Indian equity benchmarks managed
to end volatile session in green on Thursday following gains in select Capital
Goods, Industrials and Banking counters. After making cautious start, key
gauges traded higher in morning deals, as traders took support with a report
that robust GST collections will help achieve the FY23 revenue growth target on
the indirect taxes front, despite the impact of duty cuts on central excise and
customs mop-up. Sentiments remained positive as the government extended export benefits
under the tax refund scheme -- RoDTEP -- to chemicals, pharmaceuticals and
products of iron and steel for a specified period with a view to boost
shipments of these goods, amidst exports growth recording a contraction of
16.65 per cent in October. However, key gauges trimmed some gains in afternoon
deals, as traders got anxious with India Ratings and Research's (Ind-Ra) latest
report stating that the many rising headwinds, both domestic as well as
external, are expected to pull down India's Gross domestic product (GDP) growth
to 4-4.5 per cent in the second half of FY2023 (H2FY23), shaving off the better
numbers in the first half. But, markets once again added gains in late
afternoon deals, taking support from a report revealed that there is likely to
be 90-110 lakh additions to the gig workforce by 2025 with more and more
companies preferring to hire employees on project basis. According to the report, companies have also
started investing in gig work platforms and processes, which indicates how integral
they are to the future of jobs growth in India. Some optimism also came as
Minister of State for Commerce and Industry Som Parkash said that the reforms
taken by Government have resulted in increased Foreign Direct Investment (FDI)
inflows in the country. FDI inflows in India stood at $45.15 billion in
2014-2015 and have continuously increased since then, and India registered its
highest ever annual FDI inflow of $84.84 billion (provisional figures) in the
financial year 2021-22. Finally, the BSE Sensex rose 160.00 points or 0.26% to
62,570.68 and the CNX Nifty was up by 48.85 points or 0.26% to 18,609.35.
The US markets ended higher on
Thursday as traders picked up stocks at somewhat reduced levels following the
sell-off seen to start the week, which reflected concerns about the outlook for
interest rates and the economy. Meanwhile, traders continued to look ahead to
Friday's release of the Labor Department's report on producer price inflation
in November. Street expect producer prices to inch up by 0.1 percent in
November after rising by 0.2 percent in October, while the annual rate of
growth is expected to slow to 7.4 percent from 8.0 percent. On the sectoral
front, networking stocks showed a substantial move to the upside on the day,
driving the NYSE Arca Networking Index up by 3.9 percent. Ciena (CIEN) helped
lead the sector higher, spiking by 20 percent after reporting better than
expected fiscal fourth quarter results and forecasting 'outsized' revenue
growth in 2023. Significant strength was also visible among semiconductor
stocks, as reflected by the 2.7 percent surge by the Philadelphia Semiconductor
Index. On the economic data front, first-time claims for U.S. unemployment
benefits edged slightly higher in the week ended December 3rd, according to a
report released by the Labor Department. The report said initial jobless claims
crept up to 230,000, an increase of 4,000 from the previous week's revised
level of 226,000. Street had expected jobless claims to inch up to 230,000 from
the 225,000 originally reported for the previous week. The Labor Department
said the less volatile four-week moving average also ticked up to 230,000, an
increase of 1,000 from the previous week's revised average of 229,000. The
four-week moving average of continuing claims also rose to 1,582,250, an
increase of 43,250 from the previous week's revised average of 1,539,000.
Crude oil futures end lower on
Thursday after moving sharply higher in early trading. With the downturn on the
day, the price of crude oil extended a recent sell-off, falling to its lowest
levels in eleven months. Sentiments remained weak as traders remained concerns
about the outlook for energy demand amid the possibility of a global recession.
Benchmark crude oil futures for January delivery fell $0.55 or 0.8 percent at
$71.46 a barrel on the New York Mercantile Exchange. Brent crude for February
delivery dropped $0.96 or 1.25 percent to settle at $76.15 a barrel on London's
Intercontinental Exchange.
