Wednesday's session turned out to
be a fabulous day of trade for the Indian equity markets, where frontline
gauges, extending their previous session's jubilation, garnered gains of around
another two percent. Sentiments got a boost with Finance Minister Arun
Jaitley's statement that India stands out as a haven of stability amid a weak
economic environment globally and promised steps to sustain growth. He also
said the country's macroeconomics factors are stable and the government is
committed to fiscal consolidation as well as low inflation. Investors also drew
some comfort from a rally in Asian shares, which touched two-month highs on
Wednesday as overnight gains in oil prices and a batch of positive economic
data from Australia to the United States calmed fears of a global economic
slowdown. Some support also came with the report that India's GDP growth is
likely to pick up to 7.8% in fiscal 2016-17 from 7.6% this year, largely driven
by higher discretionary demand. Meanwhile, banking shares mainly public sector
undertakings (PSUs) rallied after the Reserve Bank of India (RBI) allowed banks
to beef up their capital adequacy by including certain items such as property
value, foreign exchange for calculation of Tier-I capital. Shares of Real
estate companies surged for the second straight trading sessions after the
Union Budget presented by Finance Minister Arun Jaitley on Monday assigned
special thrust to rural India, infrastructure, real estate and the housing
sector. On the global front, Asian markets hit a two-month high, while European
markets were up for the fifth day in a row. Back home, the benchmark got off to
a positive start in the morning trade as investor's sentiment remained buoyant
tracking a firm trend in the rest of Asia, following the overnight rally in the
US on improved economic data. Some support also came with the Agriculture
minister Radha Mohan Singh's statement that he expects the country to achieve
4% growth in the farm sector next fiscal year, helped by the Budget boost and
on early predictions of a favourable monsoon. Finally, the BSE Sensex surged by
463.63 points or 1.95% to 24242.98, while the CNX Nifty rose 146.55 points or
2.03% to 7,368.85.
The US markets closed higher on
Wednesday, building on the previous session's advance, thanks to a jump in the
energy sector following sharp gains in crude. Meanwhile, a key report about the
US economy released offered a relatively somber take on the US economy,
bolstering the view of many that the Federal Reserve will be slow to raise
interest rates further this year. None of the 12 districts in the Federal
Reserve's Beige Book reported any dramatic improvement in conditions in the
January-through-late-February reporting period. Growth was described as
remaining modest or moderate in half of the districts. On the economy front,
the private sector added 214,000 jobs in February, ADP reported, more than had
expected and an acceleration from January's revised gain of 193,000. According
to ADP, small private-sector businesses added 76,000 jobs in February,
medium-size businesses added 62,000 jobs and large businesses added 76,000. The
Dow Jones Industrial Average added 34.24 points or 0.20 percent to 16,899.32,
the Nasdaq was up 13.82 points or 0.29 percent to 4,703.42 while, the S&P
500 gained 8.10 points or 0.41 percent to 1,986.45.
Crude oil futures extended their
gains albeit modestly on Wednesday, remaining near one-month highs. Traders
mostly ignored report of massive build in US crude oil inventories by the U.S. Energy Information Administration (EIA), which exacerbated concerns that
top storage facilities nationwide could reach full storage capacity in the
near-term future. Meanwhile, EIA in its Weekly Petroleum Status Report said that
US commercial crude inventories for the week ending on February 26 increased by
10.4 million barrels from the previous week. Benchmark crude oil futures for April
delivery ended up by $0.19 or 0.55 percent to $34.59 a barrel after trading in
a range of $34.47 and $35.14 a barrel on the New York Mercantile Exchange. In
London, Brent crude for April delivery closed at $36.90, up $0.09 or 0.24
percent on the ICE.
Indian rupee extended its gains
for four consecutive sessions against dollar on Wednesday, on sustained bouts
of dollar selling from banks and exporters. The domestic currency was looking
strong from the very beginning and was also supported by the smart rally in the
equity markets on speculation the government's pledge to narrow the fiscal
deficit will pave the way for interest-rate cuts. Sentiments got further boosted
after Finance Minister Arun Jaitley's statement that the India stands out as a
haven of stability amid a weak economic environment globally and promised steps
to sustain growth. On the global front, dollar traded at around a one-month
high against a basket of major currencies on Wednesday, as investors got solace
with the encouraging US economic data which bet that the Federal Reserve may
hike interest rates this year. Finally,
the rupee ended at 67.54, 33 paise stronger from its previous close of 67.87 on
Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity and in debt segments both. In equity segment, the
gross buying was of Rs 7482.11 crore against gross selling of Rs 4464.86 crore,
while in the debt segment, the gross purchase was of Rs 945.80 crore with gross
sales of Rs 925.71 crore.
The US markets despite a choppy
trade managed to end the session on a modestly positive note, partly due to an
increase by the price of crude oil and an upbeat private sector employment data
from payroll processor ADP. The Asian markets have made mostly a positive start,
extending their rally, buoyed by improving US economic data and prospects for
further stimulus in China. The Indian markets extended their post budget
jubilation with a second consecutive day of rally in last session. Today, the
start is likely to be extension of the euphoric mood and the Nifty is likely to
reclaim 7400 level in the very opening trade amid supportive global cues.
Markets will be getting encouragement with the International Monetary Fund
(IMF) projecting a robust growth rate of 7.3 percent for the country this
fiscal, picking up to 7.5 percent next year. IMF has welcomed recent measures
proposed in budget, aimed at increasing public infrastructure spending,
rationalising subsidies, creating more flexible labour and product markets as
well as enhancing financial inclusion. There will be some buzz in power stocks
too after a report compiled by WEF ranked India at the 90th place in a list of
126 countries, on the basis of their ability to deliver secure, affordable and
sustainable energy. The railways stocks will continue buzzing after the Cabinet
approved a cooperation pact between railways and Japan. The aviation stocks too
will remain in action, as the civil aviation ministry expects to implement the
aviation policy by the beginning of the next fiscal year, after the cabinet
approves it at the end of the month.
Support
and Resistance: NSE Nifty and BSE Sensex
Index
|
Previous close
|
Support
|
Resistance
|
CNX Nifty
|
7368.85
|
7324.55
|
7396.75
|
BSE Sensex
|
24242.98
|
24097.77
|
24334.30
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
533.34
|
181.15
|
174.70
|
185.40
|
ICICI Bank
|
370.61
|
220.00
|
213.60
|
223.90
|
Bank of Baroda
|
304.97
|
145.25
|
141.53
|
150.53
|
Hindalco
|
216.44
|
74.95
|
71.83
|
77.53
|
Vedanta
|
213.88
|
78.15
|
76.25
|
80.35
|
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