Recovery in last leg of trade
helped, Indian equity benchmarks to end almost flat on Friday with frontline
gauges holding their crucial 35,400 (Sensex) and 10,750 (Nifty) levels. Markets
started the session on a pessimistic note amid sluggish global trend. The
sentiments also affected after rupee fell to its one week low against the dollar
in the morning trade. Sentiments remained down-beat after Union Minister
Dharmendra Pradhan said that with petrol and diesel kept out of the purview of
GST, the state owned oil industry is losing Rs 200 billion annually in terms of
input credit. Traders also seems to be cautious with Moody's Investors
Service's statement that India could prune its capital expenditure to avoid any
slippage of its fiscal deficit target of 3.3% of GDP in the current fiscal, but
warned any reduction in the excise duty on petroleum products would exert
negative pressure on the country's sovereign credit profile. Some anxiety also
persist among investors with government identifying over 2.25 lakh companies
and 7,191 LLPs which have not filed requisite financial statement for 2015-16
and 2016-17, and they may be struck off during the current financial year. The
selling got intensified and markets even went to test their psychological
35,250 (Sensex) and 10,700 (Nifty), but key gauges got strong support near
those levels and managed to prune most some of their losses to end with
negligible cut. Domestic sentiments got relief with DIPP Secretary Ramesh
Abhishek's statement that foreign direct investment in India increased to
$61.96 billion in 2017-18. He also said during the four years of the Modi
government, foreign inflows jumped to $222.75 billion from $152 billion in the
previous four-year period. Market participants get some comfort with industry
body Assocham's statement that reducing taxes is the best solution to check the
spurt in fuel prices which would also tremendously help India on the exports
front. Meanwhile, the International Monetary Fund (IMF) has said addressing the
ongoing crisis in the banking sector was important for India to support
investment and inclusive growth agenda. Finally, the BSE Sensex slipped 19.41
points or 0.05% to 35,443.67, while the CNX Nifty was down by 0.70 points or
0.01% to 10,767.65.
The US markets ended higher on
Friday as traders shrugged off tensions between the U.S. and major allies as a
meeting of leaders of the Group of Seven industrialized nations got under way
in Canada. The summit is expected to focus on trade relations amid the ongoing
dispute over President Donald Trump imposing tariffs on steel and aluminum
imports from Canada, Mexico, and the European Union. Meanwhile, Trump said he
is prepared to head to the meeting, arguing that the U.S. is being treated very
unfairly on trade. Trump lashed out at Canadian Prime Minister Justin Trudeau
and French President Emmanuel Macron. He described Trudeau as indignant for
bringing up the relationship between the U.S. and Canada without mentioning
Canadian tariffs on U.S. dairy products. Trump suggested Russia should be
included in the meeting of major industrialized countries. On the economic
front, the wholesale inventories edged higher in the month of April, while
wholesale sales saw a notable increase. The report said wholesale inventories
inched up by 0.1 percent in April after rising by a revised 0.2 percent in
March. The uptick in inventories matches economist estimates and represents an
upward revision from the preliminary reading showing inventories were
unchanged. The S&P 500 surged 8.66 points or 0.31% to 2779.03, the Nasdaq
gained 10.44 points or 0.14 percent to 7645.51 and the Dow Jones Industrial
Average gained 75.12 points or 0.30 percent to 25,316.53.
Crude oil futures ended lower on
Friday, as energy investors weighed potential outcomes for a meeting of major
oil producers later this month against persistent concerns about crude supply
from Iran and Venezuela. OPEC on June 22 plans to discuss the outlook for its
production-cut deal with non-OPEC producers led by Russia that was implemented
at the start of 2017. Meanwhile, Baker Hughes on Friday reported that the
number of active U.S. rigs drilling for oil rose by only 1 to 862 this week.
