Indian equity benchmarks suffered
sharp losses on Monday, extending losses to the fourth trading session in a
row. A sell-off across sectors, led by realty, energy and consumer durables
shares, pulled the headline indices lower. Broader markets also tumbled, with
both the midcap and smallcap indices falling by around three percent. Equity
markets started the week on a negative note and extended their decline further,
as RBI data showed the country's foreign exchange reserves declined by $763
million to $640.112 billion in the week ended November 12, 2021. In the
previous week ended November 5, the reserves had decreased by $1.145 billion to
$ 640.874 billion. It touched a lifetime high of $642.453 billion in the week
ended September 3, 2021. Adding to the pessimism, the government increased
goods and services tax (GST) applicable on finished products such as apparel,
textiles and footwear from 5 percent to 12 percent, effective January 2022. The
benchmark indices continued to languish at lower levels in late afternoon
session, as exchange data showed that the foreign institutional investors
(FIIs) were net sellers of stocks worth Rs 3,930.62 on Thursday, thus taking
the total net selling to nearly Rs 10,000 crore so far this month in the cash
segment. This is following Rs 25,572 crore worth selling in October. Since the
start of this fiscal year, FIIs have net sold shares to the tune of Rs 75,500
crore. Markets participants overlooked the Economic Advisory Council to the
Prime Minister (EAC-PM) stating that the Indian economy is likely to grow by
7-7.5 per cent in the next fiscal year, while observing that contact intensive
sectors and construction should recover in 2022-23. Traders paid no heed
towards Chief Economic Advisor (CEA) Krishnamurthy Subramanian's statement that
the recent reforms initiated by the government will lay the foundation of
higher growth. He said the production-linked incentive (PLI) scheme being
implemented by the government is directed towards growth. Finally, the BSE
Sensex fell 1170.12 points or 1.96% to 58,465.89 and the CNX Nifty was down by
348.25 points or 1.96% to 17,416.55.
The US markets ended mostly lower
on Monday, reversing an earlier rally that came after President Joe Biden
announced he would nominate Chairman Jerome Powell to continue to lead the
Federal Reserve, rather than nominating Fed governor Lael Brainard for the
post. The move to reappoint Powell assuaged investors worried about switching
central bank chiefs while the country's economy is trying to emerge from the
Covid pandemic and battle inflation levels not seen in three decades.
Meanwhile, covid-19 news also weighed on market sentiment, as German Chancellor
Angela Merkel warned that the country was seeing a spike of the virus. On the
sectoral front, Software stocks moved sharply lower over the course of the
session, dragging the Dow Jones US Software Index down by 2 percent. The index
ended last Friday's trading at a record closing high. Considerable weakness was
also visible among gold stocks, as reflected by the 1.7 percent drop by the
NYSE Arca Gold Bugs Index. The weakness among gold stocks came amid a
substantial decline in the price of the precious metal, with gold for December
delivery plummeting $45.30 to $1,806.30 an ounce. Semiconductor and retail
stocks also showed significant moves to the downside on the day, while strength
remained visible among steel, telecom and banking stocks.
Crude oil futures ended higher on
Monday on reports that the Organization of the Petroleum Exporting Countries
(OPEC) and its allies, collectively known as OPEC+, may consider altering plans
to keep boosting production if the US and major Asian countries China, India
and South Korea released oil from national reserves. The US, as well as India,
Japan, China and South Korea are reportedly working out plans to release crude
from national reserves, aiming to curb rising crude oil prices. However, upside
remained capped on rising concerns about the outlook for energy demand due to a
surge in coronavirus cases in several countries, and likely oversupply in the
market. Benchmark crude oil futures for December delivery rose $0.81 or 1.1
percent to settle at $76.75 a barrel on the New York Mercantile Exchange. Brent
crude for January delivery surged $0.72 or 0.91 percent to settle at $79.61 a
barrel on London's Intercontinental Exchange.
Tumbling for second straight
session, rupee ended weaker against dollar on Monday amid massive sell-off in
domestic equity markets, rising crude oil prices and strong dollar in the
overseas market. Sentiments were impacted as foreign institutional investors
(FIIs) were net sellers of stocks worth Rs 3,930.62 on Thursday, thus taking
the total net selling to nearly Rs 10,000 crore so far this month in the cash
segment. This is following Rs 25,572 crore worth selling in October. Since the
start of this fiscal year, FIIs have net sold shares to the tune of Rs 75,500
crore. On the global front, euro fell to trade close to a 16-month low on
growing concerns over the impact of new COVID-19 restrictions in Europe, with
Austria starting a full lockdown and Germany considering following suit. Finally,
the rupee ended 74.39 (provisional), weaker by 9 paise from its previous close
of 74.30 on Thursday.
