Indian equity
benchmarks bounced back and ended the Thursday's trade with gains of around a
percent, following strong global sentiments. After opening in the green,
benchmark indices maintained the lead. Traders took encouragement as Moody's
Investors Service has said it will upgrade the country's rating if there is an
increase in growth potential and sustained decline in government debt. The
rating agency had raised India's sovereign rating outlook to stable, from negative,
while affirming the Baa3 rating - which is the lowest investment grade, just a
notch above junk status. Support also came with World Bank stating that the
increasing pace of vaccinations will determine India's economic prospects this
year and beyond while leaving the growth projection for the country unchanged
at 8.3% from its June forecast. Traders also took a note of Finance Minister
Nirmala Sitharaman's statement that India is very close to arriving at the
specifics of the two-pillar taxation proposition at the G20 and is in the last
stage of finalising the details. A total of 130 countries had in July agreed to
a overhaul of global tax norms to ensure that multinationals pay taxes wherever
they operate and at a minimum 15% rate. Sentiments remained positive, as Chief
Economic Adviser K V Subramanian said the impact of taper tantrum or withdrawal
of monetary stimulus by the US Federal Reserve on India may not be much given
the strong fundamentals of the country's economy. Traders remain energized
after bank credit rose by 6.67 per cent to Rs 109.57 lakh crore and deposits by
9.34 per cent to Rs 155.95 lakh crore in the fortnight ended September 24,
2021. In the previous fortnight ended September 10, 2021, bank credit had risen
by 6.7 per cent and deposits by 9.32 per cent. Meanwhile, emphasizing the
importance of multi-lateral organisations, Commerce and Industry Minister
Piyush Goyal has called for strengthening of global institutions like the World
Trade Organisation (WTO) and said everybody has to work towards a better future
of these bodies. Finally, the BSE Sensex rose 488.10 points or 0.82% to
59,677.83 and the CNX Nifty was up by 144.35 points or 0.82% to 17,790.35.
The US markets ended higher on
Thursday, extending the upward move seen over the course of the previous
session, as lawmakers reached an agreement to temporarily extend the debt
limit, avoiding a potential default. Senate Majority Leader Chuck Schumer,
D-N.Y., announced an agreement to extend the debt ceiling through early
December. The agreement would reportedly increase the debt limit by $480
billion, allowing the Treasury to continuing paying its bills through December
3rd. While the temporary extension means the US could face another debt crisis
in just a few weeks, the news was still greeted positively by traders. Adding
to the positive sentiment, a report from the Labor Department showed a bigger
than expected pullback in first-time claims for US unemployment benefits in the
week ended October 2nd. The report said initial jobless claims fell to 326,000,
a decrease of 38,000 from the previous week's revised level of 364,000. Street
had expected jobless claims to dip to 348,000 from the 362,000 originally
reported for the previous week. The bigger than expected decrease came after
jobless claims rose for three straight weeks, reaching their highest level
since early August.
Crude oil futures ended higher on
Thursday as the market deemed it unlikely that the United States would release
emergency crude reserves or ban exports to ease tight supplies. The United
States has used its strategic reserves on occasion, usually after hurricanes or
other supply disruptions. However, since ending a 40-year ban on crude exports
in 2015, the nation has become a significant exporter, and has not broached
cutting exports. Positive sentiment also came after US lawmakers reached an agreement
to extend the government's debt limit also contributed to the buoyancy in the
oil market. Benchmark Crude oil futures for November delivery rose $0.87 or
about 1.1 percent to settle at $78.30 barrel on the New York Mercantile
Exchange. Brent crude for December delivery surged $0.87 or 1.1 percent to
settle at $81.95 a barrel on London's Intercontinental Exchange.
