After trading on a feeble note
for most part of the session, Indian equity indices managed to negotiate a
close in the green terrain, breaking the two-session downtrend, as investors
showed renewed buying interests in Realty, Consumer Durables and Oil & Gas
counters. Sentiments remained muted with the UN report indicating that India is
expected to clock 7.1% growth this year before edging up to 7.5% in 2018, and
warned that the country faces heightened risks related to the concentration of bad
loans in the public sector banks. Inflation is projected to reach 5.3% to 5.5%
in 2017 and 2018. The report also warned that the rise in protectionism put
economic growth in Asia Pacific at risk and urged countries in the region to
improve governance and fiscal management to bolster development. Further,
investors' confidence improved on the report that Factory output increased for
the fourth straight month in April 2017. The Nikkei India Manufacturing
Purchasing Managers' Index (PMI) - compiled by Nikkei and research firm Markit
- remained at 52.5 in April, same as that recorded in March. A reading above 50
on the index denotes expansion, while that less than 50 indicates contraction.
Stronger growth in new orders and improving demand conditions were some of the
key factors behind the expansion in manufacturing activity in April.
Furthermore, some support also came with Prime Minister Narendra Modi's
assertion that India was never a more promising investment destination than it
is today. He said that today, Indian economy is the fastest growing major
economy in the world. In addition to maintaining this pace, our focus is to
remove the inefficiencies from the system. Meanwhile, closing the fiscal year
on a high, the index of eight core industries rose by 5% in March, a
three-month high, led by double-digit growth in steel and coal sectors. The
core industries grew by a mere 1% in February this year, and 9.3% in March
2016. Finally, the BSE Sensex gained 2.78 points or 0.01% to 29921.18, while
the CNX Nifty was up by 9.75 points or 0.10% to 9,313.80.
The US markets continued their
sluggish trend on Tuesday but managed a modestly positive close. The major
averages spent the day bouncing back and forth across the unchanged line, as
traders looked ahead to the Federal Reserve's monetary policy announcement on
Wednesday. The Fed is widely expected to leave interest rates unchanged, but
traders will pay close attention to the accompanying statement for clues about
future rate hikes. The economy calendar remained light with no major
announcements, but traders were eyeing the ADP's report on private sector
employment and the Institute for Supply Management which is scheduled to
release its monthly report on activity in the service sector. Meanwhile, President
Donald Trump pressed Republican lawmakers on Tuesday to support a new attempt
to overhaul the U.S. healthcare system, but struggled to attract party
moderates who feared a backlash from voters who could lose insurance benefits. The
Dow Jones Industrial Average added 36.43 points or 0.2 percent to 20,949.89,
the Nasdaq gained 3.76 points or 0.1 percent to 6,095.37 and the S&P 500 ended
higher by 2.84 points or 0.1 percent to 2,391.17.
Crude oil futures extending their
slump on Tuesday, reached to their lowest settlement since late November ahead
of data on U.S. crude oil stockpiles. Expectations for a fourth-straight week
of drawdowns in crude stockpiles come amid a bearish and bullish production
update from both Libya and Russia, respectively. Worries over global supply
glut resumed after Libya resumed output and country's production rose above
760,000 bpd to the highest rate since 2014. Benchmark crude oil futures for
June delivery ended down by $1.18 or 2.4 percent to $47.66 on the New York
Mercantile Exchange. In London, Brent crude for June delivery ended lower by $ 2.45
percent at $50.25 on the ICE.
Indian
rupee, after making a good start, gave away most of its gains and concluded only
marginally higher against dollar on sustained dollar selling by banks and
exporters, on Tuesday. Sentiments remained up-beat with report that the core
sector in the country grew 5% in March, a significant rise from the 1% growth
registered in February on account of a favourable base effect. Also, core
sector growth for the year ended March hit a five-year high, registering a
growth rate of 4.5% over the previous year. Some support also came with Prime
Minister Narendra Modi's assertion that India was never a more promising
investment destination than it is today. On the global front, Dollar weakened
against most of the currencies overseas, ahead of the outcome of two day US
Federal Reserve meeting. Finally, the rupee ended at 64.21, 4 paise stronger
from its previous close of 64.25 on Friday.
The
FIIs as per Tuesday's data were net sellers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4607.38 crore against gross selling
of Rs 5720.91 crore, while in the debt segment, the gross purchase was of Rs
139.39 crore with gross sales of Rs 421.96 crore.
The US markets after a lackluster
trade ended marginally in green in the last session, traders were eyeing the
crucial meeting outcome of the Federal Reserve, amid signs of softening
inflation which eases the pressure to raise interest rates. The Asian markets
have made a mixed start, though most of the indices are up following global indexes, as strong earnings
and manufacturing data boosted risk appetite, while expectations that the
Federal Reserve will signal a June rate increase later in the session lifted
the dollar. The Indian markets after giving up early gains and a volatile day
of trade managed a flat closing in last session. Today, the start is likely to
be in green and traders will be reacting to report that Prime Minister Narendra
Modi has reviewed the progress of the government's agenda to curb black-money
and tax evasion as well as the roll out of the Goods and Services Tax (GST).
Also, Finance Minister Arun Jaitley has said the whole debate over the
political cost of economic reforms has dissipated with the benefits reaching
the deprived sections of society. Meanwhile, global rating agency Fitch Ratings
has retained India's 'BBB-' sovereign rating, saying that weak public finances
continue to constrain the country's ratings, however it said the outlook on
ratings is stable. There will be some cautiousness too with a United Nations
(UN) report that India is expected to clock 7.1 percent growth this year before
edging up to 7.5 percent in 2018. UN report warned that the country faces
heightened risks related to the concentration of bad loans in the public sector
banks. There will be some buzz in the infra stocks, as the railway minister
Suresh Prabhu has said that India plans to auction one of its largest Public
Private Partnership (PPP) projects that entails redeveloping 25 of the
country's most prominent railway stations at a minimum investment of Rs 30,000
crore. There will be lots of important earnings announcements too, to keep the
markets in action.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9313.80
|
9271.62
|
9354.27
|
BSE Sensex
|
29921.18
|
29793.79
|
30058.91
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ONGC
|
171.44
|
192.40
|
188.73
|
194.98
|
ICICI Bank
|
152.55
|
275.60
|
273.45
|
279.30
|
Hindalco
|
125.42
|
200.25
|
197.93
|
203.23
|
Bank of Baroda
|
110.14
|
188.65
|
185.70
|
191.60
|
SBI
|
97.55
|
288.30
|
286.10
|
291.50
|
Maruti Suzuki posted its best ever volume growth to 144,492 units in the domestic market in the month of April, an increase of 23.4% compared with 117,045 vehicles sold in the same period last year.
Hero MotoCorp has reported sales of 591,306 units of two-wheelers in the month of April.
Tata Motors passenger and commercial vehicle total sales in April 2017 were at 30,972 vehicles, down by 21% over 39,389 vehicles sold in April 2016.
Coal India has reported provisional production of 38.44 million tonnes in April 2017, as against a target of 43.58 MT.