Indian equity benchmarks managed
to end marginally higher in lackluster trade on Wednesday backed by gains in
Realty and Oil & Gas stocks amid falling crude oil prices. After the flat
start, key gauges oscillated in a narrow range till the end as foreign fund
outflows dented sentiments. According to the provisional data available on the
NSE, foreign institutional investors (FII) offloaded shares worth net Rs 497.21
crore on November 7, 2023. Some concern also came with credit rating agency
ICRA stating that new investment demand in the second half of this fiscal year
is likely to be tempered amid increased geopolitical tensions in the Middle
East, and a potential slowdown in the momentum of government capital
expenditure (capex) and project execution prior to the general elections.
However, markets managed to end the session in green as traders took some
support with Crisil Ratings stating that the ongoing conflict in the Middle
East, confined mainly to the Gaza region now, has caused only negligible
disruption in India's trade so far, and added that the Indian companies were
not in the crosshairs for now. Traders took a note of Finance minister Nirmala
Sitharaman's statement that the finance ministry's focus is not only on increasing
GST revenue but also on bringing all the business establishments under its
ambit. Meanwhile, the Centre has authorised release of tax devolution of Rs
72,961.21 crore to states for November. This will enable the state governments
to make in-time releases and add to the festivities and celebrations among the
people. Finally, the BSE Sensex rose 33.21 points or 0.05% to 64,975.61 and the
CNX Nifty was up by 36.80 points or 0.19% to 19,443.50.
The US markets ended mostly
higher on Wednesday as optimism the Federal Reserve is done raising interest
rates continued to support the markets. However, the lackluster performance on
markets came as traders seemed reluctant to make significant moves following
the recent strength in the markets. On the sectoral front, most of the sectors
showed only modest moves on the day, contributing to the lackluster performance
by the broader markets. Gold stocks showed a substantial move to the downside,
however, with the NYSE Arca Gold Bugs Index plunging by 2.8 percent. The
sell-off by gold stocks came amid a decrease by the price of the precious
metal, as gold for December delivery fell $15.70 to $1,957.80 an ounce.
Considerable weakness was also visible among biotechnology stocks, resulting in
a 1.5 percent drop by the NYSE Arca Biotechnology Index. On the economic data
front, wholesale inventories in the U.S. unexpectedly saw a modest increase in
the month of September, according to a report released by the Commerce
Department. The report said wholesale inventories rose by 0.2 percent in
September after edging down by 0.1 percent in August. Street had expected
wholesale inventories to come in unchanged. The unexpected uptick in wholesale
inventories came as inventories of durable goods crept up by 0.2 percent, while
inventories of non-durable goods inched up by 0.1 percent. Meanwhile, the
Commerce Department said wholesale sales shot up by 2.2 percent in September
after surging by 2.0 percent in August. Sales of non-durable goods led the way
higher, spiking by 3.4 percent, while sales of durable goods climbed by 0.7
percent.
Crude oil futures ended deeply in
red on Wednesday amid rising concerns about the outlook for energy demand. Data
showing a sharp jump in crude oil inventories in the U.S. also weighed on oil
prices. A report from the American Petroleum Institute showed crude oil
stockpiles increased by nearly 12 million barrels in the week ended November 3.
Meanwhile, oil inventory data from Energy Information Administration (EIA) will
be out only next week. EIA said the data will be delayed to enable completion
of a planned systems upgrade. Benchmark crude oil futures for December delivery
fell $2.04 or 2.6 percent to settle at $75.33 a barrel on the New York
Mercantile Exchange. Brent crude for January delivery dropped $2.07 or 2.54
percent to settle at $79.54 a barrel on London's Intercontinental Exchange.
Indian rupee ended lower against
dollar on Wednesday tracking a strong American currency overseas. Muted trend
in domestic equities also weighed on the local unit while a correction in oil
prices provided support to the currency. Some concern came with credit rating
agency ICRA stating that new investment demand in the second half of this
fiscal year is likely to be tempered amid increased geopolitical tensions in
the Middle East, and a potential slowdown in the momentum of government capital
expenditure (capex) and project execution prior to the general elections. On
the global front, the dollar's rebound extended for a third day on Wednesday
after some Federal Reserve policymakers left the door open to further rate
hikes, as traders looked to a speech from Chair Jerome Powell on the central
bank's future policy path. Finally, the rupee ended at 83.28 (Provisional),
weaker by 1 paisa from its previous close of 83.27 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 7823.69 crore against gross
selling of Rs 8136.18 crore, while in the debt segment, the gross purchase was
of Rs 2198.98 crore with gross sales of Rs 706.80 crore. Besides, in the hybrid
segment, the gross buying was of Rs 4.66 crore against gross selling of Rs 5.13
crore.
The US markets ended mostly in
green on Wednesday as traders seemed reluctant to make significant moves
following the recent strength in the markets. Asian markets are trading mostly
higher on Thursday amid China's October CPI fell 0.2 percent year on year and
PPI dropped 2.6 percent. Indian markets ended choppy session in green terrain
with marginal gains on Wednesday tracking mixed global cues. Today, markets are
likely to get flat-to-positive start as crude oil prices softened. Mostly
positive cues from global markets may also support domestic markets. Investors
looked ahead to Fed Chair Jerome Powell's speech later in the day after he
refrained from specifically addressing monetary policy in opening remarks at
the U.S. central bank statistics conference on Wednesday. Traders will be
taking encouragement as S&P researchers said the Indian government will
likely stick close to its fiscal deficit target and the consolidation path till
fiscal year 2026, despite the extension of the free foodgrain scheme
announcement and the possibility of more such expenditure initiatives as India
heads towards general elections next year. Some support will come with a
private report that India's government is likely to exceed its tax revenue
projections this year, giving Prime Minister Narendra Modi more fiscal room to spend
on wooing rural voters ahead of elections. Traders may take note of report that
the market regulator is making it easier for investors to access any amount
that is due to them but that may have gone unclaimed because of various
reasons. The Securities and Exchange Board of India (Sebi) has released three
frameworks for dealing with unclaimed amounts lying with listed companies who
have issued non-convertible securities, with Infrastructure Investment Trusts
(InvITs) and with Real Estate Investment Trusts (REITs). They were released
through three separate circulars issued on November 8. However, there will be some volatility in the
markets ahead of weekly F&O expiry later in in the day. Foreign fund
outflows may dent sentiments. Provisional data from the National Stock Exchange
showed that foreign institutional investors offloaded shares worth Rs 84.55
crore on November 8. Jewelers stocks likely to remain in focus during this
festive season amid expectations of strong demand on the auspicious occasion of
Dhanteras. Investors will be eyeing earnings from Indain Inc for more cues.
Adani Ports, Apollo Hospitals, Bosch, Muthoot Finance, Zee Entertainment, Ashok
Leyland, Torrent Power, Piramal Enterprises, CarTrade Tech, and Globus Spirits
among others to report numbers later in the day.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,443.50
|
19,408.54
|
19,471.44
|
BSE
Sensex
|
64,975.61
|
64,843.12
|
65,116.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
225.52
|
119.05
|
118.24
|
120.19
|
ICICI
Bank
|
176.06
|
935.70
|
930.39
|
944.74
|
HDFC
Bank
|
157.00
|
1491.80
|
1484.05
|
1496.50
|
State
Bank of India
|
154.35
|
580.40
|
578.74
|
582.34
|
BPCL
|
120.10
|
383.00
|
375.40
|
389.25
|
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