Rally continued on Dalal Street
on Monday, with Sensex and Nifty garnering around half a percent gains each.
The start of day was cautious but soon markets gained momentum, aided by Union
Commerce and Civil Aviation Minister Suresh Prabhu's statement that India has
the potential to be a $5 trillion economy in the next 7-8 years. Prabhu said
his department had prepared a road map to make this possible by focusing on
manufacturing, service sector and agriculture. Adding more optimism on the
street, central bank Governor Shaktikanta Das said that the Reserve Bank of
India (RBI) will make all efforts to maintain financial stability and to
facilitate enabling conditions for sustainable and robust growth. Some comfort
also came with a private report that India is likely to surpass the United
Kingdom in the world's largest economy rankings in 2019. The report projects
real GDP growth of 1.6% for the UK, 1.7% for France and 7.6% for India in 2019.
The trade remained positive for the whole day, amid RBI's report showing that
the forex reserves continued its upward march and increased by $1.267 billion
to $397.351 billion in the week to January 11, 2019, aided by a rise in core
currency assets and value of gold. Traders were seen taking note of a private
report stating that Indian billionaires saw their fortunes swell by Rs 2,200
crore a day last year, with the top 1% of the country's richest getting richer
by 39% as against just 3% increase in wealth for the bottom-half of the
population. However, some gains got trimmed in the last leg of the trade, amid
India Ratings and Research's latest report stating that the cumulative fiscal
deficit of Indian states is expected to rise following the announcement of farm
support packages ahead of national elections due by May. The aggregate budget
deficit of Indian states is estimated to increase to 3.2% of gross domestic
product (GDP) in the next financial year beginning April, compared with 2.8%
estimated for the current year. Finally, the BSE Sensex gained 192.35 points or
0.53% to 36,578.96, while the CNX Nifty was up by 54.90 points or 0.50% to
10,961.85.
The US markets remain closed on
Monday in honor of Martin Luther King Jr. Day.
Extending
fall for the second day, Indian rupee depreciated against dollar on Monday, on
increased demand for the greenback from importers amid rising crude prices.
Traders remained cautious with India Ratings and Research's latest report
stating that the cumulative fiscal deficit of Indian states is expected to rise
following the announcement of farm support packages ahead of national elections
due by May. The aggregate budget deficit of Indian states is estimated to
increase to 3.2 percent of gross domestic product (GDP) in the next financial
year beginning April, compared with 2.8 percent estimated for the current year.
However, local currency gave up most of its intraday session losses, as traders
found some support with RBI's report showing that the forex reserves continued
its upward march and increased by $1.267 billion to $397.351 billion in the
week to January 11, 2019, aided by a rise in core currency assets and value of
gold. On the global front, dollar held near a two-week high on Monday,
shrugging off concerns about weakening global growth and data showing China's
economy slowed sharply in 2018. Finally, the rupee ended at 71.28, 9 paise
weaker from its previous close of 71.19 on Friday.
The FIIs as per Monday'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 1763.27 crore against gross
selling of Rs 3691.70 crore, while in the debt segment, the gross purchase was
of Rs 2060.87 crore with gross sales of Rs 960.12 crore. Besides, In the hybrid
segment, the gross selling was of Rs 0.09 crore against no buying.
The US markets remain closed on
Monday in observance of the Martin Luther King Jr. holiday, providing a pause
after a bullish tilt on Wall Street to start 2019. Asian markets were trading
in red on Tuesday amid signs of pessimism about world growth, while sterling
dithered as the latest plan for Brexit appeared to come and go with no
progress. Indian markets extended their gains for fifth straight session and
ended higher with gains of around half a per cent each, supported by strong
gains in heavyweight Reliance Industries coupled with positive global cues.
Today, the start is likely to be weak amid lackluster cues from Asian peers and
no leads from US markets as they were shut for a holiday on Monday. There will
be some cautiousness with India Ratings' report warning that with populist
decisions like farm loan waivers and other financial support schemes likely to
gain significance in the run-up to the forthcoming next general elections,
aggregate fiscal deficit of the states is expected to reach 3.2 per cent in
FY20. It expects the states' revenue account on aggregate to clock a deficit of
0.5 per cent of Gross Domestic Product (GDP) in FY20 due to a higher growth in
revenue spends than revenue receipt. However, traders may get support later in
the day with the International Monetary Fund's (IMF) statement that India will
further build its lead as the world's fastest-growing major economy as it picks
up pace next year while the global economy is forecast to slow. India's GDP is
forecast to expand 7.5% in FY20 and 7.7% in FY21, while China's growth is seen
at 6.2% in both years. It added that India's economy is poised to pick up in
2019, benefiting from lower oil prices and a slower pace of monetary tightening
than previously expected, as inflation pressures ease. Some support may also
come as the Reserve Bank of India (RBI) proposed to relax norms for entry of
new players in the retail payment systems with a view to give a boost to
innovation and competition. The RBI has been issuing guidelines for various
payment systems and grants authorisation to non-banks for setting up and
operating payment systems. There will be some buzz in the sugar sector stocks
with industry body Indian Sugar Mills Association (ISMA) revising downward the
country's sugar output for the second time to 30.7 million tonne (MT) for the
ongoing marketing year 2018-19, owing to a diversion for ethanol making. There
will be some reaction in leather sector stocks with report that the Council for
Leather Exports (CLE) has sought reduction of GST rate to 12 percent on
footwear priced above Rs 1,000, to boost manufacturing and exports. There will
be some important earnings announcements too to keep the markets buzzing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,961.85
|
10,902.58
|
11,004.28
|
BSE Sensex
|
36,578.96
|
36,386.81
|
36,736.07
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Sun Pharma
|
489.37
|
398.30
|
390.05
|
406.55
|
Yes Bank
|
373.05
|
191.95
|
188.27
|
198.07
|
Reliance
Industries
|
220.39
|
1,237.70
|
1,204.25
|
1,255.55
|
Wipro
|
156.22
|
337.80
|
332.37
|
344.07
|
NTPC
|
109.90
|
143.40
|
141.78
|
145.88
|
Reliance Industries' group companies--Reliance Jio and Retail will launch a new e-commerce platform in the country.
L&T has inaugurated its Armoured Systems Complex in Gujarat.
HDFC Bank has reported 20.32% rise in its net profit at Rs 5585.85 crore for Q3FY19 as compared to Rs 4642.60 crore for Q3FY18.
Maruti Suzuki India has launched a program - Mobility & Automobile Innovation Lab to promote innovation in India for automobile and mobility space.