Indian equity
benchmarks surrendered all of their intra-day gains to end marginally lower
amid bouts of volatility on Tuesday. Broader markets closed deep in the red.
Domestic markets started the day's trade at fresh all-time highs, as traders
got encouragement with Union Minister Shobha Karandlaje's statement that the
Centre has infused Rs 1,31,000 crore to boost agriculture and allied sectors
with special emphasis on becoming an export-oriented economy as India has
tremendous potential to satiate global demand. Additional optimism also came
after preliminary data of the commerce ministry showed that the country's
exports rose by 40.5 per cent to $15.13 billion during October 1-14 on account
of healthy performance by key sectors such as petroleum products, engineering
and chemicals. Sentiments remained positive with Crisil Ratings' report stating
that the private industrial capital expenditure (capex) appears to be getting
into a whole new cycle after the COVID-19 pandemic hiccup, driven by conducive
government support through policy measures such as the Production-Linked
Incentive (PLI) scheme and reduced tax rates and accommodative monetary policies
and lower interest rates. However, markets turned red with minutes left before
the closing bell, even as the Reserve Bank of India in its latest monthly
bulletin October 2021 stating that amidst an accentuation of global risks, the
Indian economy is picking up steam, although the recovery is uneven and
trudging through soft patches. The step up in vaccination, slump in new
cases/mortality rates and normalising mobility has rebuilt confidence. Market
participants also failed to take support from a private report stating that
Indian startups received a record funding of $10.9 billion across 347 deals in
the third quarter of 2021. This is twice the amount of funding received in Q3
of the calendar year 2020 and an approximate increase of 41 percent compared to
the second quarter of 2021. Meanwhile, observing that a continued coordinated
policy response to fight COVID-19 including through vaccines is critical to
overcome the ongoing health crisis, a top IMF official has said that addressing
the long-standing reform priorities and improving education outcomes will be
key to help minimise adverse medium-term impacts from the pandemic and further
boost long-term growth in India. Finally, the BSE Sensex fell 49.54 points or
0.08% to 61,716.05 and the CNX Nifty was down by 58.30 points or 0.32% to
18,418.75.
The US markets ended higher on
Tuesday as major companies continued to report strong third-quarter earnings,
easing concerns that persistent Covid cases. Upbeat earnings reports from
Travelers Companies Inc., Johnson & Johnson, Procter & Gamble and
Netflix lifted sentiment. So far, 82% of S&P 500 companies that have
reported earnings beat expectations, according to private report. It further
stated taking into account those reports and estimates for those to come,
third-quarter profit growth will come in at 30%. Meanwhile, energy stocks had a
fairly good outing as falling temperatures in China pushed oil prices higher.
Technology stocks moved higher, extending recent gains. Pharmaceuticals and
utilities stocks advanced as well. On the economic data front, a report
released by the Commerce Department showed an unexpected decrease in new US
residential construction in the month of September. The report said housing
starts fell by 1.6 percent to an annual rate of 1.555 million in September from
a revised rate of 1.580 million in August. Street had expected housing starts
to inch up to a rate of 1.620 million from the 1.615 million originally
reported for the previous month. The report also showed building permits
plunged by 7.7 percent to an annual rate of 1.589 million from a revised rate
of 1.721 million in August. Building permits, an indicator of future housing
demand, were expected to drop to a rate of 1.680 million from the 1.728 million
originally reported for the previous month.
Crude oil futures ended higher on
Tuesday on rising demand for fuel oil and diesel due to severe energy crisis in
China and several parts across Europe. The Organization of the Petroleum
Exporting Countries (OPEC) and allies' decision to stick to their plan of
increasing output only gradually, and reports that a few oil producers are
unlikely to meet current output targets contributed as well to oil's uptick.
