Indian equity benchmarks made a
comeback on Tuesday following four days of losses. Strength in metal, power and
utilities shares led the rebound in the headline indices. Domestic stocks
staged a gap down opening, as traders remained cautious as foreign
institutional investors (FIIs) net sold shares worth Rs 3,438.76 crore in the
Indian equity market on November 22. Some cautiousness also came with Crisil
ratings report that the demand growth for petrol and diesel is going to be
severely impacted due to push towards compressed natural gas (CNG), ethanol
blending and electric vehicles. Traders also took a note of a senior RBI
official witting on the rate-setting panel said that the Monetary Policy
Committee (MPC) should not continue with unconventional measures now, and it is
possible to have lower liquidity levels while continuing with the
growth-enhancing accommodative stance. But, frontline indices thereafter
recouped losses and rebounded into the positive zone in noon deals, as some
respite came in as an SBI research report stated that the country's GDP growth
is likely to be around 8.1 per cent in the second quarter of the current
financial year and in the range of 9.3-9.6 per cent during fiscal 2022. It
added that in the first quarter of FY 22, the economy grew 20.1 per cent.
Sentiments remained positive with Fitch Ratings' report that the Centre could
better its fiscal deficit at 6.6 per cent of GDP in this financial year (FY22)
on stronger-than-expected revenue buoyancy, even if the budgeted disinvestment
target is not met. In the 2021-22 (April-March) Budget presented on February 1,
the government had pegged the fiscal deficit, or gap between the Centre's
expenditure and revenue, at 6.8 per cent of GDP or Rs 15.06 lakh crore. Adding
more optimism, the preliminary data of the commerce ministry showed that the
country's exports rose 18.8 per cent to $20.01 billion during the three week
period of this month (November 1-21), due to healthy growth in sectors such as
petroleum products, engineering goods, chemicals and gems and jewellery.
Finally, the BSE Sensex rose 198.44 points or 0.34% to 58,664.33 and the CNX Nifty
was up by 86.80 points or 0.50% to 17,503.35.
The US markets ended mostly
higher on Tuesday after a choppy day of trading that saw the technology sector
under pressure, with the Dow Jones Industrial Average and S&P 500 closing
with gains while the tech-heavy Nasdaq Composite index fell. Dow Jones rose on
account of strong gains by financial giants Goldman Sachs (GS) and JPMorgan
Chase (JPM). However, cautiousness prevailed in the markets as higher interest
rates appeared to put pressure on high-flying tech stocks. The decline in tech
and other growth stocks comes as Treasury yields have jumped following
President Joe Biden's decision to select Fed Chair Jerome Powell for a second
term on Monday. Higher rates are often seen as a negative for high-growth
companies because their future earnings look less attractive as short-term
yields rise. On the sectorol front, Energy stocks saw substantial strength on
the day, regaining ground amid a continued rebound by the price of crude oil.
Crude for January surged up $1.75 to $78.50 a barrel. Reflecting the strength
in the energy sector, the Philadelphia Oil Service Index spiked by 3.7 percent,
the NYSE Arca Oil Index shot up by 3 percent and the NYSE Arca Natural Gas
Index jumped by 2 percent. Considerable strength also emerged among banking
stocks, as reflected by the 1.6 percent gain posted by the KBW Bank Index.
Steel and brokerage stocks also saw notable strength on the day, while
significant weakness was visible among gold, software and airline stocks.
Crude oil futures ended sharply
higher on Tuesday, rebounding strongly from earlier losses. Oil prices rose
despite a move by the United States and other consumer nations to release tens
of millions of barrels of oil from reserves to try to cool the market fell
short of some expectations. The United States said it would release millions of
barrels of oil from strategic reserves in coordination with China, India, South
Korea, Japan and Britain, to try to cool prices after OPEC+ producers
repeatedly ignored calls for more crude. The Biden administration said it would
release 50 million barrels from the US Strategic Petroleum Reserve, which will
start hitting the market in mid to late December. Benchmark crude oil futures
for January delivery rose $1.75 or 2.3 percent to settle at $78.50 a barrel on
the New York Mercantile Exchange. Brent crude for January delivery surged $2.65
or 3.3 percent to settle at $82.37 a barrel on London's Intercontinental
Exchange.
