In a highly volatile session,
Indian equity benchmarks ended higher on Monday propelled by robust buying in
Oil & Gas, Auto and Realty stocks amid a firm trend in global equities. Key
indices made positive opening, as traders found solace with the former
Vice-Chairman of NITI Aayog Arvind Panagariya's statement that India may log a
growth rate of eight per cent of real Gross Domestic Product (GDP) in FY23.
Traders took note 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. A strong rupee against the US dollar and persistent
foreign capital inflows supported the domestic equities. As per exchange data,
foreign institutional investors were net buyers in the Indian capital market on
Friday as they bought shares worth Rs 1,436.25 crore. However, key gauges
trimmed gains and traded flat in afternoon deals, as traders turned cautious
after 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. Some concern also came as
Centre for Monitoring Indian Economy (CMIE) in its latest data showed that
unemployment rate in India jumped to 7.77 per cent in October 2022 as compared
to 6.43 per cent in September 2022 on the account of a sharp increase in rural
unemployment. Finally, the BSE Sensex rose 234.79 points or 0.39% to 61,185.15
and the CNX Nifty was up by 85.65 points or 0.47% to 18,202.80.
The US markets ended higher on
Tuesday, extending their previous session's gains, amid traders awaited the
outcome of US midterm elections, which will determine control of Congress.
Republicans are expected to take control of the House and possibly the Senate,
and traders are said to prefer a divided government, as times when the White
House and Congress are controlled by opposite parties have historically been
positive for Wall Street. Meanwhile, traders also continued to look ahead to
Thursday's report on consumer price inflation, as the data could have a
significant impact on the outlook for interest rates. Street expect a modest
slowdown in the annual rate of consumer price growth, which could add to
optimism about a slowdown in the pace of rate hikes. On the sectoral front,
gold stocks showed a substantial move to the upside on the day, resulting in a
6.4 percent spike by the NYSE Arca Gold Bugs Index. The index soared to its
highest closing level in nearly four months. The rally by gold stocks came amid
a sharp increase by the price of the precious metal, with gold for December
delivery surging $35.50 to $1,716 an ounce. Semiconductor stocks also turned in
a strong performance, driving the Philadelphia Semiconductor Index up by 2.2
percent to a one-month closing high.
Crude oil futures ended deeply in
red on Tuesday as reports showing a surge in Covid-19 cases in China raised
concerns about the outlook for energy demand. China is seeing a surge in new
coronavirus cases in Guangzhou and other Chinese cities, preventing the country
from stamping out the virus and relaxing controls. The global manufacturing hub
is fighting its worst flare-up ever, testing its ability to avoid a
Shanghai-style lockdown. Benchmark crude oil futures for December delivery fell
$2.88 or about 3.1 percent at $88.91 a barrel on the New York Mercantile
Exchange. Brent crude for January delivery dropped $2.56 or about 2 percent to
settle at $95.36 a barrel on London's Intercontinental Exchange.
Indian rupee ended higher against
dollar on Monday, on persistent selling of the American currency by exporters.
Traders got support after India's foreign exchange reserves increased by a
massive $6.6 billion to $531.1 billion for the week ended October 28, marking
their biggest weekly gain since September 2021. Besides, Russia became India's
top oil supplier in October, surpassing traditional sellers Saudi Arabia and
Iraq. Russia, which made up for just 0.2 per cent of all oil imported by India
in the year to March 31, 2022, supplied 935,556 barrels per day (bpd) of crude
oil to India in October - the highest ever. On the global front, sterling rose
on Monday, largely boosted by a softer dollar, which pushed the pound back up
to levels seen before the Bank of England (BoE) delivered its biggest interest
rate hike in three decades last week.
Finally, the rupee ended at 81.92 (Provisional), stronger by 43 paisa
from its previous close of 82.35 on Friday.
The FIIs as per Monday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 7421.49 crore against gross selling of Rs
5822.90 crore, while in the debt segment, the gross purchase was of Rs 225.02
crore against gross selling of Rs 300.71 crore. Besides, in the hybrid segment,
the gross buying was of Rs 8.16 crore against gross selling of Rs 25.83 crore.
The US markets ended higher on
Tuesday amid investors awaited the results of the US midterm elections, which
could affect future levels of government spending and regulation. Asian markets
were trading mostly higher in early deals on Wednesday following the positive
cues from US markets. Indian equity
markets ended in positive territory on Monday. Markets remained closed on
Tuesday on account of Gurunanak Jayanti.
Today, markets are likely to make positive start on firm global. Weak
crude oil prices may also provide some support to the markets. Foreign Minister
Subrahmanyam Jaishankar said India will continue buying Russian oil as it is
advantageous for the country. He stated
India has emerged as Russia's largest oil customer after China, as refiners
snap up discounted Russian oil shunned by Western buyers over Russia's invasion
of Ukraine on February 24. India, the world's third-largest oil importer and a
traditional ally of Russia, has not explicitly condemned what Russia calls its
special military operation in Ukraine. He added it is government's fundamental
obligation to ensure that the Indian consumer has the best possible access on
most advantageous terms to international (oil and gas) markets. Some support may also come as the growth
momentum in India's manufacturing sector is likely to have picked up in the
September quarter and may sustain for the next six to nine months over rising
capacity utilisation, according to the latest quarterly survey on Indian
manufacturing sector by Federation of Indian Chambers of Commerce and Industry
(FICCI). The survey shows 61 per cent respondents reporting higher production
level in September quarter compared to the same period a year ago as against 55
per cent respondents reporting higher output in June quarter of FY23. However, some cautiousness may come later in
the day as India's gross domestic product (GDP) growth for the current fiscal
year (FY23) is now expected to be between 6.5 and 7 per cent, Chief Economic
Advisor V Anantha Nageswaran said. This was for the first time a government
official said real economic growth may not exceed 7 per cent this fiscal
year. Since the April-June GDP print, a
number of agencies, including the International Monetary Fund (IMF) and the
Reserve Bank of India, have lowered their GDP forecast for India on the back of
uneven pick-up in demand and global headwinds caused by the war in Europe.
Meanwhile, amid a slowdown in outbound shipments from India, Commerce and
industry minister Piyush Goyal asked exporters to make temporary changes in
their pricing structure in order to retain the export market. There will be
some buzz in banking sector stocks as Finance Minister Nirmala Sitharaman said
the government's efforts to reduce bad loans are yielding result with 12 public
sector banks reporting a 50 per cent jump in combined net profit at Rs 25,685
crore in the second quarter ended September. In the first half of FY23, the cumulative
net profit of all public sector banks (PSBs) increased by 32 per cent to Rs
40,991 crore.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,202.80
|
18,093.20
|
18,283.95
|
BSE
Sensex
|
61,185.15
|
60,799.16
|
61,486.34
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
744.26
|
106.65
|
105.01
|
107.86
|
State Bank Of India
|
442.65
|
613.80
|
606.76
|
621.76
|
TATA MOTORS
|
1580.58
|
435.00
|
429.66
|
438.91
|
NTPC
|
127.99
|
175.80
|
173.94
|
178.59
|
Power Grid Corporation Of India
|
111.46
|
228.00
|
225.64
|
231.14
|
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