Continuing their record hitting
spree, Indian equity benchmarks once again traded jubilantly and settled at all
time closing levels with frontline gauges surpassing their crucial 34,800
(Sensex) and 10,700 (Nifty) levels for the first time ever. Markets started the
session with gap-up start, as traders reacted positively to the IIP numbers, as
an exponential rise in the manufacturing output lifted India's total factory
production by over 8 percent in November from 1.99 percent in October and 5.1
percent during the corresponding period of 2016-17. On a year-on-year basis,
the manufacturing sector expanded by 10.2 percent, whereas mining's output
inched-up by 1.1 percent and the sub-index of electricity generation increased
by 3.9 percent. Some support also came with the wholesale price index-based
inflation easing to a three-month low of 3.58 per cent in December, down from
3.93 per cent the month before. This decline comes after recent data released
by the central statistics office (CSO) had shown that retail inflation had
risen to a 17-month high of 5.21 per cent in December up from 4.88 per cent in
November. However, India's annual retail inflation data accelerated in December
to a 17-month high of 5.21 percent, mainly driven by faster rises in prices of
food and fuel products. Some support also came with report that foreign
investors have pumped in over Rs 5,200 crore in the Indian capital markets this
month so far on anticipation of recovery in corporate earnings and attractive
yields. Traders also took some encouragement with a foreign brokerage report
enlightening that Indian economy is expected to witness an average GDP growth
of 7.3% over 2020-22. According to the global financial services major, the
structural growth story in India remains strong from a medium term perspective.
The report highlighted that the uptick in the private capex cycle, which it
anticipates will begin in 2018, will ensure that the economy enters into a sustained
and productive growth cycle. Also traders reacted positively to report that the
World Economic Forum (WEF) has ranked India at 30th position on a global
manufacturing index -- below China's 5th place but above other BRICS peers,
Brazil, Russia and South Africa. Finally, the BSE Sensex surged 251.12 points
or 0.73% to 34,843.51, while the CNX Nifty was up by 60.30 points or 0.56% to
10,741.55.
The US markets remained closed on
Monday on account of ‘Martin Luther King Jr. Day' holiday.
Crude oil futures remained flat
in a holiday thinned trade on Monday, though Nymex crude still continued
hovering near multi-year highs as overall optimism regarding the rebalancing of
the market continued to support the commodity. Trading volume remained thin as
there was no floor trading on the Nymex because of the Martin Luther King Day
holiday in the US. Benchmark crude oil futures for February delivery was up by
$0.11 or 0.17 percent at $64.41 a barrel in electronic trading on the New York
Mercantile Exchange. Brent crude for March delivery was down by 5 cents or 0.09
percent to $69.83 a barrel on the ICE.
Indian
rupee shed most of its early gains but still ended higher against the American
currency on Monday, due to selling of the US currency by exporters and banks.
Sentiments remained positive as India's inflation on wholesale level eased in
the month of December, supported by lower food articles and minerals prices.
Also, industrial production growth accelerated to 25-month high of 8.4% in
November 2017, as compared to 5.1% in November 2016, on the back of robust
performance of manufacturing and capital goods sectors. Besides, the dollar's
weakness against some currencies overseas along with good gains in local
equities largely supported the rupee trade. However, the local currency trimmed
most of its initial gains, as some concern came with data showing that India's
retail inflation or Consumer Price Index (CPI) shot up to a 17-month high of
5.2% in the month of December 2017, as against 3.41% growth in December 2016.
On the global front, euro held at three-year highs against dollar on Monday
after last week's surge, its rise fueled by growing expectations that the
European Central Bank will tighten monetary policy, while the dollar weakened
further. Finally, the rupee ended at 63.48, 14 paise stronger from its previous
close of 63.62 on Friday.
The
FIIs as per Monday'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
5944.46 crore against gross selling of Rs 5973.57 crore, while in the debt
segment, the gross purchase was of Rs 547.17 crore with gross sales of Rs
385.95 crore. Besides, in the hybrid segment, there was no buying against gross
selling of Rs 1.47 crore.
The US markets remained closed in
the last session on Martin Luther King Day holiday, unable to give any cues to
the other global markets. The Asian markets have made a mixed start taking a
breather in the absence of fresh catalysts to spur the rally on. The yen halted
a five-day advance as Japanese Finance Minister Taro Aso said sudden moves in
exchange rates are a problem. The Indian markets surged to fresh record highs
on firm global cues with strong industrial output data boosting sentiment.
Today, the start is likely to be flat but in green, supported by the unexpected
drop in the wholesale price inflation to 3.58 percent at the month of December.
Traders however, will be a bit cautious with the merchandise export growth
slowing sequentially to 12.4% in December, while imports jumping 21.1% during
the month, aided by a spike in crude oil prices and a favourable base. The
trade deficit widened to its highest level in over three years in December to
$14.9 billion, a three-year peak. However, excluding the almost 35% rise in oil
purchases from overseas, overall imports rose 17.2% in December. The export
oriented stocks will be in focus, as the various export bodies have expressed
concern over delay in refunds under GST and have written to the Union Commerce
Ministry seeking faster refunds. There will be lots of important companies
announcing their quarterly earnings today, keeping the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10741.55
|
10709.35
|
10778.20
|
BSE Sensex
|
34843.51
|
34699.25
|
34975.73
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
ICICI Bank
|
302.42
|
329.30
|
322.80
|
333.25
|
SBI
|
181.90
|
302.60
|
301.02
|
304.72
|
ITC
|
105.38
|
267.60
|
266.03
|
270.13
|
HDFC
|
94.86
|
1871.20
|
1803.90
|
1912.65
|
Yes Bank
|
71.42
|
336.00
|
332.83
|
341.43
|
Tata Motors' subsidiary -- JLR is planning to open new software hub at Shannon in Ireland.
TCS has expanded strategic technology partnership with Marks and Spencer to enable the iconic retailer to become a digital-first business.
Lupin has made a foray into the OTC segment under the 'Lupin Life Consumer Healthcare' umbrella with the pan-India launch of Softovac.
HDFC is planning to raise about Rs 11,100 crore from a preferential share sale to investors including affiliates of Singapore state investor GIC and private equity KKR & Co. LP.