Extending their northward journey
for third straight session, Indian equity benchmarks ended the Wednesday's
trade with a gain of around half a percent, surpassing their crucial 37,700
(Sensex) and 11,300 (Nifty) levels. Markets started the session on cautious
note as traders remained concern with weak macro-economic data. The latest data
from Central Statistics Office (CSO) showed that India's Index of Industrial
Production (IIP) slipped to 1.7% in January from 7.5% a year ago. Subdued
performance of the manufacturing sector, especially capital and consumer goods,
mainly pulled down the growth in industrial production. Besides, retail
inflation rose to four-month high of 2.57% in February. Consumer Price Index
(CPI) stood at 1.97% in January and 4.44% in February 2018. Market participants
also remained anxious as former RBI governor Raghuram Rajan warned that
capitalism is under serious threat of a revolt as the economic and political
system has stopped providing for the people, especially after the 2008 global
financial meltdown. Markets gained traction and entered into green terrain with
report that the Reserve Bank of India (RBI) would infuse Rs 12,500 crore into
the system through open market operations (OMOs) on March 14. Based on an
assessment of prevailing liquidity conditions and also of the durable liquidity
needs going forward, the RBI has decided to conduct purchase of the government
securities under OMOs. Key gauges extended gains in late trade with private
report that foreign investments will continue to increase in the Indian market.
It noted that there is nothing wrong with the economic outlook in India with
inflationary pressure and the number of houses forecasting that the RBI will
cut the repo rate a number of times this year, one should be sanguine about the
economic outlook in India. Traders took note of report that markets regulator
SEBI has withdrew the 20% limit on investments by Foreign Portfolio Investors
in corporate bonds of an entity. In a notification, the regulator said the
restriction is being withdrawn in accordance with a circular issued by the
Reserve Bank of India (RBI). Finally, the BSE Sensex gained 216.51 points or
0.58% to 37,752.17, while the CNX Nifty was up by 40.50 points or 0.36% to
11,341.70.
The US markets ended Wednesday's
trading session in positive territory, with gains of over half percent, as
investors parsed economic data that included stronger-than-expected durable
goods orders. New orders for US durable
goods unexpectedly increased in the month of January, according to a report
released by the Commerce Department. The report said durable goods orders
climbed by 0.4% in January after spiking by an upwardly revised 1.3% in
December. The unexpected increase in durable goods orders was largely due to a
continued surge in orders for transportation equipment, which jumped by 1.2% in
January after surging up by 3.1% in December. Orders for non-defense aircraft
and parts led the way higher once again, soaring by 15.9% in January after
spiking by 35.7% in December. Meanwhile, reflecting a spike in spending on
public construction, the Commerce Department released a report showing US
construction spending jumped much more than expected in the month of January.
The report said construction spending surged up by 1.3% to an annual rate of
$1.280 trillion in January after falling by 0.8% to a revised rate of $1.263
billion in December. Besides, Trump said that he is not in a hurry to hammer
out a trade deal with China and that Chinese President Xi Jinping knows that
the US can walk away from bilateral talks if an agreement is not reached. Dow
Jones Industrial Average surged 148.23 points or 0.58 percent to 25702.89,
Nasdaq gained 52.37 points or 0.69 percent to 7643.40 and S&P 500 was up by
19.40 points or 0.69 percent to 2810.92.
Crude oil futures ended higher
for third straight day on Wednesday as weekly data revealed a surprise decline
in US crude stockpiles and a bigger-than-expected drop in gasoline inventories.
The Energy Information Administration (EIA) reported that US crude supplies
fell by 3.9 million barrels for the week ended March 8. That ran counter to
expectations for a climb of 3.3 million barrels expected by S&P Global
Platts. The American Petroleum Institute on Tuesday had reported a 2.6 million
barrel decline. Besides, supplies of gasoline dropped by 4.6 million barrels,
while distillates edged up by 400,000 barrels last week. Benchmark crude oil
futures for April surged $1.39 or 2.4 percent to settle at $58.26 a barrel on
the New York Mercantile Exchange. May Brent crude gained 88 cents or 1.3
percent to settle at $67.55 a barrel on London's Intercontinental Exchange.
