Benchmark equity indices Sensex and Nifty ended marginally higher on Thursday on expiry of monthly derivative contracts and muted global cues. Giving in to the selling pressure in the last hour of the session, BSE Sensex finished at 39,113.47, up 39.55 points or 0.10 per cent. NSE Nifty inched up 9.65 points or 0.08 per cent to close at 11,559.25. IndusInd Bank, M&M, SBI, HDFC, Axis Bank, Sun Pharma and Maruti were the top gainers. ONGC, Bajaj Auto, RIL, Kotak Bank, UltraTech Cement and Bharti Airtel were among the major laggards.
"After opening higher, the markets continued to trade in the positive zone in the afternoon session as traders were encouraged by RBI Governor Shaktikanta Das' statement that the new resolution framework is expected to give durable relief to borrowers amid the COVID-19 crisis," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
Here are 5 things to know before Friday's opening bell:
GST Council meet
In the 41st GST meet whose agenda was GST compensation to states and UTs, Finance Minister Nirmala Sitharaman provided two broad options - borrowing less and getting cess later and borrowing more and paying for it using cess collected during the transition period. Shortfall in collection of goods and services tax (GST) stands at Rs 2.35 lakh crore for fiscal 2021, the government said on Thursday.
RBI Governor's speech
Even as RBI Governor Shaktikanta Das' speech earlier in the day evoked some response in today's trade, further activity is expected among investors tomorrow with more details coming out. In today's speech, Das said that the RBI will not hesitate from coming up with more measures in terms of policy decisions or rate cuts to tackle the COVID-19 crisis. Speaking at a webinar, Das also said rather than becoming averse to lending, banks have to improve their risk management and governance frameworks, and also build sufficient resilience.
Jerome Powell's speech
Global investors are awaiting cues from US Federal Reserve Chairman Jerome Powell's speech at the central bank's annual Jackson Hole symposium. Officials in the past have used the meeting, being held online this year, to make market-moving announcements.
Modi's defence push
Defence stocks may rally in tomorrow's trade after Prime Minister Narendra Modi today yet again stressed upon the need for India to become self-reliant in the defence sector. A decision has been taken to permit up to 74 per cent foreign direct investment (FDI) in defence manufacturing through automatic route with an aim to realise the goal, Modi also said while addressing Atmanirbhar Bharat Defence Industry Outreach Webinar.
Bourses in Hong Kong, Tokyo and Seoul settled with losses, while Shanghai closed in positive territory. Stock exchanges in Europe were trading on a negative note in early deals.
What technical analysts say
"The short term trend of Nifty continues to be choppy with positive bias. Similar type of movement is likely to continue in the coming sessions. One needs to be cautious about the longs, as there is a possibility of a sharp trigger of downward correction from the highs. Immediate support to be watched at 11,450. The next resistance is placed at 11,620-11,650 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Commenting on Nifty's technicals, Aamar Deo Singh, Head Advisory, Angel Broking said, "Lackluster trading was witnessed throughout the day, with the benchmark index Nifty 50, unable to hold onto the initial gains of the day. Shorts have been squeezed hard in this expiry, and with Nifty closing above the psychological mark of 11,500, bears are likely to remain cautious. Nifty would meet with a stiff wall of resistance around 11,600-11,650 zone whereas support is seen around 11,250-11,350 zone."