Snapping five days of losing
streak, Indian equity benchmarks ended the Tuesday's trade in green terrain
with frontline gauges recapturing their crucial 36,600 (Sensex) and 11,050 (Nifty)
levels. Soon after a cautious start markets gained traction and entered into
green terrain mid-morning deals with traders taking encouragement with report
that rising imports from China have taken a heavy toll on the
employment-generation potential of the manufacturing sector, especially among
the micro, small and medium enterprises (MSMEs). Key gauges pared all of their
gains and entered into red terrain in late noon session as sentiments turned
pessimistic with private report stating that India's current account deficit
(CAD) is expected to be widened by 0.20% to 2.8% of GDP for fiscal year
2018-19. The widening current account gap is one of the major concerns which is
putting pressure on the rupee, which has depreciated 13% against dollar this
year. Sentiments also weighed down with World Bank's report that India's
current trade in goods with its neighbouring countries in the South Asian
region is a mere 30.65% of the potential trade of $62 billion, which can be
boosted if certain restrictions on the current trade, like tariffs, port
restrictions and other non-tariff barriers can be eased. Some anxiety also came
with a private report that India's crude oil demand is forecast to grow to 500
million tonnes per year by 2040, but persistent increase in oil prices might
act as a dampener for the rate of growth. But, rally in last leg of trade
helped markets to end near intraday high levels. Sentiments turned positive
with PHD Chamber of Commerce and Industry Vice President D K Aggarwal's
statement that India is approaching towards $100 billion FDI inflow per annum
by 2022 as volumes of foreign direct investment are increasing year after year.
Meanwhile, the Central Board of Direct Taxes (CBDT) has postponed the deadline
for filing income tax returns (ITR) as well as reports of Audit to October 15,
2018, from September 30 for financial year 2017-18. It had received
representations from stakeholders seeking extension of the last date for filing
of returns by taxpayers whose accounts have to be audited. Finally, the BSE
Sensex surged 347.04 points or 0.96% to 36,652.06, while the CNX Nifty was up
by 100.05 points or 0.91% to 11,067.45.
The US markets ended mostly in
red terrain on Tuesday, as traders seemed reluctant to make significant moves
ahead of the Fed announcement on September 26, 2018. The Fed is widely expected
to raise interest rates by 25 basis points, although traders are likely to pay
close attention to the accompanying statement for clues about the outlook for
rates. Fed Chairman Jerome Powell's subsequent press conference is also likely
to attract attention, with the central bank expected to raise rates by at least
once more this year. Traders largely shrugged off a report from the Conference
Board showing an unexpected improvement in consumer confidence in the month of
September. The Conference Board said its consumer confidence index climbed to
138.4 in September from an upwardly revised 134.7 in August. The street had
expected the consumer confidence index to drop to 131.7 from the 133.4
originally reported for the previous month. With the unexpected increase, the
consumer confidence index reached a new 18-year high and is not far from the
all-time high of 144.7 reached in 2000. The S&P 500 slipped 3.81 points or
0.13 percent to 2915.56 and Dow Jones Industrial Average was down by 69.84
points or 0.26 percent to 26,492.21, while Nasdaq was up by 14.22 points or 0.18
percent to 8,007.47.
Crude oil futures settled higher
on Tuesday, with traders weighing the prospects of a supply shortage due to
upcoming U.S. sanctions against Iran. The signal from OPEC members and top
non-OPEC oil producers that they are in no rush to increase output aided oil's
uptick. Meanwhile, President Donald Trump at the United Nations assembly
reiterated calls on the Organization of the Petroleum Exporting Countries to
lower oil prices and said the U.S. would take action if it didn't. Traders
looked ahead to weekly crude inventories report from the American Petroleum
Institute and the official data from the U.S. Energy Information
Administration, due on September 26, 2018. Benchmark crude oil futures for
October gained 20 cents or 0.3 percent to settle at $72.28 a barrel on the New
York Mercantile Exchange. November Brent crude was up by 67 cents or 0.8
percent to settle at $81.87 a barrel on London's Intercontinental Exchanged.
Paring
most of its early losses, Indian rupee ended marginally weaker against the
American currency on Tuesday, due to dollar demand from banks and importers.
