Indian equity
benchmarks extended gains to a second straight day, with Nifty 50 closed at
record closing high while Sensex ended a few points shy of an all-time high on
Friday after the Reserve Bank kept the key benchmark rates unchanged for the
eighth consecutive time and promised to maintain the status-quo on rates as
long as necessary to revive growth. Markets opened in green and continued its
positive run through the day, as sentiments got boost with Ficci stating that
India's GDP is expected to grow at 9.1 per cent in 2021-22 as economic
recovery, post the second wave of the pandemic, seems to be holding ground.
Ficci's Economic Outlook Survey also noted that the ongoing festive season
would support this momentum. Sentiments improved further with 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. However, key
indices cut some of their initial gains in the afternoon session, as traders
got anxious with Fitch Ratings' report in which it has further lowered India's
Gross domestic product (GDP) growth forecast for the fiscal year ending March
2022 (FY22) to 8.7 percent from 10 percent projected in June as a result of the
severe second virus wave. But, markets regained some traction to end higher by
over half percent, as some optimism remained among traders with Commerce and
Industry Minister Piyush Goyal's statement that the US has huge investment
surpluses that can be used in developing infrastructure in India and make it a
manufacturing base to help American economy grow and provide goods and services
at affordable and competitive prices. Additional support also came with Chief
Economic Adviser K V Subramanian's statement that the focus of the government
policies in the last seven years has been on enabling competition in the
economy, stressing this is partly responsible for growth of startups. He
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. Finally, the BSE Sensex rose 381.23 points or
0.64% to 60,059.06 and the CNX Nifty was up by 104.85 points or 0.59% to
17,895.20.
Snapping three-day winning
streak, US markets settled lower on Friday after the Labor Department's closely
watched monthly jobs report showed much weaker than expected job growth in the
month of September. The report said non-farm payroll employment rose by 194,000
jobs in September after climbing by an upwardly revised 366,000 jobs in August.
Street had expected employment to jump by 500,000 jobs compared to the addition
of 235,000 jobs originally reported for the previous month. Despite the much
weaker than expected job growth, the unemployment rate fell to 4.8 percent in
September from 5.2 percent in August. The unemployment rate was expected to
edge down to 5.1 percent. With the bigger than expected decrease, the
unemployment rate dropped to its lowest level since hitting 4.4 percent in
March of 2020. However, the drop in the employment rate was partly due to a
decrease in the size of the labor force, reflecting lingering labor supply
constraints. The data led to some uncertainty about the outlook for monetary
policy, although most economists agree the disappointing job growth will not
dissuade the Federal Reserve from scaling back stimulus. On the sectoral front,
most of the major sectors ended the day showing only modest moves, contributing
to the lackluster close by the broader markets. Energy stocks saw significant
strength, however, with a sharp increase by the price of crude oil contributing
to the strength in the sector. Reflecting the strength in the energy sector,
the NYSE Arca Oil Index and the Philadelphia Oil Service Index surged up by 2.7
percent and 2.4 percent, respectively. Transportation and banking stocks also
saw some strength on the day, while telecom and commercial real estate stocks
moved to the downside.
Crude oil futures closed
considerably higher on Friday amid tighter supplies and signs of increasing
demand for energy. Oil also found support from a recent statement from the U.S.
Department of Energy that the Biden administration is not considering tapping
into its emergency reserves to tackle the energy crisis in the market. A report
from Baker Hughes said U.S. rigs drilling for oil climbed by five to 433 this
week, rising for the fifth consecutive week. The report said the total active
U.S. rig count, including those drilling for natural gas, also increased by
five to 533. Benchmark Crude oil futures for November delivery rose $1.05 or
about 1.3 percent to settle at $79.35 barrel on the New York Mercantile
Exchange. Brent crude for December delivery surged $0.50 or 0.6 percent to
settle at $82.45 a barrel on London's Intercontinental Exchange.
