Indian equity benchmarks resumed
their up move after a day's pause in the previous session, amid buying in
utilities, oil and gas, power and metal stocks. The benchmarks staged a gap up
opening, as Union Minister for Minister of Micro, Small and Medium Enterprises
(MSME) Nitin Gadkari said that India was a destination with huge potential for
attractive investments and urged people to invest in MSMEs in the country. He
also said that with the world moving production away from dealings in China,
India was the next best alternative. Some optimism also came as the finance
ministry has notified the Viability Gap Funding (VGF) scheme under which
infrastructure projects would be selected for financial support to give a push
to the sector. As per the scheme notified by the ministry, funding up to Rs 200
crore will be sanctioned by the Empowered Committee (EC) headed by the economic
affairs secretary, while projects needing over Rs 200 crore would be approved by
the EC with the approval of the finance minister. However, minor profit booking
in late afternoon deals wiped out all intraday gains. Some anxiety also spread
among traders with a private report stated that India's retail inflation
probably fell in November from October but remained above the Reserve Bank of
India's target, amid high food and petrol prices. Traders also took note of a
private report that the handsome 25 per cent rise in corporate profits in the
September quarter amid a sharp contraction in GDP was on the back of wage
squeezes, leading to rise in inequalities in India. But, indexes resumed their
positive momentum in the final minutes of trading to close higher, as Finance
Minister Nirmala Sitharaman reviewed the situation about outstanding payments
to micro, small and medium enterprises, especially by CPSEs and central
government agencies. Top officials including Secretary in the Department of
Financial Services Debasish Panda, MSME Secretary A K Sharma, among others,
were present in the meeting. Finally, the BSE Sensex rose 139.13 points or
0.30% to 46,099.01, while the CNX Nifty was up by 35.55 points or 0.26% to
13,513.85.
The US markets ended mostly lower
on Friday as lawmakers in Washington remain at an impasse over a new fiscal
stimulus bill. The Senate managed to pass a temporary spending bill to prevent
a government shutdown on Saturday, but the lack of a breakthrough on a new
relief package has raised concerns among traders. Despite prolonged
negotiations, Republicans and Democrats remain at odds over issues such as aid
for state and local governments and unemployment assistance. However, selling
pressure was relatively subdued as traders also reacted to more upbeat news
regarding a potential coronavirus vaccine. The uptick by the Dow was partly due
to a strong gain by shares of Disney (DIS), with the entertainment giant
spiking by 13.5 percent. On economic front, the University of Michigan released
a report showing an unexpected improvement in consumer sentiment in the month
of December. The report said the consumer sentiment index climbed to 81.4 in
December from 76.9 in November. The increase surprised market participants, who
had expected the index to edge down to 76.5. Meanwhile, traders are likely to
keep a close eye on developments in Washington next week, although reports on
industrial production, retail sales, homebuilder confidence and housing starts
may also attract attention. While the Federal Reserve is also scheduled to hold
a monetary policy meeting, the central bank is widely expected to leave
interest rates unchanged for the foreseeable future.
Crude oil futures ended lower on
Friday on concerns over outlook for energy demand amid surge in coronavirus
cases and tighter restrictions on businesses in several places around the
world. Oil prices also got hurt due to uncertainty about US fiscal stimulus
anytime soon and the possibility of a no-deal Brexit. Recent data showing a
surge in crude inventories in the US, and increased output from Libya also
weighed on oil prices. A report from Baker Hughes said the number of active
U.S. rigs drilling for oil rose by 12 to 258 this week. However, the rollout of
coronavirus vaccines in the U.K., and the nod for Pfizer/BioNTech vaccine from
the U.S. drug regulators helped limit oil's decline. Crude oil futures for
January slipped $0.21 or 0.5 percent to settle at $46.57 a barrel on the New
York Mercantile Exchange. February Brent crude declined $0.28 or 0.56 percent
to settle at $49.97 a barrel on London's Intercontinental Exchange.
