Friday turned out to be a
disappointing day of trade for Indian equity benchmarks with frontline gauged
ending with a cut of one and a half percent, breaching their crucial 48,900
(Sensex) and 14,400 (Nifty) levels. Markets started the session on cautious
note on report that India recorded 13,701 fresh cases of the coronavirus
disease (Covid-19). The total number of active cases in the country has fallen
to 10,625,420, while the caseload tally stands at 10,625,420. Globally, more
than 98 million people have been infected by the virus. The country continues
to be second-most-affected globally, and ranks 13th among worst-hit nations by
active cases. Traders shrugged off report that the Reserve Bank of India (RBI),
in its latest assessment of the economy, indicated that the Indian economy has
further recovered and estimates the Gross Domestic Product (GDP) to turn
positive in the third quarter. Selling intensified in second half of the trade
as traders opted to book profit mainly in Reliance Industries (RIL), Housing
Development Finance Corporation (HDFC) and HDFC Bank. Sentiments remain
dampened after credit rating agency, India Ratings and Research (Ind-Ra) in its
latest report has said that the major focus of the government to revive the
COVID-19 battered economy has till now been on the supply side, but it is high
time to change gears and focus on the demand side as well, lest the ongoing
recovery begins to lose steam. Traders took note of report that India's hiring
activities declined last year due to the coronavirus pandemic, there is a
sudden increase in demand with about 53 per cent of companies saying they are
planning to increase their headcounts in 2021. The pandemic adversely impacted
economies across Asia-Pacific, including India, which had entered 2020 with
robust hiring activities, according to professional recruitment services firm
Michael Page India's 'Talent Trends 2021 Report'. Meanwhile, Union Health
Ministry said the number of healthcare workers who have received COVID-19
vaccine jabs in India till the evening of the sixth day of the nationwide
immunisation drive has reached 9,99,065 as per provisional reports. Finally,
the BSE Sensex fell 746.22 points or 1.50% to 48,878.54, while the CNX Nifty was
down by 218.45 points or 1.50% to 14,371.90.
The US markets ended mostly lower
on Friday on account of profit taking, as some traders looked to cash in on the
recent run to new record highs. Selling pressure waned over the course of the
session, however, as traders shrugged off uncertainty about President Joe
Biden's proposed $1.9 trillion coronavirus relief package. Optimism about more
stimulus has helped propel stocks higher recently, although traders seemed
unfazed by moderate Republican Senators Mitt Romney and Lisa Murkowski both
expressing skepticism about the proposal. Romney and Murkowski both pointed to
the recently approved $900 billion stimulus and raised questions about whether
more relief is needed. Democrats could attempt to pass a new stimulus bill
without Republican support by the so-called reconciliation process, which only
requires a majority. However, Democratic Senator Joe Manchin has also expressed
concerns about the cost of increasing the size of direct payments to
individuals to $2,000 from $600. The negative sentiment may have been partly
offset by a report from the National Association of Realtors showing an
unexpected rebound in existing home sales in the month of December. NAR said
existing home sales climbed by 0.7 percent to an annual rate of 6.76 million in
December after tumbling by 2.2 percent to a revised rate of 6.71 million in
November. The rebound surprised market participants, who had expected existing
home sales to slump by 2.1 percent to a rate of 6.55 million from the 6.69
million originally reported for the previous month. With the unexpected monthly
increase, existing home sales in December were up by 22.2 percent compared to
the same month a year ago.
Crude oil futures ended lower on
Friday after U.S. government data revealed an unexpected weekly rise in
domestic crude supplies. The Energy Information Administration reported Friday
that U.S. crude inventories rose by 4.4 million barrels for the week ended
January 15. However, the EIA data also showed crude stocks at the Cushing,
Okla., storage hub declined by 4.7 million barrels for the week. A resurgence
of COVID-19 infections in China and Southeast Asia also raised concerns about
near-term oil demand. COVID-19 cases have reappeared in China with 103 new
infections, marking an 11th day with more than 100 confirmed infections and
forcing a lockdown for the first time in months. Meanwhile, Hong Kong on Friday
announced its first lockdown, a move reminiscent of the measures used to combat
the outbreak of SARS 20 years ago. Crude oil futures for March fell 86 cents or
1.6 percent to settle at $52.27 barrel on the New York Mercantile Exchange.
March Brent crude lost 69 cents or 1.2 percent to settle at $55.41 a barrel on
London's Intercontinental Exchange.
Indian rupee ended marginally
higher against dollar on Friday, on selling of the American currency by
exporters. Losses in Indian equity markets also restricted the upside of rupee.
