Indian equity benchmarks snapped
their 2-day losing run and ended nearly half a percent higher on Tuesday as
Consumer Durables, Realty and Basic Materials stocks witnessed a strong run.
Markets started the session on a firm note and consolidated for most part of
the day as traders took support with Moody's Investors Service's statement that
the RBI's decision to tighten norms for unsecured personal loans is credit
positive because lenders will need to allocate higher capital for such loans,
thus improving their loss-absorbing buffers. Sentiments remained positive with
a private report stating that India Inc's net profit as a percentage of the
country's gross domestic product (GDP) is just shy of reaching 5 per cent,
bolstered by strong earnings growth in the second quarter of 2023-24. Markets
added some gains in afternoon deals, as sentiments remained up-beat with the
Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its
latest Provisional Estimate of Net Payroll data report showing that India
created 1720615 new jobs in the month of September 2023 as against revised
figure of 1497410 in August 2023. Traders overlooked data showing that retail
inflation for agricultural labourers and rural workers rose marginally to 7.08
per cent and 6.92 per cent in October, respectively, from 6.70 per cent and
6.55 per cent respectively in September 2023 due to higher prices of certain
food items. Traders also paid no heed towards a private report stating that
India's real GDP growth will decline marginally to 6.3 per cent in 2024 from
the 6.4 per cent estimated for 2023. Finally, the BSE Sensex rose 275.62 points
or 0.42% to 65,930.77 and the CNX Nifty was up by 89.40 points or 0.45% to
19,783.40.
The US markets ended lower on
Tuesday as some traders looked to cash in on the recent strength in the markets,
which has lifted the major averages to their best levels in over three months.
A negative reaction to some of the latest earnings news from major retailers
also weighed on markets, with shares of American Eagle Outfitters (AEO)
plummeting by 15.8 percent. The steep drop by American Eagle came even though
the apparel and accessories retailer reported fiscal third quarter results that
exceeded street estimates on both the top and bottom lines. Department store
operator Kohl's (KSS) also showed a steep drop after reporting fiscal third
quarter revenues that fell short of street estimates. The markets did not show
much reaction to the minutes of the Federal Reserve's latest monetary policy
meeting, which said Fed officials expect to keep interest rates at a
restrictive level for some time. The minutes of the October 31-November 1
meeting said participants agreed policy should remain restrictive until
inflation is clearly moving down sustainably toward the Fed's 2 percent
objective. Following the recent series of interest rate hikes, participants
also agreed to proceed carefully and take a data-dependent approach to future
policy decisions. The Fed also said participants expect data arriving in coming
months to help clarify the extent to which the disinflation process was
continuing.
Crude oil futures ended
marginally lower on Tuesday as traders were awaiting the upcoming meeting of
OPEC+, scheduled to take place on Sunday (November 26). The group, which has
already pledged total oil output cuts of 5.16 million barrels per day, is
widely expected to extend its production cuts. Meanwhile, traders also await
weekly crude oil reports from the American Petroleum Institute (API) and U.S.
Energy Information Administration (EIA). Benchmark crude oil futures for
January delivery lost $0.06 or about 0.07 percent to settle at $77.77 a barrel
on the New York Mercantile Exchange. However, Brent crude for January delivery
added $0.13 or nearly 0.15 percent to settle at $82.45 a barrel on London's
Intercontinental Exchange.
Indian rupee ended higher against
dollar on Tuesday tracking the weakness of the American currency in the
overseas market and positive domestic equities. Traders took note of Moody's
Investors Service's statement that the RBI's decision to tighten norms for
unsecured personal loans is credit positive because lenders will need to
allocate higher capital for such loans, thus improving their loss-absorbing
buffers. Investors overlooked data showing that retail inflation for agricultural
labourers and rural workers rose marginally to 7.08 per cent and 6.92 per cent
in October, respectively, from 6.70 per cent and 6.55 per cent respectively in
September 2023 due to higher prices of certain food items. On the global front,
the yen rallied against the dollar on Tuesday as investors positioned for the
possibility that the Bank of Japan will tighten monetary policy next year while
the Federal Reserve loosens. Finally, the rupee ended at 83.33 (Provisional),
higher by 5 paise from its previous close of 83.38 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 8776.27 crore against gross selling of Rs 9375.00 crore, while
in the debt segment, the gross purchase was of Rs 483.20 crore with gross sales
of Rs 517.72 crore. Besides, in the hybrid segment, the gross buying was of Rs
11.56 crore against gross selling of Rs 16.63 crore.
The US markets ended lower on
Tuesday as Wall Street assessed Nvidia's latest earnings results. Asian markets
are trading mostly in red on Wednesday after Chinese police arrested
game-streaming company DouYu International Holdings Ltd.'s founder Chen Shaojie
on unspecified charges in a tough crackdown on alleged wrongdoing. Indian
markets ended higher on Tuesday as global bond yields and the U.S. dollar
continued to edge lower on dovish Fed expectations. Today, markets are likely
to get cautious start after minutes from the U.S. Federal Reserve's October 31
meeting revealed that policy officials maintained that monetary policy had to
be restrictive and had little appetite for rate cuts. Global cues remain muted,
while oil prices were subdued ahead of this weekend's OPEC+ meeting. In the
Middle East, Israel's government agreed to exchange 50 women and children
hostages held by Hamas in Gaza for a four-day pause in fighting. Closer home,
ahead of the Q2 GDP data release on November 30, domestic rating agency Icra
has pegged the GDP growth at 7 per cent, while British brokerage Barclays see
it at 6.8 per cent. ICRA said the Indian economy likely grew at 7 per cent in
the second quarter of the ongoing financial year, higher than the Reserve Bank
of India's rate-setting panel's estimation. Traders may take note of report
that the Ministry of Finance (FinMin) is expecting to conclude the full
financial year as projected with a strong growth performance and macroeconomic
stability even as it flagged risks of demand taking a hit on fuller
transmission of monetary policy, high inflation, uncertain external financial
flows. India has projected a gross domestic product (GDP) growth of 6.5 per
cent for FY24. Foreign fund outflows likely to dent sentiments. Provisional data
from the National Stock Exchange showed that foreign institutional investors
net offloaded shares worth Rs 455.59 crore on November 21. Traders may be
concerned as the government data showed that foreign direct investment (FDI)
equity inflows in India declined 24 per cent to $20.48 billion in
April-September 2023, dragged by lower inflows in computer hardware and
software, telecom, auto and pharma. FDI inflows stood at $26.91 billion during
the first six months of the last fiscal.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,783.40
|
19,748.60
|
19,823.65
|
BSE
Sensex
|
65,930.77
|
65,825.84
|
66,059.03
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
296.43
|
126.20
|
125.30
|
126.75
|
Coal
India
|
151.48
|
334.40
|
329.34
|
338.99
|
State
Bank of India
|
142.80
|
561.40
|
559.39
|
565.04
|
HDFC
Bank
|
124.80
|
1518.25
|
1512.90
|
1522.80
|
ONGC
|
107.20
|
191.30
|
190.21
|
193.16
|
- Infosys has collaborated with
Proximus, Belgium's leading digital services and communications solutions
provider, to deliver an IT modernization and consolidation project.
- Adani Enterprises' step-down
subsidiary -- Mumbai Travel Retail has completed the incorporation process of
its wholly owned subsidiary namely - MTRPL Macau in Macau.
- Bharti Airtel has extended 5G
coverage to all 34 districts of Maharashtra.
- Bajaj Finance has raised Rs
503.17 crore through the allotment of 50,000 Secured Redeemable NCDs, at the
face value of Rs 1 lakh each.