Bears tightened their grip on
Dalal Street on the last trading day of the week, with Sensex and Nifty ending
lower by over 200 and 50 points, respectively.
After a cautious start, key benchmarks remained negative throughout the
day, as credit rating agency ICRA expects further deterioration in the growth
of India's GDP to 4.7 per cent in Q2 of FY2020, due to weakening momentum in
industry. Adding more worries among investors, Former Reserve Bank of India
(RBI) governor C Rangarajan said that reaching the $5-trillion Gross Domestic
Product (GDP) target by 2025 is simply out of question at the current growth
rate. Indices extended their losses in the second half of the session, despite
positive cues from global markets. The street remained pessimistic with a
report that merger & acquisition (M&A) deals in the month of October
dropped by 45 percent in value terms and 40 percent in volume terms compared to
the corresponding period last year.
Traders paid no heed towards the Confederation of Indian Industry's
(CII) jointly survey report, conducted along with Grant Thornton, that over 95
percent of businesses believe that good corporate governance practices help
organizations achieve better operational and financial results. Finally, the
BSE Sensex lost 215.76 points or 0.53% to 40,359.41, while the CNX Nifty was
down by 54.00 points or 0.45% to 11,914.40.
The US markets ended higher on
Friday following report that President Donald Trump has said a trade agreement
with China is very close and that the two economic superpowers have a very good
chance to make a deal. Earlier, President Xi had injected some measure of hope
into a market that has grown more uncertain about a partial US-China trade deal
materializing. Xi said we want to work for a Phase 1 agreement on the basis of
mutual respect and equality. He was quoted as saying, during a forum in Beijing
attended by a delegation of foreigners. China's chief trade negotiator Liu He
remained optimistic about striking a trade deal and invited his US counterparts
for more talks. On the economic data front, with consumers more optimistic
about the future than previously estimated, the University of Michigan released
a report showing a much bigger than expected upward revision to its reading on
US consumer sentiment in the month of November. The report said the consumer
sentiment index for November was upwardly revised to 96.8 from the preliminary
reading of 95.7. The revised reading is well above the final October reading of
95.5. The stronger than previously estimated improvement in consumer sentiment
came as the index of consumer expectations for November was upwardly revised to
87.3 from 85.9. The index came in at 84.2 in October. The current economic
conditions index was also upwardly revised to 111.6 from 110.9 but is still
down from 113.2 in the previous month.
Crude oil futures ended lower on
Friday with traders taking some profits following recent gains. Concerns over
the delay in the US and China closing in on an interim trade deal, and worries
about energy demand outlook due to global economic slowdown weighed on oil
prices. However, Baker Hughes reported a
fifth consecutive weekly decline in the US oil-rig count. The number of active
US rigs drilling for oil fell by 3 to 671 this week. The front-month US
benchmark West Texas Intermediate (WTI) contract ended 0.1% lower for the week,
while Brent, the global benchmark, saw weekly gain of roughly 0.1% weekly gain.
Benchmark crude oil futures for January fell 81 cents or 1.4 percent to settle
at $57.77 a barrel on the New York Mercantile Exchange. January Brent dropped
58 cents or 0.9 percent to settle at $63.39 a barrel on London's
Intercontinental Exchange.
Indian
rupee ended marginally higher against dollar on Friday, on selling of dollars
by banks and exporters. Traders took some support with report that India and
the United States are in talks to resolve trade issues and both New Delhi and
Washington hope to find an early solution. However, further gains got
restricted as ratings agency ICRA expects India's growth rate to further
slowdown to 4.7% in second quarter ended September 30, 2019, amid subdued
domestic demand and weak investment activity. On the global front, dollar was
marginally down on Friday and risk appetite boosted by statements from China on
the need to find a solution to the tit-for-tat tariff war with the United
States, raising hopes that a phase one deal could be reached. Finally, the
rupee ended at 71.71, 5 paise stronger from its previous close of 71.76 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
10310.04 crore against gross selling of Rs 5303.96 crore, while in the debt
segment, the gross purchase was of Rs 731.93 crore with gross sales of Rs
1054.43 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.44
crore against gross selling of Rs 56.03 crore.
The US markets ended higher on
Friday after Chinese President Xi Jinping called for Beijing and Washington to
strengthen communications, but still lost ground for the week. Asian markets are
trading in green on Monday after the US and China made positive comments on the
trade deal. Indian markets ended lower for second straight session on Friday as
investors exercised caution and avoided long positions amid mixed global cues.
Today, the start of the crucial F&O series expiry week is likely to be
slightly in green following positive global cues. Investors will be looking
ahead to the Gross Domestic Product (GDP) data due later in the week. Traders
will be taking some encouragement with data showing that after declining for
four consecutive months, investments through participatory notes (P-notes) in
the Indian capital market marginally rose to Rs 76,773 crore at the end of
October. Some support will come with a survey by the National Statistical
Office (NSO) showing that urban unemployment rate dropped to the lowest level
in four quarters at 9.3 per cent during January-March 2019. Also, the Reserve
Bank of India (RBI) data showed that India's forex reserves rose by $441
million to a fresh lifetime high of $448.249 billion in the week to November 15
on an increase in core currency assets. However, there may be some cautiousness
as the government raised concerns over fake invoices being generated in the
business-to-business (B2B) segment which is impacting GST collections. Also,
traders may be concern with CARE Ratings' report that the ongoing growth
slowdown is taking a toll on investments, as fresh funding for projects fell to
a 15 year low in the first half of FY20. Traders may take note of Reserve Bank
of India (RBI) Governor Shaktikanta Das' statement that there is a great need
to institutionalize state finance commissions and helping the local bodies
enhance their revenue generation capacities. Meanwhile, the government plans to
amend the Insolvency and Bankruptcy Code (IBC) to provide immunity to companies
taking over stressed assets from prosecution for financial crimes committed by
erstwhile promoters. This will help make the insolvency process more attractive
for the bidders and instill confidence in them. There will be some buzz in the
banking stocks with Deputy Governor N S Vishwanathan's statement that the
Reserve Bank is looking at introducing new rules on corporate governance for
banks in sync with global ones, and would also like lenders to disclose more.
There will be some reaction in oil stocks with report that the government may
end the cross-holding structure existing in the oil sector as it looks to
further consolidate operations of public sector enterprises and go ahead with
its privatization plan by getting a fair valuation of assets.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,914.40
|
11,875.90
|
11,960.50
|
BSE Sensex
|
40,359.41
|
40,206.44
|
40,582.78
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,217.92
|
64.80
|
63.82
|
65.97
|
ZEEL
|
621.27
|
358.10
|
340.87
|
369.07
|
SBI
|
289.75
|
329.30
|
327.10
|
332.65
|
Tata Motors
|
212.01
|
162.35
|
160.18
|
164.88
|
ICICI Bank
|
184.62
|
496.80
|
492.05
|
501.65
|
Tech Mahindra has signed a MoU with Business Finland, a government agency directed by the Finnish Minister of Employment and the Economy, for R&D in 5G and 6G.
HDFC Bank has reached an important milestone of 100 branches in Pune District.
Coal India's supply of coal to the power sector has dropped by 8.5 percent to 253MT in the April-October period of 2019-20.
Maruti Suzuki is planning to introduce BS-6 petrol version of its two models, Brezza and S-Cross, before April 1, 2020, as the new BS 6 fuel emission norms are set to kick in from April 1, 2020.