Indian rupee ended considerably
lower on Friday due to mild dollar demand from banks and importers. Sentiments
were fragile after the Reserve Bank of India left key rates unchanged and
reiterated the need to unwind pandemic-era stimulus only gradually to aid a
nascent economic recovery. The RBI's dovishness dashed expectations of
investors hoping it would hint at moving towards policy normalisation like some
global central banks, with the rupee shedding 0.4% to hit its lowest since
late-April. Traders were also worried as Fitch Ratings in its latest report
further lowered India's Gross domestic product (GDP) growth forecast for the
fiscal year ending March 2022 (FY22) to 8.7 percent from 10 percent projected
in June as a result of the severe second virus wave. On the global front;
dollar edged higher versus major peers on Friday but within a narrow range as
traders awaited clues from the U.S. non-farm payrolls report on the pace of
Federal Reserve policy normalization. Finally, the rupee ended 74.99, weaker by
20 paise from its previous close of 74.79 on Thursday.
The FIIs as per Friday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 7192.41 crore against gross selling of Rs 8300.81 crore, while
in the debt segment, the gross purchase was of Rs 145.29 crore with gross sales
of Rs 236.36 crore. Besides, in the hybrid segment, the gross buying was of Rs
6.54 crore against gross selling of Rs 41.63 crore.
The US markets ended a volatile
session largely lower on Friday after data showed US jobs rose far less than
expected in September. Asian markets are trading mostly in red on Monday as
global inflation angst favoured commodities as a hedge over US equities. Indian
markets ended higher on Friday, led by IT, oil & gas and PSU banking
stocks. Today, the start of new week is likely to be flat-to-negative tracking
weakness in global peers. Investors may remain on sidelines ahead of
macroeconomic data to be out on October 12. There will be some cautiousness as
former Reserve Bank Governor C Rangarajan said India becoming a $5 trillion
economy by 2025 is impossible under the current circumstance and the country
needs to grow at nine per cent per annum for the next five years in order to
achieve that. Meanwhile, Uddhav Thackeray led Maha Vikas Aghadi government in
Maharashtra has called for a statewide bandh today, October 11. However, some
respite may come later in the day as the World Bank has said in its latest report
Buoyed by an increase in public investment and incentives to boost
manufacturing, India's economy is expected to grow by 8.3 per cent in the
fiscal year 2021-22, less than the previous projection early this year before
the country was hit by the second wave of the COVID-19 pandemic. Some support
may come as exporters stated that aggressive marketing of products, timely
implementation of free trade agreements that are under negotiations and
affordable credit to MSME players would help in taking the country's
merchandise exports to $500 billion in the next financial year. Traders may
take note of Union minister Jitendra Singh's statement that India will be among
the top five countries to be recognised as a global bio-manufacturing hub by
2025, noting that India's bio-economy is on way to achieve $150-billion target
from the current $70 billion. Power stocks will be in focus as power ministry
data showed that Power consumption dipped by nearly 2 per cent or by 72 million
units (MU) to 3,828 MU on Saturday compared to 3,900 MU on Friday, showing
slight improvement in supply situation across the country amid coal shortage
crisis. There will be some reaction in fertilizer industry stocks after
Fertiliser Minister Mansukh Mandaviya directed all manufacturers not to
increase retail prices of DAP and other phosphatic fertilisers as part of the
government's efforts to ensure the availability of crop nutrients at affordable
prices during the ongoing Rabi season. Solar power industry related stocks will
be in limelight as the government is mulling delaying the imposition of customs
duty on imported solar equipment or allowing extension of deadline for
completion of domestic solar projects which are facing supply uncertainties
from vendors in China.There will be some result announcements to keep the
markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,895.20
|
17,843.09
|
17,944.59
|
BSE
Sensex
|
60,059.06
|
59,855.90
|
60,237.27
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
937.28
|
382.80
|
376.01
|
393.56
|
Oil & Natural Gas Corporation
|
305.61
|
161.15
|
158.90
|
165.00
|
Coal India
|
289.78
|
187.70
|
183.96
|
191.56
|
State Bank of India
|
165.21
|
460.05
|
454.86
|
464.61
|
Wipro
|
110.45
|
661.95
|
648.79
|
671.34
|
NTPC has inaugurated two pressure swing adsorption oxygen plants in Dadri and Bogaingaon.
Reliance Industries has launched its premium retail mall, Jio World Drive spanning across an area of 17.5 acres in the commercial epicentre of Mumbai, Bandra Kurla Complex.
ICICI Bank has executed its first term loan and cross currency swap derivative transactions linked to Secured Overnight Financing Rate.
Hero MotoCorp has launched all-new XPulse 200 4 Valve.