Erasing prevision three session
losses, Indian rupee ended considerably higher against dollar on Thursday due
to selling of US currency by exporters and banks. Sentiments were upbeat as
Moody's Investors Service has said it will upgrade the country's rating if
there is an increase in growth potential and sustained decline in government
debt. The rating agency had raised India's sovereign rating outlook to stable,
from negative, while affirming the Baa3 rating - which is the lowest investment
grade, just a notch above junk status. Adding more support, Chief Economic
Adviser K V Subramanian said the impact of taper tantrum or withdrawal of
monetary stimulus by the US Federal Reserve on India may not be much given the
strong fundamentals of the country's economy. Besides, healthy gains on the
domestic bourses also supported rupee. On the global front, dollar held close
to 14-month high against the euro on Thursday, as a surge in energy prices
raised the risk for the U.S. Federal Reserve to act sooner to normalize policy.
Finally, the rupee ended 74.79, stronger by 19 paise from its previous close of
74.98 on Wednesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 7154.21 crore against gross selling of Rs 7937.61 crore, while
in the debt segment, the gross purchase was of Rs 840.83 crore with gross sales
of Rs 945.82 crore. Besides, in the hybrid segment, the gross buying was of Rs
6.34 crore against gross selling of Rs 19.23 crore.
The US markets ended higher on
Thursday in a broad-based rally led by heavyweight technology stocks, after a
temporary truce in the debt-ceiling standoff in Congress relieved concerns of a
possible government debt default later this month. Asian markets are trading in
green on Friday tracking a Wall Street climb as concerns eased about the US
debt ceiling and an energy crunch. Indian markets rebounded sharply on Thursday
after a day's breather propelled by buying across sectors, as investors'
appetite for risk improved globally. Today, markets are likely to continue
their previous session gaining momentum with positive start following broadly
positive cues. Dalal Street will look forward to the RBI Governor's address on
Friday morning where he will announce the outcome of the Monetary Policy
Committee's (MPC) three-day deliberations. The central bank is expected to
maintain the status quo and keep interest rates low along with its
accommodative stance. Traders will be taking encouragement as domestic rating
agency Crisil ahead of the filing of quarterly earnings by companies said India
Inc is set to post an 18-20 per cent revenue growth for July-September as
compared to the year-ago period. It said the handsome growth in the topline
will be driven by both higher volumes and higher commodity prices. Sentiments
will get a boost as Chief Economic Adviser K V Subramanian expressed hope that
the country will witness double-digit growth in the current fiscal year aided
by a prudent mix of supply and demand side measures undertaken by the
government. Some support will come with a private report that India's retail
inflation is likely to have cooled for the fourth straight month in September
due to a decline in food prices from the year earlier. However, there may be
some cautiousness as Fitch Ratings cut India's economic growth forecast to 8.7
per cent for the current fiscal but raised GDP growth projection for FY23 to 10
per cent, saying the second COVID-19 wave delayed rather than derail the
economic recovery. There will be some buzz in port sector stocks as Icra
Ratings expects overall volumes at Indian ports to continue witnessing
improvement through the current fiscal and even surpass FY2020 (pre-Covid)
volumes, with April-August cargo volumes having almost reached pre-COVID levels
despite the second wave. Railway industry stocks will be in focus as the
national transporter said The Indian Railways' freight loading for September
2021 was 106 million tonnes which is 3.62 percent higher compare to last year's
loading for the same period (102.30 million tonnes). There will be some
reaction in aluminum industry stocks with a private report that an acute coal
crunch in India has created a precarious situation for aluminium producers as
stockpiles of the fuel plummet to critical levels, according to the country's
top industry group. Also, investor's focus will be on the IT stocks as sector
major Tata Consultancy Services (TCS) will kick start the September quarter
earnings' season.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,790.35
|
17,750.25
|
17,844.00
|
BSE
Sensex
|
59,677.83
|
59,544.95
|
59,862.80
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
1,632.35
|
378.50
|
350.84
|
394.59
|
Oil & Natural Gas Corporation
|
597.67
|
160.60
|
156.69
|
167.34
|
Coal India
|
165.16
|
191.00
|
188.51
|
194.21
|
Indian Oil Corporation
|
126.97
|
132.10
|
130.34
|
133.39
|
ITC
|
103.71
|
232.95
|
231.85
|
234.50
|
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