Domestic frontline indices went
through a choppy session of trade to finally negotiate a close in the green
territory, as a strong rupee and healthy buying in metal and automobile stocks
buoyed investors' sentiments. Further, the continued buying from FII and
announcement of good quarterly results by some blue-chip companies kept a
positive vibe in the market. Adding the optimism of investors, senior UN
economic official has said demonetisation policy is not expected to have a
long-term impact on domestic demand in India, which is projected to clock a
7.9% growth in fiscal 2018. Also, the Union Finance Minister Arun Jaitley said
that government's move to demonetise Rs 500 and Rs 1,000 notes has helped the
authorities bring 9.1 million people under the tax net as money has lost its
anonymity. Markets exhibited sideways pattern as traders were adopting a
cautious approach ahead of a crucial GST (Goods and Services Tax) panel meet in
Srinagar starting tomorrow. Besides, negative trend was seen in global markets,
amid ongoing political uncertainty in the US, capping the gains. However,
investors' sentiments got some support with Indian Meteorological department's
(IMD) statement that the southwest monsoon will hit Kerala on May 30, two days
ahead of schedule. The onset of southwest monsoon over Kerala signals the
arrival of monsoon over the Indian subcontinent. Meanwhile, power stocks gained after the CCEA
approved a new coal linkage policy to ensure adequate supply of the fuel to
power plants through reverse auction. Buying intensified in metal stocks after
India Ratings and Research said that the National Steel Policy 2017 announced
by the Ministry of Steel will give a boost to the struggling Indian steel
industry and it is betting on higher spending on infrastructure and
construction sector through government initiatives to push steel demand and
increase utilization. The policy focuses on improvement in the efficiency
parameters so as to reduce the cost of production and develop advanced steel
products to reduce the dependence on imports. Finally, the BSE Sensex gained
76.17 points or 0.25% to 30658.77, while the CNX Nifty was up by 13.50 points
or 0.14% to 9,525.75.
The US markets closed lower on
Wednesday, as concerns about President Donald Trump's FBI controversy weighed
on investor sentiment. Uneasiness for global equities came after the New York
Times reported that Trump in February asked then-director of the Federal Bureau
of Investigation, James Comey, to stop his investigation into former National
Security Adviser Michael Flynn. The report also prompted some House Republicans
to call for a further investigation and for the FBI to hand over documents
related to communications between the president and Comey, whom Trump fired
earlier this month. Meanwhile, after months of speculation, it happened --
Household debt levels in the US have surpassed their 2008 peak. The New York
Federal Reserve released a new report that showed US collective household debt
balances totaled $12.73 trillion in March 2017, surpassing the 2008 peak of
$12.68 trillion. This isn't the first debt milestone Americans have hit
recently. The Federal Reserve announced in April that the US had $1 trillion in
credit-card debt. The Dow Jones Industrial Average lost 372.82 points or 1.78
percent to 20,606.93, Nasdaq dropped 158.63 points or 2.57 percent to 6,011.24,
while S&P 500 edged lower by 43.64 points or 1.82 percent to 2,357.03.
Crude oil futures surged on
Wednesday to hit three weeks high after the U.S. Energy Information
Administration data confirmed a surprising drop in U.S. oil stockpiles. As per
EIA domestic crude supplies fell by 1.8 million barrels for the week ended May
12. That's the sixth straight weekly decline. Meanwhile, gasoline inventories
dropped by only 0.413 million, while distillate stockpiles fell by 1.94 million
barrels. A report from the International Energy Agency (IEA), however, warned
that OPEC's effort to rein in the glut in supply may fail even if the oil group
agrees to extend its supply-cut agreement. Benchmark crude oil futures for June
delivery ended higher by $0.64 or 1.4 percent to $49.30 on the New York
Mercantile Exchange. In London, Brent crude for July delivery ended up by $ 0.48
to end at $52.13 on the ICE.
Indian
rupee extended its weakness for the second straight day against dollar on
Wednesday due to mild dollar demand from banks and importers. Sentiments
remained dampened as the United Nations (UN) lowered India's gross domestic
product (GDP) growth forecast for the financial year 2017. As per the UN World
Economic Situation and Prospects as of mid- 2017 report, the Indian economy is
expected to grow at 7.3 percent in 2017, a downward revision from the 7.7
percent forecast in January. However, dollar weakness against basket of major
currencies overseas capped some losses of the domestic currency. On the global
front, dollar dropped sharply against major currencies including the pound and
the euro, after Trump reportedly asked former FBI director James Comey to drop
an investigation into Michael Flynn and his connections to Russia. Finally, the
rupee ended at 64.15, 7 paise weaker from its previous close of 64.08 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 5768.74 crore against gross selling of Rs 4724.55 crore, while
in the debt segment, the gross purchase was of Rs 1236.89 crore with gross
sales of Rs 243.14 crore.
The US markets slumped in the
last session and the tech-heavy Nasdaq which has been on a record breaking
spree pulled back well off its record closing high, amid ongoing political
turmoil in Washington further offsetting optimism about President Donald
Trump's ability to implement tax reform and deregulation. The Asian markets
have made a weak start tailing the US sell-off. The Japanese market was down by
over a percent as the yen strengthened against the dollar. The Indian markets
coming off the initial choppiness managed to extend the gains and the benchmarks
reached new record highs in the last session. Today, the start is likely to be
somber on weak global cues and all eyes will be on the two-day GST Council meet
beginning in Srinagar, which will see participation from 29 states and union
territories, along with Jaitley, and senior officials from the revenue
department. In the meeting Finance Ministry Arun Jaitley is likely to finalise
the rates that various goods and services will attract from July 1. Meanwhile,
the Union Cabinet has approved a transparent mechanism for coal allocation and
signalled a renewed focus on nuclear power generation. There will be some
support to the markets with Commerce and Industry Minister Nirmala Sitharaman's
statement that India's exports have been increasing despite global headwinds
and efforts are being made to neutralise any impact on them due to
implementation of GST. There will be some buzz in media and construction
companies on report that the government is moving ahead with further opening of
print media, construction and retail sectors to foreign investments and the
commerce and industry ministry may soon approach the Union Cabinet to get the
final approval on the proposals. There will be lots of important earnings
announcements to keep the markets in action.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9525.75
|
9497.03
|
9543.53
|
BSE Sensex
|
30658.77
|
30554.46
|
30727.77
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Tata Steel
|
494.07
|
493.90
|
473.47
|
506.67
|
ICICI Bank
|
212.40
|
309.75
|
306.10
|
311.80
|
SBI
|
141.21
|
307.65
|
305.83
|
309.13
|
Hindalco
|
106.43
|
198.85
|
196.52
|
200.77
|
Tata Motors
|
101.01
|
270.95
|
266.47
|
274.37
|
Wipro has developed nine block chain-based solutions for the Banking Financial Services and Insurance, Manufacturing, Retail and Consumer Goods industries.
Tata Steel has agreed for an 'in-principle' settlement to the key commercial terms of a deal to cut benefits and improve the funding position of its British pension scheme.
Dr Reddy's Lab has received approval from the USFDA to launch Doxorubicin Hydrochloride Liposome Injection in the United States market.
HDFC has decided to raise Rs 500 crore by issuing secured redeemable non-convertible debentures of three-year tenor on private placement basis at a coupon of 7.67 percent.