Indian
rupee continued its upward march for the third straight session on Wednesday,
on persistent selling of the American currency by exporters. Sentiments got
up-beat with private report that foreign investments will continue to increase
in the Indian market. It noted that there is nothing wrong with the economic outlook
in India with inflationary pressure and the number of houses forecasting that
the RBI will cut the repo rate a number of times this year, one should be
sanguine about the economic outlook in India. The rupee's rise was also aided
by dollar's weakness against other currencies and positive trend in equity
market. However, gains remain capped as cautiousness remained in markets with
data showing that retail inflation jumped to a four-month high of 2.57 percent
in February, and industrial growth slipped to 1.7 percent in January on account
of manufacturing sector slowdown. On the global front, Sterling strengthened
the most among the Group-of-10 currencies Wednesday ahead of a vote where
analysts expect Parliament to reject leaving the EU without a deal. Finally,
the rupee ended at 69.54, 17 paise stronger from its previous close of 69.71 on
Tuesday.
The FIIs as per Wednesday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 10068.51 crore against gross selling of Rs 6511.78 crore,
while in the debt segment, the gross purchase was of Rs 3445.76 crore with
gross sales of Rs 3118.70 crore. Besides, in the hybrid segment, the gross
buying was of Rs 1.40 crore against gross selling of Rs 2.38 crore.
The US markets ended in green on
Wednesday after economic data showed fresh signs of stability in the
manufacturing sector and muted inflation. Asian markets are trading mostly
higher on Thursday as investors await data from China for clues about the
health of its economy. Indian markets ended higher for third straight session
on Wednesday amid continued buying by foreign investors. Today, the markets are
likely to open marginally in green amid positive global cues. Market
participants will be looking forward to Wholesale Price Index (WPI) to be
released later in the day. Traders will be taking encouragement with the
Reserve Bank of India's (RBI) statement that it will inject long-term liquidity
worth $5 billion into the system through foreign exchange swap arrangement with
banks for three years, in order to meet the durable liquidity needs of the
system. Also, there will be some support with report that the private companies
in manufacturing sector posted a 24.9% growth in net profit in the
October-December quarter of the current fiscal on annual basis, benefitting
from lower tax provisions. Some support may come with report that the RBI has
relaxed norms for imports of capital and non-capital goods by raising the trade
credit limit to $150 million under the automatic route. However, it has reduced
the all-inclusive cost (all-in-cost) for overseas loans to benchmark rate plus
250 basis points (bps) from the earlier 350 bps. Traders may take note of
minister for Law & Justice and Electronics & Information Technology,
Ravi Shankar Prasad's statement that India could be a $3 trillion digital
economy in the next four to five years. That is the goal they have set. Digital
India is designed to empower ordinary Indians. Their idea is to make India the
biggest manufacturing hub in electronics with 1crore employment in the
electronics sector and 35-40 lakhs in the software sector. Meanwhile, markets
regulator SEBI has came out with the framework and timeline for the counter
offer process. The counter offer is made in case the price discovered through
reverse book building (RBB) is not acceptable to the promoter or the acquirer.
There will be some buzz in the auto sector stocks with the Federation of
Automobile Dealers Associations (FADA) of India's data stating that the auto
industry's retail sales in February dropped 8.06%, as weak consumer demand
continues for the sixth straight month. The total auto sales in February were
1,452,078, compared to 1,579,349 units last year.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,341.70
|
11,294.77
|
11,370.47
|
BSE Sensex
|
37,752.17
|
37,554.93
|
37,873.35
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
588.83
|
244.30
|
235.47
|
250.37
|
SBI
|
237.26
|
293.15
|
287.10
|
296.80
|
ONGC
|
210.01
|
149.75
|
146.55
|
152.10
|
IOC
|
201.17
|
148.75
|
146.17
|
152.02
|
ICICI Bank
|
195.75
|
391.90
|
386.38
|
395.33
|
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