Indian equity
benchmarks trimmed most of their initial gains but managed to end at record
closing highs on Friday, with Sensex closing above the 60,000 mark for the
first time and Nifty ending above important level of 17,850. Decline in covid
cases, rising vaccination and improvement in the economic environment of the
country is fuelling the current Bull Run in the equity markets. Markets made
optimistic start and traded in green throughout the session, taking support
from union Minister Piyush Goyal's statement that the commerce ministry is
trying to ease norms for Special Economic Zones (SEZs) and make it simpler for
units to exit these areas. The ministry is also looking at ways for partial
de-recognition of existing SEZs so that areas which have no more demand can be
used for industrial or other purposes. Solace also came with private report
stating that with higher consumer confidence following the rise in vaccination
levels and sitting on already-built-up-savings through the pandemic months, the
top 20 per cent of upper-income consumers will help recover the near-term
consumption demand. These consumers account for the bulk of the rural and urban
demand. Sentiments remained positive in the noon session, taking support from
former deputy chairman of erstwhile Planning Commission Montek Singh
Ahluwalia's statement that the Indian economy has bottomed out and the formal
sector is likely to get back to pre-pandemic levels by the end of this year. He
is in favor of the National Monetisation Pipeline (NMP) that will look to
unlock value in infrastructure assets across sectors ranging from power to road
and railways. Adding to the optimism, Union Road Transport and Highways
Minister Nitin Gadkari said India is becoming a global investment destination
and the government is committed to providing a favourable policy framework.
However, markets cut most of gains in final hour of trading session, as some
cautiousness came with the Centre for Monitoring Indian Economy (CMIE) stating
that the recovery in employment after the pandemic-induced disruptions has been
uneven, with job losses being concentrated among salaried employees and
entrepreneurs. Finally, the BSE Sensex rose 163.11 points or 0.27% to 60,048.47
and the CNX Nifty was up by 30.25 points or 0.17% to 17,853.20.
The US markets ended mostly
higher in choppy trading session on Friday amid some uncertainty about the
outlook for the markets following recent volatility. After moving sharply
higher for two straight days, stocks showed a lack of direction over the course
of the trading session on Friday. The major averages spent the day bouncing
back and forth across the unchanged line. The Dow has climbed well off the
three-month closing low set on Tuesday but remains sharply lower for the month
of September. Traders also expressed uncertainty about the situation with China
Evergrande, as the indebted property company has not provided clarification
about a key interest payment. On the economic data front, a report released by
the Commerce Department showed an unexpected increase in U.S. new home sales in
the month of August. The Commerce Department said new home sales jumped by 1.5
percent to an annual rate of 740,000 in August after spiking by 6.4 percent to an
upwardly revised rate of 729,000 in July. The continued advance surprised
market participants, who had expected new home sales to slump by 1.1 percent to
a rate of 700,000 from the 708,000 originally reported for the previous month.
With the unexpected increase, new home sales continued to recover after
tumbling to their lowest level in over a year in June.
Crude oil futures ended higher
for a fourth straight session on Friday amid tighter supplies. Recent data
showing a drop in U.S. crude inventories and output disruptions in the Gulf of
Mexico due to the impact of two hurricanes supported oil prices. The public
auction of state crude reserves by China limited oil's advance. According to
reports, PetroChina and Hengli Petrochemical bought four cargoes totaling about
4.43 million barrels in the auction. According to the data released by Baker
Hughes, the number of active U.S. rigs drilling for oil climbed by 10 to 421
this week. The total active U.S. rig count, including those drilling for
natural gas, climbed by 9 to 521. Benchmark Crude oil futures October delivery
rose 68 cents or 0.9 percent to settle at $73.98 barrel on the New York
Mercantile Exchange. Brent crude for November delivery gained 84 cents or 1.1
percent to settle at $78.09 a barrel on London's Intercontinental Exchange.
