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23
November 2016
I had
mentioned in Tuesday’s closing report that Nifty and Sensex, which ended on
positive note would rise a bit on Wednesday. Indian shares extended gains for a
second day on Wednesday led by a gauge of capital goods companies, which
snapped its biggest losing streak since January. The S&P BSE Sensex inched
marginally to 26,051 while the NSE Nifty increased to 8,033. The market breadth
was firmly in favour of the buyers at 1,243 advances, 371 declines and 269
stocks remaining unchanged. The major indices of the Indian stock markets ended
positive on Wednesday. The Total
Investment & Insurance Solutions
 |
| Major Indices (The Total Investment & Insurance Solutions) |
The Indian currency fell 0.3% to
68.5 against the dollar, its lowest level since February. According to Deutsche
Bank, there is a case for further rupee depreciation despite the constructive
balance of payments position of India. In fact, the bank said the rupee could
fall to Rs70 versus the dollar by December-end.
Industrial metals traded near a
one-year high amid optimism that a recovery in global demand is underway. The Total Investment
& Insurance Solutions
The rupee’s slide toward a record
low, amid $2.8 billion in outflows from Indian stocks and bonds, is prompting
speculation the central bank will step up intervention to stem losses.
With the US Federal Reserve
interest-rate increase next month all but a certainty for bond traders, the
rupee has slumped 2.6% in November, the most in 15 months. At 68.6 per dollar,
the Indian currency is within 0.4% of the unprecedented 68.8 reached in
2013.
The RBI has been supplying dollars
almost on a daily basis. However, there are outflows from the equity and debt
markets that are putting pressure on the rupee, along with the dollar
strength.
The bulls managed to push the
50-share benchmark above the crucial 8,000 mark. The Nifty50 traded
significantly lower than its opening price for most part of the session, but
managed to recoup the losses and closed above the opening level. The Total Investment
& Insurance Solutions
After starting on a positive note,
the NSE benchmark witnessed selling pressure in afternoon trade, which took the
index below its key support level at 8,000 to hit an intraday low of 7,973. But
the bulls managed to push the index higher to 8,033, up 31 points from its
previous close of 8,002. The Total Investment & Insurance
Solutions
A positive finish on Wednesday marks
the first back-to-back gain for Indian stock markets since the demonetization
on 9 November 2016. However, traders expect sentiment to remain weak given
continued worries about the economic impact from Prime Minister Narendra Modi's
action, with volatility expected ahead of the expiry of derivatives on
Thursday.
"The rollover ahead of the
expiry is 30% as of now, which is significantly lower than the 50-60% percent
levels seen in the last three months. The Total Investment & Insurance
Solutions
The US dollar steadied near a recent
peak on Wednesday, taking a breather ahead of the US Thanksgiving holiday after
surging on expectations that a Donald Trump administration will boost growth
and inflation, pushing up US interest rates.
Investors are betting the dollar
will be strengthened by president-elect Trump's plans for fiscal stimulus,
which may drive the Federal Reserve to raise interest rates faster than had
been anticipated because of increased inflation and for infrastructure spending
and the repatriation of profits earned overseas.
The top gainers and top losers of
the major indices are given below:
 |
Top Gainer (The Total
Investment & Insurance Solutions)
The closing values of the major
Asian indices are given in the table below:The Total Investment
& Insurance Solutions
 |
| Asian Indices (The Total Investment & Insurance Solutions) |
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