Indian equity
benchmarks, after facing bouts of volatility during the session, ended with
gains for the second consecutive day on Tuesday amid a largely firm trend in
global markets. After opening in the negative territory, key gauges soon turned
positive to trade with marginal gains as traders took support with Assocham's
statement that India's economy is expected to navigate rough global weather in
2023 due to resilient consumer demand, better corporate performance and abating
of inflation, even as the year is likely to be full of challenges and
opportunities. Traders also took a note of the Ports, Shipping and Waterways
minister Sarbananda Sonowal's statement that public-private partnership in port
infrastructure has been an important source of investment in the sector and the
Ministry of Ports, Shipping and Waterways (MoPSW) has a pipeline of 44 projects
for total investment of Rs 22,900 crore till 2024-25. However, markets erased
gains and once again fell into red terrain in afternoon deals, amid foreign
fund outflows. Foreign institutional investors (FII) net sold shares worth Rs
212.57 crore on January 2, as per provisional data available on the NSE.
Traders were also concerned as the IMF chief has said that one third of the
global economy will be in recession this year, and warned that 2023 will be
tougher than last year as the US, EU and China will see their economies slow
down. Some concern also came as the economic think tank Global Trade Research
Initiative (GTRI) said that the Indian economy and exports will be moderately
impacted in 2023 by weak global demand and recession in large economies and to
improve its current account, the country should aim at reducing energy import
bill. GTRI said that in 2022, India will pay USD 270 billion in imports of
crude oil and coal, which is about 40 per cent of total merchandise import
bill. But, markets managed to end the session in green terrain led by Consumer
Durables, Healthcare and IT stocks. Finally, the BSE Sensex rose 126.41 points
or 0.21% to 61,294.20 and the CNX Nifty was up by 35.10 points or 0.19% to 18,232.55.
The US markets ended lower on
Tuesday on concerns about the outlook for interest rates. Further, traders were
reluctant to make significant bets ahead of the release of some key economic
data later this week, including the closely watched monthly jobs report on
Friday. Reports on manufacturing and service sector activity may also attract
attention in the coming days along with the minutes of the latest Federal
Reserve meeting. On the sectoral front, Energy stocks showed a substantial move
to the downside on the day, moving sharply lower along with the price of crude
oil. With crude for February delivery plunging $3.33 to $76.93 a barrel, the
Philadelphia Oil Service Index plummeted by 4.3 percent and the NYSE Arca Oil
Index dove by 4.2 percent. A steep drop by the price of natural gas also
weighed on natural gas stocks, dragging the NYSE Arca Natural Gas Index down by
3.1 percent. On the economic data front, a report released by the Commerce
Department unexpectedly showed a modest increase in U.S. construction spending
in the month of November. The Commerce Department said construction spending
crept up by 0.2 percent to an annual rate of $1.808 trillion in November after
edging down by 0.2 percent to a revised rate of $1.803 trillion in October. The
uptick surprised participants, who had been expecting construction to decrease
by 0.4 percent compared to the 0.3 percent dip originally reported for the
previous month. The unexpected increase in construction spending came as
spending on private construction rose by 0.3 percent to an annual rate of
$1.426 trillion. Spending on non-residential construction surged by 1.7 percent
to an annual rate of $558.3 billion, more than offsetting a 0.5 percent drop in
spending on residential construction to an annual rate of $868.0 billion.
Crude oil futures ended deeply in
red on Tuesday as growing concerns over a global recession and worries that
surging COVID-19 cases in China will crimp demand. The fall for oil prices came
as recession fears mount, with the International Monetary Fund expecting
one-third of the world economy to enter a recession, while New York Fed
President William Dudley says a US economic downturn is likely. Besides, data
showing a drop in Chinese manufacturing activity also weighed on oil prices.
According to a survey, China's factory activity deteriorated further at the end
of the year as Covid containment measures together with softer demand forces
manufacturers to downsize production. Benchmark crude oil futures for February
delivery fell $3.33 or 4.2 percent at $76.93 a barrel on the New York
Mercantile Exchange. Brent crude for March delivery dropped $3.81 or 4.4
percent at $82.10 a barrel on London's Intercontinental Exchange.
