Indian equity markets started the
session on a sluggish note but managed to eke out some gains by the end of
trade, as the benchmark indices clawed back into the green terrain in the late
afternoon trade on getting some supportive leads from the European markets
ahead of US Federal Reserve's policy outcome. Besides, sentiments got a boost
after the report that Inflation based on the wholesale price index (WPI)
slipped to a five-month low of 2.17% in May, as food inflation turned negative
and prices of manufactured items rose at their weakest pace in the past five
months. Some support also came with reports that the government is working on a
new industrial policy with a view to promoting and developing frontier
technologies, innovation and enhancing competitiveness of domestic products.
However, gains remained capped with a private report stating that Indian employers expect steady hiring outlook
for next three months, but their confidence have dipped to the least optimistic
level since 2005 amid uncertainties in global markets. Further, traders
remained cautious over the private report indicating that over 65% of the total
Rs 9.50 lakh crore of agri debt may potentially get written-off. Maharashtra
followed Uttar Pradesh in announcing a debt waiver for the farmers, which is
expected to drill Rs 30,000 crore hole for the state exchequer. Meanwhile,
India's engineering exports to Doha have been hit following sanctions imposed
on Qatar by some nations including Saudi Arabia. Middle East and West Asia are
one of the key destinations for Indian engineering exports, accounting for 13%
of the country's total engineering exports. Finally, the BSE Sensex gained
52.42 points or 0.17% to 31155.91, while the CNX Nifty was up by 11.25 points
or 0.12% to 9,618.15.
The US markets closed mostly lower
on Wednesday, as the Federal Reserve hiked the fed-funds futures rate after its
two-day policy meeting, as expected, and indicated that it would reduce its
$4.5 trillion balance sheet this year. The Federal Reserve raised interest
rates for the second time in three months and said it would begin cutting its
holdings of bonds and other securities this year, signaling its confidence in a
growing US economy and strengthening job market. In lifting its benchmark
lending rate by a quarter percentage point to a target range of 1.00 percent to
1.25 percent and forecasting one more hike this year, the Fed seemed to largely
brush off a recent run of mixed economic data. On the economy front, the cost
of goods and services for American consumers fell in May for the second time in
three months as inflation continued to recede from a recent high-water mark.
The consumer price index, or cost of living, fell by a seasonally adjusted 0.1%
last month. A big drop in gasoline prices played a big part. More important,
the rate of inflation over the past 12 months slowed to 1.9% in May from a
five-year high of 2.7% just four months ago. Annual inflation is now running a
tick below the Federal Reserve's goal of 2%. US business inventories fell 0.2%
in April. The inventory-to-sales ratio, an indication of demand, was unchanged
at 1.37 months. The Nasdaq was down 25.48 points or 0.41 percent to 6,194.89,
S&P 500 edged lower by 2.43 points or 0.10 percent to 2,437.92, while the
Dow Jones Industrial Average added 46.09 points or 0.22 percent to
21,374.56.
Crude oil futures snapped their
gaining streak and ended at seven month low on Wednesday, after US government
data showed a smaller-than-expected weekly decline in domestic supplies and an
increase in gasoline stockpiles and crude production. The US Energy Information
Administration (EIA) reported that domestic crude supplies fell by 1.7 million
barrels for the week ended June 9. Gasoline stockpiles rose 2.1 million
barrels, while distillate stockpiles edged up by 300,000 barrels last week,
according to the EIA. Benchmark crude oil futures for July delivery ended lower
by $1.73 or 3.7 percent to $44.73 on the New York Mercantile Exchange. In
London, Brent crude for July delivery ended lower by $ 1.72 or3.5 percent to $47
on the ICE.
Indian
rupee ended marginally stronger against dollar for the second straight day on
Wednesday, owing to dollar sale by exporters and banks. Local currency got some
support with the report that the wholesale price index based inflation eased to
2.17 percent in May this year from 3.85 percent in April, as prices of fuel and
food articles declined. Some support also came with the report that the
government is working on a new industrial policy to promote and develop
frontier technologies, innovation and enhance competitiveness of domestic
products. Moreover, some gains in the domestic equity markets too supported the
domestic unit but the dollar strengthened against some currencies overseas
capped further gains. On the global front, dollar steadied against yen on
Wednesday, ahead of a Federal Reserve policy statement widely expected to raise
interest rates for the third time in six months but also to signal doubts over
how soon it may make its next move. Finally, the rupee ended at 64.29, 5 paise
stronger from its previous close of 64.34 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 9326.45 crore against gross selling
of Rs 4417.08 crore, while in the debt segment, the gross purchase was of Rs 2818.69
crore with gross sales of Rs 606.61 crore.
The US markets made a mixed
closing in the last session, after the Federal Reserve raised its benchmark
interest rate for the third time in three months despite signs the US economy
cooled off in 2017. The Asian markets have made mostly a soft start with some
indices witnessing cut of over half a percent tailing the US markets and on a
report that investigators are probing whether President Donald Trump attempted
to obstruct justice. The Indian markets despite choppiness managed a modestly
positive close in the last session, led by the banking sector on reports that
RBI is pushing for bankruptcy proceedings against 12 corporate borrowers.
Today, the start is likely to be in red on weak regional cues, as the US
Federal Reserve raised interest rates, citing continued US economic growth and
job market strength, and announced it would begin cutting its holdings of bonds
and other securities this year. On the domestic front some support can come
with the Union Cabinet approving the proposal to introduce a Financial
Resolution and Deposit Insurance Bill, 2017. The Bill would provide for a
comprehensive resolution framework for specified financial sector entities to
deal with bankruptcy situation in banks, insurance companies and financial
sector entities. There will be some buzz in the agri and banking stocks, as the
Union Cabinet has also approved the interest subvention scheme (ISS) for
farmers for the year 2017-18 which will help farmers getting short term crop loan
up to Rs 3 lakh payable within one year at only 4 percent per annum. The
government has earmarked a sum of Rs 20,339 crore for this purpose. The telecom
stocks too will be buzzing, as the four large banks, including the SBI, called
on the government to boost liquidity in troubled telecom companies, cautioning
that the financial stress may lead to potential defaults.
Support and Resistance: NSE
(Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9618.15
|
9589.93
|
9636.88
|
BSE Sensex
|
31155.91
|
31077.11
|
31212.53
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
ICICI Bank
|
202.40
|
319.05
|
315.50
|
322.50
|
ITC
|
145.74
|
299.85
|
297.33
|
304.18
|
Vedanta
|
123.60
|
235.95
|
233.47
|
238.72
|
Reliance Industries
|
121.01
|
1357.50
|
1328.93
|
1373.03
|
Bank of Baroda
|
120.08
|
172.80
|
170.10
|
175.25
|
Mahindra & Mahindra has entered into tie-up with leasing and finance firm ORIX India to provide vehicle finance on purchase of medium and heavy trucks of the automaker.
Reliance Industries' telecom arm - Reliance Jio Infocomm has added around 3.9 million subscribers during April 2017.
Coal India is planning to enter into joint venture with government-controlled Paradip Port to sell blended coal as per consumer's requirement for better value realization.
NTPC has energized 150 kWp Canal Top Solar PV System on cooling water channel at its 2320 MW Mouda Thermal Power Project, near Nagpur in Maharashtra.