Indian stock markets, which
appeared to be wandering on a directionless trajectory through the morning
trades, witnessed some renewed buying interests in Consumer Durables and Realty
counters during the noon session, which helped the equity indices to snap
second straight session on a positive note. The gains were, however, capped as
investors remained cautious ahead of the Reserve Bank of India (RBI)'s policy
meeting, which begins tomorrow. Market is hoping that RBI may review its
current stance of neutral to accommodative considering the slowdown in economic
activity and consolidation in current & future outlook in inflation.
Furthermore, HSBC's latest report indicated India's economic growth is expected
to remain flat at 7.1% in current fiscal as investment is still weak and
government spending might not be as high given the fiscal consolidation.
According to the global financial services major, the GDP growth momentum is
slowing since mid-2016 and this trend is expected to continue going forward.
Sentiments got a boost with the report that Services sector activity in India
grew at the fastest pace in four months in May riding piggyback on higher work
orders as companies inducted more people to cope with greater workloads. The
Nikkei India Services Purchasing Managers' Index (PMI), which tracks services
sector output on a monthly basis, rose from 50.2 in April to 52.2 in May. Some
support also came with World Bank report indicating that successful demonetization
will help in raising revenues on sustained basis as more and more people will
come under the tax net. During 2016-17, India generated additional tax revenues
as unreported cash identified both through the amnesty scheme and
demonetisation were brought under the tax net. Meanwhile, shares of jewellery
companies rose sharply today, following the government's announcement of GST
rates on gold. The GST Council on Saturday announced that the rate on gold and
gold jewellery would be at 3%, while the import duty of 10%, which will be over
and above the 3%, remains unchanged. Currently, tax on gold and jewellery is at
2% and the current GST rate is slightly higher at 3%, but lower than the 5%
rate that was expected. Finally, the BSE Sensex gained 36.20 points or 0.12% to
31309.49, while the CNX Nifty was up by 21.60 points or 0.22% to 9,675.10.
The US markets closed lower on
Monday, as investors grappled with a variety of geopolitical issues, such as
terrorist attacks in London ahead of the UK election and the scheduled public
testimony of fired Federal Bureau of Investigation Director James Comey. On the
economy front, the service-oriented companies where most Americans work grew at
a slightly slower but still rapid pace in May. The Institute for Supply
Management said its nonmanufacturing index fell 0.6 points to 56.9% in May. Meanwhile,
factory orders dipped 0.2% in April. That matched the Econoday consensus
forecast and was the first monthly decline after a four-month stretch of increases.
March's 0.2% increase was revised up to a hefty 1.0% rise. For the year to
date, orders are 4.4% higher than in the same period a year ago. Excluding
transportation, which can be volatile, orders rose 0.1% during the month, and
are 5.5% higher compared to the same period in 2016. The government said
productivity of American companies and their employees was unchanged in the
first three months of 2017 instead of declining at a 0.6% annual rate. The Dow
Jones Industrial Average lost 22.25 points or 0.10 percent to 21,184.04, Nasdaq
was down 10.12 points or 0.16 percent to 6,295.68, while S&P 500 edged
lower by 2.97 points or 0.12 percent to 2,436.10.
Crude oil futures extended their
fall on Monday, with Nymex crude sliding near $47 a barrel amid concerns that a
rift between Middle East oil producers will threaten OPEC's supply quota plan. Saudi
Arabia and other Arab states severed diplomatic ties with Qatar, fuelling
concerns about a disruption to the global deal to curb the glut in supply. Neighbors
accuse Doha of destabilizing the region by supporting militants and backing
Iran. Benchmark crude oil futures for July delivery ended lower by $0.26 or 0.55
percent to $47.40 on the New York Mercantile Exchange. In London, Brent crude
for July delivery ended lower by 1 percent to $49.44 on the ICE.
Indian
rupee ended stronger against dollar for the fourth straight day on Monday, on
increased selling of the US currency by exporters and banks amid higher foreign
fund inflows. Investors got support with a World Bank report stating that
successful demonetisation will help in raising revenues on sustained basis as
more and more people will come under the tax net. Some support also came with
private report that the country's services sector activity increased at its
fastest pace in four months in May led by a faster rise in new business
inflows. The Nikkei/IHS Markit Services Purchasing Managers' Index rose to a
seven-month high of 52.2 in May, from April's 50.2. However, gains were muted
as investors remained cautious ahead of the Reserve Bank of India's policy
meeting, which begins tomorrow. On the global front, dollar somewhat drifted
away from a seventh-month low against other currencies. Finally, the rupee
ended at 64.36, 7 paise stronger from its previous close of 64.43 on Friday.
The
FIIs as per Monday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4535.70 crore against gross selling
of Rs 4422.33 crore, while in the debt segment, the gross purchase was of Rs
3004.00 crore with gross sales of Rs 403.09 crore.
The US markets snapped their
gaining streak and ended modestly lower in last session after a lackluster
trade, as traders expressed some uncertainty about the near-term outlook for
the markets following recent strength. The Asian markets have made mostly a
lower start tailing the US counterparts, with investors opting for a note of
caution following a seven-week surge for global stocks. Japanese market too was
lower, as the yen rose to the highest level in more than a month. The Indian
markets managed a modestly positive close in last session, coming off their
weak opening. Today, the start is likely to be a bit cautious on muted global
cues and traders attention will be now on the two-day policy review by RBI's
monetary policy committee (MPC) starting today. Meanwhile, Prime Minister
Narendra Modi has reviewed preparations for the rollout of the goods and
services tax (GST) regime from July 1, and said it would be "a turning
point" for the economy. He has asserted that the implementation of GST is
the culmination of the concerted efforts of all stakeholders, including
political parties, trade and industry bodies. Finance Minister Arun Jaitley too
clearing the air on audit of the firm providing IT backbone for GST has said
the Comptroller and Auditor General of India will audit the Goods and Services
Tax Network (GSTN). Markets will be getting some support with a private report
that India has surpassed China to secure the top position among 30 developing
countries on ease of doing business. There will be some buzz in the IT sector
on a report that top seven Indian-based outsourcing companies in the US
received fewer H-1B visas in 2016 as compared to 2015, and as a group their
numbers dropped 37 per cent.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9675.10
|
9648.13
|
9694.63
|
BSE Sensex
|
31309.49
|
31220.00
|
31377.20
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Vedanta
|
103.83
|
229.40
|
226.68
|
232.63
|
ITC
|
94.82
|
317.45
|
314.42
|
319.37
|
ICICI Bank
|
89.38
|
319.75
|
318.05
|
321.55
|
SBI
|
79.17
|
287.25
|
286.08
|
289.08
|
Hindalco
|
77.26
|
197.10
|
195.13
|
199.43
|
SBI has received $625 million from the World Bank for financing 100 MW rooftop solar projects by private developers.
Maruti Suzuki is focusing on new technologies in order to cut emission per vehicle and enhance fuel efficiency in its future models.
Mahindra First Choice Wheels, a subsidiary of Mahindra & Mahindra has entered the two-wheeler segment and plans to open 50 outlets by the end of this fiscal.
- NTPC has forayed into the new business segment of setting up charging stations for Electric Vehicles and has installed first such points at its offices in Delhi and Noida.