Indian
benchmark indices ended a choppy session higher, managing to take their winning
streak to a fifth straight day on Thursday, led by gains in Metal, Capital
Goods and Power stocks. After making cautious start, markets gained some
traction, as traders got some support with the World Bank's statement that
Narendra Modi government's Production-Linked Incentive (PLI) Scheme will likely
help India's economy grow at 8.7% in the next financial year 2022-23, beating
emerging market peers including China. Some support also came with Commerce and
Industry Minister Piyush Goyal's statement that startups of the country will
help India transition from an assembly economy, particularly in the digital
world, to a knowledge-based economy. In this digital age, technology has
removed boundaries and barriers. However, key indices erased initial gains amid
volatility due to subdued macro-economic data. India's industrial production
growth remained subdued for the third straight month and expanded by 1.4 per
cent in November, mainly due to the waning low base effect. Also, rising prices
of essential kitchen items pushed the retail inflation to a six-month high of
5.59 per cent in December, close to the Reserve Bank's upper tolerance limit of
6 per cent. Traders also remain concerned as a private report revised downwards
its India's growth forecast for the current financial year to 9.1 per cent from
9.5 per cent earlier, citing the massive surge in Omicron infections and the
resultant impact on overall economic activities in the March quarter. But,
markets managed to end in green, taking support from India's Bharat Biotech
statement that the booster shot of its Covaxin COVID-19 vaccine administered
six months after the last of two doses neutralises both the Omicron and Delta
variants of the coronavirus. Finally, the BSE Sensex rose 85.26 points or 0.14%
to 61,235.30 and the CNX Nifty was up by 45.45 points or 0.25% to 18,257.80.
The US markets settled in red on
Thursday. The tech-heavy Nasdaq showed a particularly steep drop, ending the
day at its lowest closing level in three months. Software stocks turned in some
of the worst performances on the day, dragging the Dow Jones US Software Index
down by 4.3 percent. The index tumbled to its lowest closing level in almost six
months. Substantial weakness also emerged among semiconductor stocks, as
reflected by the 2.3 percent slump by the Philadelphia Semiconductor Index.
Outside of the tech sector, healthcare, brokerage and retail stocks also came
under pressure, while significant strength remained visible among airline
stocks. Further, weakness also prevailed in the markets as first-time claims
for U.S. unemployment benefits unexpectedly increased in the week ended January
8th, according to a report released by the Labor Department. The report said
initial jobless claims rose to 230,000, an increase of 23,000 from the previous
week's unrevised level of 207,000. Street had expected jobless claims to edge
down to 200,000. With the unexpected increase, jobless claims reached their
highest level since hitting 270,000 in the week ended November 13th. Meanwhile,
the Labor Department released a report showing only a slight uptick in US
producer prices in the month of December. The Labor Department said its
producer price index for final demand edged up by 0.2 percent in December after
jumping by an upwardly revised 1.0 percent in November. Street had expected
producer prices to rise by 0.4 percent compared to the 0.8 percent increase
originally reported for the previous month.
Crude oil futures ended lower on
Thursday as investors took profits after two days of gains amid fears of
aggressive US interest rate hikes. However, the losses were cushioned by
expectations that a strong economic recovery will boost demand. Meanwhile,
there is speculation that Omicron is not severe enough to derail a global
demand recovery and cold weather in North America. Benchmark crude oil futures
for February delivery fell $0.52 or 0.6 percent to settle at $82.12 a barrel on
the New York Mercantile Exchange. Brent crude for March delivery declined $0.49
or 0.24 percent to settle at $84.47 a barrel on London's Intercontinental
Exchange.
