no better place in the
world than India that has a democracy loving and capitalist respecting
environment. Moreover, dollar's weakness against some currencies overseas
supported the rupee. However, gains were limited as some anxiety came with
International Monetary Fund's (IMF) statement that though India has worked on
the fundamentals of its economy, there are problems, including the long-term
drivers of growth that need to be addressed. On the global front, euro edged
higher against the dollar on Friday, amid hopes that a Brexit deal between
Britain and the European Union could prevent an economic recession in the euro
zone. Finally, the rupee ended at 71.14, 2 paise stronger from its previous
close of 71.16 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 5758.41 crore against gross selling
of Rs 4484.03 crore, while in the debt segment, the gross purchase was of Rs
2335.92 crore with gross sales of Rs 2052.20 crore. Besides, in the hybrid
segment, the gross buying was of Rs 19.77 crore against gross selling of Rs
25.23 crore.
The US markets settled higher on
Monday, boosted by optimism around US-China trade talks as well as the
corporate earnings season. Asian markets are trading mostly in green on Tuesday
amid cheery chatter about the chance of a Sino-US trade deal. Indian markets,
before going for long weekend, posted strong gains of over 0.60% each on Friday
and extended their gains to sixth straight session as Finance Minister Nirmala
Sitharaman indicated further stimulus in FY20. Markets remain closed on Monday
on account of assembly elections in Maharashtra and Haryana. Today, the start
is likely to be marginally in red. There will be some cautiousness with Finance
Minister Nirmala Sitharaman's statement that the ongoing trade wars and
protectionism have generated uncertainties and will ultimately impact the flow
of capital, goods and services. Meanwhile, regulator SEBI has put in place
stricter norms for auditors, including prompt disclosures about reasons for
their resignation and requirement to approach chairman of audit committee
directly in case of any concerns with the management of the firm concerned.
However, some respite may come later in the day following positive leads from
Asian peers. Traders may take some encouragement as the International Monetary
Fund supported India's recent decision to reduce corporate income tax, saying
it has a positive impact on investment. Some support may also come with reprot
that the commerce ministry is considering rationalising and simplifying certain
export promotion schemes such as EPCG in the next foreign trade policy, which
provides guideline and incentives for increasing shipments. Besides, a report
showed that emerging investment instruments -- REITs and InvITs -- seem to be
finally catching on with investors as mutual funds have invested nearly Rs
9,000 crore in such units in the first nine months of the year. Non-banking
finance companies (NBFCs) stocks will be in focus with rating agency ICRA's
report that NBFCs have stepped up securitisation of their loan portfolios in
the last one year, raising as much as Rs 2.36 lakh crore since the IL&FS
crisis in September 2018. There will be some reaction in sugar stocks with
report that with the next sugarcane crushing season slated to begin after
Diwali, the sugar exports have largely remained muted on global sugar glut and
low prices in the international market. There will be lots of earnings reaction
based on the performance of the companies.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,661.85
|
11,581.77
|
11,713.32
|
BSE Sensex
|
39,298.38
|
39,054.30
|
39,451.76
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
4,416.46
|
51.40
|
47.37
|
54.07
|
Tata Motors
|
648.84
|
136.85
|
134.37
|
140.57
|
ZEEL
|
520.11
|
250.20
|
238.92
|
262.12
|
SBI
|
332.04
|
269.65
|
264.78
|
272.93
|
ONGC
|
175.97
|
143.50
|
140.77
|
145.37
|
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