Extending winning streak for third straight day, Indian
equity benchmarks ended the Monday's trade on optimistic note with frontline
gauges recapturing their crucial 35,700 (Sensex) and 10,750 (Nifty) levels.
After a positive opening, there appeared not even an iota of profit booking in
the session with benchmarks fervently gaining from strength to strength to end
near intraday highs, as investors continued hunt for fundamentally strong
stocks. Sentiments remained up-beat with former Niti Aayog Vice Chairman Arvind
Panagariya's statement that the government has made a huge progress in
implementing reforms including some difficult structural ones such as the Goods
and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC) that previous
governments had difficulty in introducing. He also said that the Centre should
stick to the fiscal deficit target for 2018-19. Investors took note of report
stating that the government may push the Reserve Bank of India (RBI) to allow
more active participation by government nominees to the central board in the
decision-making process and keep them informed about key regulatory issues.
Meanwhile, the government expects to garner at least Rs 50 billion through
share buyback offers of state-run companies, including Coal India, in the
current financial year. Buying in last leg of trade helped markets to end near
intraday high levels as optimism remained among traders with a private report
stating that corporate India reported a good set of numbers during the
July-September 2018 quarter, thanks to gains from a low base during the
corresponding quarter last fiscal year and a better-than-expected showing by
metals and mining firms. Market participants remained optimistic on Commerce
and Industry Minister Suresh Prabhu's statement that the development of
industrial park rating system would help increase competitiveness of industries
and promotion of the manufacturing sector. The system is being developed by the
ministry to assess industrial parks in the country based on four pillars
internal and external infrastructure, connectivity, environment and safety
management, and business support services. Finally, the BSE Sensex gained
317.72 points or 0.90% to 35,774.88, while the CNX Nifty was up by 81.20 points
or 0.76% to 10,763.40.
The US markets
closed sharply lower on Monday with the Nasdaq falling to its lowest closing
level in almost five months, as the biggest and most popular technology stocks
plunged. Facebook and Apple led the losses. The sell-off on markets came in
from morning trade after a report showed home-builders' confidence plummeted in
November. Reflecting growing affordability concerns, the National Association
of Home Builders (NAHB) released a report showing a sharp drop in US
homebuilder confidence in the month of November. The report said the NAHB/Wells
Fargo Housing Market Index plunged to 60 in November after inching up by one
point to 68 in October. Street had expected the index to edge down to 67. With
the much bigger than expected decrease, the housing market index dropped to its
lowest level since hitting 59 in August of 2016. NAHB Chief Economist Robert
Dietz said that Builders report that they continue to see signs of consumer
demand for new homes but that customers are taking a pause due to concerns over
rising interest rates and home prices. The much bigger than expected pullback
by the index was partly due to a steep drop by the component gauging
expectations in the next six months, which plummeted to 65 in November from 75
in October. Besides, negative sentiment was also generated amid lingering
concerns about the outlook for the global economy along with uncertainty about
the potential for a trade deal between the US and China. Dow Jones Industrial Average plunged 395.78
points or 1.56 percent to 25,017.44, S&P 500 dropped 45.54 points or 1.66
percent to 2,690.73 and Nasdaq was down by 219.40 points or 3.03 percent to
7,028.40.
Crude oil futures ended slightly higher on Monday getting
some support from report that the European Union (EU) backs a decision by the
French government to sanction Iran nationals linked to a bomb plot in France.
EU ministers said technical work could begin on an asset freeze on two Iranians
and the Iranian intelligence service over a failed plot to attack a rally near
Paris. Meanwhile, oil traders also weighed the likelihood that major producers
due to meet early next month will decide on sizable output cuts to stave off an
expected global glut of crude supplies. Benchmark crude oil futures for
December gained 30 cents or 0.5 percent to settle $56.76 a barrel on the New
York Mercantile Exchange. January Brent crude added 3 cents or less than 0.05
percent to settle at $66.79 a barrel on London's Intercontinental Exchange.
