Indian equity benchmarks ended
the Friday's trade in red terrain as traders opted to book profit especially in
IT names that came out with their quarterly numbers. Markets started the
session with caution as traders were concerned as India registered 15,515 fresh
Covid-19 cases in the last 24 hours, taking the tally to 10,528,346. Traders
were also seen taking a note of reports that Former Reserve Bank of India (RBI)
Governor Raghuram Rajan says the government should take advantage of the peaks
in the Indian equity markets right now and sell stakes in PSUs while
prioritising spending to get the economy back on track. He said the upcoming
Budget for the fiscal year beginning April 1 should look to provide relief to
the poorer households and small and medium enterprises. Sentiments also
remained dampened after rating agency CRISIL's report which projected CPI
Inflation at 6.4% for fiscal 2021 (FY21). It mentioned that after eight months
above the Reserve Bank of India (RBI's) target band of 2-6%, Consumer Price
Index (CPI) inflation was finally back in range, declining for the second
straight month to a below-consensus 4.6% in December, from 6.9% in November.
Average CPI inflation during April-December now measures 6.6%, down from the
April-November average of 6.9%.Market participants overlooked report that Prime
Minister Narendra Modi will launch India's Covid-19 vaccination drive tomorrow
via video conferencing. This will be the world's largest vaccination programme
covering the entire length and breadth of the country. Meanwhile, the
government has notified a modified scheme to provide financial assistance to
distilleries producing first-generation ethanol from feedstocks, including cereals.
Finally, the BSE Sensex fell 549.49 points or 1.11% to 49,034.67, while the CNX
Nifty was down by 161.90 points or 1.11% to 14,433.70.
The US markets settled sharply
lower on Friday amid negative reaction to earnings news from financial giants
Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM). Wells Fargo and
Citigroup posted steep losses after both reported better than expected fourth
quarter earnings but on revenues that missed estimates. Shares of JPMorgan also
moved notably lower even though the company reported fourth quarter results
that beat expectations on both the top and bottom lines. Negative sentiment was
also generated in reaction to a report from the Commerce Department showing a
continued decline in US retail sales in the month of December. The Commerce
Department said retail sales fell by 0.7 percent in December after tumbling by
a revised 1.4 percent in November. Street had expected retail sales to come in
unchanged compared to the 1.1 percent slump originally reported for the
previous month. Meanwhile, the Federal Reserve released a separate report
showing US industrial production jumped by much more than expected in the month
of December. The Fed said industrial production surged up by 1.6 percent in
December after climbing by an upwardly revised 0.5 percent in November. Street
had expected production to rise by 0.4 percent, matching the increase
originally reported for the previous month. The weakness on Wall Street may
also have reflected the old adage of sell the news after President-elect Joe
Biden announced a $1.9 trillion coronavirus relief package on Thursday. The
proposed stimulus package includes an increase in direct payments to
individuals, increased federal unemployment benefits and aid to state and local
governments.
Crude oil futures ended lower on
Friday pressured as fresh outbreaks of COVID-19 in China dulled the outlook for
energy demand. China has put about 22 million people on lockdown due to new
outbreaks of Covid-19 in the north and northeastern parts of the country.
Meanwhile, a report from Baker Hughes said the number of active US rigs
drilling for oil rose by 12 to 287 this week, rising for an eighth successive
weak. The total US rigs count went up by 13 to 373. Concerns over rising
Sino-US tensions also weighed on the commodity after the US government
blacklisted Chinese smartphone maker Xiaomi Corp and ten other companies over
alleged military links. Crude oil futures for February declined $1.21 or 23
percent to settle at $52.36 a barrel on the New York Mercantile Exchange. March
Brent crude lost $1.32 or 2.3 percent to settle at $55.10 a barrel on London's
Intercontinental Exchange.
Indian rupee ended marginally
weaker against the American currency on Friday, tracking weaker Asian peers and
heavy selloffs in domestic equities. Sentiments were dampened as rating agency
CRISIL projected CPI Inflation at 6.4% for fiscal 2021. It said after eight
months above the Reserve Bank of India (RBI's) target band of 2-6%, Consumer
Price Index (CPI) inflation was finally back in range, declining for the second
straight month to a below-consensus 4.6% in December, from 6.9% in November. On
the global front, pound rose against the euro on Friday, touching an almost
two-month high, after data showed Britain's national lockdown in November was
less damaging for the economy than expected. Finally, the rupee ended at 73.07,
3 paise weaker from its previous close of 73.04 on Thursday.
