Indian equity benchmarks snapped
3-day losing streak with strong gains on Friday, tracking positive global cues.
Gains in TECK, IT and Telecom stocks pushed the headline indices higher. Equity
markets made a gap-up start, as sentiments got a boost with Niti Aayog
Vice-Chairman Rajiv Kumar's statement that Indian economy is expected to grow
by more than 10 per cent in the current fiscal supported by a record kharif
crop and bright rabi prospects. According to Kumar, significant increase in
exports will also boost economic growth and employment generation. However,
benchmarks erased some initial gains in morning deals, as some cautiousness
came with a private report that India's widening current account deficit (CAD),
driven by the massive spike in commodity prices led by crude oil, is set to put
pressure on the fragile recovery. Traders also remained on sidelines ahead of
the macro economic data -- industrial production and inflation data --
scheduled to be announced later in the day. Key gauges resumed their uptrend
and were back near the day's high trajectory in afternoon deals, as buying
spread across the sectors. Some optimism also came with Union Minister of State
for Finance Bhagwat Karad's statement that buoyancy in Goods and Services Tax
(GST) collection in October shows the Indian economy, adversely affected by the
coronavirus pandemic, is on the path to swift recovery. Indicating the impact
of festive buying, GST collection remained above Rs 1 lakh crore for the fourth
month in a row at over Rs 1.30 lakh crore in October. Domestic sentiments were
positive after Reserve Bank of India Governor Shaktikanta Das said that RBI
Retail Direct Scheme and Reserve Bank Integrated Ombudsman Scheme will provide
further impetus to India's journey towards a more inclusive and responsive
financial system. Traders took note of report that Commerce and Industry
Minister Piyush Goyal said India is looking at reciprocal and equitable access
to foreign markets through free trade agreements, which the country is
negotiating with its trading partners. Finally, the BSE Sensex rose 767.00
points or 1.28% to 60,686.69 and the CNX Nifty was up by 229.15 points or 1.28%
to 18,102.75.
The US markets closed in green on
Friday with notable gains as the concerns about inflation raised by the Labor
Department's consumer price report seem to have been short-lived. While the
report showed consumer prices rose at their fastest annual rate in over thirty
years in October, market participants have suggested the current wave of price
spikes due to chronic worldwide supply constraints will not last long. Federal
Reserve officials have also repeatedly described the factors driving inflation
as transitory, indicating the central bank is not currently considering
accelerating monetary policy tightening. After ending Thursday's trading lower
amid a steep drop by Disney (DIS), the Dow benefitted from an advance by shares
of Johnson & Johnson (JNJ). JNJ rose by 1.2 percent after the healthcare
giant announced plans to separate its consumer health business from its
pharmaceutical and medical device operations. Meanwhile, traders largely
shrugged off report from the University of Michigan showing an unexpected
deterioration in U.S. consumer sentiment in the month of November. The
preliminary report said the consumer sentiment index slid to 66.8 in November
from a final reading of 71.7 in October. The decrease surprised participants,
who had expected the index to inch up to 72.4. With the unexpected drop, the
consumer sentiment index fell to its lowest level since hitting 63.7 in
November of 2011. On the sector front, tobacco stocks showed a substantial move
to the upside on the day, driving the NYSE Arca Tobacco Index up by 2.4
percent. Significant strength was also visible among housing stocks, as reflected
by the 1.5 percent gain posted by the Philadelphia Housing Sector Index.
Software stocks also turned in a strong performance, resulting in a 1.5 percent
advance by the Dow Jones U.S. Software Index. Retail and networking stocks also
saw considerable strength, while oil service stocks moved lower along with the
price of crude oil.
Crude oil futures ended
significantly lower on Friday weighed down by a firm dollar and a downward
revision in global oil demand forecast by the OPEC. Traders also weighed a
likely release of oil from the Strategic Petroleum Reserve (SPR). U.S.
President Joe Biden is reportedly weighing moves to release oil from SPR to
cool energy prices. Meanwhile, a report released by Baker Hughes this afternoon
said the oil and gas rig count in the U.S. rose six to 556 in the week to
November 12, the highest level since April 2020. The total rig count has
increased by 244 rigs or about 0.78% over this time last year. The data showed oil
rigs were up by 4 to 454 this week, gas rigs rose two to 102. Benchmark crude
oil futures for December delivery fell 80 cents or 1 percent to settle at $
80.79 a barrel on the New York Mercantile Exchange. Brent crude for January
delivery lost 70 cents or 0.8 percent to settle at $82.17 a barrel on London's
Intercontinental Exchange.
