Indian equity benchmarks remained
volatile for yet another session and ended marginally higher on Friday led by
gains in Utilities and Power stocks, even as hawkish US Federal Reserve remarks
reignited rate worries and dragged Asian peers. Markets made a negative start
and stayed in red for better part of the day as persistent foreign fund
outflows dented sentiments. Provisional data from the National Stock Exchange
showed that foreign institutional investors offloaded shares worth Rs 1,712.33
crore on November 9. Traders remained cautious with the RBI governor
Shaktikanta Das' statement that retail inflation remains vulnerable to
recurring and overlapping food price shocks. Investors also remained cautious
ahead of the Industrial production data to be out later in the day. However, fag-end
buying helped benchmark indices to recoup all the losses and settled higher.
Some solace also came with Global rating agency Fitch Ratings' report stating
that Indian banks' Viability Ratings (VR) will continue to benefit from
improved operating conditions and performance in the near term. It expects
Issuer Default Ratings (IDRs) to remain stable across banks as they are driven
by its expectation of extraordinary support from the Indian sovereign
(BBB-/Stable), should there be a need. Traders took a note of SEBI's whole-time
member Ashwani Bhatia's statement that India's rapid economic growth needs to
be accompanied with the transition to a sustainable economy and stressed that
financial markets will play a critical role in promoting sustainable finance.
He said countries including India, have made a number of important commitments
in the last few years to address climate change and moving to sustainable and
inclusive economies. The Indian markets were ushered into the new Hindu
calendar year -- Samvat 2080 -- on a bullish note on Sunday. After the
ceremonial one-hour trading session, the benchmark Sensex and the Nifty closed
with gains of over half a per cent. Finally, the BSE Sensex rose 354.77 points
or 0.55% to 65,259.45 and the CNX Nifty was up by 100.20 points or 0.52% to
19,525.55.
The US markets ended sharply
higher on Friday with Nasdaq settling over two percent, as traders shrugged off
concerns about the outlook for interest rates sparked by remarks by Federal Reserve
Chair Jerome Powell on Thursday. Powell said the Fed is not yet confident,
rates are at a sufficiently restrictive level to bring inflation down to 2
percent and warned the central bank would not hesitate to resume raising rates.
Markets initially benefited from a pullback by treasury yields. On the sectoral
front, semiconductor stocks moved sharply higher over the course of the
session, resulting in a 4.0 percent spike by the Philadelphia Semiconductor
Index. Significant strength was also visible among software stocks, with the
Dow Jones U.S. Software Index surging by 2.5 percent to its best intraday level
in well over a year. Housing stocks also showed a strong move to the upside on
the day, driving the Philadelphia Housing Sector Index up by 1.8 percent. On
the economic data front, the University of Michigan said its consumer sentiment
index slid to 60.4 in November from 63.8 in October. The street had expected
the index to edge down to 63.7. The consumer sentiment index decreased for the
fourth consecutive month, falling to its lowest level since hitting 59.0 in
May. The report also said year-ahead inflation expectations rose to 4.4 percent
in November from 4.2 percent in October, reaching the highest level since
hitting 4.7 percent in April. Long-run inflation expectations also increased
from 3.0 percent in October to 3.2 percent in November, marking the highest
reading since 2011.
Crude oil futures ended higher on
Friday, extending previous session's gains. Traders took a note of report that
Saudi Arabia's minister of investment, Khalid al-Falih, reassured that the Gulf
country has no plans to use oil production as leverage in the Gaza conflict.
However, the most active oil futures contract still suffered a third weekly
loss as disruptions threat continued to fade. Worries about the impact of
higher borrowing costs on economic growth and uncertainty about the outlook for
energy demand contributed to oil's downside in recent sessions. Benchmark crude
oil futures for December delivery rose $1.43 or 1.9 percent to settle at $77.17
a barrel on the New York Mercantile Exchange. Brent crude for January delivery
gained $1.42 or 1.77 percent to settle at $81.73 a barrel on London's Intercontinental
Exchange.
Indian rupee settled lower
against dollar on Friday tracking an upward movement in crude oil prices and
foreign capital outflows. Traders overlooked Global rating agency Fitch
Ratings' report stating that Indian banks' Viability Ratings (VR) will continue
to benefit from improved operating conditions and performance in the near term.
