Indian equity
benchmarks ended higher for the second consecutive session with gains of over
half percent on Tuesday as positive global cues, coupled with reports of China
further relaxing its pandemic-related restrictions boosted sentiment. After a
positive start, markets witnessed volatility as traders were cautious on a
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. However, key
gauges soon gained strength in late morning deals, as traders turned optimistic
with a private report stating 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. Markets extended gains in the second half to close the session near the
day's high, taking support from Secretary in Department for Promotion of
Industry and Internal Trade (DPIIT) Anurag Jain's statement that India has the
third largest startup ecosystem in the world and the way startups here are
performing; soon the country will become a top ecosystem globally. He also said
that the country's startups will attract significant foreign direct investments
(FDI) in 2023 on account of steps being taken by the government to strengthen
the ecosystem for budding entrepreneurs. Traders overlooked report that credit
rating agency, India Ratings and Research (Ind-Ra) in its December Credit Market
Tracker has forecasted that the core inflation is likely to remain elevated in
the remaining FY23, given that there is a pending pass-through of higher input
costs by producers and a continued robust demand in the economy. Finally, the
BSE Sensex rose 361.01 points or 0.60% to 60,927.43 and the CNX Nifty was up by
117.70 points or 0.65% to 18,132.30.
The US markets ended mostly in
red, with Nasdaq settling cut of around one and half percent, on Tuesday on
lingering concerns about the economic outlook following recent indications the
Federal Reserve plans to continuing raising interest rates. A light economic
calendar also kept traders on the sidelines, although reports on pending home
sales, weekly jobless claims and Chicago-area business activity may attract
attention in the coming days. On the sectoral front, airline stocks moved
sharply lower on the day, with the NYSE Arca Airline Index plunging by 2.3
percent amid continued flight cancellations due to the severe winter storm.
Southwest Airlines (LUV) posted a steep loss following news the Department of
Transportation is investigating the company's unacceptable rate of
cancellations. Biotechnology and semiconductor stocks also saw significant
weakness, contributing to the sharp drop by the tech-heavy Nasdaq. Reflecting
the weakness in the sectors, the NYSE Arca Biotechnology Index and the
Philadelphia Semiconductor Index slid by 1.9 percent and 1.8 percent, respectively.
On the other hand, gold stocks moved sharply higher on the day, driving the
NYSE Arca Gold Bugs Index up by 2.5 percent. The rally by gold stocks came amid
a notable increase by the price of the precious metal, with gold for February
delivery climbing $18.90 to $1,823.10 an ounce.
Crude oil futures ended higher on
Tuesday on fears over supply disruptions due to winter storm Elliott, and
China's decision to ease travel restrictions. Oil prices were also supported by
reports Russia might cut oil output early next year. Also, Russian President
Vladimir Putin announced a ban on the sale of oil which would allow exports to
countries imposing a price cap only in the case of a special exemption from the
Kremlin. Benchmark crude oil futures for February delivery rose $0.18 or 0.21
percent at $79.73 a barrel on the New York Mercantile Exchange. Brent crude for
February surged $0.41 or 0.5 percent to settle at $84.33 a barrel on London's
Intercontinental Exchange.
Rupee ended weaker against dollar
on Tuesday amid rising crude oil prices. Traders were cautious after credit
rating agency, India Ratings and Research (Ind-Ra) in its December Credit
Market Tracker has forecasted that the core inflation is likely to remain
elevated in the remaining FY23, given that there is a pending pass-through of
higher input costs by producers and a continued robust demand in the economy.
On the global front, Russian rouble weakened on Tuesday, struggling to
consolidate a slight recovery from last week's slide as the market comes to
terms with the prospect of lower export revenue in the wake of restrictions on
Russian oil. Finally, the rupee ended at 82.85 (Provisional), weaker by 20
paise from its previous close of 82.65 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 2286.72 crore against gross selling of Rs 2050.03 crore, while
in the debt segment, the gross purchase was of Rs 566.94 crore against gross
selling of Rs 23.28 crore. Besides, in the hybrid segment, the gross buying was
of Rs 1.06 crore against gross selling of Rs 7.49 crore.
The US markets ended mostly lower
on Tuesday as trading resumed following the long Christmas weekend. Asian
markets are trading mostly in red on Wednesday with investors looking for
direction after China took further steps towards reopening its COVID-battered
economy. Indian markets extended the rally on Tuesday, as positive global cues,
coupled with reports of China further relaxing its pandemic-related
restrictions boosted sentiment. Today, the markets are likely to get
pessimistic start amid lackluster global cues, subdued foreign flows, and
rising crude oil prices. Foreign institutional investors (FIIs) sold shares
worth Rs 867.65 crore on December 27, according to the provisional data
available on the NSE. There will be some cautiousness as the latest data on
public debt showed that the total liabilities of the government increased to Rs
147.19 lakh crore at September-end from Rs 145.72 lakh crore at the end of June
this fiscal year. In percentage terms, it reflects a quarter-on-quarter
increase of 1 per cent in second quarter of 2022-23. Banking stocks will be in
limelight as the RBI in the 'Trends and Progress of Banking in India' report
for FY22 said the GNPAs, which touched a peak in FY18 following the asset
quality review, have been declining sequentially to reach 5 per cent in
September. There will be some buzz in pharma stocks with a private report that
after recording 7 per cent growth last fiscal, the pharmaceuticals industry is
projected to grow 9-11 per cent in this and next fiscal years. This will be led
by steady domestic demand following price hikes across key therapy areas.
Airbags industry stocks will be in focus as ratings agency Icra said the
industry size of airbags, a key safety feature in vehicles, is expected to grow
to up to Rs 7,000 crore by FY2027 in India, from the current levels of around
Rs 2,500 crore. There will be some reaction in road sector stocks as credit
rating agency Crisil said aided by regulatory guardrails and structural
benefits, infrastructure investment trusts (InvITs) in the road sector have
enhanced the credit quality of around Rs 46,000 crore debt till now. According
to Crisil, since 2016, 19 InvITs have been registered in India and these
include 11 from the roads sector of which nine have been floated or are set to
be launched soon.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,132.30
|
18,016.75
|
18,198.55
|
BSE
Sensex
|
60,927.43
|
60,559.84
|
61,140.86
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
760.33
|
111.15
|
107.49
|
113.19
|
Tata Motors
|
143.72
|
394.15
|
389.29
|
398.24
|
Hindalco Industries
|
138.98
|
471.00
|
454.36
|
480.01
|
Power Grid Corporation of India
|
98.36
|
212.65
|
211.24
|
214.64
|
State Bank of India
|
96.38
|
601.90
|
595.76
|
605.56
|
Tata Steel and TuTr Hyperloop have signed a MoA at IIT Madras to jointly work on development and deployment of Hyperloop technology at scale.
Reliance Industries' telecom arm -- Reliance Jio Infocomm has launched True 5G services in four districts of Andhra Pradesh.
L&T's construction arm -- L&T construction has secured multiple EPC orders in India and overseas for its Power Transmission & Distribution business.
Coal India is aiming to achieve the production target of 700 million tonnes for the current financial year.