Indian equity
benchmarks settled in red for the fourth straight day on Friday, dragged by
losses in index heavyweights like Bajaj Finserv, Maruti Suzuki and Bharti
Airtel amid weakness across global markets. After opening in the red, benchmark
indices slipped further lower, as traders were concerned with former RBI
Governor D Subbarao stressed on the need to accelerate India's economic growth
rate and make sure that this benefit of growth is shared, even as he said that
unemployment has taken a form of crisis in the country. Subbarao further said
the organised sector is shedding jobs and the labour force is moving from high
productive sector to the unorganised sector. Traders also took a note of the
RBI report stating that India's external debt stood at $571.3 billion at
end-June, recording an increase of $1.6 billion over its level at the end of
March 2021. However, the external debt to GDP ratio declined to 20.2 percent at
June-end 2021 from 21.1 percent as of March 31. Valuation gain due to the
appreciation of the US dollar vis-a-vis the Indian rupee was at $1.7 billion.
Markets continued to trade on a negative note in late afternoon deals even as
private survey stating that India's manufacturing activity recovered slightly
in September, from a slowdown in growth in the previous month of August as
strengthening demand conditions amid the easing of COVID-19 restrictions
boosted sales. According to the monthly IHS Markit India Manufacturing Purchasing
Managers' Index (PMI) survey, manufacturing PMI stood at 53.7 in September, up
from 52.3 in August. Market participants also paid no heed towards veteran
banker KV Kamath's statement that the country's economy is set for a stronger
performance going forward, driven by growth in large corporates, agriculture
and most importantly digital startup sector. Meanwhile, the Controller General
of Accounts (CGA) in its latest data has said that the government's fiscal
deficit stood at Rs 4.68 lakh crore or 31.1 per cent of the Budget estimates at
the end of August 2021. The deficit figure in the current fiscal appears much
better than the previous financial year when it had soared to 109.3 per cent of
the estimates, mainly on account of a jump in expenditure to deal with the
COVID-19 pandemic. Finally, the BSE Sensex fell 360.78 points or 0.61% to
58,765.58 and the CNX Nifty was down by 86.10 points or 0.49% to 17,532.05.
The US markets ended volatile
session sharply higher on Friday as traders' desire to go bargain hunting
seemed to win out over concerns about inflation and the Federal Reserve scaling
back its asset purchases. With the rally, the major averages regained ground
following the steep drop seen in the previous session. On the economic data
front, a report from the Institute for Supply Management showed an unexpected
acceleration in the pace of growth in U.S. manufacturing activity but noted
persistent supply chain issues. The ISM said manufacturing PMI crept up to 61.1
in September from 59.9 in August, with a reading above 50 indicating growth in
the manufacturing sector. The uptick surprised participants, who had expected
the index to edge down to 59.6. Timothy R. Fiore, Chair of the ISM
Manufacturing Business Survey Committee said Manufacturing performed well for
the 16th straight month, with demand, consumption and inputs registering
month-over-month growth, in spite of continuing unprecedented obstacles and
ever-increasing demand. He added Panelists' companies and their supply chains
continue to struggle to meet demand due to difficulties in hiring and a clear
cycle of labor turnover, as workers opt for more attractive job opportunities.
On the sectoral front, airline stocks showed a substantial move to the upside
on the day. Significant strength was also visible among energy stocks, which
moved higher along with the price of crude oil. Financial, chemical, and
software stocks also saw considerable strength on the day, moving higher along
with most of the other major sectors.
Crude oil futures settled higher
on Friday as traders weighed possible outcomes for Monday's expected decision
by Organization of the Petroleum Exporting Countries (OPEC) and its allies on
crude production levels. It is widely expected that the cartel may go beyond
its existing deal to boost production by 400,000 barrels per day (bpd) in
November and December. According to a report from Baker Hughes, the oil and gas
rig count rose by seven to 528 in the week to October 1, its highest since
April 2020. The total rig count was up 262 rigs, or 98%, over this time last
year. The report said, drillers have added rigs for 14 straight months now.
U.S. oil rigs rose seven to 428 this week, while gas rigs were steady at 99.
Benchmark Crude oil futures for November delivery rose 85 cents or 1.1 percent
to settle at $75.88 barrel on the New York Mercantile Exchange. Brent crude for
December delivery added 97 cents or 1.2 percent to settle at $79.28 a barrel on
London's Intercontinental Exchange.
