Indian equity benchmarks managed
to end the volatile day of trade with marginal gains as profit booking in later
part of the trade ate most of the initial gains. Markets made a gap-up opening
as traders took encouragement with Finance Minister Nirmala Sitharaman's
statement that India has ramped up the import of crude oil from Russia at
discounted prices amid sanctions on Moscow as part of the country's inflation
management. Sentiments also remained jubilant after Prime Minister Narendra
Modi highlighted the efforts of the Central government for the welfare of the
citizens, including the ones toward agriculture and rural households and said
that it is the government's priority to support crores of farmers all across
the nation at every step. Besides, the joint study conducted by both countries
for the proposed Comprehensive Economic Partnership Agreement (CEPA) said that
India's exports to Bangladesh may increase by additional $10 billion in a time
span of five years if both countries sign a free trade agreement (FTA).
However, traders started booking profit at higher levels where Sensex surpass
60,100 level. Traders turned little cautious on report that the Centre for
Monitoring Indian Economy said consumer sentiments in India deteriorated in
August 2022 and in the first week of September, after having improved
substantially in the previous month, with significant dip in urban sentiments.
According to CMIE, the Index of Consumer Sentiments (ICS) shrunk by 0.5% in
August, after having risen by an impressive 6.7% in July, and further by a 3.1%
in the first week of September. Anxiety remained amongst investors after India
Ratings in its latest report has said that falling wage growth is emerging as a
bigger worry in India as it leads to tepid demand and results in
under-utilisation of capacity, further widening the output gap. However,
markets some-how managed to went home with marginal gains as some solace came
with report that India and US will very soon hold the next ministerial-level
meeting of the Trade Policy Forum (TPF) in America to discuss ways for
promoting trade and investment between the countries. The forum is an
inter-agency collaboration led by the US Trade Representative (USTR). Finally,
the BSE Sensex rose 104.92 points or 0.18% to 59,793.14 and the CNX Nifty was
up by 34.60 points or 0.19% to 17,833.35.
Magnifying their previous
session's gains, the US markets closed sharply higher on Friday on account of
bargain hunting, as the major averages extended the recovery from their worst
levels in over a month. The markets ended higher despite hawkish remarks from
Federal Reserve chair Jay Powell and a large interest rate rise in the EU.
Friday's gain for Wall Street equities came a day after Fed chair Jay Powell
reiterated hawkish messaging that the central bank needed to act forthrightly
on inflation and keep at it until the job is done. On the sectoral front,
steel stocks showed a substantial move to the upside over the course of the
session, resulting in a 5 percent spike by the NYSE Arca Steel Index. Significant
strength was also visible among oil service stocks, as reflected by the 4.4
percent surge by the Philadelphia Oil Service Index. The rally by oil service
stocks came amid a sharp increase by the price of crude oil, with crude for
October delivery jumping $3.25 to $86.79 a barrel. Gold stocks also saw
considerable strength amid an increase by the price of the precious metal,
driving the NYSE Arca Gold Bugs Index up by 2.9 percent. Computer hardware,
airline and semiconductor stocks also showed notable moves to the upside amid
broad based buying interest. Meanwhile, reports on consumer and producer price
inflation are likely to be in focus next week, as the data could impact
expectations regarding future interest rate hikes. Retail sales, industrial
production and consumer sentiment data is also likely to attract attention.
Extending their previous
session's gains, crude oil futures ended significantly higher on Friday as
traders were bargain hunting after recent losses and covering short positions.
Some support came in after latest threat from Russia to choke off oil and gas
supplies if price caps are imposed. Also, a weak dollar contributed to the rise
in oil prices. A report from Baker Hughes said the number of active U.S. rigs
drilling for oil fell by five to 591 this week, after seeing a decline of nine
rigs last week. The data showed the total active U.S. rig count, which includes
those drilling for natural gas, dropped by one to 759. Benchmark crude oil
futures for October delivery rose $3.25 or about 3.9 percent to settle at
$86.79 a barrel on the New York Mercantile Exchange. Brent crude for November
delivery surged $3.69 or about 4.1 percent to settle at $92.84 a barrel on
London's Intercontinental Exchange.
