Indian stock
markets witnessed a fairly stable day of trade on Thursday as sanguinity got
reinforced after minutes of the US Federal Reserve meeting signaled no interest
rate hikes in the near term and raised hopes that the pace of foreign inflows
into the domestic market would continue.
Sentiments remained optimistic for most part of the session as Jharkhand
becoming the third state to ratify the Goods and Services Tax Amendment Bill in
a special session of the Legislative Assembly. The state of Assam and Bihar had
already passed the GST Bill. The government has set a deadline of April 2017
for its rollout. Also, a new UN report which calls for more transparent
policies if the country aspires to become a global driver of innovation, has
ranked India 66th in a list of most innovative economies, a jump of 15 places
from last year. Some support came with
Moody's report on emerging market highlighting that India is seeing gradual
progress on reforms and the country's outlook will largely be determined by
domestic factors. The report maintained Gross Domestic Product (GDP) growth
forecast for India at 7.5% adding that India now seems less vulnerable than it
used to be. However, market participants remained cautious with the private
report indicating that headline inflation is expected to continue its rally
through the rest of this fiscal, while WPI is likely to average 3.9 per cent,
CPI will average close to 5 per cent in 2016-17. Meanwhile, mild buying witnessed in selected
Steel makers with a Moody's report that steel demand in India will outpace the
regional average, while the profitability of domestic steel companies will
outperform regional peers on account of an increase in domestic demand. On the
global front, Asian markets ended mostly higher on Thursday, while European
shares rose for the first time in a week. Back home, the benchmark got off to a
positive start in the morning trade as investors were largely influenced by the
supportive leads from Asian markets. Thereafter, the frontline indices soon
capitalized on the momentum and touched intraday highs in late morning session
but the indices failed to hold onto the highs on account of profit booking in
few sectors. Finally, the BSE Sensex gained 118.07 points or 0.42% to 28123.44,
while the CNX Nifty rose by 49.20 points or 0.57% to 8,673.25.
The US markets ended modestly
higher in a rather subdued trade on Thursday. Though there were some good
earnings supporting the markets but traders seemed reluctant to make
significant moves as they continued to digest the minutes of the Federal
Reserve's latest meeting, which suggested that officials were divided about the
outlook for monetary policy. On the US economic front, the Labor Department
released a report, showing a modest decrease in initial jobless claims in the
week ended August 13th. The report said initial jobless claims edged down to
262,000, a decrease of 4,000 from the previous week's unrevised level of
266,000. A separate report from the Philadelphia Federal Reserve showed tenuous
growth in regional manufacturing activity in the month of August. The Dow Jones
Industrial Average was up by 23.76 points or 0.13 percent to 18,597.70, S&P
500 ended up by 4.80 points or 0.22 percent to 2,187.02, while the Nasdaq added
11.49 points or 0.22 percent to 5,240.15.
Crude oil futures extending their
upmove surged on Thursday, with Brent crude moving over $50 a barrel after
early July, on prospects that major producers could reach a deal to stabilize
worldwide energy markets at a closely-watched meeting next month. OPEC head
Chakib Khelil made some affirmative comment on the possibility of a production
freeze by participants at an energy forum in Algeria in late-September. Benchmark
crude oil futures for September delivery surged by $1.38 or 2.88 percent to
close at $48.17 a barrel after trading in a range of $46.63 and $48.38 a barrel
on the New York Mercantile Exchange. In London, Brent oil futures for October
delivery was up by $0.95 or 1.91 percent to $50.80 a barrel on the ICE.
Indian
rupee ended lower on Thursday due to sustained demand for dollar from banks and
importers. Investors remained cautious with the private report indicating that
headline inflation is expected to continue its rally through the rest of this
fiscal, while WPI is likely to average 3.9 per cent, CPI will average close to
5 per cent in 2016-17. However, strong gains in the equity market restricted
the rupee losses. On the global front, the dollar eked out some gains against
the yen, with traders cautious about pushing the Japanese currency much higher
amid expectations that the Bank of Japan could intervene. Finally the rupee
ended at 66.81, stronger by 5 paise from its previous close of 66.76 on Tuesday
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 11312.47 crore against gross
selling of Rs 10531.19 crore, while in the debt segment, the gross purchase was
of Rs 771.69 crore with gross sales of Rs 998.71 crore.
The US markets managed to extend
the gains in last session albeit modestly, reacting to some positive earnings,
though the mood was dampened by slight increase in jobless claims. The Asian
markets have made mostly a positive start and the Japanese stocks advanced over
half a percent in early deals as the yen retreated and crude oil continued its
upmove after entering into a bull market. The Indian markets surged in last
session, snapping their two days losing streak, supported by upbeat banking
stocks. Today the start is likely to be in green and the markets will be
extending the gains on supportive global cues. Also, as Moody's Investors
Service has retained India's growth forecast at 7.5 per cent for 2016 and
revised upwards estimates for China to 6.6 per cent citing strong fiscal and
monetary support. Apart from equity markets there will be buzz in the bond
markets, as an expert panel with an aim to develop corporate bond market in
India, has suggested easing of norms for foreign investors, a corporate bond
index on lines of Sensex or Nifty, and making it mandatory for large corporates
to tap this market for funds beyond a threshold. There will be action in steel
stocks, India has slapped anti-dumping duty on certain cold-rolled flat steel
products from four nations including China and South Korea to guard domestic
industry from cheap imports. Realty stocks too will be in upbeat mood, as a report
on residential market has said that the affordable housing market doubled in
new launches in the first half of 2016 as against the same time last year.SBI
and its associates too will be in action as the board of State Bank of India
(SBI) has approved the swap ratio for taking over four banks -- three of its
associate banks as well as Mahila Bank. The merger will create a banking
behemoth with an asset book of Rs 37 lakh crore.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8673.25
|
8648.63
|
8694.28
|
BSE Sensex
|
28123.44
|
28062.24
|
28199.41
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ICICI Bank
|
188.41
|
252.90
|
249.17
|
255.22
|
State Bank of India
|
143.15
|
248.40
|
246.50
|
250.35
|
Axis Bank
|
120.89
|
593.15
|
590.20
|
596.70
|
Power Grid
|
116.24
|
182.00
|
177.77
|
184.72
|
Adani Ports
|
94.39
|
275.45
|
269.93
|
278.98
|
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Reliance Brands, a part of Reliance Industries, has entered into a long-term master franchise agreement with Amsterdam-based fashion brand Scotch & Soda.
Mahindra and Mahindra's South Korean subsidiary SsangYong Motor, has decided to recall the Rexton SUV in India.
Tata Consultancy Services and JetBlue, one of the leading airlines in the US, are ramping up their relationship to strategically optimize and transform key business channels and enhance digital customer touch points.