Indian equity benchmarks remained
in grip of bears on Monday, with both the larger peers, Sensex and Nifty
closing the trading session lower by around 0.90%, each. The start of the day
was somber on account of weak global cues amid growing concerns about an
impending US recession. Adding some worries on the street, Vice President of
India M. Venkaiah Naidu called for a renewed focus on rural health care and
cautioned that the quality of healthcare being delivered cannot be determined
by the price being paid. Sentiments also remain dampened, as credit rating
agency ICRA in its latest report warned that the tight liquidity has crimped
credit growth for housing finance companies (HFCs) and is unlikely to improve
much in FY20, even as the weak external environment will put a pressure on
asset quality. It noted that HFCs are likely to register a 13-15% credit growth
in FY19, which will inch up to 14-16% in FY20. Markets remained under pressure
throughout the day, tracking weak global markets. Domestic sentiments also
remained pessimistic with a private report stating that India's industrial
production is expected to stay muted in the near term, owing to weak exports,
rural distress, credit constraints and uncertainty over the election outcome.
According to the report, the Index of Industrial Production (IIP) is likely to
have grown by 3-3.2 per cent during February 2019. Investors paid no heed
towards the Reserve Bank of India's (RBI) report showing that India's foreign
exchange reserves surged by a whopping $3.602 billion to $405.638 billion in
the week to March 15, driven by rise in foreign currency assets. Traders also
failed to take any sense of relief with the Employees' Provident Fund
Organisation (EPFO) data report that net employment generation in the formal
sector touched a 17-month high of 8.96 lakh in January. The addition in January
was 131% higher as compared with 3.87 lakh EPFO subscribers added in the
year-ago month. Finally, the BSE Sensex lost 355.70 points or 0.93% to
37,808.91, while the CNX Nifty was down by 102.65 points or 0.90% to 11,354.25.
The US markets ended mostly in
red on Monday on account of lingering
concerns about the outlook for the economy continued to weigh on the markets after
dragging stocks sharply lower last Friday. An inversion of the yield curve
contributed to economic worries, with the yield on the benchmark ten-year note
falling below the yield on three-month bills. The US has thus far held up
relatively well amid a global economic slowdown, although Federal Reserve
Chairman Jerome Powell has warned about the negative impact slowing growth in
Europe and China will have on the US Powell's comments came after the Fed
revealed that it no longer expects to raise interest rates this year, which
some Participates described as an effort to keep the stock markets afloat amid
an expected contraction in first quarter earnings. Besides, the choppy trading
on markets came as traders seemed reluctant to make more significant moves amid
a quiet day on the US economic front. Reports on housing starts, consumer
confidence, pending home sales, personal income and spending and new home sales
are likely to attract attention in the coming days. Traders are also likely to
keep an eye on the latest round of high-level trade talks between the US and
China set to take place in Beijing this week. However, Dow Jones Industrial
Average bucked the trend to rise as shares of Boeing Company rallied after
recent losses. Boeing BA shares rose 2.3%, recouping some of the losses in the
wake of the fatal crash of the company's 737 Max 8 aircraft near Ethiopia's
capital, Addis Ababa that resulted in the death of 157 people. The stock is
down 16% so far this month. Nasdaq lost 5.13 points or 0.07 percent to 7637.54
and S&P 500 was down by 2.35 points or 0.08 percent to 2798.36, while Dow
Jones Industrial Average gained 14.51 points or 0.06 percent to 25516.83.
Crude oil futures ended lower on
Monday on the back of persistent worries about an economic slowdown hurting
energy demand. However, Brent crude ended higher, which found support from
ongoing cuts among major crude producers as well as tensions in Venezuela.
Meanwhile, tensions surrounding the Organization of the Petroleum Exporting
Countries (OPEC) member Venezuela heated up Monday. US Secretary of State Mike
Pompeo told Russian Foreign Minister Sergei Lavrov that the US will not stand
idly by if Russia continues to send military personnel to Venezuela to support
the regime of Nicolas Maduro. Benchmark crude oil futures for May declined 22
cents or 0.4 percent to settle at $58.82 a barrel on the New York Mercantile
Exchange. However, May Brent crude added 18 cents or 0.3 percent to settle at
$67.21 a barrel on London's Intercontinental Exchange.
