Indian equity benchmarks
witnessed consolidation on Tuesday as traders opted to book profit after
yesterday's rally. Though, markets started the session on an optimistic note
with traders reacting positively to the Index of Industrial Production (IIP) numbers,
as strong manufacturing growth and a rebound in the consumer durables sector
lifted India's factory production to 7.5% in January from 7.1% in December. As
per the street expectation it was likely to come at 6.6%. The cumulative growth
for the period April-January 2017-18 over the corresponding period of the
previous year stood at 4.1%. Some support also came with report that Inflation
as measured by the CPI slowed to 4.44% in February from 5.07% in January,
mostly due to easing food and fuel prices. Inflation in the food and beverages
segment slowed to 3.38% in February from 4.58% in the previous month. Markets
gained momentum as some support came with report that foreign direct investment
(FDI) has increased steadily in the country with total capital inflows reaching
$208.99 billion during April 2014 to December 2017 period. The main sectors
that received maximum foreign inflows include services, computer software and
hardware, telecommunications, construction, trading and automobile. However, markets
took U-turn and entered into red terrain as traders turned anxious with private
report raising concerns that even as the economy has largely recovered from the
shocks of demonetization and GST implementation, micro enterprises with
borrowings of under Rs 10 lakh are yet to fully recover. The report reiterated
that the situation has improved in all segments except those with borrowings
less than Rs 50 lakh, where the systemic exposure has not caught up with
pre-demonetization levels. Separately, a report showed that India's monsoon
rains are expected to be slightly below normal this year, while parts of
Australia's eastern grain belt could be drier as an El Nino weather pattern may
develop in the second half of 2018. Finally, the BSE Sensex shed 61.16 points
or 0.18% to 33,856.78, while the CNX Nifty was up by 5.45 points or 0.05% to
10,426.85.
The US markets closed lower on
Tuesday, as the technology and financial sectors came under pressure even as
investors mostly shrugged off President Donald Trump's decision to replace
Secretary of State Rex Tillerson. Stocks had rallied earlier after closely
watched consumer-inflation data was in line with expectations, helping to
placate worries that rising prices would hasten interest-rate hikes by the
Federal Reserve. On the economy front, the index of small-business optimism
from the National Federation of Independent Businesses rose 0.7 point in
February to a reading of 107.6, the second-highest reading in its history. The
index of sentiment among small-business owners has been on a tear ever since
tax cuts were enacted. Separately, the consumer price index rose a mild 0.2% in
February after a worrisome 0.5% increase in the first month of the year. The cost
of housing rose and the price of clothes and auto insurance posted surprisingly
large gains for the second month in a row. The increase in the CPI over the
past 12 months edged up to 2.2% from 2.1%. After stripping out gas and food,
the more closely followed core rate of inflation also rose 0.2% last month. The
12-month rate of core inflation was unchanged at 1.8% for the third month in a
row. Inflation-adjusted US hourly wages were flat in February. They've risen
just 0.4% in the past year. The Dow Jones Industrial Average lost 171.58 points
or 0.68 percent to 25,007.03, Nasdaq dropped 77.313 points or 1.02 percent to
7,511.01, while the S&P 500 was down by 17.71 points or 0.64 percent to
2765.31.
Crude oil futures edged lower on
Tuesday amid expectations that U.S. oil inventories rose for a third week in a row.
U.S. crude production from major shale formations is expected to rise by
131,000 bpd in April from the previous month to an all-time high 6.95 million
barrels per day (bpd). American oil production has soared past 10 million bpd
in late 2017, overtaking output by top exporter Saudi Arabia. U.S. output is
expected to rise above 11 million bpd by late 2018, taking the top spot from
Russia. Meanwhile, the Labor Department is scheduled to release a separate
report on producer prices in the month of February. Producer prices are
expected to inch up by 0.1 percent, while core producer prices are expected to
rise by 0.2 percent. Benchmark crude oil futures for April delivery declined 65
cents or 1.1 percent at $60.71 a barrel on the New York Mercantile Exchange.
