Indian equity benchmarks staged a
splendid recovery on Monday's trade to end the session near intraday highs with
frontline gauges ending above their crucial 57,400 (Sensex) and 17,050 (Nifty)
levels. Markets made a pessimistic start as sentiment remained weak as several
states such as Delhi, Karnataka, and Maharashtra enforce new restrictions in
view of rising Covid-19 cases. Traders were concerned with a private report as
it has penciled in an 8.2 per cent GDP growth next fiscal, with more downside
risks to the projection, warning that the New Year will be riskier than the
previous two in terms of growth, inflation and the perils of monetary policy
normalisation on consumption demand in particular, along with other external
risks. Meanwhile, investments in Indian capital market through participatory
notes (P-notes) dropped to Rs 94,826 crore till November-end after hitting
43-month high in the preceding month. However, markets took U-turn and staged a
decent comeback as traders opted to buy beaten down but fundamentally strong
stocks. Traders took some support after a member of the Monetary Policy
Committee (MPC) of the Reserve Bank, Jayanth R Varma expressed hope that in a
few quarters from now, capital investment would begin to pick up even in the
old economy, and said the next fiscal year is also expected to witness a decent
growth. Traders took note of report that the GST regime will see a host of tax
rate and procedural changes coming into effect from January 1, including
liability on e-commerce operators to pay tax on services provided through them
by way of passenger transport or restaurant services. Markets extended gains to
end near intraday highs amid reports that Indian companies have mopped up more
than Rs 9 lakh crore through equity and debt routes in 2021 to meet their
renewed thirst for business expansion in a buoyant stock market brimming with
liquidity and helped by recovering macroeconomic indicators after pandemic-ravaged
first few months. Adding to the optimism, rating agency ICRA has said that the
recent improvement in recovery of the non-performing assets (NPAs) and decline
in provisioning of loans in the banking sector are expected to improve further
in the coming year. Finally, the BSE Sensex gained 295.93 points or 0.52% to
57,420.24 and the CNX Nifty was up by 82.50 points or 0.49% to 17,086.25.
The US markets ended in green on
Monday as markets reopened after the Christmas holiday and investors assessed
the spread of the omicron Covid-19 variant. The continued strength on markets
came amid easing concerns about the economic impact of the Omicron variant of
the coronavirus. While Omicron seems to be more transmissible, the new strain
purportedly causes milder symptoms and could potentially accelerate the end of
the pandemic. On the sectorol front, semiconductor stocks showed a substantial
move to the upside on the day, driving the Philadelphia Semiconductor Index up
by 2.7 percent to a new record closing high. Significant strength was also
visible among networking stocks, as reflected by the 2.4 percent jump by the
NYSE Arca Networking Index. The index has also reached a new record closing
high. However, Airline stocks fell after a holiday weekend that saw thousands
of flights canceled due to Covid-related issues. The omicron variant led to a
staffing shortage at a time when airlines were looking to ramp up their
schedules to meet high travel demand. Delta Air Lines, United Airlines and
American Airlines all closed lower.
Crude oil futures ended higher on
Monday amid hopes the Omicron variant of the coronavirus will not any
significantly impact global economic recovery. However, prices drifted lower
earlier in the day, reacting to news about cancellation of over 1,300 flights
by the US airlines over the weekend. According to reports, airlines across the
world cancelled nearly 8,000 flights over the three-day Christmas weekend due
to the spread of the Omicron variant. In the United States, the Omicron
variant's daily cases have breached those of the Delta wave. Meanwhile,
Britain, where Omicron is the dominant variant, has been reporting more than
100,000 cases in a single day. France has also reported cases above that figure
for the first time. Benchmark crude oil futures for February delivery rose
$1.78 or 2.4 percent to settle at $75.57 a barrel on the New York Mercantile
Exchange. Brent crude for February delivery surged $2.37 or 3.1 percent to
settle at $78.16 a barrel on London's Intercontinental Exchange.
