Indian equity benchmarks ended
the volatile day of trade with a gain of around half a percent, with frontline
gauges recapturing their crucial 31,800 (Sensex) and 9,950 (Nifty) levels, as
traders went for bargain hunting after yesterday's drubbing. Markets made an
optimistic start with traders taking encouragement with Prime Minister Narendra
Modi's statement at BRICS Summit 2017 that India is fast changing into one of
the most open economies in the world, with improvements on global indices and
the biggest ever reform GST weaving the nation into one unified market.
Investors also took note that the all powerful GST Council may consider
lowering tax on items of common consumption if the high trajectory of
collections continues over the next few months. The tax reduction could be
either on items of common consumption or a cut in headline rate which will
benefit consumers. However, markets pared all of their initial gains and
entered into red terrain in noon deals with market participants turning
cautious with the domestic rating agency Crisil lowering its growth forecast to
7 percent for fiscal 2018, down from 7.4 percent earlier, as it sees
disruptions arising from the implementation of the new uniform tax regime to
continue to impact the economy for a few more quarters. Sentiment was also
hampered after activity in India's dominant services sector contracted for a
second straight month in August on disruptions caused by GST hurt new orders. August's Nikkei/IHS Markit Services
Purchasing Managers' Index rose to 47.5, from July's 45.9 but still below the
50 mark that separates expansion from contraction. Finally, the BSE Sensex
surged 107.30 points or 0.34% to 31,809.55, while the CNX Nifty was up by 39.35
points or 0.40% to 9,952.20.
The US markets closed lower on
Tuesday, with the S&P 500 snapping a six-day winning streak, as investors
focused on heightened tensions between the West and North Korea and worries
about a lack of progress on President Donald Trump's pro-growth agenda. Low
trading volume, particularly as investors returned from a holiday-lengthened
Labor Day weekend, added to the downbeat tone on Wall Street. On the economy
front, factory orders for July slumped after being propelled in the previous
month by a flurry of orders for Boeing aircraft. Orders fell 3.3% in July,
after an upwardly revised 3.2% gain in June. That's the biggest monthly drop in
nearly three years. Orders for non-defense capital goods excluding aircraft
jumped 1%. Meanwhile, Federal Reserve Governor Lael Brainard pointed out that
inflation has not hit the Fed's 2% annual target over the past five years and
the recent soft inflation may be due to depressed underlying inflation. The Dow
Jones Industrial Average lost 234.25 points or 1.07 percent to 21,753.31, the
Nasdaq dropped 59.76 points or 0.93 percent to 6,375.57, and the S&P 500
edged lower by 18.7 points or 0.76 percent to 2,457.85.
Crude oil futures extended their
gains and surged on Tuesday, as Gulf Coast refineries resumed operations,
following the disruptions caused by Hurricane Harvey last week. Prices were
supported by a stronger dollar and concerns about rigs in the Gulf of Mexico. Just
a week after Hurricane Harvey, Hurricane Irma is bearing down on Caribbean
islands and may be heading for the Gulf of Mexico as a category 4 or 5 storm. Benchmark
crude oil futures for October delivery ended up by $1.37 or 2.91 percent to $48.66
on the New York Mercantile Exchange. In London, Brent crude for October
delivery ended higher by 1.70 percent at $53.24 a barrel on the ICE.
Falling
for the third-straight session, Indian rupee ended weaker against the US dollar
on Tuesday, due to increased demand of the greenback from the importers and the
banks. Sentiments remained down-beat with the domestic rating agency Crisil
lowering its growth forecast to 7 percent for fiscal 2018, down from 7.4
percent earlier, as it sees disruptions arising from the implementation of the
new uniform tax regime to continue to impact the economy for a few more
quarters. However, dollar weakened overseas along with gains in the local
equity markets, limited the further slide of the currency. On the global front,
dollar slipped against Japanese yen on Tuesday as global tensions simmered amid
signs that North Korea could conduct more missile tests. Finally, the rupee
ended at 64.13, 7 paise weaker from its previous close of 64.05 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 2236.20 crore against gross selling
of Rs 3082.73 crore, while in the debt segment, the gross purchase was of Rs
793.33 crore with gross sales of Rs 956.87 crore.
The US markets coming after a
long weakened suffered sharp selloff in the last session with tech heavy Nasdaq
suffering its biggest one day fall in last three months. The decline was in reaction
to geopolitical concerns following news North Korea conducted a major nuclear
test on Sunday. The Asian markets have made mostly a soft start tailing the
weakness in the US markets overnight with persisting North Korean worries.
Traders girded for a potential intercontinental ballistic missile launch by
Pyongyang, which will celebrate its "foundation day" Saturday. The Indian markets picked up pace in the
second half of the last session to post decent gains and the benchmarks
reclaimed their crucial levels despite some weak macro data. Today, the start
is likely to be a bit somber on sluggish global cues. Fresh North Korean
tension has gripped the markets across the world. There will be buzz in the
markets with the government saying that names of over 2.09 lakh firms have been
struck off from register of companies for failing to comply with regulatory
requirements and action has been initiated to restrict operations of their bank
accounts. The Centre has also stepped up action against such entities by
bringing in restrictions on the operation of their bank accounts by their
existing directors and authorised representatives. There will be some buzz in
the garment and textile sector, as the garment exporters have asked the Centre
for clarity on the refund process for Integrated Goods and Services Tax (IGST)
paid on import of machinery as they were not in a position to use input tax
credit. Banking stocks too will be in action as former RBI Governor Raghuram
Rajan has said that the biggest challenge is cleaning up the balance sheets of
public sector banks.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9952.20
|
9914.47
|
9976.52
|
BSE Sensex
|
31809.55
|
31701.36
|
31890.60
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Bank of Baroda
|
108.00
|
138.40
|
136.60
|
139.60
|
SBI
|
95.65
|
276.55
|
275.17
|
278.72
|
Coal India
|
95.38
|
253.85
|
247.40
|
257.50
|
ITC
|
78.20
|
282.85
|
281.67
|
283.97
|
ICICI Bank
|
76.84
|
297.60
|
296.53
|
298.83
|
Wipro has launched its newest digital pod in Edinburgh, Scotland, deepening its commitment to offer digital services at close proximity to its UK and European customers.
ONGC will raise its first debt ever, of Rs 25,000 crore, to part fund the Rs 37,000 crore acquisition of government's stake in HPCL.
Maruti Suzuki India has reported 23.34% rise in its production to 1,57,863 units in August 2017, as compared to 1,27,991 units in August 2016.
TPDDL, a joint venture of Tata Power and the Government of Delhi, will roll out 2.5 lakh smart meters in the first phase of the project in its licensed area of 510 sq km in North and North-West Delhi.