Indian rupee ended marginally
higher against dollar on Friday on selling of American currency by banks and
exporters. Traders took some solace as Union Minister Nitin Gadkari has urged
investors to tap the vast opportunities it offers and get good returns at a
time when the whole world is finding an alternative destination for investment
in the wake of coronavirus disease (covid-19) pandemic. Meanwhile, Finance
Minister Nirmala Sitharaman reviewed the situation about outstanding payments
to micro, small and medium enterprises, especially by CPSEs and central
government agencies. On the global front, pressure was easing on the dollar on
Friday, with the currency set to snap out of three straight weeks of losses
while sterling still suffered due to fears a post-Brexit trade deal might not
be reached before the end of 2020. Finally, the rupee ended at 73.64, 2 paise
stronger from its previous close of 73.66 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 8858.17 crore against gross selling of Rs 5345.05 crore, while
in the debt segment, the gross purchase was of Rs 1108.24 crore with gross
sales of Rs 802.63 crore. Besides, in the hybrid segment, the gross buying was
of Rs 3.13 crore against gross selling of Rs 3.76 crore.
The US markets closed mostly in
red on Friday as talks on a Covid-19 relief package faced setbacks and fresh
business restrictions were unveiled. Asian markets are trading mostly in green
on Monday as optimism rose on the
approval of Pfizer's Covid-19 vaccine. Indian markets ended Friday's volatile
session higher led by gains in PSU banks and metal stocks amid mixed global
cues. Today, markets are likely to make positive start tracking positive global
cues. Sentiments will get a boost as the country's index of industrial
production (IIP) grew 3.6 per cent to 128.5 in the month of October, according
to the data released by the Ministry of Statistics & Programme
Implementation (MoSPI). Some support will come as the government is likely to
launch the third tranche of Bharat Bond ETF, the exchange traded fund that
invests in debt of public sector companies, this fiscal. However, there may be
some cautiousness with report that on Sunday, India reported 27,336 fresh
Covid-19 cases. Its case tally now stands at 9,884,716. The country's death
toll has mounted to 143,393. With 18,80,416 cases, Maharashtra has the highest
number of coronavirus cases, followed by Karnataka 901,000, Andhra Pradesh 875,000,
Tamil Nadu 798,000, and Kerala 669,000. With 1,984 fresh cases, Delhi's
Covid-19 tally has climbed to over 607,000. Besides, former chief statistician
Pronab Sen said India's current macroeconomic situation is very uncertain and
the country's GDP could contract closer to 10 per cent in the current fiscal.
There will be some buzz in NBFCs with CRISIL's report that the asset under
management (AUM) of non-banking finance companies, including housing finance
companies, is likely to see a positive growth but will be muted at 5-6 percent
in the next financial year. Banking stocks will be in focus as the Finance
Ministry will take a call on residual Rs 14,500 crore capital infusion in the
public sector banks (PSBs) in the fourth quarter of this fiscal. There will be
some reaction auto stocks with industry body SIAM's statement that India's
passenger vehicle sales posted a 4.6 percent rise in November as the festive
season saw a pick up in demand, as it corrected its earlier projection of a
sharp 13 percent growth. Meanwhile, the Rs 810-crore Burger King India IPO
(initial public offer), which was open for subscription from December 2 to
December 4, is set to make its stock market debut today. The fast-food major's
initial public offering was subscribed a massive 156.65 times by earlier this
month, making it the second most subscribed public issue of 2020 so far.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
13,513.85
|
13,418.01
|
13,594.51
|
BSE
Sensex
|
46,099.01
|
45,766.95
|
46,370.36
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil
& Natural Gas Corporation
|
1,468.21
|
96.80
|
91.46
|
103.26
|
NTPC
|
634.64
|
102.40
|
99.06
|
104.31
|
ITC
|
603.22
|
216.30
|
213.79
|
218.39
|
Indian
Oil Corporation
|
551.97
|
93.85
|
92.56
|
95.61
|
Gail
India
|
527.97
|
125.85
|
121.00
|
129.75
|
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Titan Company's subsidiary -- Tanishq has strengthened its retail footprint by opening its 10th outlet in city.
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