The FIIs as per Friday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 10739.46 crore against gross selling of Rs
9127.74 crore, while in the debt segment, the gross purchase was of Rs 621.12
crore with gross sales of Rs 950.37 crore. Besides, in the hybrid segment, the
gross buying was of Rs 30.02 crore against gross selling of Rs 16.00 crore.
The US markets closed in red on
Friday pressured by intensifying lockdowns and weak US retail sales data. Asian
markets are trading in mixed on Monday as disappointing news on US consumer
spending tempered risk sentiment ahead of a closely-watched reading on the
health of the Chinese economy. Indian markets ended over a percent lower on
Friday as major selling was seen in all sectors during the day. Today, the
start of new week is likely to be weak amid sell-off in global markets. There
will be some cautiousness as India registered 13,962 fresh Covid-19 cases in
the last 24 hours, taking the tally to 10,572,672. Globally, more than 95.4
million people have been infected by the virus. Investors will keep tracking
latest developments and trends on the COVID-19 pandemic front, especially the
vaccine rollout in the country that kicked off on January 16 in the country and
for signs of any adverse reactions from the vaccine. However, some respite may
come later in the day with the government data showing that India's exports
rose marginally to $27.15 billion in December 2020, while imports surged 7.56
per cent to $42.59 billion. The merchandise exports were valued at $27.11
billion in December 2019, while imports had totalled $39.59 billion. Some
support will come with former chief economic adviser Arvind Virmani's statement
that the Indian economy is likely to contract in the range of 5-7.5 per cent
this fiscal but will see a growth of 9 to 11 per cent in FY 2021-22. Market
participants may take note that IMF Managing Director Kristalina Georgieva
praised India for taking very decisive steps to deal with the coronavirus pandemic
and its economic consequences and asked the country to do more this year to
support an accelerated transformation of the economy. Besides, foreign
portfolio investors (FPI) put in Rs 14,866 crore in Indian markets in the first
half of January with participants expecting strong third-quarter results by
companies. Auto stocks will be in limelight with Union Minister Nitin Gadkari's
statement that the much-awaited policy to scrap 15-year old vehicles is likely
to get government nod soon. Banking stocks will be in focus as Bank credit grew
3.2 per cent to Rs 107.05 lakh crore in the first nine months of the current
financial year, against a growth of 2.7 per cent registered in the
corresponding period of 2019-20. In the fortnight ended March 27, 2020, bank
advances stood at Rs 103.72 lakh crore. Meanwhile, two companies -- Indian
Railway Finance Corporation and Sequoia Capital-backed Indigo Paints -- are set
to hit the market with their initial share-sale offers during the week to raise
an estimated over Rs 5,800 crore. The three-day initial share-sale of Indian
Railway Finance Corporation (IRFC) would be open for public subscription during
January 18-20, while the IPO of Indigo Paints would open on January 20 and
conclude on January 22.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,433.70
|
14,321.89
|
14,581.49
|
BSE
Sensex
|
49,034.67
|
48,668.07
|
49,528.99
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
2,500.38
|
260.30
|
247.05
|
269.10
|
ITC
|
583.21
|
217.85
|
213.20
|
220.50
|
Bharti
Airtel
|
563.92
|
602.65
|
594.09
|
610.94
|
Gail
India
|
377.87
|
138.50
|
134.64
|
144.29
|
State
Bank of India
|
353.08
|
303.85
|
299.80
|
309.40
|
Bharti Airtel has divested its stake in Seynse Technologies held through Nettle Infrastructure Investments, a wholly-owned subsidiary of the Company.
SBI's foreign currency bonds of $600 million, under its $10 billion global Medium Term Note Programme, have been listed on India INX's GSM platform.
Bajaj Finance has raised Rs 222 crore through Secured redeemable NCDs and allotted 2220 NCDs having face value of Rs 10 each on Private Placement basis.
Maruti Suzuki India has launched their online financing platform - Smart Finance for Maruti Suzuki ARENA customers across 30 plus cities.