Daily Newsletter
NSE Intra-day chart (07 December 2017)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
 
Market Commentary 08 December 2017
Markets to extend the jubilation on positive global cues


Bulls made comeback on Dalal Street on Thursday with frontline gauges garnering gains of over a percentage point, recapturing their crucial 32,900 (Sensex) and 10,150 (Nifty) bastions, as traders opted to buy beaten down but fundamentally strong stocks after two days of continuous drubbing. The markets' mood remained up-beat throughout the day and benchmarks fervently gained from strength to strength with traders taking encouragement with former Reserve Bank of India Governor YV Reddy's statement that amid uncertainties in the global economic order, a sense of optimism about the future is more in India than in other parts of the world. Meanwhile, at a meeting with Finance Minister Arun Jaitley in the run-up to the last full-year Budget of the NDA government before 2019 general elections, India Inc. has sought lower tax and more incentives for investments while exporters called for quicker GST refunds. Some support also come with International Energy Agency's (IEA) latest report stating that India is among bright spots in the global economy and is emerging as a major driving force in global energy trends, with all modern fuels and technologies playing a part. Markets extended rally in second half of trade to end near intraday highs on report that the share of foreign portfolio investments (FPI) in domestic capital markets through participatory notes (P-notes) surged to Rs 1.31 lakh crore at the end of October, after hitting an over eight- year low in the month of September. Total value of P-note investments in Indian markets including equity, debt and derivatives, at October-end climbed to Rs 131,006 crore, from Rs 122,684 crore at the end of September. Separately, a foreign brokerage report enlightened that the country's economic growth is expected to continue with a shallow recovery next year, and is likely to inch up to 7.2% in 2018-19 from an estimated 6.5% in the current fiscal. The report added that economic recovery will continue to be driven by consumption, supported by a pre-poll step up in public spend rather than investment, given the persistence of surplus capacity and tight 3.2% of GDP fiscal deficit target. Finally, the BSE Sensex soared 352.03 points or 1.08% to 32,949.21, while the CNX Nifty was up by 122.60 points or 1.22% to 10,166.70.

 

The US markets closed higher on Thursday, with the S&P 500 snapping a four-session losing streak on the back of gains in the technology, industrials and materials sectors. Traders focused on continued progress on tax legislation and looked ahead to the monthly jobs report due Friday. Both the House and Senate have passed their own versions of the tax bill and now the two needs to bridge their differences and agree on a final bill for President Donald Trump to sign. The Republican-led Senate agreed to begin formal negotiations with the House, spurring hopes the final tax overhaul will be completed by a self-imposed deadline of December 22. On the economy front, initial US jobless claims, a way to measure layoffs, fell by 2,000 to 236,000 in the seven days ended December 2. The more stable monthly average of claims slipped by 750 and stood at 241,500. The number of people already collecting unemployment benefits, known as continuing claims, declined by 52,000 to 1.91 million. The Dow Jones Industrial Average added 70.57 points or 0.29 percent to 24,211.48, the Nasdaq gained 36.466 points or 0.54 percent to 6,812.84, while the S&P 500 edged higher by 7.71 points or 0.29 percent to 2,636.98. 

 

Crude oil futures moved higher on Thursday after a threat of strike in Nigeria and growing Middle East political tensions stoked fears of supply disruptions, also as the traders bet this week's decline was overdone. One of Nigeria's two main oil unions on Thursday threatened to launch a nationwide strike from Dec. 18 should the government fail to force the management of domestic oil and gas companies to recall laid-off union members. Benchmark crude oil futures for January delivery ended higher by $0.76 or 1.3 percent at $56.72 a barrel on the New York Mercantile Exchange. Brent crude for February delivery was up by 1.5 percent to $62.12 a barrel on the ICE.

 

Indian rupee ended marginally lower against US dollar on Thursday, taking its losing streak for third straight session, hurt by good demand for the greenback from importers. Traders failed to get support with former RBI Governor YV Reddy's statement that amid uncertainties in the global economic order, a sense of optimism about the future is more in India than in other parts of the world. Separately, a foreign brokerage report enlightened that the country's economic growth is expected to continue with a shallow recovery next year, and is likely to inch up to 7.2% in 2018-19 from an estimated 6.5% in the current fiscal. Besides, the dollar rose to a position of strength overseas too weighed on the rupee sentiment. Though, spectacular rally in domestic equities helped the local unit to pare some early losses. On the global front, dollar recovered some ground against yen on Thursday, as global markets regained some appetite for risk, and on optimism that the US will successfully push through a tax reform programme. Finally, the rupee ended at 64.56, 5 paise weaker from its previous close of 64.51 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 4856.22 crore against gross selling of Rs 5980.21 crore, while in the debt segment, the gross purchase was of Rs 2010.95 crore with gross sales of Rs 1033.80 crore..

 

The US markets managed a positive close though the major averages came off their highs in last session. The early gains were on optimism about lawmakers passing a short-term spending bill to avoid a government shutdown. However, traders continued to express some uncertainty about the details of the final Republican tax reform bill. The Asian markets have made a green start, led by the Japanese market which is up by over a percent, as its economy expanded in the third quarter more than initially reported, as business investment grew at a faster pace.  Traders in the region were jubilant with the U.S. tax reform bill making an encouraging progress. The Indian markets bounced back in the last session on firm global cues and slump in oil prices, which cooled some worries of rising fiscal deficit. Today, the start is likely to be in green on supportive global cues and the bourses will extend gains with bargain hunting continuing for yet another day. Meanwhile, the finance ministry has said that the FRDI Bill, under consideration of a joint parliamentary committee, is depositor friendly and provides more protection to them compared to existing provisions. It has clarified that The provisions in the FRDI Bill do not modify current protections for depositors adversely at all, the ministry held, maintaining that these rather provide additional protections in a more transparent manner. Traders will be getting some encouragement with International Energy Agency's (IEA) report that India is emerging as a "major driving force" in global energy trends, with all modern fuels and technologies playing a part. The power sector will also be buzzing, as Minister of State (Independent Charge) for Power and Renewable Energy, RK Singh, has coaxed State governments to reduce the number of slabs for selling power.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

10166.70

10091.52

10212.27

BSE Sensex

32949.21

32700.74

33095.07

 

Nifty Top volumes

 

Stock

Volume

(in Lacs)

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

SBI

122.79

316.40

313.32

318.62

GAIL

121.81

492.55

466.97

507.22

NTPC

109.14

180.30

176.45

182.80

Vedanta

84.41

285.65

281.50

288.30

Tata Motors

79.99

402.00

397.67

405.82

  • Wipro is going to expand its operations in London by setting up its third office in the UK capital.
  • L&T's wholly-owned subsidiary - LTHE has won an order worth over Rs 1,600 crore from Hindustan Petroleum Corporation, Visakhapatnam Refinery,
  • Tata Motors' subsidiary -- JLR has reported total retail sales of 52,332 vehicles in November, up 10.0% on November 2016.
  • ICICI Bank has launched a digital service to allow customers to open a PPF account online, eliminating the need for furnishing paper documents.
News Analysis