Friday turned out to be a
volatile day of trade for Indian equity benchmarks where key gauges somehow
managed to keep their head above water and went home with marginal gains.
Markets made a cautious start and traded mostly in red after US President
Donald Trump ordered his administration to consider tariffs on a $100 billion
worth of Chinese imports, dashing hopes for a cooling of trade tensions. The
traders also reacted negatively to the report highlighting that 23,000 high net
worth individuals (HNIs) have left India since 2014 including 7,000 in 2017 alone,
highest numbers for any country. Sentiments remained down-beat after CARE
Ratings in its latest report stated that even though RBI lowered its inflation
projection sharply from previous forecasts in its first monetary policy review
for the new financial year, two key factors -- the progress and spread of
monsoons along with the MSP fixation by the government would be a key
determinant for inflation in the coming months. Buying in last leg of trade
helped markets to pare all of their early losses and end the session slightly
in green terrain as traders get some solace after the finance ministry welcomed
the Monetary Policy Committee's (MPC) projection of higher GDP growth and lower
inflation in the current fiscal. The MPC's growth projection of 7.4% is in line
with the Economic Survey. MPC has projected inflation at 4.5% in the fourth
quarter of the last fiscal. The decision of MPC comes against the backdrop of
government's assertion that both the fiscal deficit as well as the revenue
shortfall in 2017-18 will be lower than the upwardly revised estimates given in
the Union Budget. Sentiments also got some support with private report that
Indian services sector climbed back into expansion zone in March, helped by the
flow of new work, encouraging companies to hire at the fastest pace in seven
years. Finally, the BSE Sensex gained 30.17 points or 0.09% to 33,626.97, while
the CNX Nifty was up by 6.45 points or 0.06% to 10,331.60.
The US markets closed lower on
Friday, led by a selloff in industrials and financials, as investors continued
to fret over an escalating China-US trade fight. The main indexes sold off in
early trade following President Donald Trump's proposal of fresh tariffs
against China. The White House, in a statement released after the market closed
on Thursday, said that Trump asked the US Trade Representative to consider an
extra $100 billion in Chinese goods to face tariffs and to identify the
products that could be targeted. China's commerce ministry responded to the
latest tariff threat by saying it will respond with countermeasures if needed. On
the economy front, the US gained just 103,000 new jobs in March to mark the
smallest increase since last fall, but the latest report on employment still
shows the tightest labor market in nearly two decades. The unemployment rate,
however, clung to a 17-year low of 4.1% and it's expected to go even lower in
the months ahead. Job openings are at a record high and big and small firms
alike say they plan to add more workers. Although the number of new jobs
created slowed sharply from February's revised 326,000 increase, the US added
an average of 202,000 jobs a month in the first quarter. The Dow Jones
Industrial Average lost 572.46 points or 2.34 percent to 23,932.76, the Nasdaq
dropped 161.441 points or 2.28 percent to 6,915.11, while the S&P 500 was
down by 58.37 points or 2.19 percent to 2,604.47.
Crude oil futures ended at
two-week lows on Friday, weighed down by rising trade tensions between the US
and China coupled with data showing an increase in the number of US rigs
drilling for crude. Sentiments remained downbeat as US energy companies added oil
rigs for the third time in four weeks as crude prices drifted from a three-year
high hit earlier this year. Baker Hughes said that drillers added 11 oil rigs
in the week to April 6, bringing the total count up to 808, the highest level
since March 2015. This was the biggest weekly addition in about two months. The
US rig count, an early indicator of future output, is much higher than a year
ago when 672 rigs were active. Benchmark crude oil futures for May delivery was
down by $1.48 or 2.3 percent to settle at $62.06 a barrel on the New York
Mercantile Exchange. June Brent crude lost $1.22 or 1.8 percent to settle at
$67.11 a barrel on London's Intercontinental Exchange.
Indian
rupee ended marginally lower against US dollar on Friday, due to fresh demand
for the American currency from banks and importers. Traders remained concerned
with CARE Ratings' report that even though RBI lowered its inflation projection
sharply from previous forecasts in its first monetary policy review for the new
financial year, two key factors -- the progress and spread of monsoons along
with the MSP fixation by the government would be a key determinant for
inflation in the coming months. However, dollar's weakness against some
currencies overseas restricted the rupee's fall. On the global front, dollar
faltered on Friday after US President Donald Trump threatened $100 billion in
additional tariffs on China, in a fresh escalation of trade tensions between
the world's largest economies. Finally, the rupee ended at 64.97, 1 paise
weaker from its previous close of 64.96 on Thursday.
The FIIs as per Friday's data
were net buyers in equity and debt segments both, in equity segment, the gross
buying was of Rs 5189.27 crore against gross selling of Rs 4653.37 crore, while
in the debt segment, the gross purchase was of Rs 1953.09 crore with gross
sales of Rs 1328.82 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.49 crore against no selling.
The US markets closed sharply
lower on Friday amid renewed trade war concerns after President Donald Trump
threatened to impose $100 billion of additional tariffs on Chinese imports.
Asian stocks are trading higher on Monday as a bounce in US stock futures
soothed sentiment even as US President Donald Trump kept up his twitter war
with China over trade just a couple of days before President Xi Jinping gives a
keynote speech. Indian shares ended a lackluster session on a flat note on
Friday, as fears of a global trade war persisted and investors exercised some
caution after strong gains in the previous session. Today, the markets are
likely to make flat-to-positive opening amid mixed global cues. The traders'
focus now turns to quarterly earnings this week, with IT major Infosys likely
to declare its March quarter results on April 13. On the macro economic front,
the government will unveil industrial output figures for February and retail
inflation data for March on April 12. Traders will remain little cautious on
report that inflows into Indian equity funds in March were the smallest in 13
months as some investors sold before a tax on stock holdings took effect from
April 1 and volatility returned to markets worldwide. Equity funds took in a
net Rs 66.57 billion ($1 billion), the least since last February. Meanwhile,
Economic Affairs Secretary Subhash Chandra Garg said India will have to create
and nurture a very healthy and supportive macroeconomic environment to become
$10 trillion economy by 2030. He added that government has taken many reform
measures since 2014, including GST (Goods and Service Tax) and IBC (Insolvency
and Bankruptcy Code). Metal stocks related to steel and aluminium will be
buzzing in today's trade, as India will take up the issue of duty hike on
certain steel and aluminium products by the US at the Trade Policy Forum (TPF)
meeting on April 10. Tobacco stocks will remain in focus on report that the
commerce and industry ministry has convened a meeting on April 11 of all
stakeholders, including farmer associations, private companies and government
departments to deliberate upon issues pertaining to foreign direct investment
(FDI) in the tobacco sector.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,331.60
|
10,298.15
|
10,357.75
|
BSE Sensex
|
33,626.97
|
33,519.72
|
33,715.86
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ICICI Bank
|
315.77
|
280.65
|
277.45
|
283.40
|
SBI
|
248.69
|
259.70
|
255.88
|
262.48
|
Hindalco
|
150.08
|
214.00
|
210.72
|
216.62
|
Tata Motors
|
132.97
|
364.10
|
357.58
|
369.48
|
Vedanta
|
95.19
|
285.05
|
281.83
|
287.93
|
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