Indian rupee ended marginally
higher on Friday, owing to dollar sale by exporters and banks. Traders took
some support with Niti Aayog Vice-Chairman Rajiv Kumar said Indian economy is
expected to grow by more than 10 per cent in the current fiscal supported by a
record kharif crop and bright rabi prospects. Besides, a firm trend in domestic
equities and lower crude prices in the international market also supported the
local unit. However, gains remain capped as some concern came with a private
report that India's widening current account deficit (CAD), driven by the
massive spike in commodity prices led by crude oil, is set to put pressure on
the fragile recovery. On the global front, the dollar climbed on Friday since a
surprisingly strong U.S. inflation print shocked markets and prompted investors
to advance their bets on a U.S rate hike to as early as mid-2022. Finally, the
rupee ended 74.43 (provisional), stronger by 9 paise from its previous close of
74.52 on Thursday.
The FIIs as per Friday's data
were net buyers in equity segment, while net sellers in debt segment. In equity
segment, the gross buying was of Rs 12484.17 crore against gross selling of Rs 8720.55
crore, while in the debt segment, the gross purchase was of Rs 279.82 crore
with gross sales of Rs 421.12 crore. Besides, in the hybrid segment, the gross
buying was of Rs 11.11 crore against gross selling of Rs 13.22 crore.
The US markets ended higher on
Friday with market-leading growth shares kick-starting indexes' climb as
investors looked past disappointing U.S. economic data. Asian markets are
trading mixed on Monday as US stock futures gained, though investors were
cautious ahead of a batch of Chinese economic data due later in the day. Indian
markets snapped three-day losing streak on Friday and ended higher with gains
of around 1.3 percent each. Gains across sectors, led by IT, financial and oil
& gas shares, lifted the headline indices. Today, the start of new week is
likely to be positive tracking gains in global markets. Investors will be
eyeing WPI data to be out later in the day for further direction. Traders will
be taking encouragement with outgoing chief economic advisor K V Subramanian's
statement that Indian economy is expected to see a double-digit growth in
2021-22 and between 6.5-7 per cent in the next financial year. The CEA said
that he does not expect commodity inflation will taper the V-shaped recovery
going forward. Some support will come as Commerce and Industry Minister Piyush
Goyal said Indian economy is back in action and it is clear from several
indicators such as rising exports and increasing foreign direct investment
(FDI) inflows into the country. Also, World Economic Forum President Borge
Brende said he expected India to hit a double-digit growth next year while it
celebrates its 75 years of independence and prepares for its G20 presidency.
However, weak macro-economic data may weight on the markets. Traders may be
concerned as Industrial production growth slipped to 3.1 per cent in September,
mainly due to the waning low base effect while mining and manufacturing sectors
performed well. Additionally, Retail inflation after remaining on downtrend for
four months moved a tad up in October to 4.48 per cent due to an uptick in food
prices and higher cost of motor fuel. There will be some cautiousness as
foreign portfolio investors (FPIs) were net sellers in the Indian markets to
the tune of Rs 949 crore in the first half of November. As per the depositories
data, they pulled out Rs 4,694 crore from equities between November 1-12.
Besides, the Reserve Bank said India's forex reserves decreased by $1.145
billion to $640.874 billion for the week ended on November 5 on a fall in
currency and gold assets. Coal industry stocks will be in focus with a private
report showing that India's coal import rose by 12.6 per cent to 107.34 million
tonnes in the first six months of 2021-22. The country had imported 95.30
million tonnes (MT) of the coal in April-September 2020-21. Meanwhile, Equity
shares of three companies - Policybazaar & Paisabazaar operator PB Fintech,
Sigachi Industries and SJS Enterprises will make their stock market debut on
the bourses today, November 15, 2021.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
18,102.75
|
17,964.76
|
18,181.86
|
BSE Sensex
|
60,686.69
|
60,206.20
|
60,958.96
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
232.39
|
1286.70
|
1,258.54
|
1,327.44
|
Tata
Motors
|
207.31
|
507.35
|
499.95
|
512.15
|
State
Bank of India
|
198.36
|
510.95
|
504.76
|
515.06
|
Hindalco
Industries
|
170.10
|
468.10
|
461.20
|
472.75
|
ICICI
Bank
|
153.80
|
777.60
|
772.56
|
781.26
|
Sun Pharmaceutical Industries is gearing up to introduce Merck Sharpe Dohme and Ridgeback's molnupiravir under the brand name Molxvir in India.
Wipro has unveiled Click-Shift-Drive, a contactless car-buying solution that addresses the complete automobile-buying journey.
TCS has expanded its long-standing strategic partnership with Woolworths Group to provide IT and digital services.
Hindalco Industries has reported around 9-fold jump in its consolidated net profit at Rs 3417 crore for Q2FY22 as compared to Rs 387 crore for Q2FY21.