The FIIs as per Monday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 13285.63 crore against gross selling of Rs 10940.78 crore,
while in the debt segment, the gross purchase was of Rs 1483.40 crore with
gross sales of Rs 364.49 crore. Besides, in the hybrid segment, the gross
buying was of Rs 20.21 crore against gross selling of Rs 22.80 crore.
The US markets ended mostly lower
on Monday following the announcement of a second term for Federal Reserve Chair
Jerome Powell. Asian markets are trading mostly in red on Tuesday tracking an
overnight fall in US stocks. Financial markets in Japan were closed on Tuesday
for a holiday. Indian markets continued to slide for the fourth straight
session to fall 2 percent each on November 22, as selling across sectors, weak
global cues, and repeal of farm laws weighed on sentiment. Today, the markets
are likely to continue their losing trend with gap-down opening tracking
weakness in global markets. There will be some cautiousness with Crisil Ratings
report that the demand growth for petrol and diesel is going to be severely
impacted due to the push towards Compressed Natural Gas (CNG), ethanol
blending, and electric vehicles. Traders will be concerned as foreign institutional
investors (FIIs) net sold shares worth Rs 3,438.76 crore in the Indian equity
market on November 22, as per provisional data available on the NSE. Traders
may take note of Fitch Ratings' statement that the Centre could better its
fiscal deficit at 6.6 per cent of GDP in this financial year on
stronger-than-expected revenue buoyancy, even if the budgeted disinvestment
target is not met. However, some respite may come later in the day as an SBI
research report stated that the country's GDP growth is likely to be around 8.1
per cent in the second quarter of the current financial year and in the range
of 9.3-9.6 per cent during fiscal 2022. It added that in the first quarter of
FY 22, the economy grew 20.1 per cent. Some support may come as the preliminary
data of the commerce ministry showed that the country's exports rose 18.8 per
cent to $20.01 billion during the three week period of this month (November
1-21), due to healthy growth in sectors such as petroleum products, engineering
goods, chemicals and gems and jewellery. Meanwhile, the finance ministry has
notified uniform 12 per cent GST rate on manmade fibre (MMF), yarn, fabrics and
apparel, thereby addressing the inverted tax structure in the MMF textile value
chain. Telecom industry stocks will be in focus as data released by telecom
regulator TRAI showed that Bharti Airtel added 2.74 lakh mobile subscribers in
September even as larger rival Reliance Jio lost 1.9 crore users and Vodafone
Idea lost 10.77 lakh subscribers during the month. Shares of Latent View
Analytics will begin trading on the stock exchanges today. The Rs 600 crore IPO
was subscribed to a whopping 326.49 times with all category of investors
oversubscribing their portion of the issue. Besides, two stocks - Escorts and
Vodafone Idea - are under the F&O ban for November 23.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,416.55
|
17,196.25
|
17,721.05
|
BSE Sensex
|
58,465.89
|
57,725.75
|
59,492.20
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
400.44
|
486.40
|
472.45
|
506.30
|
Bharti
Airtel
|
368.84
|
741.35
|
730.99
|
753.84
|
State
Bank of India
|
288.00
|
487.00
|
474.34
|
502.84
|
ITC
|
225.74
|
230.65
|
226.55
|
237.75
|
Oil
& Natural Gas Corporation
|
215.58
|
147.90
|
144.70
|
152.40
|
Bharti Airtel has hiked mobile tariffs by around 20-25 per cent for various prepaid offering, including tariffed voice plans, unlimited voice bundles, and data top ups.
M&M has partnered with Practo, India's leading integrated healthcare company, to empower its employees and their family members with signature corporate health and wellness plans.
Maruti Suzuki India has ruled out getting back into the diesel segment as sale of such vehicles would further come down with the onset of the next phase of emission norms in 2023.
Global design home retailer West Elm has entered the Indian market and has launched two stores in partnership with Reliance Brands, the brand licensing arm of Reliance Industries.