Rising
for the fifth consecutive day, Indian rupee ended considerably stronger against
dollar on Monday, on continued selling of the American currency by exporters
and banks. Sentiments remained buoyant with former Niti Aayog Vice Chairman
Arvind Panagariya's statement that the government has made a huge progress in
implementing reforms including some difficult structural ones such as the Goods
and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC) that previous
governments had difficulty in introducing. He also said that the Centre should
stick to the fiscal deficit target for 2018-19. Besides, good gains in the
local equity markets coupled with dollar losing sheen against some other
currencies overseas mainly aided the currency's appreciation. On the global
front, dollar was modestly lower against its key rivals on Monday after Federal
Reserve officials expressed caution over the global growth outlook, prompting
traders to reassess the pace of future US interest rate increases. Finally, the
rupee ended at 71.67, 26 paise stronger from its previous close of 71.93 on
Friday.
The FIIs as per Monday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 5713.35 crore against gross selling of Rs 4858.98 crore, while
in the debt segment, the gross purchase was of Rs 1561.42 crore with gross
sales of Rs 496.14 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.40 crore against gross selling of Rs 5.41 crore.
The US markets ended deeply lower on Monday after report
which showed that home-builders' confidence plummeted in November. The report
said the NAHB/Wells Fargo Housing Market Index plunged to 60 in November after
inching up by one point to 68 in October. Negative sentiment also generated as
the biggest and most popular technology stocks plunged. Asian markets were
trading lower on Tuesday in morning deals mirroring a technology sell-off
overnight on Wall Street amid concerns over iPhone demand and the US-China
trade war. Domestic equity markets ended higher with gains of around one
percent on Monday ahead of the outcome of the Reserve Bank of India's (RBI)
board meeting. Both the markets clocked their best closing levels since October
03. Gains in FMCG, auto, metal, infotmation technology and pharma stocks pushed
the domestic markets higher. Today, the start is likely to be somber tailing
the weakness in other global markets. Investor sentiments may also remain mixed
post the RBI board meeting that concluded on Monday evening. India's central
bank signaled a compromise with the government by agreeing to study a demand
for sharing a part of its capital -- an issue that had triggered a public spat
between the monetary policy makers and their political bosses. The RBI's board
has decided to set up an expert committee to examine the central bank's
Economic Capital Framework (ECF). The membership and terms of reference of the
ECF committee will be jointly determined by the government and the RBI. It also decided that the central bank's Board
for Financial Supervision (BFS) will examine the issues concerning the banks
that are under the Prompt Corrective Action framework. The Board also advised
RBI to consider scheme for restructuring of stressed assets of MSME with
aggregate credit facilities of up to Rs 25 crore. The Board, while deciding to retain the CRAR
at 9%, agreed to extend the transition period for implementing the last tranche
of 0.625% under the Capital Conservation Buffer (CCB), by one year, i.e., up to
March 31, 2020. With regard to banks under PCA, it was decided that the matter
will be examined by the Board for Financial Supervision (BFS) of RBI. Traders
may take note of a report that Prime Minister Narendra Modi has set an
ambitious deadline of December-end to implement as many business reforms as
possible on the ground so that India could break into the top 50 of the World
Bank Ease of Doing Business next year and said efforts are on to nearly double
the size of country's economy to $5 trillion.
Meanwhile, Union Minister Suresh Prabhu has said the commerce ministry
will soon start consultations with its finance counterpart and other ministries
to implement the suggestions made by a committee on revamping special economic
zones. The banking sector stocks will be in action as the RBI said it will
inject Rs 8,000 crore into the system through purchase of government securities
on November 22. There will be some buzz
in the sugar stocks on report that India's sugar production till November 15
was 11.63 lakh tonnes as compared to 13.73 lakh tonnes produced during same
period of previous year; down by about 15% due to delayed start of crushing operations
in Uttar Pradesh.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,763.40
|
10,709.90
|
10,795.80
|
BSE Sensex
|
35,774.88
|
35,584.38
|
35,892.11
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
643.30
|
204.80
|
197.45
|
209.05
|
ITC
|
167.20
|
284.50
|
279.00
|
287.50
|
ICICI Bank
|
160.02
|
362.40
|
358.53
|
368.48
|
Tata Motors
|
145.23
|
184.60
|
180.63
|
187.03
|
SBI
|
138.00
|
288.15
|
284.97
|
292.42
|
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TCS has entered into partnership with SAP to build the iRDM solution, powered by SAP Leonardo, to help rail customers digitally transform their businesses.
BSDU has MoU with Hero MotoCorp to deliver training to the students in the area of two-wheeler technologies.