 "Sensex gains 200 points, trades above 26,000; Infosys top gainer")
Benchmark indices were trading in green in early morning trades today amid positive global cues as dollar retreated from 14-year high mark.
Sensex rallied over 150 points reclaiming it's 26,000 levels while the broader Nifty 50 index also traded above 8,000 levels led by metal and IT sectors.
At 11:15 am, the 30-share Sensex was at 26,093 up 233 points while Nifty 50 was trading at 8,053, up 88 points. In broader markets, BSE Midcap was up 0.77% while BSE small cap gained 1.18%.
“With 7,900 continuing to arrest downside attempts, a few more upswing attempts could be expected. The 8,100-8,130 may test the upside conviction, and it would be prudent back more longs only until above 8,186. Alternatively, fall below 7,900 could call for 7,800 initially, but further downside prospects are not clear,” said Geojit BNP Paribas Financial Services.
Sectors and stocks
All except 4 IT stocks were trading in the green on Sensex on weaker rupee with Infosys, TCS, were up more than 4% each.
BSE Metal was the top sectoral gainer on both the headline indices with NALCO leading with 7.84% gain. NDMC, Hind Zinc, Hindalco were up 4.43%, 2.8% and 2.24% respectively.
Among losers, Tata Motors was the top loser, down 4.19% on Nifty 50 index. Sun Pharma and Eicher Motor also cracked 2.5% each.
November worst F&O series in 15 months
Stocks suffered their worst setback in 15 months in the November futures and options (F&O) series that concluded on Thursday. The benchmark Nifty fell 7.5%, most since the August 2015 derivatives series. The derivatives contracts expire on the last Thursday of every month.
Traders rolled over 59.5% November Nifty index futures with next month’s series. Nifty rollovers were lowest in four months. Bank Nifty rollovers stood at 60.5%, the lowest since July 2015. The overall market rollover rate stood at 81.6%, in line with the past three months.
Derivatives experts said rollovers were high in information technology (IT) stocks as they are expected to do well if weakness in the rupee persists.
According to Geojit BNP Paribas Financial Services, “F&O expiry dynamics dominated the day, with stocks and indices turning volatile in the latter half of the day. Nifty saw a rollover of just over 50 which was lower than a 3 month average, and banknifty rollover was no different. The tepid interest in rolling over suggest that traders are a bit circumspect, especially with RBI and and FOMC rate decisions scheduled in the early part of December. Though the day ended on a weak note, the premium given to Nifty December futures suggests that bulls have not given up yet.”
FII outflow could intensify
As rupee seeks a new bottom over risen FII outflows, some experts feel that this will push foreign investors further away from the Indian market. Foreign institutional investors (FIIs) have pulled out over $2 billion in the past fortnight from the cash market.
Rupee may hit new lows
The rupee may touch 70 a dollar or even break the level in the next few days, said most of the 10 currency experts polled by Business Standard on Thursday. But it would be wrong to assume that the rupee would be staying at those levels for long, they said. There could be technical correction and rupee may even strengthen
“The recent decline in the rupee is largely driven by the strengthening of the dollar which has gained against almost all major currencies,” said Madan Sabnavis, chief economist at CARE.
“However good your macro fundamentals, if the dollar rises you will suffer. You will suffer less maybe, but you cannot escape it,” said Jayesh Mehta, head of treasury at Bank of America Merrill Lynch. The impact of demonetisation on rupee is indirect and at best hit the sentiment. On the contrary, the demonetisation drive, being deflationary in nature, can prop up the rupee in the medium term, said Satyajit Kanjilal, managing director of Forexserve.
Global Markets
Asian stocks steadied on Friday as the Thanksgiving break in the United States pegged the dollar's relentless surge that had sucked capital out of most emerging markets.
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05% on Friday. It is poised to end the week 0.8% higher, but remains down almost 2% from its close on Nov. 8 before Donald Trump's surprise election to president, whose protectionist campaign promises are widely seen as negative for the region.
Broader emerging market stocks have also taken a hit, with the MSCI Emerging Markets index down 0.5% on Friday. Although the index is up 0.9% for the week, it remains 5.6% below its Nov. 8 closing price.
Wall Street was closed on Thursday for the Thanksgiving holiday and trading will end early on Friday.
European markets ended on a positive note, with the Stoxx 600 index gaining 0.3% at the close.
The dollar index, which tracks the greenback against a basket of six major global peers, climbed 0.1% to 101.84 early on Friday, after touching 102.05, the highest level since March 2003, on Thursday.
Sensex rallied over 150 points reclaiming it's 26,000 levels while the broader Nifty 50 index also traded above 8,000 levels led by metal and IT sectors.