Indian rupee strengthened against
the US dollar on Friday on bouts of dollar-selling amid positive domestic
equities and a pullback in crude oil prices. Local currency took support with
report that India and US will very soon hold the next ministerial-level meeting
of the Trade Policy Forum (TPF) in America to discuss ways for promoting trade
and investment between the countries. The forum is an inter-agency
collaboration led by the US Trade Representative (USTR). On the global front,
sterling jumped against the dollar on Friday, as most majors fought back
against the greenback's recent strength, capping a volatile week in which the
pound hit a 35-year low, Britain saw a new prime minister, and Queen Elizabeth
passed away. Finally, the rupee ended at 79.57 (Provisional), stronger by 12
paisa from its previous close of 79.69 on Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 8536.35 crore against gross selling of Rs
5700.18 crore, while in the debt segment, the gross purchase was of Rs 993.11
crore against gross selling of Rs 1170.61 crore. Besides, in the hybrid
segment, the gross buying was of Rs 69.29 crore against gross selling of Rs
38.36 crore.
The US markets ended higher on
Friday as investors went on a buying spree, shrugging off concerns about the
economic outlook. Asian markets are trading in green on Monday on hopes a key
reading on US inflation will show some cooling, while the US dollar was
restrained by the risk of higher European interest rates and Japanese
intervention. Indian markets managed to finish higher for a second straight day
in a choppy session on Friday, but gave up much of their intraday gains. Today,
markets are likely to start new week on positive note tracking gains in global
markets. Investors will be looking ahead to the macro-economic data -- Index of
Industrial Production (IIP) and Consumer Price Index (CPI) -- to be out later
in the day. Sentiments will get a boost as data from Exim Bank showed that
India's merchandise exports are expected to grow by 11.4 per cent to hit $114.4
billion during the July-September quarter of the current financial year. Strong
FIIs' flow likely to support the Indian markets. Foreign institutional
investors (FIIs) have net-bought shares worth Rs 2,132.42 crore on September 9.
Also, foreign investors have pumped in close to Rs 5,600 crore into the
domestic equity markets in this month so far on expected growth in consumer
spending in festive season and better macro fundamentals compared to other
emerging markets. Some support will come as the Finance Ministry said the
provisional gross direct tax collections for FY23 till September 8 stood at Rs
6.48 trillion, which is 35.5 per cent higher than the same period last year.
Besides, latest data released by the Reserve Bank of India (RBI) showed credit
growth of commercial banks is at a near nine-year high of 15.5 per cent year-on-year
for the week ended August 26. The credit growth is the highest since November
1, 2013, when it was 16.1 per cent. However, there may be some cautiousness as
another data from RBI showed that its headline foreign exchange reserves
declined by $7.9 billion to $553.11 billion in the week ended September 2. The
reserves are at their lowest since October 9, 2020. Meanwhile,
inter-ministerial consultations are progressing on revising the Wholesale Price
Index (WPI) base year from 2011-12 to 2017-18. There will be some buzz in the
railways stocks as the overall revenue of Indian Railways at the end of August
2022 was Rs 95,486.58 crore, showing an increase of Rs 26,271.29 crore or 38
per cent over the corresponding period of last year. The revenue from passenger
traffic was Rs 25,276.54 crore, an increase of Rs 13,574.44 crore (116 per
cent) year-on-year. Auto stocks will be in focus as automobile industry body
Siam said domestic sales of passenger vehicles (PVs) increased by 21.1 per cent
in August to 281,210 units, and added that good monsoon and the upcoming
festive season were likely to increase the demand in the coming months. There
will be some reaction in sugar industry stocks as Sugar industry body ISMA
demanded that the government should allow exports of 80 lakh tonnes of
sweetener in the 2022-23 marketing year starting October in view of surplus
production. Insurance stocks will be in limelight as the finance ministry is
contemplating changes in insurance laws, including reduction in minimum capital
requirement, with a view to increasing the insurance penetration in the
country.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,833.35
|
17,770.91
|
17,910.86
|
BSE
Sensex
|
59,793.14
|
59,578.42
|
60,063.83
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
636.47
|
105.85
|
105.11
|
106.96
|
State Bank of India
|
185.87
|
551.95
|
547.64
|
556.64
|
Adani Ports & Special Economic Zone
|
183.69
|
909.00
|
889.00
|
927.00
|
NTPC
|
164.15
|
166.35
|
165.09
|
168.49
|
Tata Motors
|
142.94
|
446.50
|
441.51
|
450.56
|
NTPC has entered into agreement with armed forces for supply renewable energy.
Oil and Natural Gas Corporation's subsidiary -- OTPC has planned to establish one more 360 MW power unit at its Palatana plant in Tripura's Gomati district.
IOC has awarded a $75-million EPC contract to Thyssenkrupp Industrial Solutions India to construct a catalytic dewaxing unit at its Baroda refinery in Gujarat.
Tata Motors is planning to roll out the electric version of its entry-level model Tiago later this month, in a step towards making environmentally friendly vehicles more accessible to customers.