Bulls strengthened grip on Dalal
Street on Tuesday with Nifty reclaiming its crucial 17,200 mark, while Sensex
ending near 57,900 mark. Markets started the day on an optimistic note as
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. Traders took 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. Markets extended gains as traders took support with private
report stating that the Indian economy is likely to maintain a real GDP growth
of 9 percent each in FY2022 and FY2023 amid uncertainty triggered by the
Omicron variant of corona virus. In last leg of trade market witnessed a sudden
fall and markets pares some of their profit after Delhi chief minister Arvind
Kejriwal's statement that yellow alert has been sounded in Delhi and some
restrictions imposed under the Graded Response Action Plan (GRAP) in view of
rising number of Covid cases in the city. But, the selling was short and
markets fully recovered in dying hour of trade as traders continued to buy
fundamentally strong stocks. Some support came with report that the Centre has
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 December 27th, the number of Omicron cases in India rose to 578.
Meanwhile, foreign portfolio investors (FPIs) pumped in a record $10.8 billion
(Rs 79,851 crore) in the Indian primary market so far this year. FPIs surpassed
the previous high of $9.7 billion in 2020, despite continued withdrawal from
Indian equities and bonds amid fears of a rapid spread of the Omicron variant
of COVID-19. Finally, the BSE Sensex surged 477.24 points or 0.83% to 57,897.48
and the CNX Nifty was up by 147.00 points or 0.86% to 17,233.25.
The US markets ended mostly lower
on Tuesday as traders seemed somewhat reluctant to continue making significant
moves following the recent strength in the markets. A lack of major US economic
data also kept some traders on the sidelines ahead of the release of reports on
weekly jobless claims, pending home sales and Chicago-area business activity in
the coming days. However, downside remained capped as the Centers for Disease
Control and Prevention (CDC) has shortened the recommended isolation time for
asymptomatic people with Covid-19 to 5 days from 10 days. The CDC said the
change is motivated by science demonstrating that the majority of Covid
transmission occurs early in the course of illness, generally in the 1-2 days
prior to onset of symptoms and the 2-3 days after. A new study from South
Africa also indicated that those infected with the Omicron variant have
increased immune protection against the Delta strain. On the sectoral front,
Most of the major sectors ended the day showing only modest moves, contributing
to the lackluster performance by the broader markets. Semiconductor stocks gave back some ground,
however, with the Philadelphia Semiconductor Index falling by 1.2 percent after
reaching a record intraday high in early trading. Tobacco, biotechnology and
steel stocks also moved to the downside, while some strength was visible among
utilities and airline stocks.
Crude oil futures ended higher
for fifth straight session on Tuesday as the outlook for energy demand turned a
bit positive amid hopes the Omicron variant of the coronavirus is unlikely to
any significantly impact global economic recovery. Worries about the impact of
the Omicron variant have eased a bit. According to reports, the most common
symptoms appear to be sore throats, mild headaches and congestion, and in some
cases, the loss of taste or smell. Many patients are showing only mild
symptoms, helping ease concerns about flight cancellations over the weekend.
Meanwhile, the UK government has ruled out introducing stricter Covid-19
restrictions in England before the end of the year. Benchmark crude oil futures
for February delivery rose $0.41 or 0.5 percent to settle at $75.98 a barrel on
the New York Mercantile Exchange. Brent crude for February delivery surged
$0.34 or 0.4 percent to settle at $78.94 a barrel on London's Intercontinental
Exchange.
Indian rupee ended stronger
against dollar on Tuesday due to fresh selling of the American currency by
banks and exporters. Besides, healthy gains in equity markets also supported
the rupee. The domestic currency was trading strong from the start as traders'
sentiments were upbeat as 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. On the global front,
euro eased on the back of interest rate hikes, with other central and east
European currencies edging higher in holiday-thinned trading. Finally, the
rupee ended 74.70 (Provisional), stronger by 30 paise from its previous close
of 75.00 on Monday.
