Extending their winning streak
for seventh straight session, Indian equity benchmarks ended the trade with a
gain of over quarter a percent, recapturing their crucial 10,350 (Nifty) and
33,600 (Sensex) levels. Sentiments remained upbeat throughout the session with
traders taking support from a private report that the slowdown in the economy
has bottomed out, and going forward, the pace of recovery will depend on
initiatives the government takes to boost growth momentum, especially private
investment. The report added that there has been improvement on some parameters
of the economy following the slowdown, post demonetization and GST. Traders
also took some encouragement with the Union minister Suresh Prabhu's statement
that the commerce and industry ministry is chalking out a 'proper' business
plan based on market research in its bid to promote exports of goods and
services. He added that proper market segmentation is the need of the hour to
understand the potential of domestic goods and services. Securities and
Exchange Board of India's (SEBI) plan to ease takeover rules to speed up the
resolution of insolvency proceedings for stressed companies as local lenders
seek to recover about Rs 9 lakh crore from entities rendered unviable by the
mounting debt pile, too aided sentiments. Markets continued taking support from
report that the global ratings agency Standard & Poor's (S&P) will
revise India's sovereign ratings. In 2012, the outlook for the country was
lowered to negative, which was raised to stable soon after the Modi government
assumed office in 2014. The rating, however, remained unchanged at 'BBB-'. Some
support also came with Confederation of Indian Industry's (CII) statement that
the government's recent move to give infrastructure status to the logistics
industry in India, will not only spur growth, but will also bring in more
investments into this sector. Traders also took some comfort with the
President's assenting to the ordinance to amend the Insolvency and Bankruptcy
Code (IBC) that will bar defaulters from bidding for the stressed assets
received thumbs up from stakeholders who described it as a major step towards
providing comfort to incoming new investors. Finally, the BSE Sensex gained
91.16 points or 0.27% to 33,679.24, while the CNX Nifty was up by 40.95 points
or 0.40% to 10,389.70.
The US markets ended the
abbreviated trading session with marginal gains on Friday. Trading activity
remained subdued, however, as many traders remained away from their desks
following the holiday. An early close on Wall Street also contributed to the light
trading. Traders remained on sidelines ahead of congressional testimony which
may attract attention next week, as the Senate Banking Committee is due to hold
a confirmation hearing for Federal Reserve Chair nominee Jerome Powell. Current
Fed Chair Janet Yellen is also scheduled to testify on the economic outlook
before the Congressional Joint Economic Committee. Also, market participants
opted to stay away from risky assets ahead of reports on new home sales,
consumer confidence, personal income and spending, and manufacturing activity
which may also attract attention next week. The Dow Jones Industrial Average
gained 31.81 points or 0.14 percent to 23,557.99, the S&P 500 jumped 5.34
points or 0.21 percent to 2,602.42, while the Nasdaq was up by 21.80 points or
0.32 percent to 6,889.16.
Crude oil futures ended at a
fresh two week high on Friday on a report suggesting OPEC and Russia agreed on
a plan to extend output curbs lifted sentiment. Traders also got some support
with tighter supplies amid ongoing disruption to the Keystone pipeline. The Keystone
pipeline leak has kept shipments from Canada's oil sands from reaching US Gulf
refineries, but should be allievated soon. Meanwhile, OPEC meets November 30 to
decide whether to process with supply quotas. Benchmark crude oil futures for
December delivery ended higher by $0.93 or 1.6 percent at $58.95 a barrel on
the New York Mercantile Exchange. Brent crude for January delivery was up by 0.58
percent to $63.90 a barrel on the ICE.
Indian
rupee ended weaker against dollar on Friday on account of increased demand for
dollar from banks and importers. Investors failed to get solace with a private
report that the slowdown in the economy has bottomed out, and going forward,
the pace of recovery will depend on initiatives the government takes to boost
growth momentum, especially private investment. The report added that there has
been improvement on some parameters of the economy following the slowdown, post
demonetization and GST. However, gains of local equities coupled with dollar's
weakness against the basket of other major currencies limited further
depreciation of Indian currency. On the global front, US dollar was listless
against euro after data showed that the euro zone economy continued to improve
and job creation grew at its fastest pace in 17 years. Finally, the rupee ended
at 64.70, 13 paise weaker from its previous close of 64.57 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
5676.89 crore against gross selling of Rs 4300.13 crore, while in the debt
segment, the gross purchase was of Rs 74.44 crore with gross sales of Rs 342.41
crore.
The US markets made a positive
closing in the last session; the strength partly reflects recent upward
momentum, which helped to lift the major averages to new record closing highs
earlier in the week. The Asian markets have made mostly a lower start, as investors
turned their attention to U.S. tax reform ahead of a busy week with data on the
health of the world's biggest economies. The Indian markets had shown a
continued bull-run in the passing week and ended higher in the last session,
making it a seven days gaining streak. Today, the start of the crucial week of
F&O expiry is likely to be a bit soft-to-cautious on sluggish regional cues
and there will be some knee-jerk reaction to Standard & Poor's decision of
retaining its sovereign rating for India at BBB- with a stable outlook, dashing
hopes of another upgrade after rival Moody's lifted its rating by a notch after
a gap of nearly 14 years. However, State Bank of India (SBI) Chairman Rajnish
Kumar has said that Standard & Poor`s (S&P) refusal to upgrade India`s
sovereign ratings will have no major impact on the country`s creditworthiness. Traders
will also be concerned with industry body Assocham's statement that inflation
would remain a key concern for the RBI and the government, dimming hopes of a
cut in interest rates. Direction for the market may be influenced by GDP and
PMI data for the manufacturing sector due later this week. Meanwhile, Niti
Aayog Vice Chairman Rajiv Kumar has said the time has come for consolidation of
reforms, including GST, bankruptcy code and benami law, initiated by the Modi
government in the last 42 months to ensure that the steps deliver the "desired
fruits". He added that evidence of substantial increase in employment, concerns
over job creation is quite exaggerated. Traders will also be getting some
support with Chief Economic Adviser (CEA) Arvind Subramanian's statement that going
forward the Goods and Services Tax (GST) may "probably" have fewer rates by "collapsing"
12 percent and 18 percent tax slabs into one. There will be some buzz in the
gems and jewellery segment, as the commerce ministry is working on a package in
consultation with the gems and jewellery industry to boost export and create
jobs in this labour intensive sector.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10389.70
|
10366.47
|
10408.72
|
BSE Sensex
|
33679.24
|
33633.30
|
33731.85
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
117.17
|
332.40
|
330.27
|
335.77
|
Infosys
|
93.10
|
1009.55
|
993.40
|
1022.50
|
ICICI Bank
|
78.67
|
317.20
|
315.08
|
320.18
|
ITC
|
73.48
|
260.75
|
258.72
|
262.12
|
Yes Bank
|
73.32
|
313.05
|
311.42
|
315.32
|
SBI has launched a unified integrated app called YONO that would offer all kinds of financial and lifestyle products.
HDFC Bank is aiming to transform lives in 1,000 villages by March 2019 as part of its CSR.
YES Culture, the cultural arm of Yes Bank, and Sahapedia have teamed up to host the 'India Heritage Walk Festival'.
M&M has entered into collaboration with Uber to explore the deployment of electric vehicles on the Uber platform in several cities across India.