Indian equity benchmarks erased
initial gains in the last hour to end half a percent lower on Wednesday on the
back of fresh selling pressure in select index heavyweights like Maruti Suzuki,
Infosys, ITC and Reliance Industries. For most part of the day, benchmarks
traded firmly higher, as traders got encouragement with private report stated
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. It also expects consumption to
be an important contributor to growth in 2022, as the economy fully re-opens driven
by a notable improvement in the virus situation and adequate progress on
vaccination. Some optimism also came with India Ratings and Research's (Ind-Ra)
report stated that the average collections across its rated securitization
transactions have inched up to 79 percent in September 2021 from 70 percent in
May 2021 as the economy started to open up due to acceleration in vaccine
rollout. However, domestic markets failed to continue positive momentum and
closed with losses amid weak global cues. Market participants overlooked US
India Business Council stating that regular engagement between India and the
United States under the bilateral Trade Policy Forum mechanism will help remove
barriers to trade, facilitate higher levels of investment and increase two-way
trade in goods and services. Traders also paid no heed towards Union Finance
Minister Nirmala Sitharaman's statement that the money taken away from the
banks will be taken back as the government is actively pursuing the cases of
loan defaulters and will not let them go scot-free, particularly those who have
fled the country. Finally, the BSE Sensex fall 323.34 points or 0.55% to
58,340.99 and the CNX Nifty was down by 88.30 points or 0.50% to 17,415.05.
The US markets ended mostly
higher on Wednesday after a Labor Department report showing first-time claims
for US unemployment benefits slid to their lowest level in over fifty years in
the week ended November 20th. The Labor Department said initial jobless claims
tumbled to 199,000, a decrease of 71,000 from the previous week's revised level
of 270,000. Street had expected jobless claims to edge down to 260,000 from the
268,000 originally reported for the previous week. However, upside remained
capped amid a continued increase in US treasury yields, with the yield on the
benchmark ten-year note reaching its highest intraday level in six months.
Yields were extending the upward move seen since President Joe Biden announced
his intent to re-nominate Federal Reserve Chair Jerome Powell amid concerns the
central bank could accelerate plans to tighten monetary policy. On the sectoral
front, most of the major sectors ended the day showing only modest moves,
although computer hardware stocks moved sharply higher, driving the NYSE Arca
Computer Hardware Index up by 3 percent to a five-month closing high. HP Inc.
(HPQ) led the sector higher, spiking by 10.1 percent after the computer and
printer maker reported fiscal fourth quarter results that beat expectations and
raised its first quarter guidance. Interest rate-sensitive commercial real
estate stocks also showed a strong move to the upside, with the Dow Jones US
Real Estate Index climbing by 1.2 percent to its best closing level in well
over two months.
Crude oil futures ended
marginally lower on Wednesday after rising US crude stockpiles in the week
ended November 19. Data from the Energy Information Administration (EIA) showed
crude stockpiles in the US increased by 1.017 million barrels last week. The
American Petroleum Institute reported on Tuesday that crude inventories in the
US rose by 2.31 million barrels in the week ending November 19. Further, oil
prices were also tempered by coronavirus infections that broke records in parts
of Europe, prompting new curbs on movement. Benchmark crude oil futures for
January delivery fell $0.11 or 0.14 percent to settle at $78.39 a barrel on the
New York Mercantile Exchange. Brent crude for January delivery lost $0.06 or
0.7 percent to settle at $82.25 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. Traders remained positive as US India Business Council
stated that regular engagement between India and the United States under the
bilateral Trade Policy Forum mechanism will help remove barriers to trade,
facilitate higher levels of investment and increase two-way trade in goods and
services. On the global front, pound was little changed on Wednesday, within
striking distance of its 11-month low against the dollar, as expectations for a
rate hike supported the greenback. Finally, the rupee ended 74.40, stronger by
2 paise from its previous close of 74.42 on Tuesday.
The FIIs as per Wednesday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 9060.88 crore against gross selling of Rs 13720.53 crore,
while in the debt segment, the gross purchase was of Rs 175.92 crore with gross
sales of Rs 1253.14 crore. Besides, in the hybrid segment, the gross buying was
of Rs 73.07 crore against gross selling of Rs 61.51 crore.
The US markets ended mostly
higher on Wednesday lifted by gains in Nvidia and other tech stocks, while Gap
and Nordstrom shares tumbled following weak quarterly reports. Asian markets
are trading mixed on Thursday as investors reacted to Bank of Korea's decision
to announce interest rate hike. Indian markets erased early gains in the last
hour of the session and ended lower on Wednesday. Today, the markets are likely
to get cautious start amid mixed global cues. Rising coronavirus cases globally
are likely to dent sentiments in the domestic markets. Besides, India added
9,283 new coronavirus cases and 437 related fatalities in last 24 hours.
However, traders will be taking encouragement with a private report that
Official data print on the GDP will show a 7.8 per cent expansion on a
year-on-year basis for the September 2021 quarter. It added real GDP will grow
9.4 per cent in FY22 and decelerate to 7.5 per cent for FY23 as the base
effects result in the higher growth in the ongoing fiscal wear-off. Some
support will come as the Finance Ministry said India and the US have agreed for
a transitional approach on equalisation levy or digital tax on e-commerce
supplies beginning April 1. Some optimism may come with Foreign Secretary Harsh
Vardhan Shringla's statement that India has set an ambitious target of $400
billion of exports for the year 2021-22. Traders may take note of industry body
Assocham's statement that the Reserve Bank of India (RBI) should continue with
an accommodative interest rate stance as long as necessary to sustain and
further push the pace of economic growth. Meanwhile, the Union Cabinet has decided
to extend till March the free foodgrains supply under the Pradhan Mantri Garib
Kalyan Anna Yojana (PMGKAY) to provide relief to ration cardholders. There will
be some buzz in the aviation stocks as Civil Aviation Secretary Rajiv Bansal
said international passenger flights are expected to regularise possibly by the
end of the year. Banking stocks will be in focus as government think-tank Niti
Aayog proposed setting up of full-stack digital banks, which would principally
rely on the internet and other proximate channels to offer their services and
not physical branches, to mitigate the financial deepening challenges being
faced in the country. There will be some reaction in telecom stocks as Telecom
regulator Trai proposed to remove charges on Unstructured Supplementary Service
Data (USSD) messages for mobile banking and payment services to promote digital
transactions.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
17,415.05
|
17,312.50
|
17,559.10
|
BSE Sensex
|
58,340.99
|
58,000.24
|
58,824.92
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Oil
& Natural Gas Corporation
|
362.94
|
152.95
|
149.35
|
156.20
|
ICICI
Bank
|
231.86
|
758.00
|
745.71
|
771.26
|
Bharti
Airtel
|
216.53
|
756.90
|
748.16
|
773.71
|
Tata
Motors
|
209.15
|
486.90
|
480.86
|
497.36
|
Coal
India
|
188.09
|
158.85
|
155.75
|
161.80
|
ICICI Bank has launched online platform, Trade Emerge to offer comprehensive digital banking as well as value-added services to exporters and importers across India.
Moody's has upgraded Bharti Airtel's credit rating outlook to positive from stable, reflecting improvement in its financial performance and growth potential.
L&T has signed a MoU with the Government of Tamil Nadu to establish a data center at Kanchipuram, Tamil Nadu.
Wipro has been selected as a member of the Dow Jones Sustainability World Index (DJSI) - 2021 for the twelfth year in succession.