Indian equity benchmarks traded
choppy for most part of the day and witnessed sharp selling activity in final
hour of trade which forced to close Tuesday's session near of the day's low.
Markets made slightly positive start, as the government is planning to raise at
least Rs 10,000 crore through the seventh tranche of CPSE ETF which will open for
anchor investors on Thursday. Some optimism also came with a private report
indicated that Finance Minister Nirmala Sitharaman's first full year Budget is
expected to provide short-term stimulants to boost consumer demand, and such
measures will get a positive response from markets. However, key indices erased
gains and turned choppy in early noon deals with traders turning cautious ahead
of the presentation of Union Budget due on Saturday, which may include
government measures to revive economic growth that has slipped to a more than
six-year low. Markets witnessed sudden selloff in the last leg of trade, as the
investors sentiment were weighed by the impact of coronavirus on China's and
the world economy. Some anxiety also came with Nobel laureate and economist
Abhijit Banerjee's statement that the country could be passing through a phase
of recession, and there is ‘nothing in the data' that suggests otherwise. He
added that the priority of the government should be on refinancing the banking
sector, which is in ‘doldrums'. Meanwhile, Labour Minister Santosh Gangwar has
expressed confidence that Occupational, Safety, Health and Working Conditions
(OSH) code will get Parliament approval in the Budget session beginning this
Friday. Finally, the BSE Sensex slipped 188.26 points or 0.46% to 40,966.86,
while the CNX Nifty was down by 63.20 points or 0.52% to 12,055.80.
The US markets ended higher on
Tuesday as some traders looked to pick up stocks at relatively reduced levels
after the sharp drop seen on Monday. Adding to the positive sentiment, the
Conference Board released a report showing a notable improvement in US consumer
confidence in the month of January. The Conference Board said its consumer
confidence index climbed to 131.6 in January from an upwardly revised 128.2 in
December. Street had expected the consumer confidence index to rise to 127.8
from the 126.5 originally reported for the previous month. The Conference
Board's Economic Indicators -- Lynn Franco said consumer confidence increased
in January, following a moderate advance in December, driven primarily by a
more positive assessment of the current job market and increased optimism about
future job prospects. She added optimism about the labor market should continue
to support confidence in the short-term and, as a result, consumers will
continue driving growth and prevent the economy from slowing in early 2020
Crude oil futures ended higher on
Tuesday, after five successive days of losses, as prices rebounded a bit, on
reports OPEC and allies might reduce crude output due to a likely drop in
energy demand following the coronavirus outbreak. Besides, Data showing an
improvement in US consumer confidence in the month of January, and a bigger
than expected increase in durable goods orders in the month of December
contributed a bit to oil's uptick. Crude oil futures for March gained 34 cents
or 0.6 percent to settle at $53.48 a barrel on the New York Mercantile
Exchange. March Brent rose 19 cents or 0.3 percent to settle at $59.51 a barrel
on London's Intercontinental Exchange.
Halting
a three-day slide, Indian rupee ended stronger against dollar on Tuesday, due
to increased selling of the American currency by exporters and banks and easing
crude oil prices. Traders took support with a private report indicating that
Finance Minister Nirmala Sitharaman's first full year Budget is expected to
provide short-term stimulants to boost consumer demand, and such measures will
get a positive response from markets. However, late hour sell-off in domestic
equity market along with dollar's strength against major global currencies
capped the gains. On the global front, dollar held at 8-week high against its
rivals on Tuesday as investors focused on the economic fallout from a new
coronavirus in China. Finally, the rupee ended at 71.33, 10 paise stronger from
its previous close of 71.43 on Monday.
The FIIs as per Tuesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 3067.98 crore against gross selling of Rs 3242.23 crore, while
in the debt segment, the gross purchase was of Rs 403.92 crore with gross sales
of Rs 576.70 crore. Besides, in the hybrid segment, the gross buying was of Rs
19.98 crore against gross selling of Rs 20.97 crore.
The US markets ended higher on
Tuesday as gains in technology and financial sectors helped major indexes
recover from their worst selloff in about four months on worries over a
coronavirus outbreak and its impact on the global economy. Asian markets were trading higher in early
deals on Wednesday as better-than-expected Apple Inc earnings drove some
regional tech gains although broader confidence was capped by worries about the
economic impact of China's virus outbreak. Markets traded choppy throughout the
day and ended with cut of around half a percent on Tuesday amid continued fears
about the outbreak of the deadly coronavirus in China. Today, the start is
likely to be good on positive global cues and traders will be drawing
encouragement with report that in order to protect prudent commercial decision
of bankers, the government has taken a slew of decisions, including doing away
with personal responsibilities of MD and CEO of PSBs for compliance in dealing
with large value frauds committed by bank officials. Powers have been delegated
by Department of Financial Services (DFS) to the Boards of public sector
lenders to put in place a suitable mechanism for ensuring compliance of the
various timelines laid down in RBI and CVC circulars. Besides, some support may
also come with private reports that government is expected to raise spending on
infrastructure and cut some personal tax in its 2020-2021 budget, to spur
consumer demand and investment. However, the International Monetary Fund urged
policymakers to keep a close eye on financial vulnerabilities such as rising
debt levels that could pose medium-term risks to the global economy and said
further monetary easing was not the answer. The infrastructure sector stocks
will be in action as Union Minister Nitin Gadkari said five banks are willing
to provide Rs 2.5 trillion for highway projects, and stressed on the need for
insurance of infrastructure projects. There will be some buzz in the
agriculture stocks on report that the commerce ministry said India has pitched
for elimination of trade-distorting subsidies on agriculture and ensuring
differential treatment to developing countries by the WTO members. Also, the
insurance stocks will keep buzzing on report that the insurance regulator has
come up with guidelines to protect the interests of group insurance
policyholders of merging state-run banks. The regulator said upon the merger of
public sector banks (PSBs), group health insurance policies of customers of the
merged banks shall continue to be serviced by the insurer till the end of the
policy period.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
12,055.80
|
11,999.02
|
12,138.07
|
BSE Sensex
|
40,966.86
|
40,779.99
|
41,243.49
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
1,061.67
|
41.65
|
40.83
|
42.88
|
Tata Motors
|
382.84
|
176.10
|
172.57
|
181.97
|
Bharti Airtel
|
310.91
|
491.25
|
480.10
|
508.40
|
SBI
|
264.88
|
315.10
|
310.77
|
319.72
|
ICICI Bank
|
240.09
|
528.20
|
521.57
|
537.72
|
Maruti Suzuki India has changed the price for select models owing to increase in input costs.
Cipla has received the EIR from USFDA, indicating closure of the inspection at the Invagen (US) manufacturing facility.
Infosys has completed the divestment of its shares in Unsilo A/S for a total consideration of approximately $0.8 million on January 28, 2020.
Coal India has received green clearances for 17 mining projects, a move that will enable the world's largest coal miner to achieve one-billion-tonne production target.