It turned out to be a stable day
for the Indian equity indices, which sustained sanguinity for the fourth
successive session and climbed well over half a percent on Monday on hopes of a
rate cut by the Reserve Bank of India at its policy meet scheduled on
Wednesday, and increased inflows by foreign funds. Slowing inflation and a
fiscally responsible budget may sway the Reserve Bank of India (RBI) to cut
interest rates this week. Further, after four months of selling frenzy,
overseas investors turned net buyers in February and pumped in over Rs 2,300
crore in the capital market over the last three sessions, enthused by clarity
on FPI taxation. The latest inflow followed a net pullout of Rs 80,310 crore
from equity and debt together in the past four months (October-January). Prior
to that, FPIs had invested over Rs 20,000 crore in the capital market. Besides,
firm global cues coupled with the appreciation in rupee value against the
dollar added to the optimistic sentiments. Investors' morale remained upbeat
with Economic Affairs Secretary Shaktikanta Das' statement expressing
confidence that the economy will grow upwards of 7 per cent next fiscal. He
reiterated that there will be transient impact of demonetisation on the
economy, but it will not spill over to the next fiscal. The Economic Affairs
Secretary taking a dig at global rating agencies for failing to upgrade India's
sovereign rating despite significant improvement in macroeconomic parameters,
has said the agencies are several steps behind from reality and are missing out
on something which only they can best explain. Meanwhile, Realty stocks
extended their gains for the fourth consecutive sessions after finance minister
Arun Jaitley accorded infrastructure status to affordable housing in Budget
2017 to encourage investment in the segment and offered tax sops for developers
sitting on completed unsold inventories. Further, Auto stocks gained traction
on Union Minister Nitin Gadkari's statement that government is keen on
implementing vehicle policy that aims at scrapping 15-year old commercial
vehicles in the first phase and it will send the proposal to GST Council after
Cabinet nod. Finally, the BSE Sensex gained 198.76 points or 0.70% to 28439.28,
while the CNX Nifty was up by 60.10 points or 0.69% to 8,801.05.
The US markets closed lower on
Monday, as the S&P 500 snapped a three-day winning streak after mixed
earnings. There were no major economic data scheduled for Monday. Over the past
two weeks, investors have shown to be jittery after controversial policy
announcements, such as travel ban applying to people from seven predominantly
Muslim countries. The head of an influential US business group said that any
move to tear up the North American Free Trade Agreement (NAFTA) would devastate
the economies of members Canada, Mexico and the United States. US President
Donald Trump, who says NAFTA has been a disaster for American workers wants to
renegotiate the deal and says he is prepared to walk away if he does not get
the changes he wants. Meanwhile, the Federal Reserve in a quarterly survey
reported that loan officers at US banks reported largely unchanged lending
standards and slightly looser terms for business loans in the last three months
of 2016. About a third of the 69 institutions surveyed, however, said they had
tightened somewhat the standards for commercial real estate construction and
land development loans, and close to a fifth had tightened standards on loans
secured by multifamily properties. The Dow Jones Industrial Average lost 19.04
points or 0.09 percent to 20,052.42, Nasdaq was down 3.22 points or 0.06
percent to 5,663.55, while S&P 500 dropped 4.86 points or 0.21 percent to
2,292.56.
Crude oil futures made a soft
start of the new week and declined on Monday despite a weaker dollar and tensions
between the U.S. and Iran, as traders become nervous about the outlook for
demand. The Trump administration's new sanctions against Iran, though not
affecting oil output, raised concern about the potential for further
developments that could hinder export growth in OPEC's third-largest producer. Benchmark
crude oil futures for March delivery declined by $0.82 or 1.5 percent to $53.01
on the New York Mercantile Exchange. In London, Brent crude for March delivery
ended lower by 1.09 or 1.9 percent at $55.72 on the ICE.
Indian
rupee appreciated on Monday, maintaining its upward trend for the ninth
straight day on sustained selling of the US currency by exporters and banks and
also tracking the gains in its Asian peers. Local currency got some support
with Economic Affairs Secretary Shaktikanta Das' statement expressing
confidence that the economy will grow upwards of 7 per cent next fiscal. He
reiterated that there will be transient impact of demonetisation on the
economy, but it will not spill over to the next fiscal. Besides, positive gains
in the domestic equity market along with dollar struggle against some other
currencies overseas too gave the rupee an upper hand. On the global front,
dollar slipped against yen on Monday after US data showed a
smaller-than-expected rise in wages in January that reinforced expectations the
Federal Reserve will refrain from raising interest rates next month. Finally,
the rupee ended at 67.22, 9 paise stronger from its previous close of 67.31 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 5376.17 crore against gross selling
of Rs 4772.35 crore, while in the debt segment, the gross purchase was of Rs
729.92 crore with gross sales of Rs 537.85 crore.
The US markets made a modestly
lower closing in last session after showing a lackluster trade through the day,
amid lingering uncertainty about the impact of President Donald Trump's
policies with lack of major US economic data keeping some traders on the
sidelines. The Asian markets have made mostly a lower start led by the Japanese
index, as the yen strengthened against the dollar with political uncertainty
infecting markets across the globe. The Indian markets rallied in last session
posting gains of over half a percent on the hopes of a rate cut by RBI in its
next policy meeting on Wednesday. Today, the start is likely to be a bit
cautious on mostly somber global cues. Traders will be concerned with Commerce
Minister Nirmala Sitharaman's statement that the proposed changes in the regime
for issuing H-1B visas for skilled workers by the US government will have an
impact on Indian companies and the Commerce Ministry will soon hold a meeting
with the industry to discuss its strategy for dealing with it. Meanwhile, Central
Board of Direct Taxes (CBDT) Chairman Sushil Chandra has said that the Union
Budget 2017-18 focuses on increasing tax compliance while at the same time
safeguarding the honest tax payers from any harassment. Traders will be eyeing
the rupee movement after it ended at a nearly three-month high against the US
dollar on Monday. There will be buzz in
Tata group stocks, as the shareholders of Tata Sons during an Extraordinary
General Meeting (EGM) passed with requisite majority a resolution to remove
Cyrus Mistry as the Director of the company. There will be lots of important
result announcements to keep the markets in action.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8801.05
|
8776.13
|
8820.03
|
BSE Sensex
|
28439.28
|
28357.35
|
28504.24
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
IDEA
|
272.99
|
108.4
|
106.20
|
110.95
|
ICICI Bank
|
204.74
|
290.3
|
285.15
|
293.85
|
SBI
|
147.25
|
277.05
|
274.53
|
281.03
|
Bank of Baroda
|
143.11
|
184.6
|
181.63
|
189.63
|
Axis Bank
|
85.75
|
498.3
|
493.47
|
501.67
|
HDFC Bank has decided to increase the fees for savings account holders on a slew of activities involving cash, to discourage cash transactions.
Mahindra & Mahindra has reported 4.58% fall in its production to 40827 units in January 2017 as compared to 42788 units in same month last year.
Sun Pharmaceutical Industries is recalling 2,71,212 bottles of bupropion hydrochloride extended-release tablets, USP (SR) in the strengths of 150 mg and 200 mg from US market due to failed dissolution specifications.
Maruti Suzuki India has reported 32.61% rise in its production to 153,541 units in January 2017 as compared to 115,783 units in January 2016.
Bharat Heavy Electricals has secured an EPC order for the installation of Solar PhotoVoltaic Rooftop systems totaling to 3.6 MW capacity from the Surat Municipal Corporation.