At 11:15 am, the 30-share Sensex was at 26,093 up 233 points while Nifty 50 was trading at 8,053, up 88 points. In broader markets, BSE Midcap was up 0.77% while BSE small cap gained 1.18%.
More From This Section
“Post the occurrence of a ‘Bearish Belt hold’ formation (Reversal formation) Nifty witnessed a series of narrow ranged bodies confined within its range. Also the momentum oscillators are stating an oversold situation but only a close above 8,110 would warrant a pullback. Hence the bullish implications of the pattern would only unveil above 8,110; until then expect index to gyrate within the narrow range of 8,100-7,900 for a while,” said Sacchitanand Uttekar, Equity Technical Analyst, Motilal Oswal in a technical note.
“With 7,900 continuing to arrest downside attempts, a few more upswing attempts could be expected. The 8,100-8,130 may test the upside conviction, and it would be prudent back more longs only until above 8,186. Alternatively, fall below 7,900 could call for 7,800 initially, but further downside prospects are not clear,” said Geojit BNP Paribas Financial Services.
Sectors and stocks
All except 4 IT stocks were trading in the green on Sensex on weaker rupee with Infosys, TCS, were up more than 4% each.
BSE Metal was the top sectoral gainer on both the headline indices with NALCO leading with 7.84% gain. NDMC, Hind Zinc, Hindalco were up 4.43%, 2.8% and 2.24% respectively.
Among losers, Tata Motors was the top loser, down 4.19% on Nifty 50 index. Sun Pharma and Eicher Motor also cracked 2.5% each.
November worst F&O series in 15 months
Stocks suffered their worst setback in 15 months in the November futures and options (F&O) series that concluded on Thursday. The benchmark Nifty fell 7.5%, most since the August 2015 derivatives series. The derivatives contracts expire on the last Thursday of every month.
Traders rolled over 59.5% November Nifty index futures with next month’s series. Nifty rollovers were lowest in four months. Bank Nifty rollovers stood at 60.5%, the lowest since July 2015. The overall market rollover rate stood at 81.6%, in line with the past three months.
Derivatives experts said rollovers were high in information technology (IT) stocks as they are expected to do well if weakness in the rupee persists.
According to Geojit BNP Paribas Financial Services, “F&O expiry dynamics dominated the day, with stocks and indices turning volatile in the latter half of the day. Nifty saw a rollover of just over 50 which was lower than a 3 month average, and banknifty rollover was no different. The tepid interest in rolling over suggest that traders are a bit circumspect, especially with RBI and and FOMC rate decisions scheduled in the early part of December. Though the day ended on a weak note, the premium given to Nifty December futures suggests that bulls have not given up yet.”
FII outflow could intensify
As rupee seeks a new bottom over risen FII outflows, some experts feel that this will push foreign investors further away from the Indian market. Foreign institutional investors (FIIs) have pulled out over $2 billion in the past fortnight from the cash market.
Rupee may hit new lows
The rupee may touch 70 a dollar or even break the level in the next few days, said most of the 10 currency experts polled by Business Standard on Thursday. But it would be wrong to assume that the rupee would be staying at those levels for long, they said. There could be technical correction and rupee may even strengthen
“The recent decline in the rupee is largely driven by the strengthening of the dollar which has gained against almost all major currencies,” said Madan Sabnavis, chief economist at CARE.
“However good your macro fundamentals, if the dollar rises you will suffer. You will suffer less maybe, but you cannot escape it,” said Jayesh Mehta, head of treasury at Bank of America Merrill Lynch. The impact of demonetisation on rupee is indirect and at best hit the sentiment. On the contrary, the demonetisation drive, being deflationary in nature, can prop up the rupee in the medium term, said Satyajit Kanjilal, managing director of Forexserve.
Global Markets
Asian stocks steadied on Friday as the Thanksgiving break in the United States pegged the dollar's relentless surge that had sucked capital out of most emerging markets.
MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05% on Friday. It is poised to end the week 0.8% higher, but remains down almost 2% from its close on Nov. 8 before Donald Trump's surprise election to president, whose protectionist campaign promises are widely seen as negative for the region.
Broader emerging market stocks have also taken a hit, with the MSCI Emerging Markets index down 0.5% on Friday. Although the index is up 0.9% for the week, it remains 5.6% below its Nov. 8 closing price.
Wall Street was closed on Thursday for the Thanksgiving holiday and trading will end early on Friday.
European markets ended on a positive note, with the Stoxx 600 index gaining 0.3% at the close.
The dollar index, which tracks the greenback against a basket of six major global peers, climbed 0.1% to 101.84 early on Friday, after touching 102.05, the highest level since March 2003, on Thursday.