Indian equity benchmarks ended
with minor losses marked by volatility on Tuesday. Losses in metal, consumer
durables and banking stocks pulled the headline gauges lower. After a positive
opening, the domestic markets traded lower, as traders got anxious with Rating
agency Crisil's latest report stated that higher diesel prices will shave off
the overall profitability of transporters despite an improvement in freight
rates since last month following the withdrawal of the monsoons, consumption
recovery and higher infrastructure activity. Some concern also came with report
that India, speaking on behalf of the BASIC group, warned that lack of a
serious approach to climate finance will jeopardise the enhanced mitigation and
adaptation ambition as well as net zero pledges of parties. Traders were also
worried on continuous outflow of foreign capital. Foreign Institutional
Investors (FIIs) again stood as sellers as they offloaded shares worth Rs
860.65 crore in the capital market on Monday, exchange data showed. The markets
however, recovered most of their losses by the end of the day as traders found
some solace with domestic rating agency Brickwork Ratings revised its growth
estimate for the country's gross domestic product (GDP) to 10-10.5 per cent in
the current financial year from an earlier expectation of a 9 per cent growth.
It said many economic growth indicators are suggesting a faster-than-expected
revival in economic activities. Some support also came with SBI report stating
that India is now ahead of China in financial inclusion metrics, with mobile
and internet banking transactions rising to 13,615 per 1,000 adults in 2020
from 183 in 2015 and the number of bank branches inching up to 14.7 per 1 lakh
adults in 2020 from 13.6 in 2015, which is higher than Germany, China and South
Africa. Meanwhile, Markets regulator SEBI allowed foreign portfolio investors
(FPIs) to write off all debt securities that they are unable to sell. This will
be applicable only to such FPIs who wish to surrender their registration.
Finally, the BSE Sensex fell 112.16 points or 0.19% to 60,433.45 and the CNX
Nifty was down by 24.30 points or 0.13% to 18,044.25.
The US markets ended lower on
Tuesday on profit booking as some traders cashed in on the recent strength in
the markets. Meanwhile, investors are awaiting the release of another key
inflation reading Wednesday. Tesla shares fell nearly 12%, also weighing on
markets. The stock continued its retreat after founder Elon Musk this weekend
asked in a Twitter poll whether he should sell 10% of his stock. Even after
Tuesday's pullback, Tesla is up 45% this year. On the sector front, steel
stocks gave back ground after rallying on Monday following passage of the $1
trillion infrastructure bill. The NYSE Arca Steel Index fell by 1.4 percent
after jumping by 2.6 percent in the previous session. Considerable weakness
also emerged among transportation stocks, as reflected by the 1.4 percent drop
by the Dow Jones Transportation Average. Biotechnology stocks also showed a
notable move to the downside on the day, dragging the NYSE Arca Biotechnology
Index down by 1.4 percent. On the economic data front, the Labor Department
released a report showing producer prices increased by slightly more than
anticipated in the month of October. The Labor Department said its producer
price index for final demand advanced by 0.6 percent in October after climbing
by 0.5 percent in September. Street had expected another 0.5 percent increase.
Core producer prices, which exclude prices for food, energy, and trade
services, rose by 0.4 percent in October after inching up by 0.1 percent in
September. Core prices were expected to edge up by 0.2 percent. Compared to the
same month a year ago, producer prices in October were up by 8.6 percent,
unchanged from the previous month.
Crude oil futures ended sharply
higher on Tuesday, extending their previous session's gains, on rising hopes
about the outlook for energy demand after the United States lifted travel
restrictions to several countries. The US has started accepting fully
vaccinated travelers at airports and land borders beginning Monday, doing away
with a COVID-19 restriction that dates back to the Trump administration.
Meanwhile, the US Energy Information Administration's Short Term Energy Outlook
report said that gasoline prices this year and in 2022 are likely to rise slightly
more than forecast earlier supported oil prices. Besides, the passage of the $1
trillion US infrastructure bill in Congress and strong Chinese exports data
also contributed rising optimism about energy demand. Benchmark crude oil
futures for December delivery rose $2.22 or 2.7 percent to settle at $84.15 a
barrel on the New York Mercantile Exchange. Brent crude for January delivery
surged $1.35 or 1.62 percent to settle at $84.78 a barrel on London's
Intercontinental Exchange.
