Indian equity benchmarks ended
lower by around a percent on Thursday amid the monthly derivatives (F&O)
expiry and weakness in IT, FMCG and TECK stocks. After making a slightly positive
start, benchmark indices slipped deeper into losses as the day progressed as
persistent foreign fund outflows dented sentiments. Provisional data from the
National Stock Exchange (NSE) showed that foreign institutional investors (FII)
sold shares worth Rs 354.35 crore on September 27. Some concerns also came with
a private report that investment in Indian startups dropped to a five-year low
in the third quarter of calendar year 2023, with funding declining by 54 per
cent year-on-year to $1.5 billion. The funding also fell 29 per cent
quarter-on-quarter. Sentiments remained dampened as Reserve Bank data showed
that India's external debt rose marginally to $629.1 billion at June-end 2023,
although the debt-GDP ratio declined. The debt rose by about $4.7 billion from
$624.3 billion at March-end. Markets continued to trade deep in red in late
afternoon session, amid reports stating that India's current account deficit
(CAD) surged to $9.2 billion in the first quarter of 2023-24, more than seven
times what it was in the preceding quarter. According to data released by the
Reserve Bank of India (RBI), CAD in April-June amounted to 1.1 percent of GDP.
Traders overlooked Fitch Ratings' statement that the inclusion of certain
Indian sovereign bonds in key emerging-market bond indices managed by JP Morgan
will support a diversification of the investor base for Indian government
securities. Traders also paid no heed towards External Affairs Minister S
Jaishankar's statement that in the next 25 years, the country's Amrit Kaal as
espoused by Prime Minister Narendra Modi, India will strive to be a developed
country and it is logical that it also seeks to be a global power. Finally, the
BSE Sensex fell 610.37 points or 0.92% to 65,508.32 and the CNX Nifty down by
192.90 points or 0.98% to 19,523.55.
The US markets ended in green on
Thursday as traders picked up stocks at reduced levels following recent
weakness. Concerns about the outlook for interest rates have weighed on the
markets in recent session, dragging the major averages down to their lowest
levels in three months. A downturn by treasury yields also contributed to the
strength among stocks, with the yield on the benchmark ten-year note giving
back ground after reaching its highest levels since October 2007. Meanwhile,
traders were also looking ahead to remarks by Federal Reserve Chair Jerome
Powell, which kicked off just as the markets close. On the sectoral front,
semiconductor stocks showed a strong move to the upside on the day, driving the
Philadelphia Semiconductor Index up by 1.8 percent. Networking, housing and
brokerage stocks also saw notable strength, while interest rate-sensitive utilities
stocks saw further downside. On the economic data front, the Commerce
Department released a report showing the pace of U.S. economic growth in the
second quarter of 2023 was unrevised from the previous estimate. The Commerce
Department said real gross domestic product increased by 2.1 percent in the
second quarter, unrevised from the estimate provided last month. The unrevised
reading matched street estimates. The unrevised GDP growth in the second
quarter still reflects a slight slowdown compared to the 2.2 percent growth in
the first quarter. A separate report released by the Labor Department showed a
slight increase in first-time claims for U.S. unemployment benefits in the week
ended September 23rd. The Labor Department said initial jobless claims crept up
to 204,000, an increase of 2,000 from the previous week's revised level of
202,000.
Crude oil futures ended sharply
lower on Thursday on account of profit booking. Oil prices surged to more than
1-year high earlier in the day, riding on recent data showing a drop in crude
inventories in the U.S. Data from Energy Information Administration (EIA) on
Wednesday showed crude inventories in Cushing, Oklahoma dropped to 22 million
barrels last week. Benchmark crude oil futures for November delivery dropped
$1.97 or 2.1 percent to settle at $91.71 a barrel on the New York Mercantile
Exchange. Brent crude for November delivery fell $1.26 or 1.3 percent to settle
at $93.10 a barrel on London's Intercontinental Exchange.
