Thursday turned out to be a remarkable day of trade for
Indian equity benchmarks where bulls tightened their grip on Dalal Street, with
Nifty and Sensex recapturing their crucial 10,200 and 33,100 levels,
respectively. The markets' mood remained up-beat throughout the day and
benchmarks fervently gained from strength to strength to end near intraday high
levels, as investors continued hunt for fundamentally strong stocks. Key gauges
made a positive opening with Finance Minister Arun Jaitley's statement that
with greater digitisation and formalisation of financial activities and
businesses, India is set to become an “extremely attractive” country to do
business. He, however, acknowledged short-term challenges for the country in
implementing strategic initiatives such as demonetisation and the GST. Adding
to the optimism, Arun Jaitley said that India's economic slowdown has bottomed
out and now it should start moving upwards after recovering from the temporary
blip seen during the recent structural changes. The finance minister also
assured investors of a strong banking sector in India. Some support also came
with Chief economic adviser (CEA) Arvind Subramanian's statement that recent
move by the Goods and Services Tax (GST) Council to cut tax on 178 items,
though, will have marginal impact on the revenue but that will be compensated
by compliance benefits. He also feels that fall in prices will also help keep
inflation under control. Investors took note of a private survey which showed
that Prime Minister Narendra Modi remains by far the most popular figure in
Indian politics, releasing the main findings of its latest survey conducted
among 2,464 respondents in India. The report enlightened that the public's
positive assessment of Modi is buoyed by growing contentment with the Indian
economy: more than eight-in-ten say economic conditions are good. Finally, the
BSE Sensex soared 346.38 points or 1.06% to 33,106.82, while the CNX Nifty was
up by 96.70 points or 0.96% to 10,214.75.
The US markets closed higher on Thursday, with
earnings-inspired gains by Cisco and Wal-Mart helping to set the pace, while
House passage of a Republican-sponsored tax cut plan helped cement the rally.
The passage of the tax bill is widely expected but it does not enjoy bipartisan
support and in all likelihood, the final version is likely to look much
different given that the Senate Finance Committee is proposing a bill that
differs with it in key areas. On the economy front, industrial production in
October jumped 0.9%. There also were upward revisions to July, August and
September readings, enough so that production is now estimated to have dropped
at annual 0.3% rate in the third quarter, against a prior estimate that
production dropped 1.5% during that period. Over the past 12 months, industrial
production has climbed 2.9%. Capacity utilization rose to 77% from 76.4% in
September, compared with the 76.3% reading that economists forecast.
Separately, the Philadelphia Fed's manufacturing index slowed to a reading of
22.7 in November from 27.9 in October. Meanwhile, initial jobless claims, a
tool to measure US layoffs, rose by 10,000 to 249,000 in the week ended
November 11. The Dow Jones Industrial Average added 187.08 points or 0.80
percent to 23,458.36, the Nasdaq gained 87.083 points or 1.30 percent to
6,793.29, and the S&P 500 edged higher by 21.02 points or 0.82 percent to
2,585.64.
Crude oil futures continuing their bearish trend ended
lower on Thursday amid a flurry of U.S. economic data and as investors fretted
over a potential uptick in global supply amid reports that Turkey and Iraq
discussed resuming exports from the Kirkuk-Ceyhan pipeline. The resumed talk sparked
fears of oversupply as many said a possible uptick in exports would forced OPEC
to rein in production. Meanwhile, Energy Information Administration (EIA)
Energy Agency's preliminary US production figures showed weekly output rose by
25,000 to an all-time high of 9.65 million barrels per day, as crude oil
stockpiles rose for second week in arrow. Benchmark crude oil futures for
December delivery ended lower by $0.19 or 0.4 percent at $ 55.14 a barrel on
the New York Mercantile Exchange. Brent crude for January delivery was down by $
0.52 to $61.35 a barrel on the ICE.
Indian
rupee ended marginally weaker against the American currency on Thursday, due to
fresh dollar demand from banks and importers amid foreign fund outflows.
Investors failed to get solace with Arun Jaitley's statement that India's
economic slowdown has bottomed out and now it should start moving upwards after
recovering from the temporary blip seen during the recent structural changes.
Besides, strength in the US dollar against some other currencies overseas too
weighed on the rupee sentiment. Though, splendid gains of local equities
limited further depreciation of Indian currency. On the global front, dollar
trimmed losses against a basket of major currencies after data showed a
surprise rise in retail sales last month as well as an uptick in underlying
inflation, raising expectations for an interest rate hike in December. Finally,
the rupee ended at 65.31, 9 paise weaker from its previous close of 65.22 on
Wednesday.
The
FIIs as per Thursday's data were net buyers in equity segment, while they were
net sellers in debt segment. In equity segment, the gross buying was of Rs
7564.20 crore against gross selling of Rs 5733.42 crore, while in the debt
segment, the gross purchase was of Rs 1591.20 crore with gross sales of Rs
1746.32 crore.
The US markets got a strong bounce back and with the
upward move on the day, the Nasdaq reached a new record closing high. The gains
reflected a positive reaction to better than expected quarterly results from
Wal-Mart and Cisco Systems. The Asian markets have made mostly a positive
start, building up on their last session rally, as risk appetite returned amid
rising odds of U.S. corporate tax cuts and encouraging earnings. The Indian markets rallied in the last
session recovering some ground from the last few sessions slump, on firm global
cues and expectations for further rationalization of Goods and Services Tax
(GST) rates. Today, the start is likely to be in green and the markets will be
extending their gains on positive global cues and as Moody`s Investor Services,
pinning faith in the continued progress on economic front backed by
institutional reforms has lifted the Government of India's local and foreign
currency debt ratings to Baa2 from Baa3. The rating agency said that the
reforms will improve the business climate in the country and raise
productivity. Traders will also be getting some support from statement of
former RBI Governor C Rangarajan who said the inflation, which rose to 3.58
percent in October, may ease by December and end up below 4 percent by the end
of the current fiscal. However, there will be some cautiousness too in India
Inc. as the Reserve Bank of India is likely to come up with a fresh list of
around 50 loan accounts that are either under stress or close to being
classified as non-performing assets. The regulator may set a March 31 deadline
for banks to find a resolution on these or commence bankruptcy proceedings
against the borrowers. There will be buzz in the realty stocks, as the
government has decided to increase the carpet area of houses eligible for
interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle
Income Group (MIG) under Pradhan Mantri Awas Yojana (PMAY). The move also means
that the private developers will have incentives to increase scale.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10214.75
|
10158.55
|
10251.60
|
BSE Sensex
|
33106.82
|
32902.71
|
33238.04
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
225.06
|
333.40
|
326.63
|
337.18
|
Power Grid
|
101.40
|
208.30
|
206.02
|
209.72
|
ITC
|
99.60
|
255.10
|
253.13
|
256.33
|
Bharti Airtel
|
96.27
|
489.90
|
482.40
|
496.15
|
Yes Bank
|
90.09
|
301.30
|
297.88
|
304.33
|
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