Indian rupee ended stronger
against dollar due to fresh selling of the American currency by banks and
exporters. Traders got some support with the World Bank's statement that
Narendra Modi government's Production-Linked Incentive (PLI) Scheme will likely
help India's economy grow at 8.7% in the next financial year 2022-23, beating
emerging market peers including China. However, upside remain capped as retail
inflation quickened to a six-month high of 5.59% in December from a year before
and industrial production growth nosedived to a nine-month low of 1.4% in
November, presenting a double whammy for policy-makers as they brace for the
next year's Budget. On the global front, dollar fell further on Thursday to
two-month lows after U.S. inflation proved weaker than feared in December,
prompting investors to cut crowded long positions in the currency. Finally, the
rupee ended 73.90, stronger by 3 paise from its previous close of 73.93 on
Wednesday.
The FIIs as per Thursday'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 7154.16 crore against gross
selling of Rs 7879.63 crore, while in the debt segment, the gross purchase was
of Rs 891.58 crore with gross sales of Rs 568.24 crore. Besides, in the hybrid
segment, the gross buying was of Rs 2.06 crore against gross selling of Rs 5.34
crore.
The US markets ended lower on
Thursday as investors took profits, particularly in technology stocks after a
three-day rally, while multiple Federal Reserve officials were out talking
about inflation and interest rate hikes. Asian markets are trading mostly in
red on Friday tracking major losses on Wall Street overnight. Indian markets
extended gains to a fifth straight session on Thursday, though gains in oil
& gas and metal shares were offset by losses in financial and consumer
stocks. Today, markets are likely to start session on a weak note following
lackluster trade in global markets. Investors will be eyeing on the Wholesale
Price Index (WPI) data to be out later in the day for further cues. There will
be some cautiousness with United Nations' report that India is forecast to grow
at 6.5 per cent in fiscal year 2022, a decline from the 8.4 per cent GDP
estimate in previous financial year, and while the country's economic recovery
is on a solid path amid rapid vaccination progress, coal shortages and high oil
prices could put the brakes on economic activity in the near term. Traders may
take note of report that the FSDC sub-committee headed by Reserve Bank Governor
Shaktikanta Das has reviewed the economic situation in the backdrop of the
COVID-19 pandemic and resolved to keep a close watch on the unfolding
developments with a view to ensure financial stability. Meanwhile, Niti Aayog
Vice-Chairman Rajiv Kumar said the country needs much more equitable growth
as inequality could lead to tensions in society. NBFCs and housing finance
companies stocks will be in focus with the central bank's statement that eight
Non-Banking Financial Companies (NBFCs) and one housing finance company have
surrendered their certificates of registration to RBI. There will be some
reaction in aviation industry stocks as ratings agency Crisil said the ongoing
third pandemic wave led by Omicron could pose fresh turbulence for air traffic,
pushing its full recovery into fiscal 2024. The agency had earlier expected the
full recovery to happen in fiscal 2023. Auto component industry stocks will be
in limelight as rating agency Icra revised downwards the revenue growth
forecast for the auto components industry in the current fiscal to 15-17 per
cent, citing the impact of the Omicron wave, delayed recovery in semiconductors
shortage and muted two-wheelers demand.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,257.80
|
18,190.31
|
18,298.76
|
BSE
Sensex
|
61,235.30
|
61,007.21
|
61,405.97
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Wipro
|
307.52
|
650.05
|
643.36
|
661.36
|
Tata Motors
|
275.72
|
512.55
|
500.30
|
519.30
|
HDFC Bank
|
209.81
|
1529.00
|
1,514.60
|
1,549.20
|
Coal India
|
202.71
|
164.55
|
160.21
|
167.66
|
Tata Steel
|
157.23
|
1,219.00
|
1,172.26
|
1,245.61
|
Wipro is planning to hire about 30,000 freshers in FY23.
TCS has reported 12.36% rise in its consolidated net profit at Rs 9,806 crore for Q3FY22 as compared to Rs 8,727 crore for Q3FY21.
Reliance Industries signed MoU with the Government of Gujarat for a total investment of Rs 5.955 lakh crore as part of Investment Promotion Activity for Vibrant Gujarat Summit 2022.
Infosys is working closely with the Income Tax Department on the next set of areas related to the I-T portal as new modules will be added to it.