Indian equity benchmarks ended
the first trading session of 2021 with gains amid buying in telecom,
industrials, capital goods and TECK stocks. The benchmarks staged a gap up
opening, as traders took some support with NITI Aayog Vice-Chairman Rajiv Kumar
stating that India's economy will grow at 10 per cent in real terms and by the
end of next year it will reach pre-COVID-19 level. Talking about the farmers'
protest against the three agriculture laws, the NITI Aayog Vice Chairman said
the government is trying its best to get their understanding and that they are
not misguided and their doubts are cleared. Some optimism also came with report
that foreign direct investment (FDI) equity inflows into India grew 21 per cent
to $35.33 billion during April-October period of the current financial year. In
the year-ago period, FDI equity inflows stood at $29.31 billion. Markets
extended their gains in late afternoon session, as traders were getting
encouragement, with report that retail inflation for industrial workers eased
to 5.27 per cent in November compared to 5.91 per cent in October, mainly due
to lower prices of certain food items. However, key gauges pared some gains in
final minutes of trade, as some concern came with a report by India Ratings
stating that the economy, though projected to grow 9.6 per cent in the next
financial year in year-on-year growth term, may grow just 1 per cent in real
terms to Rs 147.17 lakh crore as against Rs 145.66 lakh crore in 2019-20, at
the 2011-12 price. Besides, contracting for the ninth consecutive month, the
growth of eight core infrastructure industries dropped by 2.6 per cent in
November 2020 as compared to same period of last year, mainly due to decline in
production of natural gas, refinery products, steel and cement. Finally, the
BSE Sensex rose 117.65 points or 0.25% to 47,868.98, while the CNX Nifty was up
by 36.75 points or 0.26% to 14,018.50.
The US markets remained closed on
Friday on account of New Year's Day holiday.
Indian rupee ended tad lower
against dollar on Friday, on account of sustained dollar demand from importers
and banks. Traders were cautions as contracting for the ninth consecutive
month, the growth of eight core infrastructure industries dropped by 2.6 per
cent in November 2020 as compared to same period of last year, mainly due to
decline in production of natural gas, refinery products, steel and cement.
However, downside remains capped as Department for Promotion of Industry and
Internal Trade (DPIIT) in its latest data has indicated that foreign direct
investment (FDI) equity inflows into India increased by 21 percent to $35.33
billion during April-October period of FY21. In the year-ago period, FDI equity
inflows stood at $29.31 billion. On the global front, dollar rose against a
basket of world currencies, but ended its worst year since 2017 as expectations
for further fiscal aid and easy monetary policy from the U.S Federal Reserve
prompted investors to shun the greenback. Finally, the rupee ended at 73.11, 4
paise weaker from its previous close of 73.07 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 6257.73 crore against gross selling of Rs 5641.15 crore, while
in the debt segment, the gross purchase was of Rs 1099.61 crore with gross
sales of Rs 144.78 crore. Besides, in the hybrid segment, the gross buying was
of Rs 11.86 crore against gross selling of Rs 58.48 crore.
The US markets remained closed on
Friday on account of New Year holiday. Asian markets are trading mostly in
green on Monday as reports of a possible tightening in coronavirus emergency
rules for Tokyo pulled Japanese stocks off 30-year highs, while also lifting
the safe-haven yen. Indian markets ended higher on Friday led by gains in PSU
banks and auto stocks. Today, the start of session is likely to be optimistic
tracking positive Asian cues and hopes of vaccine. Investors will be eyeing the
Markit Manufacturing PMI for December scheduled to be released later today and
Markit Services PMI that would be out on January 6. Traders will be getting
encouragement after the Drugs Controller General of India (DCGI) granted
restricted emergency use authorization for the Serum Institute of India (SII)'s
Covishield and Bharat Biotech's Covaxin vaccines against COVID-19. Also, Union
Minister of State for Health and Family Welfare Ashwini Kumar Choubey stated
that India will become corona-free. Some support will come with government data
showing that signalling an economic revival, goods and services tax (GST)
collection touched a record high in December, posting growth of 11.6 per cent
year-on-year (Y-o-Y) and surpassing the Rs 1-trillion mark for the third
straight month. However, market participants may be concerned with 16,660 fresh
Covid-19 cases, India's caseload now stands at 10,341,291. The country's death
toll is nearing 150,000. There may be some cautiousness with the commerce
ministry's data showing that the country's exports declined marginally by 0.8
percent to $26.89 billion in December 2020, compeered to $27.11 billion December 2019 due to
contraction in sectors like petroleum, leather and marine products. The trade
deficit in December widened to $15.71 billion, as imports grew by 7.6 percent
to $42.6 billion. Banking stocks will be in focus as the data released by the
Reserve Bank of India (RBI) showed that banks continued to depend on personal
loans for credit growth in the September quarter (July-September, or Q2).?While
bank credit grew only 5.4 per cent in Q2 on a year-on-year (Y-o-Y) basis,
personal loans, accounting for one fourth of the credit, continued to maintain
double-digit growth. There will be some reaction in IT stocks as US President
Donald Trump extended the freeze on the most sought-after H-1B visas by Indian
IT professionals, along with other types of foreign work visas and green cards
through March 31 to protect American workers, saying that the reasons for which
he had imposed such restrictions amidst the pandemic have not changed. Power
stocks will be in limelight as power producers' total dues owed by the
distribution firms rose over 35 per cent to Rs 1,41,621 crore in November 2020,
reflecting stress in the sector.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,018.50
|
13,989.95
|
14,048.45
|
BSE
Sensex
|
47,868.98
|
47,766.64
|
47,975.85
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
273.34
|
186.50
|
185.00
|
187.50
|
State
Bank of India
|
245.32
|
279.40
|
275.86
|
281.46
|
ITC
|
195.27
|
213.85
|
210.70
|
215.60
|
Oil
& Natural Gas Corporation
|
151.30
|
93.20
|
92.65
|
94.10
|
ICICI
Bank
|
135.93
|
527.50
|
523.40
|
534.30
|
L&T's construction arm -- L&T construction has won (Significant) contracts for Metallurgical & Material Handling Business.
Tata Steel has transferred the 51 percent stake it holds in JCAPCPL and 50 percent stake it holds in TBSPL to Tata Steel Downstream Products.
Tata Motors has reported its sales in the domestic & international market, for Q3 FY21, which stood at 158,215 vehicles, compared to 129,381 units during Q3 FY20.
M&M has reported that its overall auto sales for the month of December 2020 at 35,187 vehicles, compared to 39,230 in December 2019.