Erasing previous sessions gaining
momentum; Indian rupee ended lower against dollar on Friday, on account of
sustained dollar demand from importers and banks. Traders got cautious as the
coronavirus disease (COVID-19) pandemic's resurgence in recent months has
dampened investors' sentiment in emerging East Asia even as accommodative
policy stances have kept financial conditions stable, according to the latest
issue of the Asian Development Bank's (ADB) Asia Bond Monitor. However,
downfall remained capped as union Minister Piyush Goyal said the commerce
ministry is trying to ease norms for Special Economic Zones (SEZs) and make it
simpler for units to exit these areas. On the global front, dollar hovered
above a one-week low versus major peers on Friday, taking a breather after its
biggest drop in almost a month overnight, as questions lingered about the fate
of property developer China Evergrande Group. Finally, the rupee ended 73.68,
weaker by 4 paise from its previous close of 73.64 on Thursday.
The FIIs as per Friday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 15896.38 crore against gross selling of Rs 15280.70 crore,
while in the debt segment, the gross purchase was of Rs 2256.42 crore with
gross sales of Rs 907.58 crore. Besides, in the hybrid segment, the gross
buying was of Rs 52.04 crore against gross selling of Rs 82.44 crore.
The US markets ended mostly higher
on Friday as the market cooled off following a two-day rally. Asian markets are
trading mostly in green on Monday as investors were monitoring the stocks
related to China Evergrande Group. Indian markets raced to new peaks on Friday
with the Sensex index crossing the 60,000 mark. Today, start of new week is
likely to be optimistic following positive cues from global markets. Some
support will come as Union Finance Minister Nirmala Sitharaman said the Indian
economy is on a sustained path of revival and cited rise in GST collections and
direct taxes to support her assertion. She further said that the confidence in
the Indian stock market is growing as retail and small investors are keenly
investing money in the share market. Sentiments will get boost as the Finance
Ministry said net direct tax collection grew 74.4 per cent to Rs 5.70 lakh
crore between April 1 to September 22 this fiscal. The net direct tax
collection of Rs 5,70,568 crore after adjusting for refunds includes
Corporation Tax (CIT) at Rs 3.02 lakh crore and Personal Income Tax (PIT) at Rs
2.67 lakh crore. Separately, advance tax collection during the second quarter
of the fiscal year grew over 50 per cent over the equivalent period in 2020-21,
providing the government with additional spending power to fuel economic
recovery after the disruption caused by the second Covid-19 wave earlier this
year. Traders will be getting encouragement as Minister of State for Finance
Bhagwat K Karad said the government plans to increase public sector undertakings'
(PSUs) income and create employment through the disinvestment process.
Additionally, a report by Care Ratings stated that rural demand is expected to
get around Rs 11,000-crore boost from the record kharif harvest along with the
marginal hike in minimum support price. Meanwhile, the Reserve Bank has issued
Master Direction on loan transfer, requiring banks and other lending
institutions to have a comprehensive board-approved policy for such
transactions. However, traders may be concerned as India recorded a spike of
27,000 new Covid-19 cases in the past 24 hours. The country also witnessed 280
deaths, taking the death toll to 447,225. So far, India has recorded 33,678,243
corona cases in total. There may be some cautiousness as RBI data showed the
country's foreign exchange reserves declined by $1.47 billion to $639.642
billion in the week ended September 17.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,853.20
|
17,799.19
|
17,927.44
|
BSE
Sensex
|
60,048.47
|
59,885.68
|
60,272.13
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Bharti Airtel
|
708.44
|
739.40
|
727.26
|
752.26
|
Oil & Natural Gas Corporation
|
336.67
|
136.10
|
133.76
|
139.16
|
Tata Motors
|
289.01
|
317.95
|
313.69
|
324.59
|
ITC
|
248.23
|
238.45
|
236.10
|
242.40
|
Coal India
|
172.59
|
166.10
|
162.85
|
169.40
|
UltraTech Cement has set target to meet 100 per cent of its electricity requirement through renewables sources by 2050.
Reliance Industries has joined hands with CSIR-NCL.
Coal India's subsidiary -- Northern Coalfields has joined hand with power major NTPC to install a 50 MW solar power project in Madhya Pradesh.
Tata Motors has recorded a remarkable feat of on-boarding its 10,000th EV customer.