Record hitting streak comes to an
end on Friday, with frontline gauges settling tad below their neutral lines, as
traders opted to book some of their profits after four days of continues rally.
Initially, Sensex opened at a new high of over 32,100 mark, while Nifty too hit
a new peak of 9,900 mark for the first time ever on strong buzz that a policy
rate cut may be on the anvil after inflation touched a ‘record low'. However,
markets failed to hold on to their gains and entered into red terrain,
breaching their respective crucial levels, as traders remained concerned with
disappointing earnings by the Tata Consultancy Services, India's largest
software services exporter whose quarterly profit fell 10 percent sequentially,
while revenues declined 0.2 percent. Moreover, another IT bellwether firm
Infosys reported a 3.3 per cent sequential drop in net profit at Rs 3,483 crore
for June quarter. Investors also remained on sidelines ahead of high-profile
meeting chaired by Prime Minister Narendra Modi to review the country's foreign
direct investment policy, where further easing of restrictions may also be
discussed. Losses remained capped with report that India is ranked 116 out of
157 nations on a global index that assesses the performance of countries
towards achieving the ambitious sustainable development goals (SDGs). India
with a score of 58.1, is behind countries such as Nepal, Iran, Sri Lanka,
Bhutan and China. The SDG Index and Dashboards Report shows world leaders need
to strengthen their efforts to realize the 17 global goals. Some solace also
came with report that the wholesale price index based inflation fell to 0.9
percent in June from 2.17 percent in May. The fall in WPI as well as CPI
inflation raised hopes for rate cut by RBI in August monetary policy. Finally,
the BSE Sensex declined 16.63 points or 0.05% to 32,020.75, while the CNX Nifty
was down by 5.35 points or 0.05% to 9,886.35.
The US markets closed higher on
Friday, with several indexes posting all-time records, led by large gains in
the tech sector. This was despite a mixed batch of second-quarter earnings from
three major banks. The Atlanta Federal Reserve's GDP Now forecast model showed
that the US economy is expanding at a 2.4 percent annualized pace in the second
quarter based on unexpectedly weak data on retail sales and consumer prices in
June. On the economy front, the cost Americans pay for goods and services was
little changed in June, larger reflecting lower gasoline prices but also showing
that a recent surge in inflation has crested. More important, the rate of
inflation over the past 12 months slowed to 1.6% in June from 1.9% in the prior
month, and it is down from five-year high of 2.7% just five months ago. A
stripped-down measure of inflation that excludes the volatile food and energy
categories rose 0.1% in June. Over the past 12 months the so-called core CPI is
up 1.7%, unchanged from the prior month. Industrial production rose 0.4% in
June, a touch ahead of expectations, as mining output surged 1.6%. Utilities
output as flat and manufacturing output edged up 0.2%. The Dow Jones Industrial
Average added 84.65 points or 0.39 percent to 21,637.74, the Nasdaq added 38.03
points or 0.61 percent to 6,312.47, while S&P 500 edged higher by 11.44
points or 0.47 percent to 2,459.27.
Crude oil futures strengthened
further on Friday despite a volatile trade, boosted by lower U.S. stockpiles, a
slight slowdown in U.S. crude production and signs of increased Chinese demand.
Crude prices gained by 5.2 percent for the week on a weaker dollar and hopes
the Federal Reserve will goose the U.S. economy with low interest rates for the
foreseeable future. Meanwhile, according data from oil services firm Baker
Hughes showed an uptick in number of active U.S. oil rigs to 765, up by 2 from
the previous week, though the pace of additions has slowed to its lowest this
year. Benchmark crude oil futures for August delivery added $0.46 or 1 percent to
$46.54 on the New York Mercantile Exchange. In London, Brent crude for August
delivery ended up by $0.49 or 1.01 percent at $48.91 a barrel on the ICE.
Indian
rupee ended flat against US dollar on Friday, even as wholesale price index
based inflation eased to 0.9 percent in June from 2.17 percent in May, on
account of easing manufactured products and fuel prices. Besides, weak trade in
domestic equity market too kept pressure on the local currency. Meanwhile,
investors remained on sidelines ahead of high-profile meeting chaired by Prime
Minister Narendra Modi to review the country's foreign direct investment
policy, where further easing of restrictions may also be discussed. On the
global front, the dollar struggled for direction on Friday, ahead of a set of
closely watched inflation data that analysts say could help determine the next
policy move from the Federal Reserve. Finally, the rupee ended unchanged from
its previous close of 64.44 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 5292.17 crore against gross selling of Rs 5375.44 crore, while
in the debt segment, the gross purchase was of Rs 1130.69 crore with gross
sales of Rs 1402.47 crore.
The US markets moved higher in
the last session with Dow and S&P climbing to new record highs, following
the release of several key economic reports, with the data suggesting that the
Federal Reserve will not be in any hurry to raise interest rates. The Asian
markets have made mostly a positive start though the Chinese market was down amid
concern that policies to reduce leverage in Asia's biggest economy will curb
earnings. The Indian markets though recovered from the lows of the day but
ended marginally in red in last session. Today, the start of the new week is
likely to be mildly in green but cautiousness likely to prevail ahead of the
start of the monsoon session of Parliament. A total of 21 Bills pending in Lok
Sabha and 42 Bills pending in Rajya Sabha will be in focus. Markets may get
some support with latest edition of the OECD`s economic outlook report on India
stating that economic growth is projected to remain strong and India will
remain the fastest growing G20 economy. It added that private consumption has
been buoyant, boosted by the increase in public wages and pensions and by
higher agricultural and rural incomes. Meanwhile, Prime Minister Narendra Modi held
a meeting with senior government functionaries to review the country`s current
foreign direct investment (FDI) policy, which discussed measures to further
liberalise the policy, so as to attract more FDI in various sectors. Markets
will also be getting some support with data that India's trade deficit narrowed
more-than-expected to $12.96 billion in June as gold imports nearly halved from
a month earlier. There will be lots of important earnings announcements to keep
the markets buzzing for the day.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9886.35
|
9850.10
|
9917.95
|
BSE Sensex
|
32020.75
|
31909.16
|
32121.04
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Hindalco
|
147.94
|
205.95
|
204.17
|
207.57
|
SBI
|
137.50
|
291.60
|
288.03
|
294.38
|
Infosys
|
112.39
|
972.05
|
956.45
|
997.25
|
Vedanta
|
92.97
|
262.30
|
259.50
|
264.85
|
Aurobindo Pharma
|
82.13
|
746.55
|
723.07
|
760.02
|
Reliance Industries' telecom arm - Reliance Jio Infocomm has added 4.78 million subscribers in May 2017.
Mahindra & Mahindra's wholly-owned subsidiary, Mahindra USA is planning to set up a greenfield manufacturing facility for tractors in the US in the next three-five years.
TCS has reported 5.82% fall in its consolidated net profit at Rs 5,950 crore for the quarter ended June 30, 2017 as compared to Rs 6,318 crore for the corresponding quarter in the FY17.
Yes Bank has teamed up with the Overseas Private Investment Corporation and Wells Fargo on an agreement to increase lending to SMEs in India.