Indian equity benchmarks managed
to end the extremely volatile day of trade with modest gains on Friday, with
frontline gauges holding their crucial 10,300 (nifty) and 33,300 (Sensex)
levels. Markets altered between green and red throughout the session and
somehow managed to end in positive zone, as traders took some comfort with
Union Minister of State for Water Resources Arjun Ram Meghwal's statement that
the agriculture sector's contribution to the country's GDP has increased under
the present government's rule. Some support also came with the global president
of the Association of Chartered Certified Accountants (ACCA), Brian McEnery's
statement that India has made significant strides towards ethical standards in
business and enforcing provisions around corporate governance. However, up-side
remained capped as sentiments remained downbeat with Moody's Investors Service
latest Global Macroeconomic Update (2018-19) stating that India is the only G20
emerging market country where growth has slowed sharply for six consecutive
quarters. But it expects economic growth in 2017 to average 6.2% before
accelerating to around 7.5% in 2018 and 2019. It said that the slowdown in
economy was due to the temporary negative impact of last year's demonetization,
temporary disruption related to the rollout of the Goods and Service Tax (GST)
and weak bank lending for investment-related activity due to a high proportion
of delinquent loans on bank balance sheets. Sentiments also remained dampened
as the Congress-ruled states have sought a complete overhaul of the indirect
tax regime with the highest slab at 18% instead of 28%. Meanwhile, the GST
Council decided to keep only 50 items, mostly demerit, sin and luxury goods in
top 28% tax bracket. Lower 18% GST will be levied on chewing gums, chocolates,
after shave, deodorant, washing power, detergent, marble. The all-powerful
council pruned the list of items attracting the top 28% tax rate to just 50
from 227 previously. Finally, the BSE Sensex gained 63.63 points or 0.19% to
33,314.56, while the CNX Nifty was up by 12.80 points or 0.12% to 10,321.75.
The US markets ended mostly in
red terrain on Friday, as traders digested the details of the Senate Republican
version of tax reform legislation. The Senate bill includes some significant
differences from the House version, including a delay in the implementation of
a cut in the corporate tax rate. While the Senate version still reduces the
corporate tax rate to 20 percent from 35 percent, the new rate would not take
effect until 2019. The House bill would start the 20 percent rate next year. A
number of other differences related to issues such as deductions and the estate
tax have raised some questions about the outlook for tax reform. House
Republicans could pass their version as early as next week, although it remains
to be seen if GOP lawmakers can overcome the differences in the two bills to
get legislation to the president's desk. However, downside remained capped on
report from the University of Michigan showing a bigger than expected pullback
in consumer sentiment in the month of November. The report said the preliminary
reading on the consumer sentiment index for November came in at 97.8 compared
to the final October reading of 100.7. The Dow Jones Industrial Average lost
39.73 points or 0.17 percent to 23,422.21 and the S&P 00 was down by 2.32
points or 0.09 percent to 2,582.30, while the Nasdaq was up by 0.89 points or
0.01 percent to 6,750.94.
Crude oil futures ended in red on
Friday, trimming strong recent gains as data showed the US oil rig count jumped
last week. Also, as investors fretted over an uptick in US production but
losses were limited as expectations grew that Opec would extend its agreement
on output curbs. Trade was also weighed down by a report from Baker Hughes
showing the number of oil rigs operating in the US rose to the highest in
almost a month by 9 to 738. It was the biggest one-week jump since June. Benchmark
crude oil futures for December delivery ended lower by 0.7 percent at $ 56.74 a
barrel on the New York Mercantile Exchange. Brent crude for January delivery
lost 0.37 percent to $63.56 a barrel on the ICE.
Indian
rupee ended considerably weaker against the US dollar on Friday due to dollar
demand from banks and importers. The sentiments were in pessimistic mood with
the Moody's latest report stating that India is the only G20 emerging market
country where growth has slowed sharply for six consecutive quarters. But it
expects economic growth in 2017 to average 6.2% before accelerating to around
7.5% in 2018 and 2019. Some concern also came with the report that India's
retail inflation is forecast to have sped up to a seven-month high in October,
led by a rebound in food prices as unexpected rains destroyed crops. Meanwhile,
investors have maintained cautious approach ahead of Index of Industrial
Production (IIP) data for September scheduled to be released today. However,
dollar weakened against some currencies overseas due to likely delay in the
implementation of a major corporate tax cut limited the rupee's losses.
Finally, the rupee ended at 65.16, 22 paise weaker from its previous close of
64.94 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 5722.60 crore against gross sell of
Rs 6389.84 crore, while in the debt segment, the gross purchase was of Rs
1174.40 crore with gross sales of Rs 2523.46 crore.
The US markets made a mixed
closing in the last session, as traders continued to digest the details of the
Senate Republican version of tax reform legislation and largely overlooked a report
from the University of Michigan showing a bigger than expected pullback in
consumer sentiment in the month of November. The Asian markets have made a
mixed start and some of the indices are in red as investors seemed seeking
fresh catalysts after last week's run to record highs. Japanese market was down
ahead of its October PPI. The Indian markets ended a choppy session slightly
higher in the last session. Today, the start is likely to be a bit cautious and
weakness can be seen reacting to the industrial production data announced after
market hours on Friday. Industrial output growth fell to 3.8 percent during the
month of September from a revised 4.5 percent rise in August. However, the
markets will keep buzzing and there will be action in GST related stocks whose
rates were tinkered at GST Council's 23rd meeting in Guwahati. The Council
decided to reduce the tax rate on 178 of the current 228 items from 28% to 18%,
with effect from November 15. All restaurants will be taxed at 5%, except those
in hotels with a tariff of ?7,500 or more, which will be taxed at 18% with
input tax credit (ITC). The PSU banking stocks will be in action, as Finance
Minister Arun Jaitley has said that the government has decided to inject more
capital into state-owned banks to strengthen the banking system and spur
economic growth. Steel stocks too will be in focus as the export of total
finished steel saw an annual jump of 45 per cent to 0.778 million tonnes during
October 2017. The overall exports of finished steel stood at 0.537 million
tonnes in the same month last year. There will some important result
announcements too, to keep the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10321.75
|
10268.92
|
10359.77
|
BSE Sensex
|
33314.56
|
33154.96
|
33427.29
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
829.85
|
333.55
|
315.87
|
344.87
|
Tata Motors
|
225.34
|
422.55
|
415.38
|
434.33
|
ICICI Bank
|
210.01
|
318.50
|
311.63
|
324.78
|
ITC
|
167.92
|
261.70
|
259.00
|
264.80
|
Yes Bank
|
115.61
|
304.05
|
300.73
|
308.63
|
Bharti Airtel has entered into a strategic partnership with software solutions provider Amdocs to bring Artificial Intelligence-based services to its customers in India.
Tech Mahindra has entered into a partnership with Unity Technologies to open a Centre of Excellence at its Bengaluru campus.
Tata Motors Group global wholesales in October 2017, including Jaguar Land Rover, stood at 1,03,761 units, higher by 2.7%, over October 2016.
SBI has reported around 89-fold jump in its net profit after minority interest at Rs 1,840.43 crore for Q2FY18 as compared to Rs 20.70 crore for Q2FY17.