Besides, falling temperatures in the northern hemisphere has resulted in
increased demand for oil, coal and natural gas, pushing up prices of these
products. Meanwhile, traders were looking ahead to weekly oil report from US
Energy Information Administration (EIA). The EIA is scheduled to release its
inventory data Wednesday. Benchmark Crude oil futures for November delivery
rose $0.52 or about 0.6 percent to settle at $82.96 barrel on the New York
Mercantile Exchange. Brent crude for December delivery surged $0.65 or 0.77
percent to settle at $84.98 a barrel on London's Intercontinental Exchange.
Indian Money market remained
closed on Tuesday on account of Id-e-Milad.
The FIIs as per Monday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 10654.50 crore against gross selling of Rs 9175.84
crore, while in the debt segment, the gross purchase was of Rs. 711.85 crore
with gross sales of Rs 1079.20 crore. Besides, in the hybrid segment, the gross
buying was of Rs 29.59 crore against gross selling of Rs 15.59 crore.
The US markets ended higher on
Tuesday with the biggest boosts from the technology and healthcare sectors as
investors appeared to bet on solid quarterly reports even as some worried that
it was too early to celebrate. Asian markets are trading mostly in green on
Wednesday following overnight gains on Wall Street. Indian markets snapped
their longest winning streak in nearly 10 months on Tuesday and ended lower for
the first time in eight sessions due to profit booking on the back of in-line
September quarter results. Today, the start of session is likely to be
flat-to-positive amid strong global cues and the ongoing earnings season.
Traders will be taking encouragement as Services Export Promotion Council
(SEPC) said the country's services exports are expected to reach over $240
billion during 2021-22 on account of healthy performance by segments such as
professional and management consulting services, audio visual, freight
transport services, and telecommunications. Some support will come as pointing
out that India is the only G20 nation well on track to achieve the goals
mentioned under the Paris Agreement, Niti Aayog CEO Amitabh Kant said India's
efforts in mainstreaming sustainability and reducing carbon footprint should
inspire countries across the world. Traders may take note of Minister of State
for Electronics and IT Rajeev Chandrasekhar's statement that the government is
looking at rolling out a five-year strategic perspective plan to make India a
significant tech player. Meanwhile, GST Council is likely to consider one
single tax rate for online gaming, racecourses, casinos and that could be as
high as 28 percent. However, there may be some cautiousness with a private
report that current account leading to higher imports and a rise in current
account deficit, which is likely to print at 1.3 per cent of the GDP or $40
billion, up from 0.9 per cent surplus last fiscal. Additionally, the
International Monetary Fund downgraded its 2021 economic growth forecast for
Asia after the highly infectious Covid-19 delta variant caused a spike in cases
in parts of the region. Banking stocks will be in focus as rating agency Crisil
in a research note said that the gross non-performing assets (NPAs) of Indian
banks may rise to 8-9 per cent by the end of this fiscal year (FY22), 50-150
basis points higher than FY21 levels, but much below the FY18 levels when NPAs
reached a peak of 11.2 per cent. There will be some reaction in tobacco related
stocks as the government constituted an expert panel on future taxation policy
for tobacco. It will develop a comprehensive tax policy on the products from
the point of view of public health. There will be lots of important earnings
announcements too, to keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,418.75
|
18,329.49
|
18,556.24
|
BSE
Sensex
|
61,716.05
|
61,458.41
|
62,109.55
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ITC
|
590.10
|
246.10
|
239.91
|
257.41
|
Tata Motors
|
574.09
|
484.75
|
468.06
|
509.41
|
State Bank of India
|
206.36
|
488.70
|
479.90
|
500.85
|
NTPC
|
202.23
|
149.50
|
147.70
|
151.70
|
Coal India
|
173.97
|
184.95
|
182.71
|
188.06
|
Dr. Reddy's Laboratories has received final approval for its ANDA for Lenalidomide Capsules from the USFDA.
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Bharti Airtel has launched its Video Platform as a Service (CPaaS) - Airtel IQ Video.