Indian equity benchmarks inched
up further and settled at record closing highs on Wednesday amid broad-based
buying and positive global cues. The Sensex hit 46,100 level for the first time
while Nifty also crossed 13,500 level. The markets made a positive start and
continued to witness strength for whole day, as optimism over the coronavirus
vaccine boosted investors' sentiment. As per a private report, an expert panel
is set to review the applications of Bharat Biotech, Pfier-BioNTech and Serum
Institute of India seeking emergency use authorisation for their vaccines. Some
solace also came with Finance Minister Nirmala Sitharaman's statement that
India will not worry about missing its budget deficit target as it seeks to
step up spending to support the economy. Traders also took note of report that
India Ratings and Research expects interest rates to stabilise at the current
level and the Indian currency to undergo structural changes. Indian shares
added more gains in late afternoon session, as traders remain energized with
report that Corporate India is showing healthy signs of recovery and plans to
hire more people in the first three months of 2021 compared to the quarter
ending December. According to report, the employment trends in the first
quarter of 2021 are expected to be on the rise with a Net Employment Outlook of
5 percent. Additional support came with a ratings agency ICRA's statement that
non-bank lenders have witnessed a good rise in loan collection efficiencies in
the September quarter after the reverses in the first three months of the
fiscal. Adding optimism, Union Minister of Road Transport Nitin Gadkari has
highlighted that Micro, Small and Medium Enterprises (MSME) is backbone of
Indian economy and said the government's aim is to increase the sector's
contribution to the Gross Domestic Product (GDP) to 50 per cent from the
existing 30 per cent. Finally, the BSE Sensex surged 494.99 points or 1.09% to
46,103.50, while the CNX Nifty was up by 136.15 points or 1.02% to 13,529.10.
The US markets ended lower on
Wednesday on profit taking after recent gains. Meanwhile, the US saw continued
surge in new coronavirus cases, with over 210,000 new cases of infections
recorded on Tuesday. However, the USFDA said the coronavirus vaccine developed
by Pfizer/BioNTech met the prescribed success criteria and cleared it for
emergency use approval. As part of his three-point plan to combat the
coronavirus pandemic, President-elect Joe Biden has set the goal of bringing at
least 100 million Americans under vaccination during his first 100 days since
assuming office. Announcing key members of his Health Team in Wilmington,
Delaware, Biden said his administration will follow the guidance of scientists
and get vaccines to those most at-risk. On the stimulus front, after Treasury
Secretary Steven Mnuchin announced a $916 billion stimulus package to House
Keeper Nancy Pelosi on Tuesday, Senate Majority Leader Mitch McConnell told
Politico that Republicans and Democrats were still looking for a way forward on
additional fiscal aid. Besides, travelers Companies shares rose sharply,
rebounding from losses in the previous session. General Electric, 3M, DuPont,
Goldman Sachs, Johnson & Johnson, Amgen and Home Depot ended higher.
Crude oil futures ended lower on
Wednesday weighed down by data showing a sharp increase in crude oil stockpiles
in the US in the week ended October 4. Data released by US Energy Information
Administration (EIA) showed that crude inventories in the US rose by 15.2
million barrels last week, as against expectations for a 1.42 million-barrel
decline. Further, concerns about near-term energy demand due to the continued
surge in coronavirus in several states in the US, and in many countries across
the world weighed as well on oil prices. Crude oil futures for January dropped
$0.08 or 0.2 percent to settle at $45.52 a barrel on the New York Mercantile
Exchange. February Brent crude lost $0.10 or 0.2 percent to settle at $48.74 a
barrel on London's Intercontinental Exchange.