Traders took note of report that Reserve Bank of India (RBI) continued to
remain a net buyer of the US currency in November after it bought $10.261
billion from the spot market. During the reporting month, the central bank
purchased $14.289 billion and sold $4.028 billion, according to the monthly
bulletin released by the RBI for January. On the global front, after three
straight days of losses, the dollar stabilised on Friday and riskier currencies
lost out as the recent equity market rally paused for breath, with business
activity data in focus. The dollar had fallen against a basket of currencies
for the past three sessions as market optimism about U.S. President Joe Biden's
fiscal stimulus plans prompted traders to seek riskier assets, with the New
Zealand and Australian dollar gaining. Finally, the rupee ended at 72.97, 2
paise stronger from its previous close of 72.99 on Thursday.
The FIIs as per Friday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 9093.59 crore against gross selling of Rs 7354.80 crore, while
in the debt segment, the gross purchase was of Rs 2607.85 crore with gross
sales of Rs 434.78 crore. Besides, in the hybrid segment, the gross buying was
of Rs 6.50 crore against gross selling of Rs 7.12 crore.
The US markets ended lower on
Friday. Asian markets are trading mixed on Monday as rising COVID-19 cases and
doubts over the ability of vaccine makers to supply the promised doses on time
soured risk appetite. Indian markets ended 1.5 percent lower on Friday mainly
dragged by banking, financial and metal sectors. Today, the markets are likely
to make positive start. Markets may continue to remain volatile during the week
amid monthly derivatives expiry, quarterly earnings and the upcoming Union
Budget. Traders will be taking encouragement with a private report that India's
economy showed signs a recovery is taking root as waning virus cases and a
vaccine roll-out supported sentiment and as focus turns to further stimulus
possible in the upcoming federal budget. Some support will come with report
that foreign portfolio investors (FPI) remained net buyers to the tune of Rs
18,456 crore so far in January as global liquidity led to continued investment
in emerging markets. Besides, after touching a record high in the preceding
week, RBI data showed that the country's foreign exchange reserves declined by
$1.839 billion to $584.242 billion in the week ended January 15. In the
previous week ended January 8, the reserves had climbed by $758 million to
touch a lifetime high of $586.082 billion. Traders may take note of report that
India recorded 12,921 fresh cases of the coronavirus disease (Covid-19). The
total number of active cases in the country has fallen to 186,115, while the
caseload tally stands at 10,668,356. Globally, more than 99.7 million people
have been infected by the virus. The country continues to be
second-most-affected globally, and ranks 13th among worst-hit nations by active
cases. NBFCs stocks will be in focus as the RBI proposed a structure to
categorise NBFCs, or shadow banks, depending on their size and
interconnectedness with the system. Continuing the recent flurry of initial
public offerings, today the Rs 412 crore IPO of Stove Kraft Ltd will open for
subscription. The kitchen appliance manufacturer is one of the leading brands
in the segment. The issue is priced at Rs 384-385 per unit and investors can
bid for a lot of 38 equity shares and in multiples thereafter. Meanwhile, Big
farmers' rally today in Mumbai to protest against the Centre's new agriculture
laws. Maharashtra farmers join to support the ongoing farmers' protest in
Delhi. The farmers are protesting to demand repealing of three agri laws,
central law guaranteeing MSP & procurement. Mumbai Police has beefed up the
security at Azad Maidan.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,371.90
|
14,279.80
|
14,541.95
|
BSE
Sensex
|
48,878.54
|
48,581.46
|
49,426.26
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
3,160.08
|
289.35
|
276.16
|
304.71
|
State
Bank of India
|
444.41
|
283.70
|
278.06
|
293.66
|
Oil
& Natural Gas Corporation
|
273.12
|
92.75
|
91.69
|
94.64
|
Gail
India
|
262.14
|
134.05
|
132.60
|
135.90
|
NTPC
|
260.29
|
94.05
|
92.46
|
96.06
|
SEBI has imposed a penalty of Rs 1 crore on HDFC Bank for invocation of client securities pledged by stock broking firm BRH Wealth Kreators in violation of an interim order by the regulator.
Kotak Mahindra Bank has introduced instant in-principle sanction of home loans on its digital platform - Kotak Digi Home Loans.
ICICI Bank has executed its first interbank - money market transaction linked with Secured Overnight Funding Rate.
NTPC has decided to issue unsecured non-convertible bonds in the nature of debentures of Rs 2,500 crore on January 27, 2021, through private placement.