The rise follows gains in the previous two weeks. The total active U.S. rig
count, which includes oil and natural-gas rigs, added 2 to 1,062. Benchmark
crude oil futures for July delivery lost 21 cents or 0.30 percent to settle at
$65.74 a barrel on the New York Mercantile Exchange. August Brent crude shed 86
cents or 1.1 percent to settle at $76.46 a barrel on London's Intercontinental
Exchange.
Stretching
the slide for the second straight day, Indian rupee depreciated to near
one-month low against dollar on Friday, on increased selling of the US currency
by exporters and banks. The domestic currency made a weak start and remained
under pressure throughout the day due to the dollar strength against other
currencies overseas. Traders also remained concerned with Moody's Investors
Service's statement that India could prune its capital expenditure to avoid any
slippage of its fiscal deficit target of 3.3% of GDP in the current fiscal, but
warned any reduction in the excise duty on petroleum products would exert
negative pressure on the country's sovereign credit profile. Market
participants even overlooked DIPP Secretary Ramesh Abhishek's statement that
foreign direct investment in India increased to $61.96 billion in 2017-18. He
also said during the four years of the Modi government, foreign inflows jumped
to $222.75 billion from $152 billion in the previous four-year period. On the
global front, dollar and yen moved higher against other major currencies on
Friday as worries over what is shaping up to be a tense G-7 summit sparked a
flight into assets considered safer than others. Finally, the rupee ended at
67.51, 39 paise weaker from its previous close of 67.12 on Thursday.
The FIIs as per Friday's data were
net sellers in equity and debt segments both. In equity segment, the gross buying
was of Rs 3608.10 crore against gross selling of Rs 4108.88 crore, while in the
debt segment, the gross purchase was of Rs 619.32 crore with gross sales of Rs 1138.51
crore. Besides, in the hybrid segment, the gross buying was of Rs 0.76 crore against
gross selling of Rs 1.09 crore.
The US markets ended mostly
higher on Friday, but their gains was kept in check amid increasing tensions
between the U.S. and key trade partners as the G-7 summit kicked off. Asian
markets trading cautiously at this point of time, as investors focused on a mix
of trade tensions and a landmark meeting between U.S. President Donald Trump
and North Korean leader Kim Jong Un. Indian equity benchmarks ended lower on
Friday after two sessions of strong gains, with a weakening rupee, oil price
volatility and muted global cues weighing on markets. Today, the markets are
likely to make flat-to-positive start to the new week. Traders will get some
support with CII's statement that Industry is expecting the GDP to grow by
close to 8 per cent over the next couple of years, as strong reforms process
and fiscal prudence have laid a solid foundation for growth. Some support will
also come with report that foreign direct investment (FDI) in India increased
to $61.96 billion in 2017-18. FDI inflows stood at $60 billion in the previous
fiscal. During the four years of the BJP government, foreign inflows jumped to
$222.75 billion from $152 billion in the previous four-year period. Meanwhile,
industry body Assocham has said reducing taxes is the best solution to check
the spurt in fuel prices which would also tremendously help India on the
exports front. However, there will be some concern with report that India's
forex reserves declined by $593.7 million to $412.23 billion for the week ended
June 1 on a dip in the gold assets. In the previous reporting week, the total
reserves had declined by $2.23 billion to $412.83 billion. There will be buzz
in oil and gas related stocks on report that fuel prices on Saturday continued
its downward streak with petrol rates falling by 40 paise per litre and diesel
rates being cut by 30 paise per litre.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,767.65
|
10,724.65
|
10,795.05
|
BSE Sensex
|
35,443.67
|
35,307.47
|
35,532.41
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Sun Pharma
|
292.24
|
528.25
|
498.45
|
545.85
|
Tata Motors
|
272.49
|
309.95
|
303.05
|
316.20
|
SBI
|
140.97
|
273.00
|
268.70
|
275.60
|
ICICI Bank
|
113.40
|
288.25
|
285.53
|
290.93
|
Vedanta
|
104.14
|
246.30
|
243.27
|
248.62
|
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