Indian equity benchmarks ended
higher for the second straight day on Wednesday, tracking gains in Hindustan
Unilever, Infosys and Mahindra & Mahindra amid a positive trend in global
markets. Key gauges made cautious start, amid concerns about a new
faster-spreading variant of the coronavirus. But, the benchmarks soon gained
traction and traded in fine fettle, as investors took some solace from a
private report that India is likely to approve Oxford/AstraZeneca's coronavirus
vaccine for emergency use by next week after its local manufacturer submitted
additional data sought by authorities. Traders also took encouragement with PHD
Chamber of Commerce and Industry's EBM Index showing that the continuous
improvement in the key economic and business indicators signals that the worst
is behind us and expectations of positive GDP growth at 0.1 per cent to 2 per
cent in Q3 and 2 per cent to 4 per cent in Q4 FY 2020-21 are becoming strong
with a higher growth trajectory in FY 2021-22 at 7.7 per cent. Domestic indices
extended gains in late afternoon deals, taking support from rating agency
ICRA's report that the domestic securitization volumes of retail pools
originated by non-banking financial companies (NBFC) and housing finance
companies (HFC)) are likely to witness a healthy bounce back in FY2022, after
witnessing a sharp contraction in the current fiscal so far. Some respite also
came with Financial Services Secretary Debasish Panda's statement that the
government plans to set up a Development Finance Institution (DFI) in the next
three to four months, with a view to mobilize Rs 111 lakh crore required for
funding of the ambitious national infrastructure pipeline. Meanwhile, Industry
body CII said it has demanded higher allocation of fund for food processing
schemes and tax incentives for exports of agriculture and food items. In a
pre-Budget meeting with senior finance ministry officials, CII highlighted the
need to find ways for tapping export markets for wheat. Finally, the BSE Sensex
rose 437.49 points or 0.95% to 46,444.18, while the CNX Nifty was up by 134.80
points or 1.00% to 13,601.10.
The US markets ended mostly
higher on Wednesday on positive reaction a slew of US economic data, including
a report from the Labor Department showing a significant pullback in first-time
claims for unemployment benefits in the week ended December 19th. The report
said initial jobless claims slid to 803,000, a decrease of 89,000 from the
previous week's revised level of 892,000. Street had expected jobless claims to
come in unchanged compared to the 885,000 originally reported for the previous
week. The unexpected pullback came after jobless claims reached their highest
level since early September in the previous week. The Commerce Department also
released a report showing new orders for US manufactured durable goods
increased by more than expected in the month of November. However, buying
interest was somewhat subdued, as separate reports from the Commerce Department
showed steep drops in personal income and new home sales. Uncertainty about a
coronavirus relief package approved by Congress also led to cautious trading
after President Donald Trump slammed the bill as a disgrace. Trump called on
Congress to amend the bill to increase the direct payments to individuals to
$2,000 from $600 and get rid of the wasteful and unnecessary items.
Crude oil futures ended higher on
Wednesday, after data showed a drop in US crude stockpiles. Data from Energy
Information Administration (EIA) showed crude inventories in the US fell by
562,000 barrels in the week ended December 18. The data also said gasoline
stockpiles were down by 1.1 million barrels last week, and distillate stocks
dropped by 2.3 million barrels. Oil also found support from the closure of the
Qua Iboe crude oil export terminal last week following a fire at the facility.
Meanwhile, France's decision to reopen its borders with the UK to travelers and
truck drivers who test negative for Covid-19, a weaker dollar and optimism
about a post-Brexit trade deal between the UK and European Union helped as
well. Crude oil futures for February rose $1.10 or 2.3 percent to settle at
$48.12 a barrel on the New York Mercantile Exchange. February Brent crude
gained $1.12 or 2.25 percent to settle at $51.20 a barrel on London's
Intercontinental Exchange.