Indian rupee ended marginally
higher on Tuesday with private report stating that India seems to be the new
global hotspot for corporate unicorns. The country is home to the third-largest
number of such privately-held companies with a valuation of $1 billion or more,
behind the United States and China. However, traders were worried as rating
agency Crisil's latest report stated that higher diesel prices will shave off
the overall profitability of transporters despite an improvement in freight
rates since last month following the withdrawal of the monsoons, consumption
recovery and higher infrastructure activity. On the global front, euro held
steady against the dollar on Tuesday and most currency pairs were stuck as
traders waited for U.S. inflation data later in the week and more speeches from
central bank governors for some clues on the direction of interest rates. Finally,
the rupee ended at 74.02, stronger by 1 paise from its previous close of 74.03
on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 12483.20 crore against gross selling of Rs 13527.65 crore,
while in the debt segment, the gross purchase was of Rs 156.08 crore with gross
sales of Rs 1108.67 crore. Besides, in the hybrid segment, the gross buying was
of Rs 63.22 crore against gross selling of Rs 29.88 crore.
The US markets closed lower on
Tuesday ending a multi-day rally of consecutive record closing highs as
profit-taking and worries over ongoing inflation fueled a broad sell-off. Asian
markets are trading in red on Wednesday as investors await US and China
inflation numbers. Indian markets ended Tuesday's session modestly lower after
two days of gains on dull global cues. Today, the markets are likely to make
gap-down opening following weakness in global peers coupled with sharp rise in
crude oil prices. Oil prices rose to two-week high on Tuesday after United
States lifted travel restrictions even as supply remained tight. There will be
some cautiousness with Revenue Secretary Tarun Bajaj's statement that excise
duty cut on diesel and petrol prices will burden the government's coffers, but
it has no plans to increase the borrowing immediately. Forigen fund outflow may
also weight on the domestic sentiments. Foreign institutional investors (FIIs)
net sold shares worth Rs 2,445.25 crore on November 9, as per provisional data
available on the NSE. However, some support may come as Union Commerce and
Industry Minister Piyush Goyal said India is poised to achieve a services
export target of $1 trillion by the year 2030. According to Goyal, the services
sector is one of the key drivers of India's economic growth. He said the sector
provides employment to nearly 2.6 crore people and contributes approximately 40
percent to India's total global exports. Traders may take note of report that
Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector
banks (PSBs) next week to review performance of the lenders and progress made
by them to support the economy battered by the COVID-19 pandemic. There will be
some buzz in the real estate industry stocks with a private report that housing
sales jumped nearly 46 percent q-o-q to 50,000 units in Q3 2021 and sales
rebounded by approximately 86 percent y-o-y on a year-to-date basis on the back
of an attractive mortgage regime and government incentives. Coal industry
stocks will be in focus as the government said the country's total coal import
dropped 12 per cent year-on-year (y-o-y) to 94.15 million tonnes (MT) in
April-August 2021, on account of a substantial reduction in the import of
non-coking coal. There will be some reaction in aviation stocks as ICRA report said
domestic air passenger traffic grew by a whopping 67 per cent year-on-year at
around 87-88 lakh in October, on the back of festive season demand amid
continuous fall in the number of COVID-19 infection cases. Meanwhile, Nykaa,
owned by FSN E-Commerce Ventures, whose IPO got 81.78 times subscription, is
scheduled to make its stock market debut on Wednesday, 10 November 2021. Apart
from this, today is the last day to bid for Paytm IPO. Moreover, Latent View
Analytics, a data analytics firm, will be open for public subscription on
November 10.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
18,044.25
|
17,980.66
|
18,110.21
|
BSE Sensex
|
60,433.45
|
60,207.91
|
60,664.74
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
504.58
|
511.00
|
502.79
|
519.94
|
State
Bank of India
|
254.51
|
529.00
|
523.46
|
533.26
|
Mahindra
& Mahindra
|
153.76
|
904.50
|
876.26
|
919.06
|
Oil
& Natural Gas Corporation
|
136.01
|
156.55
|
154.99
|
158.14
|
Indian
Oil Corporation
|
129.21
|
139.70
|
138.60
|
141.15
|
Reliance Industries' wholly owned step-down subsidiary -- REUHLP has signed agreements with Ensign to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA.
Tata Motors has signed a five-year MoU with Equitas SFB to bring a set of attractive financial solutions to its customers.
UltraTech Cement has committed to the GCCA 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete.
Kotak Mahindra Bank has hiked home loan rates by 0.05%.