Rupee ended weaker against dollar
on Tuesday, weighed by a strong greenback overseas and sustained foreign fund
outflows. Sentiments got hit with IMF chief's statement that one third of the
global economy will be in recession this year, and warned that 2023 will be
tougher than last year as the US, EU and China will see their economies slow
down. On the global front, U.S. dollar jumped on Tuesday with focus on the
minutes from the Federal Reserve's December meeting, while the yen earlier hit
a seven-month high on rising expectations that the Bank of Japan (BOJ) might
move away from its ultra-easy monetary policy. Finally, the rupee ended at
82.86 (Provisional), weaker by 8 paise from its previous close of 82.78 on
Monday.
The FIIs as per Tuesday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 3554.57 crore against gross selling of Rs
1893.04 crore, while in the debt segment, the gross purchase was of Rs 38.90
crore against gross selling of Rs 44.44 crore. Besides, in the hybrid segment,
the gross buying was of Rs 1.39 crore against gross selling of Rs 2.75 crore.
The US markets ended lower on
Tuesday with the biggest drags from Tesla and Apple, while investors worried
about the Federal Reserve's interest-rate hiking path as they awaited minutes
from its December meeting. Asian markets are trading mostly in green on
Wednesday amid investors await the US Job Openings and Labor Turnover Survey,
as well as the minutes of the Fed's latest policy meeting due later today.
Indian markets ended higher for the second consecutive day on Tuesday with
financials and IT stocks leading the surge. Today, markets are likely to get
flat-to-negative start tracking overnight losses on Wall Street. Investors will
be eyeing the services PMI data to be out later in the day. Traders will be
concerned as the economic think tank -- Global Trade Research Initiative (GTRI)
said the Indian economy and exports will be moderately impacted in 2023 by weak
global demand and recession in large economies and to improve its current
account, the country should aim at reducing energy import bill. There will be
some cautiousness as Micro-Finance Institution Network (MFIN), a
self-regulatory organisation (SRO) recognised by RBI, said that outstanding
loan portfolio of the micro-finance institution (MFI) sector across India will
increase around 20.3 per cent at Rs 3.25 lakh crore in 2022-23 compared to the
previous fiscal. Traders may take note of a private report that forty Indian
corporates raised Rs 59,412 crore through main board IPOs in calendar year
2022, half of the Rs 1,18,723 crore (all-time high) mobilised by 63 IPOs in
2021. There will be some buzz in the road logistics sector stocks as rating
agency Icra revised its growth estimates for the Indian road logistics sector
to 11-13 per cent for the current fiscal against the previous estimate of 7-9
per cent. The rating agency said the growth is supported by a strong demand
environment, coupled with the continuation of firm freight rates. Aviation
industry stocks will be in focus as the monthly domestic air passenger traffic
touched 1.29 crore to cross the pre-COVID level in December 2022, and Civil
Aviation Minister Jyotiraditya Scindia termed it as a healthy trend and a good
sign for the industry. There will be some reaction in M&E industry stocks
as ratings agency Crisil said the Indian media and entertainment (M&E)
industry may report a 12-14 per cent year-on-year growth in revenue for the
financial year ended March 31, 2024 (FY24) to Rs 1.6 trillion, lower than the
16 per cent revenue growth likely in FY23. Leather industry stocks will be in
limelight as Commerce and Industry Minister Piyush Goyal said the government is
considering a new scheme to support domestic manufacturing of machinery and
accessories used in the leather industry. Meanwhile, Cash Management is likely
to debut on the markets, amid muted response to the IPO (subscribed only 53 per
cent).
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
18,232.55
|
18,170.91
|
18,273.06
|
BSE
Sensex
|
61,294.20
|
61,084.18
|
61,424.10
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
744.19
|
118.50
|
117.34
|
120.09
|
Oil & Natural Gas Corporation
|
149.91
|
149.60
|
148.20
|
150.80
|
HDFC Life Insurance Company
|
100.96
|
596.20
|
577.14
|
607.64
|
NTPC
|
96.29
|
167.50
|
166.46
|
168.86
|
Tata Motors
|
94.31
|
393.90
|
391.81
|
397.16
|
ONGC's iconic offshore drilling Rig -- Sagar Samrat has been commissioned as a Mobile Offshore Production Unit on December 23, 2022.
L&T's construction arm -- L&T construction has secured repeat orders for its Water & Effluent Treatment Business from the Government of Madhya Pradesh.
Bharti Airtel has launched its cutting edge 5G services in Indore.
SBI has received an approval for raising infrastructure bonds up to an amount of Rs 10,000 crore through a public issue or private placement, during FY23.