In the volatile session, Indian
equity benchmarks managed to end in green on Friday, helped by continuous
buying from foreign institutional investors and a largely positive trend in
Asian and European markets. Indian equities made a cautious start and remained
volatile for whole day as traders were worried after Bank of England raised
interest rates to 3% on Thursday from 2.25%, its biggest rate rise since 1989
as it warned of a very challenging outlook for the economy. The central bank
forecasts inflation will hit a 40-year high of around 11% during the current
quarter, but that Britain has already entered a recession that could
potentially last two years - longer than during the 2008-09 financial
crisis. However, fag-end buying helped
the markets to end higher. Traders got support as Finance Minister Nirmala
Sitharaman said India offers policy stability, transparency and consultative
process of governance to incubate investment. Some support also come in as
Prime Minister Narendra Modi said loans worth Rs 20 lakh crore have been
disbursed so far under the Centre's MUDRA scheme to provide self-employment
opportunities to the youth, and added that Maharashtra was one of its major
beneficiaries. Meanwhile, the Reserve Bank's rate setting panel met on Thursday
to discuss and draft a report for the government on why it failed to keep
retail inflation below the target of 6 per cent for three consecutive quarters
since January this year. Finally, the BSE Sensex rose 113.95 points or 0.19% to
60,950.36 and the CNX Nifty was up by 64.45 points or 0.36% to 18,117.15.
The US markets ended higher with
gains of over one percent on Friday following the release of the Labor
Department's closely watched monthly employment report for October. The report
showed non-farm payroll employment jumped by 261,000 jobs in October after
surging by an upwardly revised 315,000 jobs in September. Street had expected
employment to climb by about 200,000 jobs compared to the addition of 263,000
jobs originally reported for the previous month. Meanwhile, the Labor
Department said the unemployment rate rose to 3.7 percent in October from 3.5
percent in September. The unemployment rate was expected to inch up to 3.6
percent. The report generated a mixed reaction among traders, creating
uncertainty about the outlook for future interest rate hikes. On the sectoral
front, Gold stocks skyrocketed on the day, resulting in a 10.3 percent surge by
the NYSE Arca Gold Bugs Index. The index bounced off its lowest closing level
in a month. The rally by gold stocks came amid a sharp increase by the price of
the precious metal, with gold for December delivery soaring $45.70 to $1,676.60
an ounce. Substantial strength was also visible among steel stocks, as
reflected by the 7.8 percent spike by the NYSE Arca Steel Index. With the jump,
the index reached a two-month closing high. Computer hardware stocks also saw
considerable strength on the day, driving the NYSE Arca Computer Hardware Index
up by 4.0 percent.
Crude oil futures ended sharply
higher on Friday amid easing concerns about the outlook for energy demand on
reports China is likely to ease Covid-19 curbs imposed in several parts of the
country. Further, a weak dollar, and fears of a likely ban by the European
Union on Russian oil contributed as well to the surge in crude oil prices.
Meanwhile, Richmond Federal Reserve President Thomas Barkin said he is ready to
act more deliberatively on consideration of the pace of future US interest rate
hikes, but said rates could continue rising for longer and to a higher end
point than previously expected. Benchmark crude oil futures for December
delivery rose $4.44 or about 5 percent at $92.61 a barrel on the New York
Mercantile Exchange. Brent crude for January delivery surged $4.03 or about
4.26 percent to settle at $98.70 (Provisional) a barrel on London's
Intercontinental Exchange.
Indian rupee ended significantly
higher against dollar on Friday as the American currency eased from its
elevated levels. Local currency got support after Finance Minister Nirmala
Sitharaman said India offers policy stability, transparency and consultative
process of governance to incubate investment. Further, some support also come
in as Prime Minister Narendra Modi said loans worth Rs 20 lakh crore have been
disbursed so far under the Centre's MUDRA scheme to provide self-employment
opportunities to the youth, and added that Maharashtra was one of its major
beneficiaries. Moreover, some support came with Union Minister of Agriculture
and Farmers Welfare, Narendra Singh Tomar's statement that India is moving
towards positive changes. He also said the current scenario of India has
changed, within the country and at the world level. Today we have the
capability of making our nation strong in every respect. On the global front,
Sterling rose on Friday but was still set for its largest weekly decline in six
weeks after losing 2% following the Bank of England's (BoE) biggest interest
rate hike in three decades. Finally, the rupee ended at 82.41 (Provisional),
stronger by 47 paisa from its previous close of 82.88 on Thursday.
The FIIs as per Friday's data
were net buyers in equity and debt segment.
In equity segment, the gross buying was of Rs 18565.51 crore against
gross selling of Rs 17787.10 crore, while in the debt segment, the gross
purchase was of Rs 432.11 crore against gross selling of Rs 327.95 crore.
Besides, in the hybrid segment, the gross buying was of Rs 2.36 crore against gross
selling of Rs 12.50 crore.
The US markets ended higher on
Friday reclaiming positive territory in a volatile trading session. Asian
markets were trading mostly in green on Monday as investors digest the latest
US jobs report and look ahead to the midterm elections. Buying in last leg of trade helped Indian
equity markets to end higher on Friday. Today, markets are likely to make
positive start on firm global cues. Traders may get some support as the former
Vice-Chairman of NITI Aayog Arvind Panagariya has said India may log a growth
rate of eight per cent of real Gross Domestic Product (GDP) in FY23. Traders may take not of report that US
Secretary of the Treasury Janet Yellen will visit India to participate in the
US-India Economic and Financial Partnership on November 11 and discuss how the
two countries can work together to deepen their economic ties. Meanwhile, Union
Minister Piyush Goyal has directed officials to fastrack the clearance of
patents filed by government-related bodies in a time-bound manner. However,
some cautiousness may prevail later in the day as chief economic adviser -- V
Anantha Nageswaran has said the country's external sector could face some
anxious moments this financial year, as the proposed oil price cap on global
crude could instead serve to raise those instead. The way the oil price cap is
being discussed has encouraged oil and gas traders to stock up on volumes,
creating unintended consequences. This could create additional pressure on
India's balance of payments. Besides, Union Finance Minister Nirmala Sitharaman
has said indiscriminate borrowing and spending by certain States on non-merit
goods and expenditure is a matter of concern, and fiscal strength is a critical
component for Atma Nirbhar Bharat. She stated the temptation to borrow beyond
capacity would create inter-generational burden and affect fiscal soundness of
the country. There will be some buzz in
sugar related stocks as the government, which has allowed export of six million
tonnes of sugar till May 31 of the ongoing 2022-23 season, said that it might
allow more export after periodic assessment of domestic production. The
quarterly earnings season enters its last leg this week with prominent
companies like Coal India, Life Insurance Corporation of India, One97
Communications Tata Motors and Zomato likely to unveil their financial results
during the week.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,117.15
|
18,044.50
|
18,162.45
|
BSE
Sensex
|
60,950.36
|
60,742.75
|
61,081.23
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
702.99
|
104.85
|
103.04
|
105.84
|
State Bank Of India
|
257.59
|
595.70
|
585.09
|
601.64
|
NTPC
|
148.81
|
177.10
|
175.80
|
178.95
|
Hindalco Industries
|
133.17
|
430.05
|
417.36
|
437.36
|
TATA MOTORS
|
122.77
|
424.90
|
419.20
|
428.30
|
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