Indian rupee appreciated against
the dollar on Thursday aided by a correction in crude oil prices and the
greenback. Traders got support after Fitch Ratings stated that the inclusion of
certain Indian sovereign bonds in key emerging-market bond indices managed by
JP Morgan will support a diversification of the investor base for Indian
government securities. Investors ignored report stating that India's current account
deficit (CAD) surged to $9.2 billion in the first quarter of 2023-24, more than
seven times what it was in the preceding quarter. According to data released by
the Reserve Bank of India (RBI), CAD in April-June amounted to 1.1 percent of
GDP. On the global front, the dollar steadied near its highest level against a
basket of its peers on Thursday, keeping the yen near a key intervention zone
and the euro at an eight-month low, as U.S. longer-dated yields extended their
rise. Finally, the rupee ended at 83.19 (Provisional), stronger by 3 paise from
its previous close of 83.22 on Wednesday.
The FIIs as per Thursday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 9974.62 crore against gross selling of Rs 12163.94 crore,
while in the debt segment, the gross purchase was of Rs 945.39 crore with gross
sales of Rs 1180.25 crore. Besides, in the hybrid segment, the gross buying was
of Rs 13.18 crore against gross selling of Rs 9.54 crore.
The US markets ended higher on
Thursday after bond yields slipped from 16-year highs and crude prices pulled
back from their highest level in more than a year. Asian markets are mostly in
green on Friday in thin trade amid China's Golden week holiday. Indian markets
ended significantly lower on Thursday amid the monthly derivatives (F&O)
expiry, rising crude oil price, and weakness in IT share. Today, markets are
likely to get flat-to-positive start amid overnight gains on Wall Street and
sharp fall in crude oil prices. Some support will come as the figures released
by the Reserve Bank of India showed that India's foreign exchange reserves in
nominal terms (which includes valuation effects) rose by $16.6 billion during
April-June 2023, mainly driven by strong Foreign Institutional Investment (FII)
flows. However, foreign fund outflows likely to dampen sentiments. provisional
data from the National Stock Exchange (NSE) showed foreign institutional
investors (FII) sold shares worth Rs 3,364.22 crore on September 28. Some
cautiousness may come as rating agency CRISIL said after clocking a robust 15.9
per cent growth in FY23, the bank credit growth in India is likely to moderate
to 13-13.5 per cent in the current financial year (FY24). It will improve to
13.5-14 per cent in the next financial year (FY25) as economic growth picks up.
Traders may be concerned with a private report that India's external debt rose
modestly by 2.7 percent to $629 billion as of end June over the same period a
year ago as NRI deposits picked up, with other major components almost
remaining flat over the period. Traders continue to remain concerned as India's
current account deficit (CAD) surged to $9.2 billion in the first quarter of
2023-24, more than seven times what it was in the preceding quarter. Realty stocks will be in focus with a private
report that home sales in the top seven cities of India reached an all-time
high of 120,280 units between July and September. Sales this year were higher
by 36 per cent, when compared to 88,230 units sold in the same period in 2022.
There will be some reaction in sugar industry stocks with a private report that
India is likely to ban sugar exports during the upcoming season, starting
October 1. Online gaming industry stocks will be in limelight as Chairman
Sanjay Kumar Agarwal said CBIC is ready to implement 28 percent GST on online
gaming from October 1.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
19,523.55
|
19,421.55
|
19,696.10
|
BSE
Sensex
|
65,508.32
|
65,152.47
|
66,135.09
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Power
Grid
|
501.85
|
200.20
|
197.19
|
203.84
|
NTPC
|
328.87
|
239.75
|
236.54
|
242.09
|
Tata
Steel
|
299.82
|
127.25
|
125.94
|
128.94
|
HDFC
Bank
|
276.77
|
1518.40
|
1511.96
|
1531.21
|
ICICI
Bank
|
259.91
|
942.75
|
935.91
|
948.41
|
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Dr. Reddy's Laboratories has received approval for incorporation of a Wholly-owned Subsidiary of the Company.