Indian equity benchmarks ended a
volatile session marginally higher on Thursday in a rebound after four days of
losses. Indices witnessed a gap up opening, mirroring the positive overseas
cues. Traders took encouragement with a private report stating that the New Year
will herald the return of normalcy and witness the growth momentum gaining
steam, and pegged the real GDP growth estimate at 8.2 per cent for FY2022-23.
Some optimism also came as an article on the state of the economy published in
RBI Bulletin said that upbeat high-frequency indicators and consumer confidence
show that the Indian economy continues to forge ahead, emerging out of shackles
of the pandemic. It said the recovery is spearheaded by an uptick in private
investment through November-December alongside a turnaround in bank credit
offtake and high capex from the government sector (Centre and States). However,
indices witnessed volatility and erased almost all their gains in afternoon
deals, amid Omicron concerns. State Health Minister Veena George said four more
cases of Covid-19 variant Omicron have been confirmed in Kerala. With this the
total cases of the variant in Kerala has reached 5 and in India -73. Some
cautiousness also came in as IMF Chief Economist Gita Gopinath said that as the
global economy recovers from the pandemic, a great deal of uncertainty remains
about new COVID-19 variants and increased inflation pressures in many
countries. But, key gauges managed to
end in positive territory after fighting bouts of volatility, taking support
from after Prime Minister Narendra Modi
said that the Union cabinet's decision on designing and manufacturing
semiconductor chips in India would encourage research and innovation, boost
manufacturing and help fulfil the dream of Atmanirbhar Bharat. Finally, the BSE
Sensex rose 113.11 points or 0.20% to 57,901.14 and the CNX Nifty was up by
27.00 points or 0.16% to 17,248.40.
The US markets ended lower on
Thursday amid weakness among large tech stocks. The pull back on Wall Street
came as traders continued to digest the Federal Reserve's highly anticipated
monetary policy announcement on Wednesday. The Fed announced its widely
expected decision to accelerate the pace of tapering its asset purchases and
forecast as many as three interest rate hikes next year. While some stocks
benefited from reduced uncertainty about the outlook for monetary policy,
high-growth tech stocks fell sharply amid concerns about the impact of higher
interest rates. Traders were also reacting to a slew of US economic data,
including a Labor Department report showing a modest rebound in first-time
claims for unemployment benefits in the week ended December 11th. The Labor
Department said initial jobless claims rose to 206,000, an increase of 18,000
from the previous week's revised level of 188,000. Street had expected jobless
claims to inch up to 195,000 from the 184,000 originally reported for the
previous week. Meanwhile, the Fed also released a report showing US industrial
production increased by less than expected in the month of November. The report
said industrial production rose by 0.5 percent in November after surging by an
upwardly revised 1.7 percent in October. Street had expected industrial
production to climb by 0.7 percent compared to the 1.6 percent jump originally
reported for the previous month.
Crude oil futures ended sharply
higher on Thursday, extending their previous session's gains, supported by
record US implied demand and dropping crude stockpiles, even as the spread of
the Omicron coronavirus variant threatens to put a brake on consumption
globally. Demand has been rising in 2021
after last year's collapse, and the US Energy Information Administration (EIA)
said product supplied by refineries, a proxy for demand, surged in the latest
week to 23.2 million barrels per day (bpd). Further, the dollar's weakness
against other major currencies amid easing uncertainty about tapering of the
asset-purchase program and interest rate hikes contributed as well to oil's
uptick. Benchmark crude oil futures for January delivery rose $1.51 or about
2.1 percent to settle at $72.38 a barrel on the New York Mercantile Exchange.
Brent crude for February delivery gained $0.80 or 1.1 percent to settle at
$74.68 a barrel on London's Intercontinental Exchange.
Reversing previous session
drubbing, Indian rupee ended significantly higher against dollar on Thursday as
the U.S. Federal Reserve's decision to end its bond-buying programme in March
signalled confidence in an economic recovery from pandemic-induced shock.
