Bulls which
woke up in last leg of trade mainly helped the benchmarks to end near intraday
highs on Wednesday, with frontline gauges recapturing their crucial 37,700
(Sensex) and 10,350 (Nifty) levels. Markets made a cautious start and traded
choppy for most part of the day as traders remained on sidelines ahead of
macroeconomic data such as Index of Industrial Production (IIP) and Consumer
Price Index (CPI) to be announced after the market hours. Market participants
remain concerned with private report that regulatory policies pose the biggest
risks for companies over the next three years, followed by cyber security and
technology disruptions. The report showed a divide on the viewpoint of risk
management amongst Indian organisations. Key gauges gained momentum and changed
gear in last leg of trade to end near intraday highs, as traders took
encouragement with report that India's exports grew by 19.21% to $27.84 billion
in August on account of healthy performance by sectors such as petroleum.
Merchandise imports too rose by 25.41% in August to $45.24 billion due to the
rising crude oil prices, leaving a trade deficit of $17.4 billion. In July,
trade deficit soared to a near five-year high of $18.02 billion. Some support
also came with Moody's Investors Service's report that the sharp depreciation
in rupee's valuation is unlikely to impact India's sovereign credit profile as
rupee-denominated government bonds and robust foreign exchange reserves
mitigate the risk. Market participants also got some relief with the Finance Ministry's
statement that the decision to double the limit to Rs 20 lakh for filing
applications in debt recovery tribunals will help them focus on high value
matters leading to quicker recovery of bad loans. Some optimism also came with
report that India's GDP growth is likely to have peaked in the first quarter of
this fiscal and going ahead some moderation is expected as weaker rupee and
rising oil prices remain two major headwinds for the economy. Some optimism also
came with the department of financial services (DFS) expecting good recovery of
bad loans by the public sector banks (PSBs) in the second quarter of the
current financial year. Finally, the BSE Sensex surged 304.83 points or 0.81%
to 37,717.96, while the CNX Nifty was up by 82.40 points or 0.73% to 11,369.90.
The US markets ended higher on
Thursday with gains of over half a percent following reports the US is
proposing a new round of trade talks with China in the near future. US Treasury
Secretary Steven Mnuchin has reportedly sent an invitation for talks to senior
Chinese officials, proposing a meeting in the next few weeks. Traders also
reacted positively to a report from the Labor Department showing consumer
prices rose by less than expected in the month of August. The Labor Department
said its consumer price index rose by 0.2% in August, matching the increase
seen in July. Excluding food and energy prices, core consumer prices inched up
by 0.1% in August after rising by 0.2% for three straight months. Core prices
had been expected to show another 0.2% increase. The report also said the
annual rate of consumer price growth slowed to 2.7% in August from 2.9% in
July. Core consumer prices were up by 2.2% year-over-year in August compared to
the 2.4% increase in the previous month. Meanwhile, according to a report
released by the Labor Department, first-time claims for US unemployment
benefits unexpectedly edged slightly lower in the week ended September 8. The
report said initial jobless claims dipped to 204,000, a decrease of 1,000 from
the previous week's revised level of 205,000. Dow Jones Industrial Average
surged 147.07 points or 0.57 percent to 26145.99, the S&P 500 rose 15.26
points or 0.53 percent to 2904.18 and Nasdaq was up by 59.48 points or 0.75
percent to 8013.71.
Crude oil futures settled lower
on Thursday, with benchmark prices plunging back from the nearly two-month high
seen a day earlier, as an industry report showed global supplies at a record
and Hurricane Florence weakened ahead of its expected landfall on the East
Coast. In a closely followed monthly report, the International Energy Agency
(IEA) said daily crude-oil output in the Organization of the Petroleum
Exporting Countries climbed in August by 420,000 barrels a day, to average
32.63 million a day. That output more than made up for an expected decline in
Iranian supply due to extant and pending US economic sanctions. Benchmark crude
oil futures for October plunged $1.78 or 2.5 percent to settle at $68.59 a
barrel on the New York Mercantile Exchange. November Brent crude dropped $1.56
or 2% to settle at $78.18 a barrel on London's Intercontinental Exchanged.
