Jubilation continued on Dalal
Street for second straight session and Indian equity benchmarks ended the
session with a gain of over half a percent, recapturing their crucial 10,300
(Nifty) and 33,400 (Sensex) levels. Markets after a gap-up opening traded with
traction with exit polls indicating both Himachal Pradesh and Gujarat going in
favour of ruling BJP. Exit polls conducted by various polling agencies have
predicted that BJP would retain Gujarat, the major battle ground despite a
reduced margin of seats in the 182-member assembly. Some support also came with
global rating agency Moody's statement that it has a stable outlook for
non-financial corporate in the country, except for telcos, on which it has a
negative outlook for 2018. It said that stable outlook is underpinned by the
expectation that GDP growth of around 7.6% will result in higher sales volumes.
Traders also took some encouragement with Finance minister Arun Jaitley
identifying infrastructure creation, resolution of non-performing assets and
recapitalization of banks as the priority areas to push the country further on
growth path. Sentiments also remained up-beat as the International Monetary
Fund (IMF), which is slated to come out with an update of its projections of
India's growth rate along with the rest of the world in January, sees benefits
in the medium-term from the demonetisation exercise which India carried out
about a year ago. Besides, traders took support with the private report stating
that India's economic growth has bottomed out and the GDP growth will recover
further to 7% over the next few quarters but it is likely to take few years to
return to 7.5% above levels. Though, markets ended off day highs, as traders
opted for wait and watch approach, eyeing the winter session of Parliament.
During a total of 14 sittings over a duration of 22 days, both the Houses, Lok
Sabha and Rajya Sabha, will take up 25 Bills, including GST compensation to
states, for consideration and passing. Finally, the BSE Sensex surged 216.27
points or 0.65% to 33,462.97, while the CNX Nifty was up by 81.15 points or
0.79% to 10,333.25.
The US markets closed higher on
Friday and booked weekly gains, as investor expectations grew for passage of
Republican-backed tax-cut legislation. Politics surrounding the tax bill
continued to influence markets. A last-minute expansion of the child tax credit
persuaded Sen. Marco Rubio, a Florida Republican, to back the measure. Rubio on
Thursday threatened to vote against the tax bill unless it included an
expansion of the child tax credit. On the economy front, industrial production
in the US rose 0.2% in November to mark the third straight advance. Although
the increase was only half as big as the forecast called for, a large gain in
October was even stronger than initially reported, likely easing any worries.
Higher production in November was spurred by oil-and-gas companies getting
fully back online after a series of hurricanes.
On the other hand, the Empire State manufacturing index fell slightly in
December, to a reading of 18 from 19.6 in November. The Dow Jones Industrial Average added 143.08
points or 0.58 percent to 24,651.74, the Nasdaq gained 80.057 points or 1.17
percent to 6,936.58, and the S&P 500 edged higher by 23.8 points or 0.90
percent to 2,675.81.
Crude oil futures extended gains
on Friday, supported by data showing the number of oil rigs operating in the US
fell for the first time in six weeks. Traders largely overlooked the
International Energy Agency (IEA) warning that U.S. production would offset
OPEC's supply quota plan again in 2018. IEA noted that on considering the final
component in the balance - non-OPEC production - it see that 2018 might not be
quite so happy for OPEC producers. Rising US oil production comes as OPEC
compliance with the deal to curb production reached its highest this year,
rising to 115%. Meanwhile, data from energy services firm Baker Hughes showed
that the number of oil rigs operating in the US for week ending Dec. 15, fell
by four to 747. Benchmark crude oil futures for January delivery ended higher
by $0.26 or 0.4 percent at $57.30 a barrel on the New York Mercantile Exchange.
Brent crude for February delivery was down by $0.05 to $63.26 a barrel on the
ICE.
Continuing
its winning run for the second straight session, Indian rupee ended
significantly higher against dollar on Friday, due to sustained selling of the
US currency by exporters and banks. Traders took encouragement with exit polls
indicating both Himachal Pradesh and Gujarat going in favour of ruling BJP.
Some cheer also spread among the investors as International Monetary Fund (IMF)
sees benefits in the medium-term from the demonetisation exercise which India
carried out about a year ago. That apart, the rupee derived its strength from
strong gains in the local equity markets as well as strength of other Asian
currencies against dollar. On the global front, dollar slipped to a nine-day
low against yen on Friday, after wrangling in the United States Congress over a
bill to change the tax code dented confidence that the reforms would be pushed
through in their current state. Finally, the rupee ended at 64.04, 30 paise
stronger from its previous close of 64.34 on Thursday.
The
FIIs as per Friday'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
5252.85 crore against gross selling of Rs 4788.00 crore, while in the debt
segment, the gross purchase was of Rs 605.60 crore with gross sales of Rs
1041.82 crore.
The US markets moved higher in
the last session, lifting all three of the major averages to new record closing
highs, as traders expressed optimism about Republican lawmakers passing tax
reform legislation. The Asian markets have made mostly a positive start after a
Republican agreement on the shape of US tax cuts aimed at boosting growth in
the world's largest economy. The Indian markets surged in last session after
exit poll results predicted a win for the Bharatiya Janata Party in the
recently held Gujarat and Himachal Pradesh state assembly elections. Today, the
start of the crucial day is likely to be in green on positive global cues and
bourses will extend their gains as investors await the outcome of elections in
Gujarat and Himachal Pradesh. With the progress of the day markets would start
reacting to the election outcome once they start pouring in. There will be
support to the markets with the data from the commerce department, which showed
that India's exports rose at a faster clip in November, reversing the
contraction in the previous month. Exports grew 30.6 per cent in November from
a year ago,while imports rose 19.6 per cent. Traders will also be getting some
encouragement with statement of an UN expert that India can achieve an eight
percent growth rate for the next two decades by promoting investment and
improving the living conditions of its people. There will be some cautiousness
too, as the industry body, Assocham has said that India Inc will have to factor
in political realities weighing on economic decisions of the government,
including in the forthcoming budget, as several major states are going to polls
in 2018. Meanwhile, in a bid to plug gaps, the all- powerful GST Council has decided
to implement the e-way bill mechanism throughout the country by June 1 after
reviewing the readiness of the IT network. Under the e-way bill system, goods
worth more than Rs 50,000 have to be pre-registered online before they can be
moved from one state to another.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10333.25
|
10310.90
|
10364.35
|
BSE Sensex
|
33462.97
|
33371.87
|
33588.01
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
Vedanta
|
258.96
|
298.00
|
292.00
|
301.95
|
ICICI Bank
|
232.27
|
303.15
|
300.23
|
308.38
|
Yes Bank
|
205.71
|
315.90
|
309.45
|
319.90
|
SBI
|
160.51
|
312.25
|
309.38
|
317.23
|
Power Grid
|
127.43
|
198.85
|
196.85
|
201.50
|
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