Indian equity benchmarks remained volatile and ended
marginally lower on Wednesday. Selling pressure was seen across all major
sectors except banking and FMCG stocks.
Key gauges made positive start, as traders took some support with
Foreign Minister Subrahmanyam Jaishankar's statement that India will continue
buying Russian oil as it is advantageous for the country. 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
also came in with latest quarterly survey on Indian manufacturing sector by
FICCI stated that 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 utilization. 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,
benchmark indices reversed their gains and slipped into red terrain in morning
deals, as traders turned cautious with Chief Economic Advisor V Anantha
Nageswaran's statement that 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. 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. Sentiments remained weak with private
report stating that hiring activity declined 6 per cent year-on-year in October
as recruiters adopted a cautious approach in adding new workforce. 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. But, an appreciation in
the rupee against the US dollar and unabated foreign capital inflows helped the
indices restrict the losses. Finally,
the BSE Sensex fell 151.60 points or 0.25% to 61,033.55 and the CNX Nifty was
down by 45.80 points or 0.25% to 18,157.00.
The US markets ended lower on Wednesday as traders cashed
in on recent strength in the markets amid lingering uncertainty about the
results of the US midterm elections. Control of both houses of Congress remains
up for grabs following yesterday's elections, although Republicans are
projected to earn a narrow majority in the House. The performance by
Republicans was not as strong as many had expected, with many candidates backed
by former President Donald Trump underperforming. It remains unclear which
party will have a majority in the Senate, as key races in Georgia, Nevada and
Arizona currently remain undecided. Traders were also moving money out of
stocks ahead of tomorrow's highly anticipated report on consumer price
inflation, which could have a significant impact on the outlook for interest
rates. A slump by shares of Disney (DIS) also weighed on Wall Street, with the
entertainment giant plunging by 13.2 percent to its lowest closing level in
over two years. The steep drop by Disney came after the company reported fiscal
fourth quarter results that missed street estimates on both the top and bottom
lines. On the sectoral front, a steep drop by the price of crude oil
contributed to substantial weakness among energy stocks, with crude for
December delivery plunging $3.08 to $85.83 a barrel following a report showing
a much bigger than expected weekly increase in US crude oil inventories.
Reflecting the weakness in the energy sector, the Philadelphia Oil Service
Index plummeted by 5.6 percent, the NYSE Arca Oil Index dove by 4.4 and the
NYSE Arca Natural Gas Index tumbled by 4.3 percent.
Crude oil futures ended deeply lower on Wednesday,
magnifying their previous session's losses, weighed down by official data
showing a jump in crude stockpiles in the week ended November 4th. Data
released by US Energy Information Administration (EIA) showed crude stockpiles
surged 3.9 million barrels last week to 440.8 million barrels. Further, a
stronger US dollar also weighed on crude oil prices. The dollar surged higher
against most of its major rivals with, traders looking ahead to the crucial US
consumer price inflation data due on Thursday. Benchmark crude oil futures for
December delivery fell $3.08 or about 3.5 percent at $85.83 a barrel on the New
York Mercantile Exchange. Brent crude for January delivery dropped $2.71 or
about 2.8 percent to settle at $92.65 a barrel on London's Intercontinental
Exchange.
Indian rupee strengthened against the dollar on Wednesday
as persistent foreign capital inflows and fall in crude oil prices strengthened
investor sentiment. Traders got some encouragement, 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. On the global
front, dollar steadied near its weakest in two months against the euro on
Wednesday as traders waited on results from U.S. elections and on inflation
data this week that will guide expectations for the interest rate outlook.
Finally, the rupee ended at 81.47 (Provisional), stronger by 45 paisa from its
previous close of 81.92 on Monday.
