Indian equity
benchmarks witnessed a strong recovery after a four-day selloff and settled
with gains of over a percent each on Monday amid a positive trend in global
markets. After making a cautious start, frontline indices soon gained strength.
Some optimism came as a report stated that foreign investors have infused a net
Rs 11,557 crore in Indian equities in December so far despite a market
correction and increasing concerns over re-emergence of COVID in China and some
other parts of the world. Some support also came as Department for Promotion of
Industry and Internal Trade (DPIIT) has sought the views of 16 departments and
ministries on its draft national retail trade policy, which is aimed at the
overall development of all formats of the sector. Key gauges extended gains in
afternoon deals, as domestic sentiments remained up-beat with the Centre for
Economics and Business Research (Cebr) stating that India's growth trajectory
will see the country rise from fifth place on the World Economic League Table
in 2022 to third in the global rankings by 2037. However, markets came off day's
high points, as some profit booking in the last half an hour trimmed some
gains. Traders took a note of a private report that India's exports may have
touched an all-time high of USD 422 billion in 2021-22 but recession in key
western markets and geo-political crisis due to the Russia-Ukraine war are
expected to impact the growth of the country's outbound shipments in 2023.
Finally, the BSE Sensex rose 721.13 points or 1.20% to 60,566.42 and the CNX
Nifty was up by 207.80 points or 1.17% to 18,014.60.
The US markets remained closed on
Monday on account of Christmas holiday.
Indian rupee ended higher against
dollar on Monday, on the back of robust buying in the domestic equities.
Sentiments were positive with a report stating that foreign investors have
infused a net Rs 11,557 crore in Indian equities in December so far despite a
market correction and increasing concerns over re-emergence of COVID in China
and some other parts of the world. Besides, Centre for Economics and Business
Research (Cebr) said that India's growth trajectory will see the country rise
from fifth place on the World Economic League Table in 2022 to third in the
global rankings by 2037. On the global front, Russian rouble edged higher
against the dollar on Monday, recovering some ground after its largest weekly
slump since early July on fears over the impact of oil and gas sanctions on Russia's
export revenue. Finally, the rupee ended at 82.65 (Provisional), stronger by 17
paise from its previous close of 82.82 on Friday.
The FIIs as per Monday's data
were net sellers in both equity and debt segment. In equity segment, the gross
buying was of Rs 3479.49 crore against gross selling of Rs 4357.25 crore, while
in the debt segment, the gross purchase was of Rs 124.84 crore against gross
selling of Rs 128.84 crore. Besides, in the hybrid segment, the gross buying
was of Rs 0.63 crore against gross selling of Rs 13.55 crore.
The US markets were closed on
Monday on account of Christmas holiday. Asian markets are trading in green amid
China relaxes Covid-19 restrictions as the country cancels quarantine rules for
travelers. The infection has been downgraded to Category A and Category B. New
rules will come into effect from January 8, 2023. Indian equity markets ended
higher with gains of over one percent on Monday led by Utilities, PSU and power
stocks. Today, markets are likely to make optimistic start amid positive cues
from other Asian markets on hopes of demand recovery in China after the country
announced it will ease its strict COVID-19 restrictions. Traders may get
support with private report that India is well positioned to continue to be the
fastest-growing major economy next year, which may mark the lowest global
growth since the millennium began barring the pandemic and the global financial
crisis. Some support may also come with reports that Gross direct tax
collections for 2022-23 (up to November 30) are up by 29.66 per cent at Rs
10,93,385 crore, which was over Rs 8,43,301 crore collected during the
corresponding period of last year. The growth has been achieved due to the
performance of economy, administration and implementation of the provisions of
the direct tax laws. However, traders may be cautious on private report that a
sustained surge in Covid cases in China could further exacerbate a contraction
in India's exports to its fourth-largest market in the coming months, as order
flow has already been faltering at a steady pace. Street now forecast a 40-45%
crash in exports to China this fiscal from $21.3 billion in FY22 if the Covid
surge continues through January. There will be some buzz in coal related stocks
as the Coal Consumers Association of India (CCAI) has made a plea to the
government to resume rake-based supplies to the non-power sector in a bid to
maintain cost competitiveness and sustain operations. There may be some
reaction in textiles stocks as the government said that the Rs 10,683-crore
production-linked incentive scheme for India's textiles sector attracted
investments of Rs 1,536 crore as approval letters were issued to 56 applicants
who met the eligibility criteria.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,014.60
|
17,831.20
|
18,141.05
|
BSE
Sensex
|
60,566.42
|
59,935.76
|
61,015.44
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
339.95
|
105.00
|
102.59
|
106.49
|
Tata Motors
|
169.79
|
384.80
|
376.44
|
391.94
|
State Bank of India
|
132.01
|
597.10
|
577.96
|
608.96
|
ITC
|
95.66
|
334.60
|
328.36
|
337.96
|
NTPC
|
83.21
|
165.65
|
162.45
|
168.30
|
NTPC has inked a non-binding MoU with Tecnimont, Indian Subsidiary of Maire Tecnimont Group, Italy.
Bharti Airtel has launched its cutting edge 5G services in Pune.
Maruti Suzuki India is eyeing sales of its vehicles with auto gear shift to pick up further next year, with increasing congestion across cities in India.
L&T's construction arm -- L&T construction has secured prestigious orders for its Water & Effluent Treatment Business from the Tumakuru Industrial Township under the Chennai Bengaluru Industrial Corridor.