Indian rupee ended marginally
higher against dollar on Wednesday, on persistent selling of the American
currency by exporters. Some support came as Union Minister of Road Transport
Nitin Gadkari has highlighted that Micro, Small and Medium Enterprises (MSME)
is backbone of Indian economy and said the government's aim is to increase the
sector's contribution to the Gross Domestic Product (GDP) to 50 per cent from
the existing 30 per cent. The rupee also derived its strength from strong gains
in the local equity markets as well as dollar's weakness against some
currencies overseas. On the global front; dollar fell broadly against its peers
on Wednesday, snapping a three-day rising streak, as signs of progress in
tackling the COVID-19 pandemic boosted risk appetite with the Chinese yuan
climbing to its highest level in 2-1/2 years. Finally, the rupee ended at
73.57, 3 paise stronger from its previous close of 73.60 on Tuesday.
The FIIs as per Wednesday's data
were net buyer in both equity and debt segment. In equity segment, the gross
buying was of Rs 8672.68 crore against gross selling of Rs 5550.09 crore, while
in the debt segment, the gross purchase was of Rs 1983.58 crore with gross
sales of Rs 1505.93 crore. Besides, in the hybrid segment, the gross buying was
of Rs 6.70 crore against gross selling of Rs 15.41 crore.
The US markets ended lower on
Wednesday following new disagreements on an economic stimulus package amid
sell-off in technology shares. Asian markets are trading in red on Thursday
amid dimming prospects for fresh stimulus. Overnight closing on Wall Street was
negative. Indian markets extended their winning run on Wednesday and ended at
fresh record highs amid stimulus hopes and Covid-19 vaccine optimism. Today,
start of session is likely to be negative amid sell-off in the global peers. Rising
coronavirus cases may also impact the sentiments in the markets. On Wednesday,
India reported 26,351 fresh Covid-19 cases. Its case tally now stands at
9,762,326. The country's death toll has mounted to 141,735. With 1,864,348
cases, Maharashtra has the highest number of coronavirus cases, followed by
Karnataka 896,563, Andhra Pradesh 873,000, Tamil Nadu 794,020, and Kerala
649,000. Delhi recorded 2,463 fresh Covid-19 cases. Besides, the Central Drugs
Standard Control Organisation (CDSCO) will meet today to review the
applications of Pfizer, Serum Institute of India and Bharat Biotech for
emergency-use authorisation for their Covid-19 vaccine candidates. However,
some respite may come later in the day as the Union Cabinet approved Rs 22,810
crore outlay for a new employment scheme that aims at encouraging businesses to
do fresh hiring. Labour Minister Santosh Gangwar said under the Atmanirbhar
Bharat Rojgar Yojana, the government will for two years provide employee and
employer contribution to the retirement fund for new hires by businesses and
entities. Traders may take note of report that the Union Cabinet has approved a
memorandum of understanding between India and Suriname for cooperation in the
field of health and medicine. NBFCs will be in focus after the Reserve Bank of
India (RBI) come up with a draft circular for declaration of dividend by NBFCs,
wherein it has proposed that NBFCs should have at least 15 per cent Capital to
Risk Weighted Assets Ratio (CRAR) for the last 3 years, including the accounting
year for which it proposes to declare a dividend. There will be some reaction
in power stocks as Moody's Vice President and Senior Credit Officer said their
outlook for the A-Pac power sector is stable for 2021 as it has been since
2009. Insurance industry stocks will be in limelight after IRDAI proposed a
standard personal accident product with common coverage and policy wordings
across the industry, a move aimed at increasing penetration of the product.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
13,529.10
|
13,469.50
|
13,568.80
|
BSE
Sensex
|
46,103.50
|
45,792.02
|
46,164.11
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State
Bank of India
|
484.96
|
270.35
|
268.06
|
273.76
|
Tata
Motors
|
403.01
|
182.70
|
180.76
|
185.51
|
ITC
|
396.84
|
205.40
|
204.10
|
207.25
|
Indian
Oil Corporation
|
344.68
|
93.95
|
91.95
|
95.10
|
Oil
& Natural Gas Corporation
|
257.64
|
91.20
|
90.45
|
92.40
|
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