Bears held their grip over Dalal
Street on Tuesday, with Sensex & Nifty losing over 200 & 50 points,
respectively. Markets made a sluggish start of the day, as the International
Monetary Fund slashed India's growth estimate to 4.8% for 2019. Though, it
expects growth to be 5.8% in 2020 & rise to 6.5% in 2021. The street
remained worried with a survey report stating that a record level of pessimism
has creeped into the CEOs across the world regarding the worldwide economic
growth. For the first time, more than half of the CEOs surveyed by global
consultancy PwC said they believe the rate of global GDP growth will decline. Weakness
persisted in the markets during the whole day, on the back of weak global
markets. Traders remained pessimistic, even after the retirement fund body,
Employees' Provident Fund Organisation (EPFO) in its latest Provisional
Estimate of Net Payroll data report showed that India created 1162863 new jobs
in the month of November 2019 as against revised figure of 647764 in October
2019. The street overlooked a UN report showing that India was among the top 10
recipients of Foreign Direct Investment in 2019, attracting $49 billion in
inflows, a 16% increase from the previous year, driving the FDI growth in South
Asia. Finally, the BSE Sensex lost 205.10 points or 0.49% to 41,323.81, while
the CNX Nifty was down by 54.70 points or 0.45% to 12,169.85.
The US markets ended lower on
Tuesday, following the holiday on Monday, amid concerns about the economic
impact of a deadly coronavirus outbreak in China. Chinese officials revealed
the coronavirus outbreak has resulted in six deaths among nearly 300 confirmed
cases, with the virus confirmed to be transmissible among humans. Meanwhile,
the Centers for Disease Control and Prevention confirmed the first
travel-related case of the coronavirus in the United States. It said the first
case of coronavirus infection in the US was diagnosed in the state of
Washington in a patient who recently returned from Wuhan, China. Meanwhile, the
World Health Organization was said to be considering declaring an international
public health emergency over the virus, as it did with swine flu and Ebola.
Sentiments were also downbeat on report that the International Monetary Fund
(IMF) downwardly revised its forecast for global economic outlook due to bigger
than expected slowdowns in emerging markets like India. The IMF said it now
expects 3.3 percent global growth in 2020 compared to its previous estimate for
3.4 percent growth. The organization also lowered its 2021 growth forecast to
3.4 percent from 3.6 percent. Besides, President Donald Trump's impeachment
trial began in earnest on Tuesday, with Sen. Majority Leader Mitch McConnell
submitting a proposal that could result in a speedy trial and Trump possibly
being acquitted of wrongdoing.
Crude oil futures ended lower on
Tuesday as investors worry about rising global supplies and a potential
slowdown in global economic growth overshadowed a supply disruption in the
Middle East due to unrest in Libya and Iraq. In a monthly report, the Energy
Information Administration (EIA) forecast a monthly rise in US shale oil
production of 22,000 barrels a day to 9.2 million barrels a day in February.
Oil output from the Permian Basin is expected to see the biggest increase, but
oil output from the Anadarko, Eagle Ford and Niobrara regions are expected to
see monthly declines. Crude oil futures for February lost 20 cents or 0.3
percent to settle at $58.34 a barrel on the New York Mercantile Exchange. March
Brent declined 61 cents or 0.9 percent to settle at $64.59 a barrel on London's
Intercontinental Exchange.
Continuing
its weakening trend for the fourth straight session, Indian rupee depreciated
marginally against dollar on Tuesday, on increased demand for the US currency
from importers. Traders remain concerned after the International Monetary Fund
(IMF) cut its growth estimate for India to 4.8% for 2019. IMF Chief Economist
Gita Gopinath said growth in India slowed sharply owing to stress in the
non-bank financial sector and weak rural income growth. It also expects growth
to be 5.8% in 2020 and rise to 6.5% in 2021. The weak trade in the local equity
market also adversely impacted local forex trade. However, dollar losing sheen
against other currencies overseas capped the losses to some extent. On the
global front, yen rallied on Tuesday, as the spread of a pneumonia-like virus
in China sparked a sudden bout of risk aversion and rattled world markets.
Finally, the rupee ended at 71.21, 10 paise weaker from its previous close of
71.11 on Monday.
The
FIIs as per Tuesday's data were net buyers in both equity and debt segments. In
equity segment, the gross buying was of Rs 5926.44 crore against gross selling
of Rs 4624.98 crore, while in the debt segment, the gross purchase was of Rs
438.86 crore with gross sales of Rs 345.74 crore. Besides, in the hybrid
segment, the gross buying was of Rs 8.98 crore against gross selling of Rs 8.38
crore.
The US markets ended in red on Tuesday
amid reports that the Chinese coronavirus had spread to the US raising fears of
a pandemic that might affect global economic growth. Asian markets are trading
mostly higher on Wednesday amid authorities confirmed more than 300 cases of
the virus in China and US President Donald Trump's impeachment trial formally
opened in the Senate. Indian markets ended range-bound trade in red on Tuesday
for second consecutive session after the International Monetary Fund (IMF)
lowered growth estimate for India to 4.8% for 2019. Today, the markets are
likely to open in green after heavy sell-offs in the last two sessions and as
poor economic growth outlook raises prospects of further government measures in
the Budget. Some encouragement will come with Union Minister Piyush Goyal's
statement that India is working on ways to have fairer and more equitable terms
in its trade relationships with various countries. Besides, traders may take
note of report that the government has set up a National Startup Advisory
Council to advise the Centre on measures needed to build a strong ecosystem for
nurturing innovation and start-ups in the country. Though, some cautiousness
may come with a private report that direct tax collections between April to
January 15 of this fiscal, have shown a negative growth of -6.1 percent. There
will be some buzz in the Telecom stocks as the Supreme Court agreed to hear
telcos' petitions to modify its October 24 order that made them liable to pay
up more than Rs 1 trillion of adjusted gross revenue (AGR) dues by January 23.
Auto stocks will be in focus with Automobile dealers' body FADA stating that
retail sales of passenger vehicles in December 2019 declined 9 percent to
2,15,716 units year-on-year, as even the best offers failed to lift weak
consumer sentiments. There will be some reaction in insurance stocks with
global ratings agency Moody's Investors Service's statement that despite low
penetration, the ongoing economic slowdown will impact insurance premium
collections over the next two to three years. Also, there will be some buzz in
the FMCG stocks with a private report stating that after falling for five
quarters, a recovery in growth could be on the horizon for the country's
fast-moving consumer goods (FMCG) sector. There will be lots of important
earnings announcements too, to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,169.85
|
12,144.75
|
12,212.50
|
BSE Sensex
|
41,323.81
|
41,234.54
|
41,472.83
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
672.16
|
38.35
|
37.90
|
39.00
|
Bharti Airtel
|
640.01
|
511.75
|
505.77
|
516.37
|
Indian Oil Corporation
|
465.12
|
114.80
|
113.22
|
117.42
|
SBI
|
305.92
|
313.70
|
311.48
|
316.43
|
Bharti Infratel
|
246.34
|
240.50
|
228.75
|
247.90
|
Tata Motors has introduced the holistic ZConnect, which offers 35 advanced connected car features that will electrify drive experience with seamless connection to its Nexon EV.
Eicher Motors' motorcycle arm -- Royal Enfield has unveiled its model Himalyan with BS-VI compliant engine with price starting at Rs 1.86 lakh.
ICICI Bank has launched a cardless cash withdrawal facility from its ATMs with a per-day transaction limit of Rs 20,000.
Bajaj Finance has added three new products under its Pocket Insurance and Subscriptions category.