Paring most of their early gains,
Indian equity benchmarks ended the Wednesday's trade with marginal gains as
investors digested macro-economic data and looked ahead to the Fed and ECB
meetings for direction. Markets started the session on an optimistic note
boosted by good industrial production data for April. India's industrial
production grew 4.9 percent in April, as compared with 4.4 percent in March.
The factory output index growth rate moderated in March after consistently
being above 7 percent between November and February. It expanded 6 percent a
year ago. Some support came with markets regulator Sebi's proposal to allow
direct listing of Indian companies on overseas bourses and of foreign firms on
Indian exchanges, while setting up an expert panel to look into the details.
Currently, Indian companies can list their shares through depository receipts
abroad, while foreign companies need to go through the Indian Depository
Receipt route for listing of equities. Some support also came with a report
that the Central Board of Indirect Taxes and Customs (CBIC) has extended the
refund fortnight for fast track clearance of pending dues to exporters by two
days till June 16. However, market participants pared most of their early gains
in last leg of trade to end slightly higher ahead of the wholesale price index
(WPI) inflation data will be announced on June 14, 2018. Traders also remained
on sidelines ahead of the outcome of US Federal Reserve's two-day policy
meeting concludes on June 13 and the European Central Bank (ECB) policy meeting
to be held on June 14, 2018. Anxiety also spread among the investors, as
industry body CII warned that rate hike by the Reserve Bank will increase the
cost of doing business and impact capital expenditure by India Inc. Sentiments
also weighed down on report that that India's retail inflation hit a four-month
high after jumping to 4.87 percent in May from April's 4.58 percent driven by
costlier food and fuel. Retail inflation, measured by Consumer Price Index
(CPI), had fallen to 2.18 percent in May 2017. Finally, the BSE Sensex gained
46.64 points or 0.13% to 35,739.16, while the CNX Nifty was up by 13.85 points
or 0.13% to 10,856.70.
The US markets ended the
Wednesday's trade in red terrain after the Fed announced its decision to raise
interest rates by 25 basis points to a range of 1.75 percent to 2 percent.
While the rate hike was widely expected, the Fed seemed to surprise investors
by forecasting two additional rate hikes this year after previously predicting
one rate increase. The Fed reiterated that it expects further gradual rate
increases but dropped language predicting rates are likely to remain below
levels that are expected to prevail in the longer run. The central bank said
data received since its May meeting indicates that the labor market has
continued to strengthen and that economic activity has been rising at a solid
rate. Annual overall inflation and core inflation have moved close to 2
percent, the Fed said and noted indicators of longer-term inflation
expectations are little changed. On the economic front, the Labor Department
released a report showing a bigger than expected increase in producer prices in
the month of May. The Labor Department said its producer price index for final
demand climbed by 0.5 percent in May after inching up by 0.1 percent in April.
The street had expected producer prices to rise by 0.3 percent. The Nasdaq
declined 8.10 points or 0.11 percent to 7,695.70, the S&P 500 shed 11.22
points or 0.40% to 2,775.63 and the Dow Jones Industrial Average was down by
119.53 points or 0.47 percent to 25,201.20.
Rising for the third consecutive
session, Crude oil futures ended higher on Wednesday, settling at a nearly
two-week high, as U.S. crude supplies fell more than expected last week, which
was the largest one-week drop since the end of March. The U.S. Energy
Information Administration (EIA) reported that crude supplies fell by 4.1
million barrels for the week ended June 8. That was the biggest one-week drop
since the 4.6 million-barrel decline reported for the week ending March 30.
However, gains were limited as the Energy Information Administration report
showed a sizable weekly climb in total U.S. crude production and recent data
offered evidence of a pickup in output from the Organization of the Petroleum
Exporting Countries. Benchmark crude oil futures for July delivery surged 28
cents or 0.4 percent to settle at $66.64 a barrel on the New York Mercantile
Exchange. August Brent crude rose 86 cents or 1.1% at $76.74 a barrel on
London's Intercontinental Exchange.