The FIIs as per Tuesday's data were
net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 1986.32 crore against gross selling of Rs 2704.90 crore, while
in the debt segment, the gross purchase was of Rs 13.47 crore with gross sales
of Rs 426.80 crore. Besides, in the hybrid segment, the gross buying was of Rs 3.23
crore against gross selling of Rs 9.57 crore.
The US markets ended mostly lower
on Tuesday as a four-day rally lost steam in thin trading and investors weighed
Omicron-driven travel disruptions and store closures. Asian markets are trading
mostly in red on Wednesday as investors assessed the impact of the Omicron
Covid variant. Indian markets extended gains for the second straight session on
Tuesday on positive global cues and buying across sectors. Today, the start of
session is likely to be flat-to-negative amid weakness in global markets
coupled with rising corona cases in the country. Traders will be concerned as
India reported 6,358 new coronavirus cases on Tuesday, according to the health
ministry. The active caseload of the country now stands at 75,456. Omicron
cases have risen to 653. There will be some cautiousness as the government's
total liabilities rose to Rs 125.71 lakh crore in the September quarter from Rs
120.91 lakh crore in the three months ended June, according to the latest public
debt management report. The increase reflects a quarter-on-quarter increase of
3.97 per cent in the July-September period of 2021-22. However, some respite
may come later in the day as ICRA said the Indian economy is likely to maintain
a real GDP growth of 9 percent each in FY2022 and FY2023 amid uncertainty
triggered by the Omicron variant of corona virus. The Indian economy grew at
8.4 per cent in the second quarter of the current fiscal, as against a growth
of 20.1 per cent in the April-June quarter. Traders may take note of report
that Finance Minister Nirmala Sitharaman will hold a meeting with finance
ministers of states on Thursday as part of customary pre-Budget consultations
with various stakeholders. Meanwhile, the Central Board of Direct Taxes (CBDT)
has constituted a task force to restructure the Income Tax (I-T) Department.
Besides, Markets regulator Sebi has decided to put a cap on IPO proceeds
earmarked for making future acquisition of unspecified targets and will bring
under monitoring the funds reserved for general corporate purposes. Banking
stocks will be in limelight with the RBI report that the Indian financial
system's asset quality improved despite the pandemic, but it could be due to
special dispensations by the regulator, and banks would likely see increased
stress on their books once the schemes expire. Textile industry stocks will be
in focus as the Centre released the operational guidelines for the
production-linked incentive (PLI) scheme for textiles. Under this, companies can
begin the registration process from January 1-31, 2022, on the government's
online portal. There will be some reaction in NBFCs stocks with report that the
asset quality of non-banking financial companies (NBFCs) deteriorated in
April-September 2021 (H1FY22) owing to the second wave of the pandemic. Their
gross non-performing assets (NPAs) rose to 6.8 per cent in September 2021 from
6 per cent in March 2021.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,233.25
|
17,179.51
|
17,268.61
|
BSE Sensex
|
57,897.48
|
57,714.36
|
58,016.55
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
228.60
|
480.35
|
474.40
|
484.55
|
ICICI
Bank
|
178.33
|
736.50
|
731.85
|
741.80
|
Power
Grid Corporation of India
|
118.02
|
205.40
|
202.91
|
208.26
|
ITC
|
115.68
|
219.80
|
218.34
|
220.94
|
State
Bank of India
|
88.32
|
460.55
|
458.76
|
462.61
|
Grasim Industries has successfully commissioned projects in Rehla in Jharkhand and Balabhadrapuram in the state of Andhra Pradesh.
HDFC Life Insurance Company has entered into bancassurance tie-up with South Indian Bank.
Cipla has been granted EUA permission by the Drug Controller General of India for the launch of Molnupiravir in the country.
Bharti Airtel and TCS have joined hands to build a 5G-based remote working technology using robotics.