The FIIs as per Wednesday's data were net buyers in
equity segment, while net sellers in debt segment. In equity segment, the gross
buying was of Rs 9031.94 crore against gross selling of Rs 7089.93 crore, while
in the debt segment, the gross purchase was of Rs 241.78 crore against gross
selling of Rs 616.34 crore. Besides, in the hybrid segment, the gross buying
was of Rs 5.44 crore against gross selling of Rs 29.84 crore.
The US markets ended lower on Wednesday amid Republican
gains in midterm elections appeared more modest than some expected, with
investors also focusing on upcoming inflation data that will provide clues
about the severity of future interest rate hikes. Asian markets were trading
mostly lower in early deals on Thursday following negative cues from US markets
overnight. Indian equity benchmarks ended lower on Wednesday led by Realty,
Metal and Consumer Durables stocks. Today, markets are likely to make negative
start on weak cues from global markets.
Traders may remain concerned as a private report said that India's GDP
growth will slow down to 5.5 per cent in FY24 from the 6.9 per cent expected in
the current fiscal 2022-23. The slowdown was attributed to slowing global
growth and tightening of monetary policies. It said India will be among the
lesser affected economies in the world, but made it clear that the world's
fifth largest economy is not immune from global headwinds. However, some
respite may come later in the day on falling crude oil prices. Traders may take
some solace as the Centre amended the foreign trade policy (FTP) to enable
traders to claim export benefits even if payment is settled in the rupee. So
far, export incentives were available only when the trade was settled in a
foreign currency. The amendments by the Directorate General of Foreign Trade
(DGFT) came into force with immediate effect. The development comes against the
backdrop of the mechanism to settle international trade transactions in the
rupee which was unveiled by the Reserve Bank of India (RBI) in July. Given the
government's push towards the internationalisation of the rupee, these policy
amendments shall help ease international trade transactions in the domestic
currency. Some support may also come as Union Minister of Road Transport and
Highways Nitin Gadkari approved a slew of new road projects, valued at Rs
68,000 crore, in four Northeastern states to make international standard
surface connectivity. There will be some buzz in TV Broadcasting related stocks
as the government unveiled revised uplinking and downlinking guidelines for
satellite television channels that allows Indian teleports to uplink foreign
channels and scraps permission for live telecast of events. The Guidelines for
Uplinking and Downlinking of Satellite Television Channels in India, 2022,
which have been approved by the Union Cabinet, also makes it mandatory for
television channels to telecast content in national and public interest for 30
minutes every day. There will be some
reaction in coal related stocks as the Centre said that the demand for coal in
India is still to reach its peak and the dry fuel will continue to play a key
role in the energy mix till 2040 and beyond. Therefore, shift from coal will
not happen in foreseeable future in the country.
Support and Resistance: NSE (Nifty) and
BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
18,157.00
|
18,084.20
|
18,263.10
|
BSE Sensex
|
61,033.55
|
60,810.05
|
61,352.13
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Coal India
|
403.91
|
256.85
|
253.14
|
261.99
|
Tata Steel
|
382.95
|
105.90
|
105.11
|
107.11
|
ITC
|
206.11
|
360.70
|
355.45
|
363.70
|
Adani Ports And
Special Economic Zone
|
200.88
|
887.00
|
863.66
|
905.66
|
State Bank Of
India
|
189.39
|
614.60
|
609.76
|
620.21
|
Adani Ports and Special Economic Zone (APSEZ) has acquired a 49.38 per cent stake in Indian Oiltanking, a developer and operator of liquid storage facilities, for Rs 1,050 crore.
Mahindra & Mahindra has tied up with three electric vehicle infrastructure partners -- Jio-bp, Statiq, and Charge+Zone -- to offer charging solutions for its upcoming range of passenger electric vehicles.
Reliance Industries' wholly owned subsidiary -- Model Economic Township (MET City) is developing a world class Greenfield Smart City near Gurugram, Haryana.
Sun Pharmaceutical Industries and SPARC have signed a licensing agreement for commercialization of benzyl alcohol and propylene glycol-free phenobarbital sodium powder for injection in United States.