Sentiments remained down-beat with private report stating that India's current
account deficit (CAD) is expected to be widened by 0.20% to 2.8% of GDP for
fiscal year 2018-19. The widening current account gap is one of the major
concerns which is putting pressure on the rupee, which has depreciated 13%
against dollar this year. However, the local currency trimmed most of its
initial losses, as traders found some support with PHD Chamber of Commerce and
Industry Vice President D K Aggarwal's statement that India is approaching
towards $100 billion foreign direct investment (FDI) inflow per annum by 2022
as volumes of FDI are increasing year after year. On the global front, dollar
edged lower against a basket of the other major currencies on Tuesday as
investors looked ahead to the upcoming Federal Reserve policy meeting, at which
it was widely expected to deliver its third rate hike this year. Finally, the
rupee ended at 72.69, 6 paise weaker from its previous close of 72.63 on
Monday.
The FIIs as per Tuesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 7826.54 crore against gross selling of Rs 8884.48 crore, while
in the debt segment, the gross purchase was of Rs 1454.51 crore with gross
sales of Rs 1915.96 crore. Besides, in the hybrid segment, the gross selling
was of Rs 3.94 crore against no buying.
The US markets ended mostly lower
on Tuesday as rising interest rates hurt stocks that pay big dividends and
higher oil prices pushed transportation and shipping companies lower. Asian
markets were trading mostly in green on Wednesday, shrugging of tepid close on
the Wall Street. A sharp recovery in the dying hours of the day mainly helped
the Indian markets to end Tuesday's volatility session near intra-day high
levels, helped by value buying in banking and FMCG stocks after recent heavy
losses. Today, the markets are likely to extend previous session's gains on
penultimate session of F&O expiry following firm Asian markets. Traders
will be getting some encouragement with Finance Minister Arun Jaitley's
statement that the new insolvency law, indirect tax regime and demonetization
will help drive India's growth rate and sustain it at 8%. Traders will take
note of the government's data showing that fiscal deficit touched 94.7% of the
FY18 estimate at end of August, marginally better than 96.1% at the same point
last fiscal. In absolute terms, fiscal deficit at end of August was Rs 5.91
lakh crore. Meanwhile, the commerce and industry ministry has said that the
government's export promotion measures, implementation of minimum standards for
imports, and continued healthy inflow of remittances by non-resident Indians
will help control the country's rising current account deficit (CAD). There
will be some buzz in the banking sector stocks with Union finance minister Arun
Jaitley's statement that non-performing assets (NPA) of public sector banks
(PSB) are on the decline as recoveries have picked up, but it's a challenge to
loan growth. Finance minister said recoveries have not just picked up because
of National Company Law Tribunal (NCLT) resolutions, but also borrowers are
paying up in anticipation of losing companies. Also, there will be some
reaction in energy sector stocks with Moody's report that the share of
renewable energy in the country's electricity generation mix is likely to rise
to around 18% by 2022, from 7.8% at present, owing to the continuous focus on
capacity addition from solar and wind.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,067.45
|
10,940.00
|
11,137.75
|
BSE Sensex
|
36,652.06
|
36,242.18
|
36,883.87
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,102.17
|
219.70
|
198.35
|
239.95
|
ICICI Bank
|
304.72
|
311.10
|
302.93
|
316.38
|
SBI
|
289.49
|
270.90
|
263.48
|
275.63
|
Indiabulls Housing
Finance
|
244.48
|
929.65
|
815.77
|
1,013.77
|
Axis Bank
|
175.15
|
614.35
|
596.00
|
626.25
|
Infosys' subsidiary -- IPS -- has been awarded a CAD $80.3 million contract by PSPC to modernize and automate their procurement processes.
NTPC has received environment clearance from the Union Environment Ministry for expansion of the Talcher Thermal Power Station in Odisha for worth Rs 7,732.35 crore.
Bharti Airtel will deploy more than 17,313 new mobile sites along with 6,650 km of fresh optic fibre across UP and Uttarakhand this fiscal under an expansion project.
TCS has conducted a National Qualifier Test - an all-inclusive online campus hiring initiative- on its digital platform TCS iON.