Indian equity benchmarks ended
lower for the second straight day in choppy trade on Wednesday, amid selling in
frontline bluechip counters. Initially, benchmarks traded in a narrow band with
a negative bias, as traders got anxious as Fitch Ratings has kept India's
sovereign rating unchanged at BBB- with a negative outlook. It stated that the
rating balances a still-strong medium-term growth outlook and external
resilience from solid foreign-reserve buffers against high public debt, a weak
financial sector and some lagging structural issues. Further, weakness also
prevailed in the markets as foreign portfolio investors (FPIs) sold shares
worth Rs 560.67 crore, in the Indian equity market on 16 November, provisional
data showed. However, key gauges recouped initial losses to trade marginally in
green in afternoon deals, as traders took some support with Commerce and
Industry Minister Piyush Goyal's statement that India attracted record foreign
direct investments (FDI) in the last seven years and this trend is expected to
continue in the coming years as well on account of major structural reforms
being undertaken by the government. He also said that India is focusing on
integrating its quality standards with the world and the country needs to let
go of the mindset of a particular product being for the domestic market and
others for the export market. Though, markets failed to hold recovery and
extended losses in late afternoon trading tracking weakness across other Asian
markets. Sentiments remain dampened even as a private report stated that
private equity (PE) and venture capital (VC) investments touched an all-time
high of $12.9 billion in October, on the back of high-value deals. The investments
were 71 per cent higher as compared with October 2020's $7.5 billion and 2.5
times the $5.2 billion value recorded in September this year. Traders also took
a note of the Reserve Bank Governor Shaktikanta Das' statement that numerous
macro indicators suggest that the economic recovery is now taking hold after
the beating it has taken during the pandemic, but for growth to be sustainable
and reach its potential, private capital investment has to resume. He said the
economy has the potential to grow at a reasonably high pace in the
post-pandemic scenario, provided private capital investment resumes. Finally,
the BSE Sensex fell 314.04 points or 0.52% to 60,008.33 and the CNX Nifty was
down by 100.55 points or 0.56% to 17,898.65.
The US markets ended lower on
Wednesday as traders expressed some uncertainty about the near-term outlook for
the markets following recent volatility. Traders showed a mixed reaction to
earnings news from retail giants Target (TGT) and Lowe's (LOW). Shares of
Target moved sharply lower even though the retailer reported third quarter
results that beat expectations on both the top and bottom lines. However,
shares of Lowe's (LOW) closed modestly higher after the home improvement
retailer reported better than expected third quarter results and raised its
full-year revenue guidance. On the sectoral front, significant weakness emerged
among steel stocks, as reflected by the 1.9 percent drop by the NYSE Arca Steel
Index. The index slid to an eight-month closing low. Brokerage, transportation
and natural gas stocks also saw considerable weakness on the day, while some
strength was visible among housing and gold stocks. On the economic data front,
the Commerce Department released a report showing an unexpected decrease in new
residential construction in the month of October, although the report also
showed a bigger than expected spike in building permits. The report showed
housing starts slid by 0.7 percent to an annual rate of 1.520 million in
October after tumbling by 2.7 percent to a revised rate of 1.530 million in
September. The continued decline came as a surprise to participants, who had
expected housing starts to jump by 1.6 percent to an annual rate of 1.580
million from the 1.555 million originally reported for the previous month.
Meanwhile, the Commerce Department said building permits surged up by 4.0
percent to an annual rate of 1.650 million in October after plummeting by 7.8
percent to a revised rate of 1.586 million in September.
Crude oil futures ended sharply
lower on Wednesday on rising COVID-19 cases in Europe. New waves of COVID-19
cases in Europe which drove some governments to reimpose restrictions weighed
on prices. Further, oil prices were also weighed down by warnings from the
Organization of the Petroleum Exporting Countries (OPEC) and the International
Energy Agency that the oil market will likely see excess supply in the fourth
quarter. OPEC Secretary General Mohammad
Barkindo said the group sees signs of an oil supply surplus building beginning
next month, adding that its members and allies will have to be very, very
cautious. Benchmark crude oil futures for December delivery fell $2.40 or 3
percent to settle at $78.36 a barrel on the New York Mercantile Exchange. Brent
crude for January delivery dropped $2.02 or 2.5 percent to settle at $80.41 a
barrel on London's Intercontinental Exchange.
