Indian equity
benchmarks extended the winning streak for seventh straight session with
frontline gauges ending near their crucial 33,200 (Sensex) and 10,500 (Nifty)
levels, as better than expected macro-economic data painted a positive picture
of the economy. Markets started the session on an optimistic note with report
that India's industrial output grew 7.1% year-on-year in February, bigger than
the expected 6.8% expansion. The cumulative growth for the period
April-February 2017-18 over the corresponding period of the previous year stood
at 4.3%. India's Consumer Price Index (CPI) for the month of March came to
4.28% as compared to 4.44% in February. CPI food inflation for March also eased
substantially to 2.81% versus 3.26% in last month. Traders also took some
encouragement with report that the Confederation of Indian Industry (CII) is
expecting India's gross domestic product (GDP) to grow at 7.3-7.7% during the
2018-19 financial year. This is based on strengthening demand in the rural
economy, including agriculture and non-farm activities, as well as better
global growth climate. However, some profit booking was seen in second half of
trade with market participants paring most of their gains as some concerns came
with former RBI governor Raghuram Rajan's statement that he made it quite clear
to the government that demonetisation was not a good idea and that its
implementation was not well-planned since 87.5% of the currency was being demonetised.
However, markets managed to end the session in green, as some support came with
global rating agency, Moody's Investors Service in its latest report stating
that the pick-up in India's GDP growth rate is optimistic for asset-backed
securities (ABS), because such growth will support the ability of borrowers to
earn income and repay loans backing ABS deals, including auto loans and loans
against property to micro, small and medium enterprises (MSMEs). Finally, the
BSE Sensex surged 91.52 points or 0.27% to 34,192.65, while the CNX Nifty was
up by 21.95 points or 0.21% to 10,480.60.
The US markets
closed the Friday's trade on pessimistic note, as better-than-expected
first-quarter earnings failed to stir buying appetite on Wall Street.
Underlining concerns about lofty quarterly expectations for American
corporations and geopolitical anxiety too dampened sentiments. However markets
started the session on optimistic note as traders reacted positively to
earnings news from financial giants JPMorgan Chase (JPM), Citigroup (C), and
Wells Fargo (WFC). Buying interest waned shortly due to the release of a report
from the University of Michigan showing a bigger than expected drop in consumer
sentiment in the month of April. The report said the preliminary reading on the
consumer sentiment index for April came in at 97.8 compared to the final March
reading of 101.4. The street had expected the index to edge down to 100.5.
Richard Curtin, the survey's chief economist said, the consumer sentiment
slipped in early April, largely reversing the gains recorded in the prior two
months. The small decline was widely shared by all age and income subgroups and
across all regions of the country. He added, importantly, confidence still
remains relatively high, despite the recent losses that were mainly due to
concerns about the potential impact of Trump's trade policies on the domestic
economy. The Dow Jones Industrial Average declined 122.91 points or 0.50
percent to 24,360.14, the Nasdaq dropped 33.60 points or 0.47 percent to
7,106.65, while the S&P 500 was down by 7.69 points or 0.29 percent to
2,656.30.
Crude oil
futures ended higher on Friday on expectations that OPEC has re-balanced the
oil markets with its supply quota plan. The cartel is determined to put a floor
under oil prices around $70 a barrel. However, the brewing trade war between
the U.S. and China could hurt oil demand, the IEA warned. Tensions in Syria and
fears of a wider conflict including the U.S. and Russia have also boosted oil
prices. Baker Hughes said the total active U.S. rig count, which includes oil
and natural-gas rigs, rose by 5 to 1,008. Meanwhile, the IEA indicated that
global oil stockpiles are dwindling and approaching the five-year average the
Organization of the Petroleum Exporting Countries is targeting. Benchmark crude
oil futures for May delivery gained 32 cents or 0.5 percent to settle at $67.39
a barrel on the New York Mercantile Exchange. June Brent crude jumped 56 cents
or 0.8% percent to settle at $72.58 a barrel on London's Intercontinental
Exchange.
Indian
rupee ended tad higher against dollar on Friday, owing to dollar sale by
exporters and banks. Traders took some support with data showing that India's
industrial production measured by Index of Industrial Production (IIP) grew at a
faster rate of 7.1% in the month of February 2018 as against a growth rate of
1.2% in the same month of 2017, while retail inflation softened to a five-month
low of 4.28% in the month of March 2018, as against 4.44% in February 2018,
mainly on account of easing food prices including vegetables. However, dollar's
strength against major global currencies overseas capped some of the rupee's
gain. On the global front, dollar touched a six-week high against the Japanese
yen on Friday, as caution over an imminent Western military intervention in
Syria eased and anticipation for a solid round of US corporate earnings helped
support the US unit. Finally, the rupee ended at 65.21, 4 paise stronger from
its previous close of 65.25 on Thursday.
The FIIs as per Friday's data
were net buyers in equity and debt segments both, in the equity segment, the
gross buying was of Rs 4721.42 crore against gross selling of Rs 4251.83 crore,
while the debt segment, the gross purchase was of Rs 819.24 crore with gross
sales of Rs 644.37 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.17 crore against no selling.
The US markets
ended in red terrain on Friday as buying interest waned shortly after the open
with traders turning reluctant to make significant moves ahead of a slew of
earnings news next week. Asian markets were trading mixed on Monday, as
investors digested the softer close on Wall Street and geopolitical tensions on
the back of U.S. led airstrikes on Syria last week. Indian shares extended
their winning streak to a seventh straight session on Friday as investors
digested positive macro data and looked ahead to Infosys' earnings for
directional cues. Today, the markets are likely to make a cautious start, as
geopolitical concerns linger and focus gradually shifts to corporate earnings.
Traders will also remained concerned with report that India's merchandise
exports fell for the first time in five months in March and the trade deficit
widened amid concerns over global trade and US moves to review a programme
allowing duty-free imports of goods. India's merchandise exports in March fell
0.7 per cent year-on-year to $29.1 billion, and the trade deficit widened to
$13.7 billion. Imports rose 7.2 percent on year to $42.8 billion in March.
However, traders will get some support later in the day on World Economic
Forum's (WEF) report that India is well positioned to play a key role in
shaping the global fourth industrial revolution with a young labour force, a
large English-speaking population and the second largest numbers of internet
users. Some support may also come with Asian Development Bank's (ADB) statement
that India can achieve over 8 per cent growth rate in a sustained manner if it
takes steps to revive investments and make exports competitive. Infosys will be
in focus after the IT major met Street expectations on financial numbers for
the January-March quarter as well as for 2017-18. But the firm's revenue growth
guidance for 2018-19, especially the projection on operating margin,
disappointed investors.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous
close
|
Support
|
Resistance
|
NSE
Nifty
|
10,480.60
|
10,448.07
|
10,516.52
|
BSE
Sensex
|
34,192.65
|
34,093.07
|
34,302.68
|
Nifty Top volumes
Stock
|
Volume
|
Previous
close (Rs)
|
Support (Rs)
|
Resistance
(Rs)
|
(in
Lacs)
|
SBI
|
256.54
|
250.95
|
248.45
|
254.70
|
ICICI
Bank
|
174.97
|
288.25
|
285.67
|
290.97
|
Hindalco
|
167.75
|
237.80
|
235.43
|
239.33
|
Yes
Bank
|
128.50
|
309.55
|
305.35
|
314.10
|
Vedanta
|
115.10
|
291.65
|
288.53
|
294.73
|
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