After trading on a feeble note
for most part of the session, Indian benchmark indices managed to negotiate a
close in the green terrain, as investors showed renewed buying interests in
information technology, Consumer Durables and Realty counters. Investors got
some comfort with RBI governor's statement that there is further scope for
banks to reduce lending rates as the Reserve Bank has already brought down its
policy rates by 175 basis points since January 2015. Some support also came
with Economic Affairs Secretary Shaktikanta Das' statement that India will be
able to pull off a 7% plus growth rate next fiscal as the Budget for 2017-18
has come up with several measures to provide a fillip to various sectors. Further,
rejecting arguments that fiscal deficit target of 3.2% is optimistic, he said
it is realistic and there is all possibility that revenues will exceed the
target, as Budget has not taken into account the demonetisation windfall.
However, gains remained capped on report that foreign portfolio investors
(FPIs) sold shares worth a net Rs 127.69 crore on February 08, 2017. Adding the
anxiety among market participants, RBI's bi-monthly survey on consumer
confidence indicate that Indian households are less confident of their current
economic situation as people are uncertain about their immediate income,
employment and spending capabilities. Meanwhile, banking stocks declined as RBI
held repo rates at 6.25% for the second time in a row, changing its stance to 'neutral'
from 'accommodative'. On the other hand, IT stocks gained traction as global IT
major Cognizant has guided for a revenue growth of $3.51 billion to $3.55
billion for March quarter. The company expects March quarter non-GAAP diluted
EPS to be at least $0.83 per share. Finally, the BSE Sensex gained 39.78 points
or 0.14% to 28329.70, while the CNX Nifty was up by 9.35 points or 0.11% to
8,778.40.
The US markets closed higher on
Thursday, with all the major indexes notching the latest in a series of record
closes, with energy and financial stocks leading the way. The stocks climbed
after Trump referenced a phenomenal announcement about his tax plan coming in
the next few weeks. Trump said that we're going to announce something I would
say over the next two or three weeks that will be phenomenal in terms of tax.
The last time all three major indexes simultaneously closed at records was
January 25. On the economy front, the number of Americans who applied for
unemployment benefits in early February fell by 12,000 to 234,000, hitting the
second-lowest level of an economic recovery that began nearly eight years ago.
New jobless claims have registered less than 300,000 for 101 straight weeks,
the longest streak in more than four decades. The record low for new claims
during the current expansion was 233,000 in early November. Similarly, the less
volatile four-week average of initial claims dropped by 3,750 and stood at
244,250, touching the lowest level in 44 years. The Dow Jones Industrial
Average added 118.06 points or 0.59 percent to 20,172.40, the Nasdaq was up
32.73 points or 0.58 percent to 5,715.18, while S&P 500 gained 13.2 points
or 0.58 percent to 2,307.87.
Crude oil futures surged on
Thursday after Energy Information Administration (EIA) boosted its 2018 U.S.
crude production forecast. Also there was report that ten OPEC members have
achieved 91% compliance toward supply quotas. Traders were also encouraged with
an unexpected draw in U.S. gasoline inventories pointing to higher demand in
the world's biggest oil market. The fall in gasoline stocks suggested U.S.
consumption was stronger than expected, and may be healthy enough to support
prices at time when most fuel oil markets are very well stocked. Benchmark crude oil futures for March
delivery gained $0.66 or 1.3 percent to $53 on the New York Mercantile
Exchange. In London, Brent crude for March delivery ended higher by $0.60 or 1.14
percent at $55.72 on the ICE.
Indian
rupee ended at three-month high against dollar on Thursday extending its
winning streak for second straight session on continued dollar selling by banks
and exporters. Some support also came with reports that Indian economy
attracted $4.68 billion Foreign Direct Investment (FDI) in November 2016, up 60
percent over the corresponding period last year of $2.93 billion. The domestic
currency looked strong from the very beginning but losses in the equity market
capped some rupee gains. On the global front, dollar managed to stabilise on
Thursday after the previous session's slide, although lingering risk aversion
pinned Treasury yields near multi-week lows and restrained the greenback's
bounce. Finally, the rupee ended at
66.85, 57 paise stronger from its previous close of 67.42 on Wednesday.
The
FIIs as per Thursday's data were net sellers in equity and debt segments both. In
equity segment, the gross buying was of Rs 4468.40 crore against gross selling
of Rs 4656.66 crore, while in the debt segment, the gross purchase was of Rs
1560.80 crore with gross sales of Rs 2235.08 crore.
The US markets surged in last
session to record highs after showing a lack of direction in the past few
sessions, mainly due to comments from US President to announce a plan to lower
the tax burden on American business. The Asian markets taking cues from the US
markets have made a positive start led by the Japanese market, which is up by
over two percent with the gain in dollar. Higher crude oil prices also boosted
investor sentiment in the region. The Indian markets managed a modestly
positive close in last session after much of dilly-dallying, with IT stocks
witnessing buying after suffering steep losses in last few sessions. Today, the
start is likely to be in green on strong global cues. Traders will also be
getting some support with a US think tank report stating that India will be the
world's fastest growing economy during the next five years as China's economy
cools and growth elsewhere sputters, but internal tensions over inequality and
religion will complicate its expansion. Meanwhile, Finance Minister Arun
Jaitley has warned that economies will become more inefficient and GDP will
shrink if protectionist trend emerges in developed economies. Traders will be
eyeing the December IIP data due to be announced later in the day. The IT pack
may continue their gains on government's statement that it is engaged with the
Donald Trump administration as well as members of the US Congress on concerns
regarding the H1B visa issue. There will be lots of lots of important result
announcements to keep the markets ticking.
Support and Resistance: NSE (Nifty)
and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8778.40
|
8727.87
|
8825.17
|
BSE Sensex
|
28329.70
|
28164.76
|
28482.06
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
SBI
|
160.61
|
275.85
|
271.03
|
280.48
|
ICICI Bank
|
151.16
|
285.00
|
279.48
|
289.63
|
Hindalco
|
139.95
|
183.70
|
180.35
|
188.65
|
IDEA
|
136.29
|
110.60
|
109.20
|
111.50
|
BHEL
|
125.99
|
157.20
|
153.65
|
159.80
|
Tata Power Delhi Distribution, a joint venture of Tata Power and the Government of Delhi, has launched energy-efficient LED lighting and ceiling fans in association with Energy Efficiency Services under the UJALA scheme for its customers.
Cipla has reported 43.85% rise in its consolidated net profit after tax, minority interest and share of profit / (Loss) of associates at Rs 374.83 crore for the quarter ended December 31, 2016, as compared to Rs 260.57 crore for the same quarter in the previous year.
Hero MotoCorp has reported 2.56% fall in its net profit at Rs 772.05 crore for the quarter ended December 31, 2016, as compared to Rs 792.30 crore for the same quarter in the previous year.
Taro Pharmaceutical Industries, the US subsidiary of Sun Pharmaceuticals Industries, has reportedly received tentative approval from the US FDA for diclofenac sodium topical solution of 2 per cent strength.
Lupin has reported 20.69% rise in its net profit after taxes and non-controlling interest at Rs 633.11 crore for the quarter ended December 31, 2016, as compared to Rs 524.56 crore for the same quarter in the previous year.