Rising for the second consecutive
day, Indian rupee ended higher against dollar on Wednesday, on weak dollar in
overseas markets. Sentiments were upbeat as Commerce and Industry Minister
Piyush Goyal's states that India attracted ‘record' foreign direct investments
(FDI) in the last seven years. And this trend is expected to continue in the
coming years as well on account of major structural reforms being undertaken by
the government. Additional support also came in with report stating that the
Reserve Bank of India's low interest rates will continue to boost demand in the
Indian economy, even if the government scales back pandemic support. However,
volatility in the Indian stock markets capped the gains. On the global front;
pound briefly climbed to a one-week high versus the U.S. dollar and a 21-month
high against the euro on Wednesday after data showed UK inflation surged to a
10-year high last month, boosting expectations of a rate hike as early as next
month. Finally, the rupee ended 74.28 (provisional), stronger by 9 paise from
its previous close of 74.37 on Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity segment, while net sellers debt segment. In equity
segment, the gross buying was of Rs 24497.91 crore against gross selling of Rs
10257.94 crore, while in the debt segment, the gross purchase was of Rs 35
crore with gross sales of Rs 289.44 crore. Besides, in the hybrid segment, the
gross buying was of Rs 17.26 crore against gross selling of Rs 14.57 crore.
The US markets ended lower on
Wednesday on inflation fears and supply chain concerns stemming from retailers'
earnings, with investors betting the Federal Reserve will raise interest rates
sooner than expected to tame rising prices. Asian markets are trading mostly
lower in early deals on Thursday following weak cues from the US markets.
Indian equity benchmarks ended lower on Wednesday as Fitch Ratings kept India's
sovereign rating unchanged at BBB- with a negative outlook. Today, markets are
likely to make cautious start on the last day of the holiday-truncated trading
week amid weak cues from global markets. However, some respite may come later
in the day as Finance Minister Nirmala Sitharaman said there are clear signs of
an uptick in the economy and the industry should now start taking risks and
invest in capacity creation that will help cut reliance on imports. She also
asked the industry to offer jobs to reduce income disparity and cut down on importing
finished goods reduce and instead ramp up investment in manufacturing. Traders
may take note of DEA Secretary Ajay Seth's statement India needs to double the
capital expenditure in the medium term from about 5-6 per cent of the Gross
Domestic Product (GDP) currently to fund infrastructure. He added efforts have
to be made to channelise all avenues of savings for garnering resources for
stepping up investment in the infrastructure sector. Meanwhile, department of
Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey
said the government will invite financial bids for privatisation of five to six
public sector undertakings (PSUs) in December-January, and close these
transactions in the current financial year. There may be some action in leather
industry stocks as Union Minister of Commerce and Industry, Piyush Goyal, said
India should aim to achieve more than $10 billion worth of leather exports by
2025. There will be some buzz in steel
sector's stocks as the PHD Chamber of Commerce and Industry (PHDCCI) requested
the government to have a regulator to check rising steel prices. There may be
some action in coal related stocks on report that India's coal consumption is
expected to grow in absolute terms in the coming few years and phasing out the
fuel could have severe repercussions on the livelihoods of many Indians. There
may be some buzz in sugar stocks as industry body ISMA said India's sugar
production rose 24 per cent to 20.9 lakh tonnes during October 1-November 15 on
higher output in Maharashtra and Karnataka, while mills have entered into
contracts to export 25 lakh tonnes of sweetener so far. Meanwhile, Indian
digital payments company Paytm is set to make its stock market debut today,
after its $2.5 billion initial public offering (IPO), India's largest, was
oversubscribed last week. Paytm, which counts China's Ant Group and SoftBank
among its backers, raised $1.1 billion from institutional investors and last
week received $2.64 billion worth of bids for the remaining shares on offer, or
1.89 times.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,898.65
|
17,844.38
|
17,987.78
|
BSE Sensex
|
60,008.33
|
59,826.53
|
60,308.37
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Motors
|
484.63
|
528.40
|
520.20
|
536.65
|
ITC
|
466.98
|
239.30
|
234.88
|
244.48
|
SBIN
|
204.88
|
497.60
|
490.60
|
505.00
|
Axis Bank
|
180.83
|
712.00
|
704.20
|
722.35
|
NTPC
|
152.64
|
136.55
|
134.37
|
138.37
|
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IndusInd Bank has launched Indus Merchant Solutions to enable merchants, retailers and professionals to carry out banking transactions digitally, on a single platform.
Coal India has allocated 72.1% higher quantity of coal at 17.34 million tones under the special forward e-auction scheme to the power sector during the April-September period.
State Bank of India has partnered with UGRO Capital for a co-lending arrangement to disburse up to Rs 500 crore to micro, small and medium enterprises by the end of this fiscal.