Indian equity benchmarks
recovered most of their losses to end Tuesday's trading session on flat note,
with Sensex and Nifty closing slightly lower. After a cautious start, key
indices remained under a grip of bears during whole day, affected by India
Meteorological Department's (IMD) statement that pre-monsoon rainfall from
March to April has recorded 27% deficiency. The IMD recorded 43.3 millimetres
of rainfall across the country from March 1 to April 24 as against the normal
precipitation of 59.6 millimetres. Anxiety remained among investors, amid a
report indicating that the decline in economic growth momentum in
October-December quarter of FY19 is likely to continue. As per the report,
subdued consumption demand and election related uncertainty is expected to
weigh on India's industrial production. Weakness persisted during the second half
of the day, with a private report stating that surging global oil prices will
pose a first big challenge to India's new government, whoever wins an election
now underway, especially as domestic prices have been allowed to lag, meaning
consumers are in for a painful surge as they catch up. However, markets managed
to stage recovery in the last leg of the trade, supported by Union minister
Suresh Prabhu's statement that the country is working on district-based
developmental model to achieve aggregate growth. He said if the national growth
was at 6% and those of the districts was 4%, the aggregate growth would be 10%.
Meanwhile, in order to improve margins and profit, Engineering Export Promotion
Council (EEPC) of India has urged engineering exporters to adopt intellectual
property rights (IPR). Finally, the BSE Sensex slipped 35.78 points or 0.09% to
39,031.55, while the CNX Nifty was down by 6.50 points or 0.06% to 11,748.15.
The US markets ended lower with
cut of over half a percent on Wednesday after Federal Reserve Chairman Jerome
Powell dashed traders' hopes for a near-term interest rate cut. Powell said the
Fed sees transitory factors contributing to recent low inflation readings.
Powell said the Fed would take persistently low inflation into account when
setting policy but currently expects inflation to return to the 2 percent
objective. The comments from Powell came after the Fed announced its widely
expected decision to leave interest rates unchanged. The Fed maintained the
target range for the federal funds rate at 2.25 to 2.50 percent for the third
consecutive meeting. The central bank said information received since its
previous meeting in March showed economic activity rose at a solid rate. After
the March meeting, the Fed noted the pace of economic growth had slowed from
the solid rate in the fourth quarter. The Fed said in its latest statement that
the labor market remains strong but pointed out slower first quarter growth in
household spending and business fixed investment. Besides, a report released by
the Commerce Department showed an unexpected pullback in US construction
spending in the month of March. The report said construction spending slumped
by 0.9 percent to an annual rate of $1.282 trillion in March after climbing by
0.7 percent to a revised rate of $1.293 trillion in February. However, after
reporting weaker than expected job growth in the previous month, payroll
processor ADP released a report showing private sector employment jumped by
much more than anticipated in the month of April. ADP said private sector
employment surged up by 275,000 jobs in April after climbing by an upwardly
revised 151,000 jobs in March. Dow Jones Industrial Average declined 162.77
points or 0.61 percent to 26430.14, Nasdaq dropped 45.75 points or 0.57 percent
to 8049.64 and S&P 500 was down by 22.10 points or 0.75 percent to 2923.73.
Crude oil futures settled lower
on Wednesday after a US government report revealed a nearly 10 million-barrel
rise in domestic crude supplies - the biggest weekly climb of the year so far.
The Energy Information Administration (EIA) reported that US crude supplies
rose by 9.9 million barrels for the week ended April 26. That surpassed the
rise of 1.4 million barrels expected by S&P Global Platts. Data from the
American Petroleum Institute (API) on Tuesday had shown an increase of 6.8
million barrels. However, Brent crude ended the session modestly higher,
finding continued support from risks to global supplies. Benchmark crude oil
futures for June declined 31 cents or 0.5 percent to settle at $63.60 a barrel
on the New York Mercantile Exchange. However, July Brent crude added 12 cents
or 0.2 percent to settle at $72.18 a barrel on London's Intercontinental
Exchange.