Traders also took encouragement with a private report stating that the New Year
will herald the return of normalcy and witness the growth momentum gaining
steam, and pegged the real GDP growth estimate at 8.2 per cent for FY2022-23. On
the global front, euro and sterling edged higher on Thursday ahead of Bank of
England and European Central Bank monetary policy meetings, a day after the
U.S. Federal Reserve unveiled its tightening plans. Finally, the rupee ended
76.09 (Provisional), stronger by 23 paise from its previous close of 76.32 on
Wednesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 5894.37 crore against gross selling of Rs 8545.60 crore, while
in the debt segment, the gross purchase was of Rs 308.02 crore against gross
selling of Rs 1068.55 crore. Besides, in the hybrid segment, the gross buying
was of Rs 4.38 crore against gross selling of Rs 7.27 crore.
The US markets ended lower on
Thursday as investors considered moves by other global central banks such as
Bank of England that became first major bank to raise interest rates. Asian
markets are trading mostly in red on Friday following overnight losses on Wall
Street. Indian markets snapped four-day losing streak on Thursday. Today, the
start of session is likely to be flat-to-negative tracking weakness in global
markets coupled with uncertainty surrounding the Omicron variant. Traders will
be concerned with the Centre for Monitoring Indian Economy's statement that the
consumer sentiment index in November is far below the pre-pandemic levels
though better than November last year, suggesting the economic recovery is
excruciatingly slow and uninspiring. Also, foreign fund outflow likely to weigh
on domestic markets. As per provisional data available on the NSE, Foreign
institutional investors (FIIs) net sold shares worth Rs 1,468.71 crore. There
will be some cautiousness with a private report stating that India's growth
recovery has been led by capital expenditure push by the government so far, but
fiscal constraints might prove to be a challenge going forward in terms of
driving investments. However, some support may come later in the day with a
private report that advance tax collections in the third quarter of the fiscal
year almost doubled from the year-earlier period, underscoring hopes of a
sustained economic recovery amid the threat from the Omicron Covid-19 variant.
Meanwhile, Union Finance Minister Nirmala Sitharaman will chair pre-budget
consultations with stakeholders from various sectors in two sessions in the
national capital in connection with the forthcoming general budget 2022-23 on
Friday. Banking stocks will be in focus amid reports that banking services,
especially at branches across the country, have been hit hard following the
commencement of a two-day strike by about 900,000 employees to protest against
privatisation of public sector banks. There will be some reaction in metal
stocks as Mines Secretary Alok Tandon said India's iron ore production has
surged to 143 million tonnes (MT) in the first seven months of the ongoing
fiscal, and the country is all set to surpass the record production of 246 MT
achieved in 2019-20. Cement companies stocks will be in limelight as ratings
agency ICRA said rise in input costs for cement manufacturers is expected to
hit the sector's overall operating margins by 200-230 basis points in FY22.
Shares of RateGain Travel Technologies will start trading on the stock
exchanges today. The Rs 1,335 crore IPO of RateGain Travel was well received by
investors earlier this month with Non-Institutional Investors (NII) subscribing
to the issue 42.02 times.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,248.40
|
17,162.45
|
17,356.85
|
BSE Sensex
|
57,901.14
|
57,610.44
|
58,264.53
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
241.99
|
223.40
|
220.75
|
226.10
|
ICICI
Bank
|
141.23
|
741.95
|
734.64
|
753.59
|
Tata
Motors
|
135.81
|
492.05
|
487.46
|
496.56
|
Oil
& Natural Gas Corporation
|
121.56
|
145.50
|
144.61
|
146.31
|
State
Bank of India
|
111.07
|
482.00
|
476.65
|
488.95
|
Infosys has extended its digital innovation partnership with the Australian Open until the end of 2026.
L&T's construction arm -- L&T construction has bagged a slew of orders both in India and overseas for its Power Transmission and Distribution business.
Reserve Bank of India has slapped Rs 30 lakh fine on ICICI Bank.
SBI has renewed its MoU with the Indian Army to offer specially crafted benefits to all serving and retired Army personnel and their families through its DSP Scheme.