Indian rupee ended higher against
dollar on Thursday, on persistent selling of the American currency by
exporters. Sentiments remained positive as Minister of State for Commerce and
Industry Som Parkash said that the reforms taken by Government have resulted in
increased Foreign Direct Investment (FDI) inflows in the country. FDI inflows
in India stood at $45.15 billion in 2014-2015 and have continuously increased
since then, and India registered its highest ever annual FDI inflow of $84.84
billion (provisional figures) in the financial year 2021-22. On the global
front, dollar edged up on Thursday, supported by a push higher in U.S. Treasury
yields, as investors weighed the outlook for Federal Reserve policy against the
chances that high interest rates could lead to a recession. Finally, the rupee
ended at 82.44 (Provisional), stronger by 3 paise from its previous close of
82.47 on Wednesday.
The FIIs as per Thursday's data
were net sellers in equity segment, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 6370.93 crore against gross selling of Rs
7753.10 crore, while in the debt segment, the gross purchase was of Rs 516.17
crore against gross selling of Rs 339.54 crore. Besides, in the hybrid segment,
the gross buying was of Rs 6.92 crore against gross selling of Rs 3.30 crore.
The US markets ended higher on
Thursday as investors interpreted data showing a rise in the weekly jobless
claims as a sign the pace of interest rate hikes could soon slow. Asian markets
are trading mostly in green on Friday tracking overnight gains on Wall Street.
Indian markets ended the choppy session in green on Thursday following gains in
select banking and auto counters amid mixed global cues. Today, markets are
likely to get optimistic start following firm global cues. Some support will
come with report that India Inc expects private capex to gain further momentum
in the short to medium term, as it sees green shoots of revival in sectors like
real estate, construction, logistics and chemicals, among others. Traders may
take note of Union Minister of Commerce and Industry, Consumer Affairs, Food
and Public Distribution and Textiles, Piyush Goyal's statement that India will
have to face global competition effectively to achieve the goal of becoming a
prosperous and developed nation. However, there may be some cautiousness with a
private report that the Reserve Bank of India's curb on securitising loans
having residual maturity of less than 365 days may hit the sale of short-term
advances like micro-finance, personal loans and gold loans for a while. There
will be some buzz in aviation industry stocks as credit ratings agency Icra
said domestic air passenger volume increased 3 per cent to 23.4 million in
November on a sequential basis propelled by resilient travel demand and onset
of the peak holiday season. Also, Minister of State in the Ministry of Civil
Aviation Gen VK Singh said the Central government has accorded in-principal
approval for the setting up of 21 greenfield airports across the country. Power
stocks will be in focus as power deficit or gap between electricity required
and supplied has fallen from two per cent in April this year to 0.1 per cent.
There will be some reaction in insurance industry stocks with a private report
that life insurance companies reported a 30 per cent year-on-year (YoY) growth
in new business premiums (NBP) in November due to a stellar show by state-owned
Life Insurance Corporation (LIC), even as private insurers saw their premium
growth moderating. Pharma stocks will be in limelight with a private report
that the domestic pharmaceutical industry recorded its highest growth rate for
2022 in November, at 17.3 per cent, after both volume sales and price growth
picked up. Anti-infectives - antibiotics, antivirals, antifungals etc - clocked
15 per cent growth in November.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,609.35
|
18,555.86
|
18,643.91
|
BSE
Sensex
|
62,570.68
|
62,382.72
|
62,696.10
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
324.16
|
112.00
|
110.86
|
113.06
|
Axis Bank
|
174.66
|
940.00
|
921.19
|
951.39
|
Kotak Mahindra Bank
|
126.19
|
1898.60
|
1,882.20
|
1,909.90
|
Oil & Natural Gas Corporation
|
101.50
|
142.75
|
141.06
|
143.71
|
ICICI Bank
|
101.36
|
933.20
|
926.81
|
936.56
|
Oil and Natural Gas Corporation has signed a MoU with global petroleum giant Shell for cooperation in Carbon Capture, Utilization and Storage studies.
Axis Bank is planning to raise funds by issuing unsecured, rated, listed, subordinated, taxable, non-convertible, Basel III compliant Tier II bonds aggregating to total issue size up to Rs 12,000 crore.
JSW Steel has reported the crude steel production for the month of November, 2022 at 16.90 lakh tonnes, that grew by 16% as against 14.60 lakh tonnes in November 2021 on standalone basis.
The United States Food and Drug Administration has placed Sun Pharmaceutical Industries' Halol facility under import alert.