Wednesday
turned out to be a fabulous day of trade for Indian equity benchmarks with
frontline gauges hitting record highs and ending above their crucial 33,000
(Sensex) and 10,250 (Nifty) levels for the first time ever after the Union
Cabinet on Tuesday announced various measures to boost economy. Markets made a
firm start and traded jubilantly throughout the session, as sentiments remained
up-beat with Union Cabinet approving a massive recapitalisation plan for public
sector banks (PSBs) worth Rs 2.11 lakh crore. Of this amount, Rs 1.55 lakh
crore would be raised through recapitalisation bonds. Another Rs 76,000 crore
would be available from budgetary support and raised through market borrowings.
The whopping Rs 14 lakh crore package announced by the Union Cabinet apart from
the massive recapitalisation plan for public sector banks, also include
investments in key development sectors such as Rural Roads, Housing, Railways,
Power, Highways and Digital Infrastructure. Traders also took some
encouragement with Union Finance Minister Arun Jaitley's statement that the
Indian economy was on a strong wicket with sound macro-economic fundamentals.
Some support also came on report that the government has collected Rs 92,150 crore
as Goods and Services Tax (GST) in September from 42.91 lakh business. The
finance ministry said that of this, Rs 14,042 crore is on account of central
GST, while state GST is to the tune of Rs 21,172 crore. Integrated GST
collections stood at Rs 48,948 crore, of which Rs 23,951 crore was on account
of imports. Adding to the optimism, Finance Minister Arun Jaitley said that
Indian economy is on a strong wicket with sound macro-economic fundamentals. He
added that India
has been the fastest growing major economy for the last three years and the
attempt is to maintain high growth rate in coming years. Finally, the BSE
Sensex surged 435.16 points or 1.33% to 33,042.50, while the CNX Nifty was up
by 87.65 points or 0.86% to 10,295.35.
The US
markets suffered setback on Wednesday after ending the previous session mostly
higher. It was mainly due to profit taking that contributed to the weakness;
however the economic news came is positive. Orders for long-lasting
manufacturing goods surged in September; the U.S. Department of Commerce
reported that durable goods orders rose by 2.2% in September. On the same time
new home sales in the U.S.
showed a substantial increase in the month of September, according to a
separate report released by the Commerce Department, new home sales surged up
by 18.9 percent to an annual rate of 667,000 in September from a revised rate
of 561,000 in August. The Dow Jones Industrial Average lost 112.30 points or 0.48
percent to 23,329.46, the Nasdaq dropped 34.54 points or 0.5 percent to 6,563.89,
and the S&P 500 edged lower by 11.98 points or 0.47 percent to 2,557.15.
Crude
oil futures fell on Wednesday for the first time in three days, as concerns
over a surge in US production weighed on upside momentum while a mixed report
from the Energy Information Administration (EIA) showing crude stockpiles rose
for the first time in five weeks and gasoline supplies fell more-than-expected
failed to lift sentiment. EIA said that inventories rose by 900,000 barrels for
the week ended Oct. 20. Gasoline stockpiles dropped by 5.5 million barrels for
the week, while distillate stockpiles fell 5.2 million barrels. Benchmark crude
oil futures for December delivery ended lower by 29 cents at $52.18 a barrel on
the New York Mercantile Exchange. Brent crude for December delivery lost 17
cents to $58.16 a barrel on the ICE.
Indian rupee strengthened against US dollar on Wednesday,
on increased selling of the American currency by exporters and banks.
Sentiments remained positive with Finance Minister Arun Jaitley's statement
that the Indian economy is on a strong wicket with sound macro-economic
fundamentals. He added that India has been the fastest growing major economy for the last
three years and the attempt is to maintain high growth rate in coming years.
Besides, sustained foreign capital inflows into equity markets also boosted the
rupee against dollar. On the global front, dollar got a lift on Wednesday after
a report that Republican senators were leaning towards John Taylor to be the
next Federal Reserve chief, while share markets turned flat after a run of
highs. Finally, the rupee ended at
64.90, 16 paise stronger from its previous close of 65.06 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
4039.94 crore against gross selling of Rs 5231.43 crore, while in the debt
segment, the gross purchase was of Rs 2051.15 crore with gross sales of Rs
798.76 crore.
The US
markets in the last session went through their worst day in two months, with
Dow losing 100 points from its record peak, mainly on profit taking with all
the major averages at record highs. The Asian markets were showing mixed trend
in early deals following the weakness in US markets overnight with investors
assessing earnings and economic data for indications of broadening growth that
may sustain gains in global equities. The Indian markets surged to fresh record
highs in the last session, led by the PSU banking stocks on hopes that recapitalization
plan announced by the government will improve their lending capacity and help
address their weak capitalization levels. Today the start of the F&O series
expiry day is likely to be in green but volatility may creep in with the
progress of the trade. Meanwhile, Arvind Subramanian, chief economic adviser
(CEA) in the finance ministry, has suggested that measures such as
privatisation, selective capital infusion into viable banks, and taking
stressed loans off the balance sheet of banks will make the record bailout of
state-owned banks, announced by finance minister Arun Jaitley, even more
effective. Steel stocks will be in action, as India
imposed anti-dumping duty on some cold-rolled flat products of stainless steel
from China, the
US, South
Korea and the European Union, to curb the
influx of cheaper imports and help local producers. The duty, which will be in
effect until 10 December 2020,
exempts certain grades of stainless steel. There will be buzz in the aviation
stocks too on reports that Airlines in India
carried 95.83 lakh passengers in September, up 16.34% from last September. The
January to September passenger traffic was also higher compared to the previous
year.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10295.35
|
10243.98
|
10343.63
|
BSE Sensex
|
33042.50
|
32858.96
|
33171.69 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
2,626.77
|
324.90
|
293.82
|
342.02
|
ICICI Bank
|
1,236.15
|
305.70
|
289.77
|
316.22
|
Axis Bank
|
376.24
|
473.00
|
460.93
|
480.78
|
Yes Bank
|
334.27
|
326.90
|
307.83
|
350.98
|
Power Grid
|
91.72
|
216.10
|
213.60
|
218.80 |
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Inc.'s Lodosyn Tablets, 25 mg.
- Infosys has reported a rise of 2.96% in its net profit at
Rs 3,579 crore for Q2FY18 as compared to net profit of Rs 3,476 crore for Q2FY17.
- TCS has joined hands with Palo Alto Networks to offer
Public Cloud Security Services.
- Coal India's subsidiary Central Coalfields has reported a growth of
24.5% in coal dispatch to 32.4 million tonnes from April to September this
year.