Indian equity benchmarks ended
higher with gains of over half percent on Thursday, on the back of consistent
buying support in index heavyweights -- Reliance Industries, ITC and Infosys.
Market opened on a weak note amid mixed global cues. Some concern also came
with report indicating that foreign institutional investors (FIIs) have been on
a selling spree in India this financial year, with November seeing an outflow
of over Rs 17,900 crore in the equity cash market, taking the net outflow in
the segment since April to almost Rs 87,000 crore. During the afternoon
session, market recovered and gained momentum to enter into green terrain, as
traders turned optimistic with a private report stating that Official data
print on the GDP will show a 7.8 per cent expansion on a year-on-year basis for
the September 2021 quarter. Some support also came with Foreign Secretary Harsh
Vardhan Shringla's statement that the government has set an ambitious target of
$400 billion exports for financial year 2021-22. Key gauges extended their
gains to trade near day's high points in late afternoon session, as sentiments
were upbeat as Moody's expects India's economic growth to rebound strongly,
pegging GDP growth of 9.3% and 7.9% in fiscal year 2022 (ending on 31 March
2022) and fiscal 2023, respectively. It also said growing government spending
on infrastructure will support demand for steel and cement. It added rising
consumption, India's push for domestic manufacturing and benign funding
conditions will support new investments. Meanwhile, the Income Tax Department
said it has issued refunds of over Rs 1.23 lakh crore so far this fiscal year.
This includes 75.75 lakh refunds of Assessment Year (AY) 2021-22 amounting to
Rs 15,998.31 crore. Finally, the BSE Sensex rose 454.10 points or 0.78% to
58,795.09 and the CNX Nifty was up by 121.20 points or 0.70% to 17,536.25.
US markets were closed on
Thursday on the occasion to Thanksgiving Holiday.
Indian rupee ended significantly
lower against dollar on Thursday, on increased demand for the greenback from
importers and banks. Traders were worried with report indicating that foreign
institutional investors (FIIs) have been on a selling spree in India this
financial year, with November seeing an outflow of over Rs 17,900 crore in the
equity cash market, taking the net outflow in the segment since April to almost
Rs 87,000 crore. Investor's largely overlooked Foreign Secretary Harsh Vardhan
Shringla statement that India has set an ambitious target of $400 billion of
exports for the year 2021-22. On the global front, Sterling steadied on
Thursday close to a 2021 low against the dollar, supported by expectations of a
rate hike in the United States, while investors awaited for a Bank of England
Governor's speech later in the day. Finally, the rupee ended 74.52, weaker by
12 paise from its previous close of 74.40 on Wednesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 6050.47 crore against gross selling of Rs 14104.47 crore,
while in the debt segment, the gross purchase was of Rs 255.48 crore with gross
sales of Rs 1605.21 crore. Besides, in the hybrid segment, the gross buying was
of Rs 33.78 crore against gross selling of Rs 49.61 crore.
The US markets remained closed on
Thursday owing to the Thanksgiving holiday. Asian markets are trading in red on
Friday as a new virus variant added to concerns about growth and interest rates
going forward. Indian markets ended a choppy session stronger powered by gains
in oil & gas, IT and pharma shares, though losses in financial and auto
scrips limited the upside. Today, the markets are likely to get gap-down
opening amid losses across other Asian markets. Traders will be concerned as
WHO flags new Covid-19 strain. World Health Organization officials met on
Thursday to discuss a new coronavirus variant circulating in South Africa and
Botswana. The new variant, called B.1.1529, carries an unusually large number
of mutations, Francois Balloux, director of the UCL Genetics Institute. Also,
foreign fund outflow likely to dent sentiments in the markets. Foreign
portfolio investors (FPIs) remained net sellers for Rs 2300.65 crore in the
Indian markets, provisional data showed on the NSE. There will be some cautiousness as a report
by ICRA said the Reserve Bank of India's revision of bad loan recognition and upgradation
norms could bring a sharp spike in the non-performing assets of non-banking
finance companies (NBFCs) in the country. However, some respite may come as
Acuite Ratings and Research said India's Q2FY22 GDP is expected to grow by 8.5
per cent on a year-on-year (YoY) basis amid support from a favourable base.
Some support may come as Investments in Indian capital through participatory
notes (P-notes) rose to Rs 1.02 lakh crore till October-end, making it the
highest level in 43 months. Also, Niti Aayog Vice-Chairman Rajiv Kumar said the
government is committed to improving the ease of doing business in the country.
Besides, Department for Promotion of Industry and Internal Trade (DPIIT)
Secretary Anurag Jain said foreign direct investment (FDI) proposals are being
cleared and as of today only 29 applications are pending. Meanwhile, Tarsons
Products shares will list on the stock exchanges today. The Rs 1,023 crore IPO
of the life sciences company was heavily subscribed by investors earlier this
month. The issue price has been fixed at Rs 662 per share.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,536.25
|
17,403.85
|
17,616.50
|
BSE Sensex
|
58,795.09
|
58,325.44
|
59,083.16
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
239.04
|
231.75
|
227.60
|
234.05
|
Coal
India
|
224.02
|
158.75
|
155.56
|
162.36
|
Reliance
Industries
|
195.68
|
2,501.00
|
2,404.76
|
2,549.61
|
ICICI
Bank
|
177.49
|
486.90
|
569.81
|
579.46
|
Tata
Motors
|
153.36
|
494.20
|
488.75
|
497.40
|
Coal India is aiming at investing Rs 40,000-50,000 crore as capital expenditure in the next 4-5 years.
Reliance Industries, through its subsidiary -- RSBVL, is all set to acquire the rights to own and operate a new franchise cricket team in the ECB's upcoming UAE T20 League.
Tata Steel has commissioned 8 million tonne iron ore crushing and washing plant in Odisha.
Eicher Motors' motorcycle arm -- Royal Enfield has commences operations of its exclusive Local Assembly unit and CKD facility in Thailand.