Indian rupee ended lower against
greenback on Tuesday on increased demand for the greenback from importers and
banks. This is the third consecutive session when the rupee is traded lower
against dollar. Traders were worried as Crisil ratings report states that the
demand growth for petrol and diesel is going to be severely impacted due to
push towards compressed natural gas (CNG), ethanol blending and electric
vehicles. However, downfall remain capped as country's exports rose 18.8 per
cent to $20.01 billion during the three week period of this month (November
1-21), due to healthy growth in sectors such as petroleum products, engineering
goods, chemicals and gems and jewellery. On the global front; sterling slipped
on Tuesday but was near the 21-month high touched against the euro in the
previous session with traders weighing how a COVID-19 resurgence in the
eurozone will impact Britain. Finally, the rupee ended 74.42 (provisional),
weaker by 3 paise from its previous close of 74.39 on Monday.
The FIIs as per Tuesday's data
were net seller in both equity and debt segment. In equity segment, the gross
buying was of Rs 11649.73 crore against gross selling of Rs 13759.46 crore,
while in the debt segment, the gross purchase was of Rs 520.10 crore against
gross selling of Rs 631.18 crore. Besides, in the hybrid segment, the gross
buying was of Rs 40.58 crore against gross selling of Rs 52.68 crore.
The US markets ended mostly in
green on Tuesday as investors positioned for a likely rate hike in 2022 after
Powell's nomination for a second term. Asian markets are trading mostly in red
on Wednesday with investors sceptical about a US-led plan for a coordinated
release by several countries of strategic oil reserves. Indian markets recouped
all intra-day losses in the dying hours of trade on Tuesday and managed to
close with gains. Today, markets are likely to start session slightly in green
amid mixed global cues. Traders will be taking encouragement with a private
report that Indian GDP will grow at 8.5 per cent in 2021-22, and the rate will
accelerate further to 9.8 per cent in 2022-23. Some support will come as
Finance Minister Nirmala Sitharaman asserted that the government is tough on
defaulters, particularly fugitives, getting back their assets through legal
process and giving it to banks because of which their bad assets have come
down. Besides, the Finance Ministry said the Centre has released two
instalments of tax devolution to the states amounting to Rs 95,082 crore in
November. Traders may take note of report that the Winter Session will consider
cryptocurrency and regulation of digital currency bill, banking amendment bill,
repeal of farm laws, IBC amendment bill. Meanwhile, the panel of state finance
ministers looking into GST rate rationalisation will meet on November 27 and
finalise its report on rate changes to expand the tax base. There will be some
buzz in the Real Estate industry stocks with report that after being hit hard
by Covid-19 due to scarcity of labour and low budget spending, India's real
estate industry is now gathering pace and is on the course to healthy recovery.
Oil & gas industry stocks will be in focus as India will release 5 million
barrels of crude oil from its strategic petroleum reserves in a concerted
effort to bring down global crude oil prices. Also, India's crude oil
production fell 2.15 per cent in October as state-owned firms produced less
but, natural gas output rose by a quarter on the back of output from KG-D6
fields of Reliance-BP. There will be some reaction in IT service industry
stocks with a private report that Indian IT services sector is expected to see
a gross employee addition of about 4.5 lakh in the second half of the fiscal
ended March 2022.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,503.35
|
17,295.06
|
17,632.66
|
BSE Sensex
|
58,664.33
|
57,976.79
|
59,093.40
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
275.53
|
495.90
|
482.15
|
504.50
|
ICICI
Bank
|
249.13
|
753.00
|
736.81
|
763.56
|
Oil
& Natural Gas Corporation
|
212.16
|
146.85
|
144.26
|
148.56
|
State
Bank of India
|
200.00
|
492.80
|
483.40
|
498.80
|
Bharti
Airtel
|
182.40
|
758.00
|
742.14
|
767.44
|
Wipro has entered into agreement with Telefonica.
SBI has listed its $ 650-million green bonds simultaneously on the India INX and the Luxembourg Stock Exchange.
Nxtra by Airtel, the data center subsidiary of Bharti Airtel has launched its new hyperscale data center park in Chennai.
Reliance Industries' telecom arm -- Reliance Jio has lost 19,023,618 customers in September 2021.