Falling
for the second consecutive session, Indian rupee depreciated against dollar on
Wednesday, on continued demand for the American unit coupled with its growing
strength overseas. Traders remained concerned with report that that India's
retail inflation hit a four-month high to 4.87 percent in May from April's 4.58
percent driven by costlier food and fuel. Retail inflation, measured by
Consumer Price Index (CPI), had fallen to 2.18 percent in May 2017. Anxiety
also spread among the investors, as industry body CII warned that rate hike by
the Reserve Bank will increase the cost of doing business and impact capital
expenditure by India Inc. However, losses got restricted with data indicating
that India's Industrial output expanded by 4.9 percent in April this year,
spurred by higher growth in manufacturing and mining sectors. The industrial
growth, measured on the Index of Industrial Production (IIP), was 3.2 per cent
in April last year. On the global front, dollar edged up against yen on
Wednesday ahead of a Federal Reserve policy announcement that investors will
scan for clues on how many more U.S. rate hikes there will be this year.
The FIIs as per Wednesday's data
were net sellers in equity and debt segments both. In equity segment, the gross
buying was of Rs 4086.23 crore against gross selling of Rs 5407.87 crore, while
in the debt segment, the gross purchase was of Rs 1045.61 crore with gross
sales of Rs 1819.56 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.15 crore against gross selling of Rs 0.91 crore.
The US markets ended in red on
Wednesday, as the Federal Reserve completed its second increase to benchmark
interest rates in 2018, as expected, but signaled a slightly more aggressive
plan to tighten monetary policy this year than had previously been projected.
Asian markets trading lower after the Fed raised interest rates and took a more
hawkish tone in forecasting a slightly faster pace of tightening for the rest
of the year, while concerns about US-China trade frictions kept investors on
edge. Indian equity benchmarks ended higher for a third straight session on
Wednesday, although markets ended off their day's highs ahead of the Fed and
ECB meetings. Today, the markets are likely to make pessimistic start amid
feeble global cues. Sentiments will remain dampen on report that the country's
current account deficit (CAD) rose to $13 billion (Rs 878 billion and 1.9 per
cent of gross domestic product, or GDP) in the fourth and final quarter (Q4 of
2017-18), compared to $2.6 billion (Rs 176 billion and 0.4 per cent of GDP) in
the same period of 2016 -17. Traders will also remain concern on report that
Reserve Bank of India to hike rates once again at its August monetary policy
review as headline inflation surging to a four-month high of 4.87 per cent in
May. However, traders will get some support later in the day with Fitch Ratings
raising India growth forecast for 2018-19 to 7.4 per cent from 7.3 per cent,
but cited higher financing costs and rising oil prices as risks to growth. For
2019-20, it estimated the country to grow at 7.5 per cent. Traders will also
get some solace with report that India will push for amicable solutions to
trade disputes with the United States while hoping to address American concerns
over market access and tariff levels during bilateral meetings between the two
nations due soon.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,856.70
|
10,835.15
|
10,885.75
|
BSE Sensex
|
35,739.16
|
35,677.61
|
35,839.06
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
SBI
|
267.48
|
287.70
|
284.35
|
290.35
|
Sun Pharma
|
201.68
|
546.30
|
538.78
|
557.38
|
Vedanta
|
114.71
|
243.10
|
241.17
|
245.37
|
ICICI Bank
|
109.28
|
290.75
|
287.13
|
293.63
|
Tata Steel
|
90.60
|
567.60
|
561.13
|
578.93
|
Yes Bank is in the process of acquiring stake in an unlisted company, namely, India International Exchange.
Sun Pharma has received the EIR from the USFDA for the inspection conducted at its Halol facility in the state of Gujarat, during the period February 12-23, 2018.
Reliance Industries' telecom arm Reliance Jio has started offering 1.5 GB additional data per day to customers on all pre-paid plans priced in the range of Rs 149 to Rs 499.
Lupin has launched its Tobramycin Inhalation Solution USP, having received an approval from the USFDA earlier.