Indian
rupee ended almost flat against dollar on Monday, on account of some buying in
American currency by banks and importers. Traders remained wary with a private
report stating that India's industrial production is expected to stay muted in
the near term, owing to weak exports, rural distress, credit constraints and
uncertainty over the election outcome. According to the report, the Index of
Industrial Production (IIP) is likely to have grown by 3-3.2 per cent during
February 2019. Rupee was weighed down also on the back of rise in global crude
oil prices along with sharp losses in the local equities. On the global front,
dollar edged back from a six-week low against yen on Monday, as a degree of
calm returned to the market gripped by fears of a recession in the United
States. Finally, the rupee ended at 68.96, 1 paise weaker from its previous
close of 68.95 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 8133.57 crore against gross selling of Rs 6697.41 crore, while
in the debt segment, the gross purchase was of Rs 2972.27 crore with gross
sales of Rs 2485.80 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.57 crore against gross selling of Rs 0.55 crore.
The US markets ended Monday's
choppy trading session mostly lower, as investors wrestled to make sense of
newly pessimistic outlooks for the global economy. Asian markets are trading
mostly higher on Tuesday as European and North American markets stabilised in
the overnight session. Indian equity markets extended their losses for second
consecutive session on Monday, as Sensex and Nifty settled with cut of around a
percent, following global sell-off on growing fears of US economy entering into
recession. Today, the markets are likely to make a cautious start amid mixed
global cues. Traders will be concerned about state-run India Meteorological
Department's (IMD) statement that its study of global models shows that there
is little chance of a strong El Nino in 2019. A strong El Nino could have an
adverse impact on India's southwest monsoon that starts from June as almost 80
per cent of El Nino years have seen below normal rains. There will be some
cautiousness with a report stating that food inflation in the country is likely
to go up to 2 per cent in the financial year 2019-20 from the 0.7 per cent
estimated for FY19. The report noted that the low food prices have been one of
the prime factors which have aided the RBI to be more accommodatory in its rate
setting recently. Traders will also be reacting to the Employees State
Insurance Corporation (ESIC) data showing that job creation fell by 6.91 per
cent in January to 11.23 lakh compared to 12.06 lakh in the same month last
year. During September 2017 to January 2019, as many as 2.08 crore new
subscribers joined the ESIC scheme. However, traders may get some support later
in the day with the finance ministry's statement that the liquidity situation
in the economy was comfortable, and it will improve further with the central
bank's move to infuse Rs 35,000 crore through the rupee-dollar swap
arrangement, announced last week. Meanwhile, markets regulator SEBI has
reviewed and modified the commission as well as disclosure norms for the mutual
fund industry. There will be some buzz in the telecom sector stocks with ICRA's
report stating that the Reliance Jio-induced pains for the telecom sector will
continue with the industry slated to report decline in revenue for the third
consecutive year. However, it said there is room for a minor recovery in the
upcoming fiscal year 2019-20. Also, India is considering to seek extension of
the deadline set by the US for withdrawal of export benefits to domestic
exporters under Generalized System of Preferences (GSP) programme.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,354.25
|
11,312.02
|
11,396.07
|
BSE Sensex
|
37,808.91
|
37,645.29
|
37,994.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
NTPC
|
315.36
|
135.35
|
133.57
|
137.32
|
IOC
|
236.86
|
164.35
|
157.60
|
168.50
|
Yes Bank
|
235.40
|
247.25
|
245.43
|
249.73
|
ONGC
|
226.38
|
158.65
|
152.72
|
162.57
|
SBI
|
168.96
|
294.00
|
292.32
|
295.57
|
L&T's construction arm -- L&T Construction has secured orders from prestigious clients across different states in India.
Tata Motors is going to increase prices of its passenger vehicles range by up to Rs 25,000, starting April 2019.
NTPC is all set to commence commercial operation of Unit 3 of 250 MW of Bongaigaon Thermal Power Project with effect from March 26, 2019.
Bharti Airtel has slashed ISD call rates to Bangladesh and Nepal by up to 75 percent for pre-paid customers without any need for a special recharge to cut the tariff.