Extending winning streak for
fourth straight session, Indian equity benchmarks ended the Tuesday's trade in
green terrain with frontline gauges recapturing their crucial 10,400 (Nifty)
and 33,800 (Sensex) levels. Markets traded in green throughout the session but
in a tight band. Sentiments remained up-beat since beginning, as traders bet
for improved corporate earnings and acceleration in economic growth, with
readings on industrial production and retail inflation due on Thursday. Traders
took some encouragement with Commerce and Industry Minister Suresh Prabhu's
statement that India can benefit from the ongoing challenges in global trade
provided it plays its cards well. He said, We are passing through a
challenging but an opportune time. If we play our cards properly, and that is
what we are trying to do we can actually benefit from it by creating an
opportunity around the issues that are happening globally and we have no choice
but to respond in a positive manner. Investors took note that in a major boost
to infrastructure development in the north-east, NITI Aayog will soon hold a
high-level meeting to chalk out strategies for improving road, rail and air
connectivity in the regions besides focusing on improving hydel power
production and organics farming in the states. Traders took some support with
private report showing that FPI investment limits in central government
securities for general and long term investors have been increased by Rs 59,200
crore or over $9 billion to a total of Rs 3.15 lakh crore till the end of FY19.
Some support also came after Prime Minister Narendra Modi gave a 100-day
deadline to the heads of central public sector enterprises (CPSEs) to come out
with a roadmap with measurable targets for strengthening state-owned
companies and promoting development activities. Modi also suggested that their
CSR spend should be focused largely on one specific theme each year. Finally,
the BSE Sensex surged 91.71 points or 0.27% to 33,880.25, while the CNX Nifty was
up by 22.90 points or 0.22% to 10,402.25.
The US markets closed higher on
Tuesday, thanks to a less-aggressive stance on trade taken by Chinese President
Xi Jinping. Xi's conciliatory comments on tariffs helped to ease concerns about
an escalating conflict between the world's two largest economies, sending
prices of risky assets such as global equities and commodities higher. He also
talked about a cut in tariffs on car imports and an improvement in protection
of intellectual property, among other measures. While many of the measures had
been previously touted by Xi, investors cheered the lack of any escalation in
rhetoric. On the economy front, the index of small-business optimism from the
National Federation of Independent Businesses fell to 104.7 in March. The
confidence index roared higher early in the year, and despite a decline of
nearly three points, remains among the highest in survey history. The fewest
survey respondents since 1982 said taxes were their number one business
problem. Meanwhile, US wholesale prices accelerated in March to show a 0.3%
increase despite lower energy costs, suggesting inflationary pressures in the
US have become more widespread. The 12-month rate of wholesale inflation,
meanwhile, rose to 3% for the first time since November and only the second
time since the government reformulated its PPI index in 2013. The Dow Jones
Industrial Average added 428.9 points or 1.79 percent to 24,408.00, the Nasdaq
gained 143.957 points or 2.07 percent to 7,094.30, while the S&P 500 was up
by 43.71 points or 1.67 percent to 2,656.87.
Crude oil futures edged sharply
higher on Tuesday with Brent oil futures settling at their highest in more than
three years as tensions linked to Syria raised the potential for disruptions to
Middle East crude output. The oil prices up-move was also supported by report
that Chinese and U.S. officials have softened their rhetoric over their trade
spat, easing worries over the potential for a slowdown in demand for oil.
Meanwhile, the EIA's weekly petroleum supply data are due Wednesday and the street
is expecting the agency to report a weekly rise of 100,000 barrels in crude
stockpiles, along with declines of 2 million barrels in gasoline and 1.2
million barrels in distillate supplies. Benchmark crude oil futures for May
delivery gained $2.09 or 3.3 percent to settle at $65.51 a barrel on the New
York Mercantile Exchange. June Brent crude jumped $2.39 or 3.5 percent to
settle at $71.04 a barrel on London's Intercontinental Exchange.
Indian
rupee pared some of early gains to end marginally higher against dollar on Tuesday,
due to some dollar demand from importers and corporates. Traders took some
support with Commerce and Industry Minister Suresh Prabhu expressing hopes that
India can benefit from the ongoing challenges in global trade provided it makes
the right moves. The Minister added that the Indian government is taking steps
to boost exports, industrial growth and manufacturing activities. Besides,
positive trend in equity market too supported the rupee. However, gains were
capped as investors remained cautious ahead of key economic data i.e. February
IIP and March CPI data, scheduled to be released on April 12. On the global
front, dollar rose against the yen on Tuesday after Chinese President Xi
Jinping's promise to cut import tariffs eased concerns about a trade conflict
and revived risk appetite.Finally, the rupee ended at 64.99, 4 paise stronger
from its previous close of 65.03 on Monday.
The FIIs as per Tuesday's data
were net sellers in equity segment, while they were net buyers in debt segment,
in the equity segment, the gross buying was of Rs 4492.70 crore against gross
selling of Rs 5777.21 crore, while in debt segment, the gross purchase was of
Rs 3267.92 crore with gross sales of Rs 2511.95 crore. Besides, in the hybrid
segment, the gross buying was of Rs 0.26 crore against gross selling of Rs 1.98
crore.
The U.S. stocks edged higher on
Tuesday as traders reacted positively to comments from Chinese Xi Jinping
regarding the trade dispute between China and the U.S. Xi promised to lower
import tariffs on products including cars and take other steps to further open
the world's second-largest economy. Asian markets are trading mostly in green
tracking strength overnight in the U.S. and Europe as Chinese President Xi
Jinping's comments eased concerns about a trade war and calmed the market. Indian
shares rose for a fourth consecutive session on Tuesday as global cues remained
well supported on increased hopes that a full-blown war between the U.S. and
China could be averted. Today, the markets are likely to make positive start
tracking firm global cues. Traders will take some encouragement with World
Economic Forum's (WEF) statement that India can play a pivotal role in shaping
the global fourth Industrial revolution as over half of its population is under
the age of 27. The WEF has already partnered with the Indian government to set
up the Centre for the Fourth Industrial Revolution India in Mumbai. Some
support will also come with report that the Reserve Bank continued to remain a
net purchaser of the US currency in February after it had bought $1.665 billion
from the spot market. During the month, the central bank bought $3.320 billion,
while it sold $1.655 billion in the spot market. Meanwhile, the government is
considering converting GST Network- which is handling the IT infrastructure of
the new indirect tax regime - into a state-owned company. Currently, private
financial institutions are the majority owners in GSTN with 51 percent stake,
while the centre and states together hold 49 percent. Traders will remain
concern with report that Fitch Ratings downgraded the viability rating of
Punjab National Bank (PNB) to BB- from BB, saying that fraudulent
transactions will affect the bank's financials, including its earnings and core
capitalization.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,402.25
|
10,380.88
|
10,424.23
|
BSE Sensex
|
33,880.25
|
33,812.37
|
33,949.05
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
ICICI Bank
|
447.42
|
288.80
|
280.42
|
295.82
|
Hindalco
|
275.19
|
230.00
|
228.05
|
232.40
|
Axis Bank
|
216.89
|
546.15
|
528.47
|
556.77
|
SBI
|
212.01
|
263.30
|
259.53
|
266.03
|
ITC
|
146.83
|
266.70
|
264.97
|
268.57
|
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Dr. Reddy's Laboratories has received the EIR from the USFDA for its API Cuernavaca plant in Mexico.
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