Indian stock markets finished the
first day of F&O expiry week on an optimistic note, with Sensex gaining
over half a percept, while Nifty closed above 8850 mark. Investors continued to
build hefty positions across the board as sentiments got a boost after the
report that GST Council on Saturday approved a law to compensate states for any
loss of revenue from the implementation of the new national sales tax but
deferred approval for enabling laws to the next meeting. The council will meet
again on March 4 and 5 to approve the legally vetted draft of the supporting
legislations for Central GST (C-GST) and Integrated GST (I- GST), days before
the start of the second leg of the Budget Session. Some support also came with
the report that overseas investment in India is likely to surge to a record in
the year ending March despite temporary growth hiccups ascribed to the currency
swap programme. India's FDI in the April-December period rose 22% to $35.8
billion from the year earlier. With three months to go for the fiscal year end,
the government expects fresh inflows into equity to top the $40 billion India
got in FY16. Meanwhile, stocks related to Sugar sector remained in focus after
the report that India's sugar deficit increased to 15% as on February 15, from
10% on January 31, as sugarcane crushing season in Karnataka has almost come to
an end, while that of Maharashtra is at its fag end. Furthermore, some banking
stocks came into lime light on the report that once the Insolvency and
Bankruptcy Bill is passed, the sale of bad loans to asset reconstruction
companies (ARCs) could improve substantially to 30-35% of the loans put on the
block by banks and financial institutions from the current 10-15%.Finally, the
BSE Sensex surged 192.83 points or 0.68% to 28661.58, while the CNX Nifty was
up by 57.50 points or 0.65% to 8,879.20.
The US markets remained closed on
Monday on account of ‘Presidents' Day holiday'.
There was no floor trading for
crude due to ‘Presidents' Day holiday'. In a holiday thinned trade prices moved
slightly higher, as investor optimism over the effectiveness of producer cuts
encouraged record bets on a sustained rally. Prices got a slight lift from a weaker
dollar as well. Benchmark crude oil futures for March delivery gained $0.29 or
0.5 percent to $53.69 in electronic trading on the New York Mercantile
Exchange. In London, Brent crude for March delivery ended up by $0.37 at $56.18
on the ICE.
Indian
rupee strengthened on Monday due to sustained selling of the US currency by
exporters and banks amid a firm domestic equity market. The domestic currency
was in the positive terrain from the very beginning supported by the weak
dollar index against some major currencies overseas. Rupee also got some
support with data released by the Department of Industrial Policy and Promotion
(DIPP) showing that FDI inflows into India increased by 18 percent to a record
$46.4 billion in 2016 even though global economic growth remained weak. On the
global front, dollar stuck to mostly tight ranges in holiday-thinned trading on
Monday, but moved lower against the British pound as investors focused on a
Brexit debate in the country's House of Lords. Finally, the rupee ended at
66.92, 10 paise stronger from its previous close of 67.02 on Friday.
The
FIIs as per Monday's data were net buyers in equity and debt segments both. In
equity segment, the gross buying was of Rs 13274.72 crore against gross selling
of Rs 5215.43 crore, while in the debt segment, the gross purchase was of Rs
487.71 crore with gross sales of Rs 437.32 crore.
The US markets remained closed in
last session unable to give any cues to the other global markets. The Asian
markets have made mostly a positive start and the dollar strengthened with
Asian equities after a Federal Reserve official said a March interest rate hike
is not off the table. The Indian markets rallied in last session with IT and
telecom stocks taking the charge. Today, the start is likely to be in green
tailing the positive trade in Asian peers. Traders will also be reacting to
yearly SBI Composite Index (year-on-year or y-o-y) for February 2017 improving
to 49.5 compared to last month's index of 47.0, indicating some improvement in
sentiment. The monthly Index though declined marginally to 49.2 in February
2017 from 50.9 in Jan 2017 which means IIP growth may continue to contract in
January and February 2017. The steel
stocks will remain in action as the government has extended anti-dumping duty
on import of certain steel products from China for five years with an aim to
protect domestic players from the cheap shipments. The levy has been imposed in
the range of $ 961.33 - 1,610.67. There will be some buzz in the PSU banking
stocks too, as heads of top ten state-run banks have met finance minister Arun
Jaitley to raise concerns over aggressive investigation into non-performing
loans which they said has impacted business. Meanwhile, Commerce Minister and
US lawmakers have discussed H-1B restrictions.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8879.20
|
8830.58
|
8907.03
|
BSE Sensex
|
28661.58
|
28488.39
|
28765.65
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
IDEA
|
232.33
|
108.45
|
106.68
|
110.98
|
Hindalco
|
178.74
|
183.30
|
180.07
|
186.22
|
SBI
|
92.29
|
269.65
|
267.92
|
271.47
|
ICICI Bank
|
90.43
|
282.35
|
280.25
|
285.30
|
ONGC
|
89.55
|
195.30
|
192.97
|
196.92
|
Idea Cellular has added 1.54 million new mobile subscribers in January 2017.
Tata Steel is exploring possibility of entering overseas markets like Bangladesh and Myanmar with retail branded steel solution products.
NTPC is looking for strategic partners to set up cement plants near its coal-based power stations to utilise fly ash.
Maruti Suzuki India's Smart Hybrid vehicles -- Ciaz SHVS and Ertiga SHVS -- have crossed cumulative sales of 100,000 units in February month.
Western Coalfields, a subsidiary of state-run mining company Coal India, has received the environment clearance for its Rs 263 crore expansion project in Nagpur district, Maharashtra.