Indian rupee ended higher against
dollar on Wednesday, on persistent selling of the American currency by
exporters. Traders were energized with PHD Chamber of Commerce and Industry's
EBM Index (Economic and Business Momentum Index) stating that the continuous
improvement in the key economic and business indicators signals that the worst
is behind us and expectations of positive GDP growth at 0.1 per cent to 2 per
cent in Q3 and 2 per cent to 4 per cent in Q4 FY 2020-21 are becoming strong
with a higher growth trajectory in FY 2021-22 at 7.7 per cent. The rupee also
derived its strength from strong gains in the local equity markets. On the
global front, pound firmed on Wednesday after three days of falls as France
lifted a partial border blockade aimed at stopping the spread of a
fast-spreading new COVID-19 strain, and hopes grew of a post-Brexit trade deal
despite discouraging comments from both sides. Finally, the rupee ended at
73.76, 8 paise stronger from its previous close of 73.84 on Tuesday.
The FIIs as per Wednesday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 8678.05 crore against gross selling of Rs
5456.10 crore, while in the debt segment, the gross purchase was of Rs 755.06
crore with gross sales of Rs 1184.94 crore. Besides, in the hybrid segment, the
gross buying was of Rs 2455.62 crore against gross selling of Rs 20.63 crore.
The US markets closed mostly
higher on Wednesday as an expected stimulus deal and falling jobless claims
prompted investors to put their money into sectors most likely to benefit from
the economy re-opening when it recovers from the global health crisis. Asian
markets are trading mostly in green on Thursday ahead of the Christmas break,
as global investors cheered a potential Brexit deal and economic recovery
prospects, largely ignoring US President Donald Trump's threat to veto a
long-awaited COVID aid package. Indian markets ended higher on Wednesday after
a rally in IT stocks overshadowed weak global investors sentiment stemming from
the rapid spread of a new strain of the coronavirus in the UK. Today, the start
of session is likely to be positive tracking gains in global peers. Traders
will be taking encouragement with Union Minister of State for Finance and
Corporate Affairs Anurag Thakur's statement that India will have a strong
economic revival thanks to its well-planned easing of lockdown. He also
defended the contentious farm sector reforms, saying the Narendra Modi government
had the courage to do what others could not. Traders may take note of report
that Covaxin, a COVID-19 vaccine being developed by Bharat Biotech, showed
long-term antibody and T- cell (immune) memory responses three months after the
shot in phase 1 volunteers and tolerable safety outcomes in Phase 2 study, the
city-based company has said, suggesting the antibodies may persist for six to
12 months. Meanwhile, the Union Cabinet has approved changes to the guidelines
for providing Direct to Home (DTH) services to bring it in line with the
existing policy that allows 100 per cent FDI in the DTH broadcasting services
sector. Banking stocks will be in focus as the Reserve Bank of India (RBI)
governor Shaktikanta Das asked banks to take proactive measures to strengthen
their resilience and lending capacity by raising capital. There will be some
reaction in steel sector stocks with report that recovering economy, sprouting
demand and improving prices raise hopes for the country's battered steel sector
as it steps into the New Year after pandemic-induced disruptions turned 2020
into a disaster for the industry. Besides, Mrs Bectors Food Specialities shares
will debut on the bourses today. The 541-crore public issue is the most
subscribe IPO of 2020 so far with investors bidding for the issue 197.38 times
where Non-Institutional Investors subscribed their portion a massive 620.85
times.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
13,601.10
|
13,482.39
|
13,669.64
|
BSE
Sensex
|
46,444.18
|
46,057.74
|
46,671.96
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
569.30
|
169.50
|
165.36
|
171.66
|
Wipro
|
448.74
|
384.95
|
375.24
|
391.14
|
Oil
& Natural Gas Corporation
|
292.16
|
91.20
|
89.24
|
92.24
|
State
Bank of India
|
290.56
|
263.00
|
257.76
|
266.06
|
ITC
|
236.96
|
207.60
|
203.65
|
209.90
|
Wipro has signed significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company that is redefining the food service distribution industry.
Infosys has signed a long-term strategic partnership with Daimler AG for a technology-driven IT infrastructure transformation.
L&T's construction arm -- L&T construction has been awarded (Large) contracts for its Water & Effluent Treatment Business.
Tata Motors has introduced the Ultra T.7 - the most advanced LCV, designed specifically for urban transportation, with its all-new sleek Ultra cabin.