May Brent crude dropped by 39 cents or 0.8 percent to settle at $64.56 a barrel
on London's Intercontinental Exchange.
Extending
gains for the second straight day, Indian rupee ended stronger against dollar
on Tuesday, due to selling of greenback by banks and importers. Market
participants got some comfort with data indicating that India's industrial
output surged to 7.5% in the month of January 2018, as compared to 3.5% in the
same month of the previous year and 7.1% in December 2017, while the retail
inflation cooled down to a 4-month low of 4.44% in the month of February 2018, as
compared to 5.07% in January. Traders also took some support with Minister of
state for commerce and industry C.R. Chaudhary's statement that the inflow of
Foreign Direct Investment (FDI) into India has reached to $208.99 billion
during April 2014 to December 2017 period. Though, dollar's strength against
other currencies overseas limited further appreciation of Indian currency. On
the global front, dollar was moving higher against rivals on Tuesday, as
investors watched out for a potentially market-moving update on US consumer
prices. Finally, the rupee ended at 64.89, 15 paise stronger from its previous
close of 65.04 on Monday.
The FIIs as per Tuesday's data
were net buyers in equity segment, while they were net sellers in debt segment,
in equity segment, the gross buying was of Rs 5339.36 crore against gross
selling of Rs 3925.93 crore, while in the debt segment, the gross purchase was
of Rs 955.60 crore with gross sales of Rs 2406.90 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.96 crore against no selling.
The US markets closed lower on
Tuesday amid renewed geo-political concerns after President Donald Trump fired
Secretary of State Rex Tillerson. Traders largely shrugged off a report from
the Labor Department showing a modest increase in consumer prices in the month
of February. Asian markets were trading in red terrain on Wednesday, following
the sacking of U.S. Secretary of State Rex Tillerson, and amid talk of
potential U.S. tariffs against China. Indian equity markets swung between gains
and losses before closing largely unchanged on Tuesday as traders opted to book
some profits following the previous session's sharp rally. Today, the start of
the session is likely to be on negative side on weak global cues. Traders will
also remain concern on report that the Reserve Bank of India (RBI) is unlikely
to reduce key policy rates in 2018 despite a dip in retail inflation in
February. Risks like the higher minimum support prices (MSPs) for food grains
promised in the budget, according to them, can push up the inflation in the
next fiscal year. Meanwhile, the Centre has released Rs 28,398 crore as GST
compensation to states for July-December, with Karnataka getting a major pie.
The government has lowered the indirect tax revenue collection forecast in the
revised estimates by Rs 51,856 crore to Rs 8.75 lakh crore in the current
fiscal. As per the Budget estimates, over Rs 9.26 lakh crore was to be
collected from indirect taxes. Traders will get some support with report that
revival in rural demand, increased infrastructure spending is likely to drive
India's growth in current year, even as increasing debt and trade protectionism
could pose a challenge. There will be buzz in textile related stocks on report
that the Textiles Ministry should impress upon the Finance Ministry to
reconsider the overall GST structure for textiles sector and impose higher
anti-dumping duty to protect the domestic industry.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,426.85
|
10,376.93
|
10,477.68
|
BSE Sensex
|
33,856.78
|
33,694.05
|
34,048.41
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
TCS
|
440.34
|
2,886.80
|
2,859.30
|
2,927.00
|
SBI
|
376.47
|
254.70
|
248.73
|
261.53
|
Indian Oil Corporation
|
186.13
|
407.85
|
402.27
|
413.17
|
Vedanta
|
178.20
|
321.05
|
314.03
|
326.03
|
ICICI Bank
|
159.67
|
304.35
|
300.30
|
307.70
|
Lupin has launched its Tydemy Tablets in United States having received an approval from the USFDA earlier.
Power Grid has entered into a Term Loan facility agreement for Rs 5,000 crore with SBI on March 12, 2018.
ACC and Ambuja Cements have sought approval from their shareholders to enter into master supply agreement.
NTPC has commissioned 3rd unit of 800 MW of Kudgi Super Thermal Power Station on March 12, 2018.