Continuing gaining rally, Indian
rupee strengthened marginally against dollar on Monday, owing to dollar sale by
exporters and banks. Sentiments were positive as a member of the MPC of the
Reserve Bank, Jayanth R Varma expressed hope that in a few quarters from now,
capital investment would begin to pick up even in the old economy, and said the
next fiscal year is also expected to witness a decent growth. However, upside
remained capped as country's foreign exchange reserves declined by $160 million
to stand at $635.667 billion in the week to December 17. During the reporting
week ended December 17, the dip in the forex kitty was on account of a decline
in foreign currency assets (FCAs), a major component of the overall reserves. On
the global front, dollar was range bound, despite a hawkish turn at the Federal
Reserve that saw policymakers signalling three quarter-point rate hikes next
year. Finally, the rupee ended 75.00 (Provisional), stronger by 3 paise from
its previous close of 75.03 on Friday.
The FIIs as per Monday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 2611.09 crore against gross selling of Rs 2843.93 crore, while
in the debt segment, the gross purchase was of Rs 68.01 crore with gross sales
of Rs 3764.11 crore. Besides, in the hybrid segment, the gross buying was of Rs
9.02 crore against gross selling of Rs 18.37 crore.
The US markets ended higher on
Monday as strong US retail sales underscored economic strength and eased
worries from Omicron-driven flight cancellations that hit travel stocks. Asian
markets are trading mostly in green on Tuesday tracking record highs on Wall
Street overnight following strong retail figures. Indian markets finished a
volatile session higher on Monday led by financial, IT and healthcare stocks.
Today, the markets are likely to start session in green mirroring firm global
cues. Traders will be taking encouragement with report that India's exports in
the first three weeks of December rose 36.20% on-year at $23.82 billion.
Outbound shipments were 27.7% higher than the same period of 2019-20. Export
excluding petroleum, oil and lubricants increased 28.08% over the corresponding
period last year. However, there may be some cautiousness as the Centre
extended the existing Covid-related restrictions in the country till January
31, 2022, in view of the rising cases of Covid-19 and Omicron variant in the
country. On Monday, the number of Omicron cases in India rose to 578. Delhi and
Maharashtra have reported 142 cases each. Traders may take note of a private
report that spiralling prices pinched the pocket of consumer as edible oil,
fuel and many other commodities turned dearer this year amid pandemic-induced
disruptions but the inflationary pressure is anticipated to ease, though
marginally, in the coming months. There will be some buzz in the auto stocks as
to substitute India's petroleum imports, the government has advised automobile
makers to start manufacturing flex-fuel vehicles and flex-fuel strong hybrid
electric vehicles complying with BS-VI emission norms within six months.
Telecom stocks will be in focus as the Department of Telecommunications (DoT)
said commercial 5G services will be rolled out in 13 cities in India, including
the metropolises, in 2022. Meanwhile, telecom service providers have demanded
that the government keep 5G spectrum prices affordable to enable maximum
industry participation. There will be some reaction in textile industry stocks
despite demands from traders and states, the government is sticking to its
decision to implement uniform goods and services tax (GST) rate at 12% on
manmade fibre (MMF), MMF yarn, MMF fabrics and apparel from January 1, 2022.
Banking stocks will be in limelight as the Centre-incorporated bad bank is
likely to start operations from the second week of January, paving the way for
a major clean-up of bad loans in the banking system. Besides, Supriya
Lifescience shares will make their stock market debut on Tuesday, 28 December
2021. The Rs 700-crore IPO was subscribed 71.47 times. The IPO had a fresh
issue of up to Rs 200 crore and an offer for sale of up to Rs 500 crore. It had
a price range of Rs 265-274 per share.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,086.25
|
16,908.95
|
17,187.80
|
BSE Sensex
|
57,420.24
|
56,804.87
|
57,773.80
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
125.57
|
472.45
|
464.21
|
476.56
|
IndusInd
Bank
|
123.25
|
856.65
|
824.84
|
875.14
|
State
Bank of India
|
88.56
|
459.40
|
453.14
|
463.09
|
ITC
|
81.53
|
217.70
|
216.09
|
218.89
|
ICICI
Bank
|
79.55
|
736.50
|
722.15
|
744.80
|
Bharti Airtel's subsidiary -- Airtel Payments Bank has crossed one billion transactions volume milestone on its platform during September quarter 2021-22.
Reliance Industries' arm -- Reliance Digital Health has invested in oncology-focussed managed healthcare platform Karkinos Healthcare.
IndusInd Bank has joined hands with the National Payments Corporation of India for offering real-time cross-border remittances to India using UPI IDs, for its MTO partners.
BPCL is aiming at 1GW of renewable energy portfolio by 2025.