Recovering from its all-time low,
Indian rupee ended considerably stronger against the Greenback on Wednesday on
fresh selling of dollar by exporters as well as banks. Rupee sentiment was
support by report highlighting that India's exports grew by 19.21% to $27.84
billion in August on account of healthy performance by sectors such as
petroleum. Market-men took encouragement with Moody's Investors Service's
report stating that the sharp depreciation in rupee's valuation is unlikely to
impact India's sovereign credit profile as rupee-denominated government bonds
and robust foreign exchange reserves mitigate the risk. On the global front,
the dollar consolidated gains on Wednesday as markets remained cautious about
trade talks between the US and Canada, as protracted weakness in China's
currency weighed on sentiments. Finally, the rupee ended at 72.18, 27 paise
stronger from its previous close of 72.45 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 8066.35 crore against gross selling
of Rs 9461.75 crore, while in the debt segment, the gross purchase was of Rs
1064.47 crore with gross sales of Rs 975.14 crore. Besides, in the hybrid
segment, the gross selling of Rs 0.28 crore against no buying.
The US markets ended higher on
Thursday following recent reports that the US is proposing a new round of trade
talks with China in the near future. Asian markets were trading in green on
Friday as moves by the US and China to resolve a bitter trade dispute and a
sharp interest rate hike in crisis-hit Turkey supported global risk appetite.
The Indian markets made a strong come back on Wednesday after two sessions of
continues fall, amid a recovery in the rupee coupled with reports that India's
exports grew by 19.21% to $27.84 billion in August. Today, the markets are
likely to make a gap-up opening following positive cues from global markets
coupled with good macroeconomic data. Retail inflation of India cooled to an
11-month low of 3.69% in August mainly due to a fall in prices of kitchen
items, including fruits and vegetables, while industrial production grew at
6.6% in July, slightly faster than the expected 6.5% expansion, on the back of
good performance by the manufacturing sector and higher offtake of capital
goods and consumer durables. There will be some support with a private report
that private equity (PE) and venture capital (VC) investments stood at $1.6
billion across 50 deals in August, with buyout deals recording two times
increase in value compared to the year-ago period. Traders may take note of a
report that the government is determined to keep fiscal deficit within the
budgeted level of 3.3% of GDP as the country cannot afford to have a twin
deficit problem. Meanwhile, the government has notified October 1 as the date
for implementing the tax deducted at source (TDS) and tax collected at source
(TCS) provisions under GST law. As per the Central GST (CGST) Act, the notified
entities are required to collect TDS at 1% on payments to goods or services
suppliers in excess of Rs 2.5 lakh. Also, states will levy 1% TDS under state
laws. There will be some buzz in banking sector stocks with report that banks
need to take a haircut of 40-60% to have a rating of RP4 for implementation of
any resolution plan, with bad loans worth over Rs 50,000 crore under RBI's
independent credit evaluation (ICE) framework. There will be some reaction
among the textiles sector stocks as India Ratings and Research maintained a
stable outlook on the cotton and synthetic textiles sector for the remaining
period of this financial year. It expects the domestic demand for textiles to
remain robust from end-users, supported by a strong rise in private consumption
during the rest of FY19.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,369.90
|
11,286.48
|
11,417.03
|
BSE Sensex
|
37,717.96
|
37,455.78
|
37,866.36
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
261.21
|
314.30
|
309.95
|
319.30
|
SBI
|
227.18
|
285.30
|
281.30
|
288.00
|
ITC
|
194.24
|
306.80
|
298.93
|
311.13
|
ICICI Bank
|
152.63
|
322.90
|
318.58
|
327.13
|
Tata Motors
|
144.56
|
262.40
|
258.10
|
267.45
|
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Wipro has entered into partnership with Anaplan to deliver cloud-based EPM solutions that will simplify and automate core enterprise functions for clients, across industry sectors.
Tech Mahindra will setup 5G Center of Excellence which is powered by Intel technology in Redmond, Washington in USA and Bengaluru in India.