Continuing its upward momentum for the second day, Indian
rupee ended significantly higher against dollar on Tuesday, amid easing crude
prices and weakening of the greenback against some currencies overseas. Trades
took encouragement with Union minister Suresh Prabhu's statement that the
country is working on district-based developmental model to achieve aggregate
growth. He said if the national growth was at 6% and those of the districts was
4%, the aggregate growth would be 10%. Market participants paid no heed towards
the India Meteorological Department's (IMD) statement that pre-monsoon rainfall
from March to April, a phenomenon critical to agriculture in some parts of the
country, has recorded 27 per cent deficiency. On the global front, euro
extended gains on Tuesday after first quarter growth numbers for the euro zone
were stronger than expectations, dispersing some of the negativity surrounding
the outlook for the single currency. Finally, the rupee ended at 69.56, 46
paise stronger from its previous close of 70.02 on Friday.
The FIIs as per Tuesday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 4434.54 crore against gross
selling of Rs 4273.13 crore, while in the debt segment, the gross purchase was
of Rs 363.83 crore with gross sales of Rs 1650.36 crore. Besides, in the hybrid
segment, the gross buying was of Rs 4.45 crore against gross selling of Rs 6.24
crore.
The US markets declined on
Wednesday after the Federal Reserve left interest rates unchanged and
reiterated it will stay patient despite a recent patch of soft inflation. Asian
markets are trading mixed on Thursday following weak cues from Wall Street amid
markets in Japan and China were shut for holidays. Indian markets recouped
early losses to end flat with negative bias on Tuesday with banks coming under
heavy selling pressure after Yes Bank reported a massive quarterly loss, hit by
rising provisions for bad loans. Markets remain closed on Wednesday on account
of International Labour Day. Today, the markets are likely to make a negative
start tracking weakness in global markets. Investors will be eyeing
manufacturing PMI data to be out later in the day. Traders will be concerned as
India Ratings and Research marginally lowered country's Gross Domestic Product
(GDP) growth projection for 2019-20 fiscal to 7.3% mainly due to below normal
monsoon prediction and loss of momentum in industrial output. It had earlier
projected India's GDP growth at 7.5%. However, some respite can come later in
the day with the finance ministry's statement that Goods and Services Tax (GST)
collection scaled all-time high of over Rs 1.13 lakh crore in April, up from Rs
1.06 lakh crore in the previous month. Total number of summary sales return
GSTR-3B filed for the month of March up to April 30 stood at 72.13 lakh. Some
support may also come with report that the growth of eight core sectors
improved marginally to 4.7% in March 2019 against 4.5% in the same month last
year. Meanwhile, markets regulator SEBI has directed National Stock Exchange to
pay more than Rs 625 crore with 12% interest from April 1, 2014 in the case of
misuse of its co-location facility and barred it from the securities market for
six months. SEBI has been probing alleged lapses in high-frequency trading
offered through NSE's co-location facility. There will be some buzz in the
cement sector stocks with ICRA's report stating that the domestic cement demand
is likely to grow by 8% this fiscal which may push the capacity utilisation to
71%. It added that the growth in demand will be driven by a likely 18-20
million tonnes per annum (mtpa) of additional production capacity during the
fiscal. The auto sector stocks will also be in action, reacting to their
monthly sales numbers. There will be some important result reactions too, to
keep the markets in action.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,748.15
|
11,683.95
|
11,784.30
|
BSE Sensex
|
39,031.55
|
38,821.38
|
39,173.80
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
2,172.20
|
168.00
|
151.23
|
199.13
|
Tata Motors
|
212.89
|
214.30
|
210.18
|
218.53
|
ICICI Bank
|
193.76
|
407.50
|
403.93
|
410.43
|
SBI
|
181.79
|
309.95
|
305.97
|
312.97
|
Tata Steel
|
142.58
|
557.20
|
541.67
|
566.77
|
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Maruti Suzuki India has introduced powerful 1.5 litre DDIS 225 Diesel Engine with 6-speed manual transmission in the Next Gen Ertiga.
Tata Motors has partnered with Nirma University to provide B.Tech degree to its employees working at the Sanand Plant in Gujarat.