Indian equity benchmarks ended
the choppy day of trade with half a percent cut, as traders remained on
sidelines ahead of services sector data for May slated to be released on June
5, while the Reserve Bank's rate decision will be announced on June 6. The RBI
is expected to take a wait-and-watch approach despite the higher GDP growth
figures released last week. However, Markets started the session with a gap-up
opening as traders took some encouragement with Prime Minister Narendra Modi's
statement that India's economy will sustain a growth of 7.5 to 8% per year. He
said the Indian government has kept its economic growth forecast for the
current fiscal unchanged at 7.5%, buoyed by turnaround in manufacturing and
pick up in investment. Traders also took note of Union Minister Nitin Gadkari's
statement that in a major policy initiative aimed at benefitting farmers, the
government has done away with the licensing permits for foreign vessels for
coastal movement of agriculture, fishery and animal produce, besides allowing
Indian citizens to charter ships for these. But, market participants pared all
of their initial gains and markets turned flat and traded choppy for most part
of the day, as sentiments remain dampened on report that foreign investors
pulled out a massive Rs 29,714 crore from the capital markets in May, making it
the biggest outflow in 18 months, primarily due to a surge in global crude
prices. Markets extended losses to end near intraday low levels, as some
anxiety persist with report that collections from the Goods and Services Tax in
May fell to Rs 94,016 crore, from the Rs 1.03 lakh crore collected in April.
Traders paid no heed towards report that the country's Fiscal Deficit, the
difference between total revenue and expenditure, has improved in the first
month of the current financial year 2018-19, on the back of higher revenue and
lower expenditure. As per the latest data released by the controller-general of
accounts (CGA), April's fiscal deficit was at 24.3% of the budget estimates, as
against 37.6% for the same period of the last fiscal year. Finally, the BSE
Sensex declined 215.37 points or 0.61% to 35011.89, while the CNX Nifty was
down by 67.70 points or 0.63% to 10,628.50.
Continuing rally for the second
straight session, the US markets ended higher on Monday, as investors shrugged
off global trade tensions and their focused shifted on a favorable economic
backdrop instead. Traders continued to
cheer a round of solid US jobs data released on Friday, which showed the
world's largest economy in better economic health than expected. That helped
spur a move back into riskier assets such as stocks, after political upheaval
in Italy earlier last week sparked a flight into havens such as bonds. The
optimism over the US data also helped overshadow lingering concerns over global
trade on Monday. A round of trade talks between the US and China broke down
over the weekend with no agreement, indicating a full-on trade war between the
world's two largest economies could be imminent. Meanwhile, finance ministers
from Canada, France, Germany, Italy, Japan and the UK issued a rare rebuke to
the US at a G-7 meeting on Saturday, expressing their unanimous concern and
disappointment about President Donald Trump's decision to place tariffs on
metals imports from America's major allies. On the economic front, the US
factory orders fell by 0.8% in April, driven by a decline in commercial
aircraft. Besides, there will be no Federal Reserve speeches as the central
bank is in its so-called blackout period ahead of its June 12-13 meeting. The
Dow Jones Industrial Average surged 178.48 points or 0.72 percent to 24813.69
and the S&P 500 increased 12.25 points or 0.45% to 2746.87 and the Nasdaq was
up by 52.13 points or 0.69 percent to 7606.46.
Crude oil futures extended losses
for the third straight session on Monday, as growing expectations that the
Organization of the Petroleum Exporting Countries (OPEC) will decide to ease
crude production curbs when it meet later this week, weighted down on the
sentiments. OPEC's next regular meeting will be held on June 22 in Vienna. OPEC
and 10 producers outside the cartel, including Russia, have been cutting crude
output by roughly 1.8 million barrels a day since the start of 2017. Besides,
investors will be eyeing the EIA's short-term energy outlook and OPEC oil
report are both due June 12, and the International Energy Agency's oil report
comes out June 13. Benchmark crude oil futures for July delivery dropped $1.06
or 1.6 percent to settle at $64.75 a barrel on the New York Mercantile
Exchange. August Brent crude slipped $1.50 or 2 percent to settle at $75.29 a
barrel on London's Intercontinental Exchange.
Snapping
its three-day winning streak, Indian rupee ended marginally weaker against
dollar on Monday, due to demand for greenback by banks and importers. Traders
remained on sidelines ahead of services sector data for May slated to be
released on June 5, while the Reserve Bank's rate decision will be announced on
June 6. The RBI is expected to take a wait-and-watch approach despite the
higher GDP growth figures released last week. Besides, heavy selling in last
hour of trade in the domestic equity markets too weighed on the rupee, but
dollar's reduced clout against other currencies overseas helped to cap the
losses in rupee. Traders also found some support with Prime Minister Narendra
Modi's statement that India's economy will sustain a growth of 7.5% to 8% per
year. Further, he said the Indian government has kept its economic growth
forecast for the current fiscal unchanged at 7.5%, buoyed by turnaround in
manufacturing and pick up in investment. On the global front, dollar moved
sharply lower against other major currencies on Monday, as investors digested
the latest developments in U.S. trade talks that indicated escalated trade
tensions could be on the way. Finally, the rupee ended at 67.12, 6 paise weaker
from its previous close of 67.06 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 4929.33 crore against gross selling of Rs 4804.25 crore, while in the
debt segment, the gross purchase was of Rs 661.81 crore with gross sales of Rs 435.34
crore. Besides, in the hybrid segment, the gross buying was of Rs 0.41 crore against
gross selling of Rs 0.08 crore.
The US markets ended higher on
Monday as traders continued to react positively to the release of better than
expected employment data last Friday. Asian markets are trading mostly in red
in early deals, as trade concerns continued to linger ahead of the G-7 meeting
later in the week. Indian equity benchmarks ended lower on Monday, as investors
awaited cues from the Reserve Bank of India's three-day monetary policy meeting
beginning on June 4th. Today, the markets are likely to make cautious start as
investors will be eyeing Reserve Bank of India's (RBI's) second bi-monthly
monetary policy outcome for 2018-19, due on June 6th. Traders will also be
eyeing services sector data for May slated to be released later in the day.
However, traders may get some support with report that as many as 16 projects,
including setting up of a cold chain in Madhya Pradesh, were approved under by
a commerce ministry scheme to develop infrastructure for promoting exports.
Meanwhile, markets regulator SEBI has drastically slashed the additional
expense charged by mutual funds to just 5 basis points to help increase the
penetration of such products among investors. The move will help reduce the
cost of investing in MFs and industry players believe that it may result in
lower commissions for distributors. There will be buzz in sugar related stocks
on report that Centre is expected to announce a fresh package of almost Rs 8000
crore to bail out the sugar sector. This will be in addition to the financial
assistance of Rs 5.50 per quintal of sugarcane announced a few weeks ago,
costing over Rs 1500 crore.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,628.50
|
10,574.47
|
10,726.42
|
BSE Sensex
|
35,011.89
|
34,810.90
|
35,384.24
|
Nifty Top volumes
Stock
|
Volume
|
Previous close
(Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
HDFC Bank
|
221.99
|
2,046.20
|
2,003.77
|
2,122.82
|
ICICI Bank
|
171.89
|
286.75
|
283.77
|
291.52
|
Yes Bank
|
145.02
|
342.95
|
339.67
|
348.57
|
SBI
|
129.34
|
263.00
|
260.08
|
267.13
|
Vedanta
|
114.84
|
246.75
|
244.35
|
249.30
|
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