Erasing previous session
drubbing, Indian rupee ended considerably stronger against dollar on Friday due
to fresh selling of the American currency by banks and exporters. Sentiments
got support as growth of eight core infrastructure industries grew by 11.6
percent in August 2021 as compared to same month last year mainly due to an
uptick in the production of cement, coal, and natural gas. Additional support
came in as Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a
composite single-figure indicator of manufacturing performance - stood at 53.7
in September as against 52.3 in August. On the global front, sterling was set
on Friday for its third-worst week in the past year as risk sentiment soured
across global financial markets while a shortage of truck drivers and a surge
in energy prices disrupt and blacken the prospects of Britain's economy.
Finally, the rupee ended 74.12, stronger by 11 paise from its previous close of
74.23 on Thursday.
The FIIs as per Friday's data
were net sellers in equity and debt segment both. In equity segment, the gross
buying was of Rs 11093.19 crore against gross selling of Rs 13085.56 crore,
while in the debt segment, the gross purchase was of Rs 1207.60 crore with
gross sales of Rs 1453.18 crore. Besides, in the hybrid segment, the gross
buying was of Rs 12.71 crore against gross selling of Rs 30.83 crore.
The US markets ended higher on
Friday as investors shook off a rough September and reports of a new oral
treatment for Covid-19 boosted shares of companies tied to the economic
recovery. Asian markets are trading mostly higher in early deals on Monday following
positive cues from US markets. Indian equity benchmarks ended lower on Friday
as India's external debt stood at USD 571.3 billion at end-June, recording an
increase of USD 1.6 billion over its level at the end of March 2021. Today,
markets are likely to make positive start on firm global cues. Traders will get
encouragement as former Niti Aayog vice-chairman Arvind Panagariya said the
fundamentals of the Indian economy are sound as the real GDP in Q3 and Q4 of
FY21 already crossed the pre-pandemic level. Some support may also come as
Minister of Commerce & Industry, Consumer Affairs, Food & Public
Distribution and Textiles, Government of India, Piyush Goyal said at a time
when the whole world is coming together to recover from the pandemic and bring
growth back on track, a resurgent India is ready to take on the responsibility
of being the frontrunner in this revival process. Meanwhile, terming Insolvency
and Bankruptcy Code as a seminal reform, Chief Economic Adviser KV Subramanian
said it has been instrumental in changing the mindset of promoters of
businesses by making them more accountable. However, there may be some
cautiousness as trade deficit spiked to almost $23 billion in September from
$13.8 billion in the previous month, as imports surged at a much faster pace
than exports, driven by elevated global crude oil prices and massive purchases
of gold in the build-up to the festival season. With crude oil prices hovering
around 3-year highs, petroleum imports may continue to surge in the coming months.
This will pressure trade and current account deficits, which have remained well
under control in the aftermath of the pandemic. There will be some buzz in
sugar sector's stocks as Food Secretary Sudhanshu Pandey said sugar industry
should now look beyond its immediate blending target of 2025 and focus on newer
technologies as the journey of ethanol blending has just started.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,532.05
|
17,470.91
|
17,575.16
|
BSE
Sensex
|
58,765.58
|
58,581.12
|
58,920.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil & Natural Gas Corporation
|
428.93
|
146.25
|
143.69
|
149.24
|
Tata Motors
|
298.77
|
333.30
|
326.90
|
338.50
|
Coal India
|
254.92
|
188.70
|
184.10
|
191.60
|
NTPC
|
224.52
|
139.90
|
136.95
|
143.60
|
ITC
|
159.56
|
235.35
|
233.16
|
237.26
|
HDFC Bank has raised Rs 739 crore by issuing the rupee-denominated masala bonds in the overseas markets.
NTPC's arm NTPC Renewable Energy has signed its first Green Term Loan agreement of Rs 500 crore at a very competitive rate with a tenor of 15 years with Bank of India.
Maruti Suzuki India has launched a virtual car assistant app called S-Assist based on artificial intelligence to help in post-purchase experience to customers.
Coal India is planning to fund a mock-up coal mine at National Science Centre Delhi, a unit of National Council of Science Museums.