Indian equity benchmarks ended
the volatile day of trade with marginal gains, as simmering geopolitical
tensions kept many investors on edge. Markets started the session on optimistic
note with both key indices recapturing their crucial 9,950 (Nifty) and 31,700
(Sensex) levels, mainly supported by firm global cues with report that US
President Donald Trump and congressional leaders agreed to raise the government
debt limit until December, eliminating the risk of a government shutdown for
now. Back on regional turf, traders also took some support with a private
report stating that economic activity in the country lost some pace amid GST
related disruptions but underlying growth momentum remains strong and the
country may clock 6.7 percent growth this fiscal. It further said that a number
of high frequency growth indicators are indicating that end demand is holding
up well and is running counter to the slowdown exhibited in the national
accounts. However, markets failed to hold on to their initial gains and pared
most of their gains to go home with small gains, as there was some concern in
the markets with market regulator Securities and Exchange Board of India (SEBI)
expressing its worries over stronger rupee. It has stated that the huge inflow
of foreign investments into the country is having an impact on the rupee and
regulators need to manage it through a calibrated system. As per SEBI data
foreign portfolio investors have invested Rs 44,150 crore in Indian equities
and Rs 1.29 lakh crore in debt so far this year. Separately, North Korea's
Minister of External Economic Relations and head of the delegation at the
Eastern Economic Forum in Vladivostok, Kim Yong-jae, said that the country will
introduce strong countermeasures against the United States' attempts to exert
pressure through strong sanctions. Finally, the BSE Sensex rose 0.77 points to
31,662.74, while the CNX Nifty was up by 13.70 points or 0.14% to 9,929.90.
The US markets closed mostly lower
on Thursday, as investors sold financials, consumer-discretionary and
telecommunication shares, with Disney and Goldman Sachs exacting a hefty toll
on the Dow industrials. Investors were tracking Hurricane Irma and registering
the latest policy stance from European Central Bank President Mario Draghi's.
Hurricane Irma comes just two weeks after Hurricane Harvey hit the Texas and
Louisiana Gulf Coast, where damages are estimated to be up to $190 billion.
Earlier in the day, Trump and Senate Minority Leader Chuck Schumer reportedly
agreed to pursue a deal that would remove the need for Congress to repeatedly
raise the US debt ceiling. On the economy front, initial jobless claims in the
period running from August 27 to September 2 surged by 62,000 and stood at
298,000, reaching the highest level since spring 2015. New claims count people
who apply for unemployment benefits after losing their jobs. Many businesses
were closed after Harvey flooded Houston and lots of people couldn't get to
work, making them eligible for temporary financial help. The increase in new
claims was the largest since November 2012 in the wake of Hurricane Sandy. The
Dow Jones Industrial Average lost 22.86 points or 0.10 percent to 21,784.78,
the S&P 500 edged lower by 0.44 points or 0.02 percent to 2,465.10, while
the Nasdaq gained 4.56 points or 0.07 percent to 6,397.87.
Crude oil futures turned lower on
Thursday, after data showed US supplies of crude oil rose for the first time in
ten weeks, as several refinery shutdowns last week due to storm Harvey lowered
demand for crude. Data from the US Energy Information Administration (EIA) showed
that domestic crude supplies climbed by 4.6 million barrels for the week ended
Sept. 1, offsetting recent optimism on oil prices which has seen crude futures
settle higher for three-straight days. EIA data showed Gasoline inventories fell
by roughly 3.2m barrels, while distillate stockpiles fell by 1.4m barrels,
below expectations of a decline of 3m barrels. Benchmark crude oil futures for
October delivery ended down by $0.07 or 0.1 percent to $49.09 on the New York
Mercantile Exchange. In London, Brent crude for October delivery ended higher
by 0.24 cent at $54.44 a barrel on the ICE.
Indian
rupee, after making a good start, gave away most of its gains and concluded
marginally higher against dollar on Thursday due to sustained selling of the US
currency by exporters and banks. Investors took some support with the principal
economic adviser in the finance ministry's statement that the government has
dropped the idea of setting up a bad bank though solving NPA problem is the top
priority for the government right now than consolidation as the government is
keen on creating a long-term framework for strong and stable growth. The
domestic unit also found support from dollar weakened overseas along with gains
in the local equity markets. On the global front, dollar dropped against euro
on Thursday as the eurozone economy's growth estimates were upwardly revised,
with that data coming as investors wait to hear what the European Central Bank
plans to do with its bond-buying program. Finally, the rupee ended at 64.04, 6
paise stronger from its previous close of 64.10 on Wednesday.
The FIIs as per Thursday'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 3059.67 crore against gross
selling of Rs 4347.81 crore, while in the debt segment, the gross purchase was
of Rs 1898.76 crore with gross sales of Rs 508.81 crore.
The US markets made mostly lower
closing in the last session, the trade remained lackluster and the major
averages spent the day bouncing back and forth across the unchanged line, on
the heels of the European Central Bank's highly anticipated monetary policy
announcement. The Asian markets have once again made a mixed start and some of
the indices are down by over a quarter percent after ECB President Mario Draghi
cautioned on the common currency's strength though didn't expand on any action
to address it. The Japanese market was down as Japan's economy grew less than
the government's preliminary estimate in the second quarter, weighed down by a
revision in capital expenditure by companies. The Indian markets despite paring
all the early gains made a flat closing in the last session, as geopolitical
worries lingered and investors waited to hear comments from ECB President Mario
Draghi on euro appreciation. Today, the start is likely to be cautious tailing
the sluggishness in the regional peers. There will be buzz in the markets as
the capital markets regulator, the Securities and Exchange Board of India
(Sebi) has proposed compulsory physical settlement in stock derivatives
contracts and has sought comments from market participants in a discussion
paper, as it is concerned over the suitability of derivatives for retail
investors. Meanwhile, industry body Assocham has suggested that Infrastructure
and transportation such as road and railway sectors should continue to be
exempted under the Goods and Services Tax (GST) regime, as withdrawal of
exemption on existing projects will have a negative impact on business
revenues. There will be some buzz in steel sector stock, as the Trump
administration has said it will initiate new anti-dumping and countervailing
duty probe to determine whether imports of stainless steel flanges from India
and China are being dumped in the US.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9929.90
|
9909.78
|
9957.43
|
BSE Sensex
|
31662.74
|
31583.80
|
31778.32
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ITC
|
192.18
|
270.40
|
267.45
|
275.45
|
SBI
|
161.03
|
274.20
|
272.57
|
276.37
|
ICICI Bank
|
156.31
|
292.65
|
290.33
|
296.73
|
Vedanta
|
156.26
|
326.80
|
321.03
|
330.38
|
Hindalco
|
113.30
|
249.95
|
246.65
|
252.25
|
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