It expects Issuer Default Ratings (IDRs) to remain stable across banks as they
are driven by its expectation of extraordinary support from the Indian sovereign
(BBB-/Stable), should there be a need. On the global front, sterling held at
around a one-week low against the dollar on Friday, set for a weekly decline of
1.2%, as markets digested data showing Britain's economy failed to grow in the
third quarter, though this was slightly above expectations. Finally, the rupee
ended at 83.32 (Provisional), weaker by 3 paise from its previous close of
83.29 on Thursday.
The FIIs as per Friday'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 7314.69 crore against gross
selling of Rs 8777.05 crore, while in the debt segment, the gross purchase was
of Rs 976.00 crore with gross sales of Rs 124.82 crore. Besides, in the hybrid
segment, the gross buying was of Rs 10.45 crore against gross selling of Rs
18.71 crore.
The US markets ended higher on
Friday after Moody's Investors Service lowered its U.S. credit rating outlook
to negative from stable. Asian markets are trading mostly in green on Monday
ahead of US President Biden and his Chinese counterpart Xi Jinping's in-person
meeting this week. Indian markets edged higher on Friday to end Samvat 2079
with double-digit gains. On Sunday, markets ushered in Samvat 2080 with solid
gains as the benchmark indices clocked their second-best Muhurat trading gains
in five years. Today, indices are likely to make flat-to-positive start ahead
of the retail inflation data. There are expectations that retail inflation to
have cooled to a four-month low in October following moderation in volatile
food prices. Traders will be taking encouragement as the Central Board of
Direct Taxes (CBDT) said gross direct tax collection increased by 17.59 per
cent year-on-year (Y-o-Y) to Rs 12.37 trillion in the period from April 1 to
November 9. Direct tax collection (net of refunds) stood at Rs 10.6 trillion,
21.82 per cent higher than the net collection for the comparable period last
year. Refunds amounting to Rs 1.77 trillion have been issued during the period.
However, some cautiousness may come with a private report that Foreign
Portfolio Investors (FPIs) selling spree continued as they dumped Indian equity
worth over Rs 5,800 crore this month so far on rising interest rates and
geopolitical tensions in the Middle East. This came after such investors
withdrew Rs 24,548 crore in October and Rs 14,767 crore in September, data with
the depositories showed. Traders may be concerned as the data released by the
National Statistical Office (NSO) showed that growth in the Index of Industrial
Production (IIP) cooled to a three-month low of 5.8 per cent in September from
10.3 per cent in August, on the back of moderation across all sub-sectors and
use-based categories. Besides, former Reserve Bank of India Governor Raghuram
Rajan said India's economy is showing signs of steady growth but needs to
expand at a pace of over 8 percent to create enough jobs for the world's most
populous nation. There will be some reaction in port sector stocks as Central
government-owned ports, which are major ports and had been showing slow growth
this financial year, saw a turnaround in October. The provisional data by the
Indian Ports Association showed that there was 13 per cent growth in cargo and
the ports handled 70 million tonnes (mt) of goods. Meanwhile, Protean eGov Tech
will make its market debut today. The issue price is fixed at Rs 792.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,525.55
|
19,508.11
|
19,545.11
|
BSE
Sensex
|
65,259.45
|
65,179.04
|
65,379.42
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Coal
India
|
102.63
|
332.45
|
328.24
|
336.69
|
Tata
Steel
|
39.84
|
120.85
|
120.44
|
121.44
|
ONGC
|
29.89
|
196.70
|
195.46
|
198.36
|
NTPC
|
25.15
|
244.80
|
243.09
|
246.44
|
Tata
Motors
|
22.46
|
653.40
|
651.21
|
656.76
|
- Dr. Reddy's Laboratories has
acquired 26% of the paid up equity share capital of O2 Renewable Energy IX
(SPV) in the first tranche, in accordance with terms and conditions of the
Security Subscription and Shareholders' Agreement.
- US-based Ohio Rail Development
Commission has approved $1 million in financial assistance to JSW Steel's subsidiary
-- JSW Steel USA for its two on-site rail projects at Mingo Junction facility.
- Infosys has entered into collaboration
with Better Home & Finance Holding Company, a leading digital-first
homeownership company, to launch Mortgage as a Service.
- Mahindra & Mahindra has
reported 17.79% fall in its consolidated net profit at Rs 2483.97 crore for
Q2FY24 as compared to Rs 3021.38 crore for the same quarter in the previous
year.