Indian equities ended Monday's
trading session on negative note, with Sensex and Nifty losing over 160 and 60
points, respectively. The markets made a slightly higher start of the day,
aided by Finance Minister Arun Jaitley's statement that India is expected to
become the third largest economy in the world by 2030 with GDP touching $10
trillion, helped by consumption and investment growth. Currently, the size of
the Indian economy is about $2.9 trillion. Talking about avenues of growth for
the next 20 years, the finance minister listed infrastructure creation, rural
expansion and gender parity, among others. Adding some support, World Bank
Chief Economist for the South Asia Region, Hans Timmer said that India's
economic growth in recent years has been too much driven by domestic demand and
its exports were about one third of its potential. However, key equity indices
soon turned volatile to settle the session in red terrain, on the back of mixed
cues from global markets. Domestic sentiments also got impacted with a ratings'
latest report that Indian IT majors hit due to H1-B visa restrictions. It said
that Restrictions on the H1-B visas by the US have compelled Indian tech
companies to hire more locally and led to an escalation in employee costs.
Market participants also remained on sidelines ahead March-quarter corporate
earnings along with inflation data due to release on April 12. Investors took a
note of Commerce and Industry Minister Suresh Prabhu's statement that there is
a need to develop a proper matrix to understand changes in the Indian economy
and job creation that is happening at a rapid pace. He also stated that the
relation between employment generation to Gross Domestic Product (GDP) will
always undergo a change depending upon the profile of the economy. Finally, the
BSE Sensex slipped 161.70 points or 0.42% to 38,700.53, while the CNX Nifty was
down by 61.45 points or 0.53% to 11,604.50.
The US markets ended mostly
higher on Monday as investors geared up for a new earnings season. Financial
giants JPMorgan Chase (JPM) and Wells Fargo (WFC) due to report their quarterly
results before the start of trading on Friday. However, upside remain capped on
the heels of recent strength, with the major averages pulling back following
the notable upward move seen last week.
Lingering concerns about a slowdown in the pace of global economic
growth inspired traders to cash in on the recent gains. Meanwhile, investors
were also awaiting concrete progress on US-China trade negotiations which will
be symbolically concluded with a meeting between President Donald Trump and his
Chinese counterpart Xi Jinping. On the economic front, new orders for US
manufactured goods fell by slightly less than expected in the month of
February, according to a report released by the Commerce Department. The report
said factory orders dropped by 0.5% in February after coming in virtually
unchanged in January. The decrease in factory orders came as orders for durable
goods tumbled by 1.6%, more than offsetting a 0.6% increase in orders for
non-durable goods. Excluding a 4.5% nosedive in orders for transportation
equipment, factory orders rose by 0.3% in February after edging down by 0.1% in
January. The Commerce Department also said shipments of manufactured goods rose
by 0.4% in February after slipping by 0.3% in the previous month. Nasdaq gained
15.19 points or 0.19 percent to 7953.88 and S&P 500 was up by 3.03 points
or 0.10 percent to 2895.77, while Dow Jones Industrial Average declined 83.97
points or 0.32 percent to 26341.02.
Crude oil futures ended higher on
Monday as fighting in Libya fed expectations for tighter global supplies. The
US military said it pulled a small contingent of American forces from Libya as
the country teetered on the brink of full-scale civil war, with fighting
continuing around the capital Tripoli. Besides, signs that trade tensions are
easing between the US and China also provided support to oil prices. Meanwhile,
there are reports that China's state-owned energy giant Sinopec had resumed
buying US oil, which was bullish for the oil market. Benchmark crude oil
futures for May surged $1.32 or 2.1 percent to settle at $64.40 a barrel on the
New York Mercantile Exchange. June Brent crude rose 76 cents or 1.1 percent to
settle at $71.10 a barrel on London's Intercontinental Exchange.
Indian rupee continued its fall for the third day in a row
against the US currency on Monday, on increased demand for the American unit
from importers. The weakness of the rupee comes amid a rise in crude oil
prices. Weakness in the domestic equity markets in the second half of the
session also hurt the rupee. Market participants paid no heed towards Finance
Minister Arun Jaitley's statement that India is expected to become the third
largest economy in the world by 2030 with GDP touching $10 trillion, helped by
consumption and investment growth. Currently, the size of the Indian economy is
about $2.9 trillion. Talking about avenues of growth for the next 20 years, the
finance minister listed infrastructure creation, rural expansion and gender
parity, among others. On the global front, euro edged higher from a one-month
low hit last week as investors squared positions before a European Central Bank
meeting this week where policymakers may strike a cautious note on the region's
growth outlook. Finally, the rupee ended at 69.67, 44 paise weaker from its
previous close of 69.23 on Friday.
The FIIs as per Monday's data
were net buyers in equity segment, while they were net sellers in debt segment.
In equity segment, the gross buying was of Rs 4286.49 crore against gross selling
of Rs 3616.58 crore, while in the debt segment, the gross purchase was of Rs
1064.08 crore with gross sales of Rs 1502.45 crore. Besides in the hybrid
segment, the gross buying was of Rs 2.63 crore against gross selling of Rs 1.85
crore.
The US markets settled mostly
higher on Monday, as investors geared up for a new earnings season. Asian
markets are trading mixed on Tuesday as investors watched developments such as
the renewed conflict in key oil producer Libya. India markets ended Monday's
choppy trading session lower, with cut of around half a percent, amid sharp
rise in crude oil prices coupled with weak rupee. Today, the start of the
session is likely to be cautious on mixed cues from Asian peers amid higher oil
prices. However, traders may be getting encouragement with the World Bank's
report stating that India's GDP growth is expected to accelerate moderately to
7.5 per cent in Fiscal Year 19-20, driven by continued investment
strengthening, particularly private-improved export performance and resilient
consumption. Data for the first three quarters suggest that growth has been
broad-based. Industrial growth accelerated to 7.9 per cent, making up for a
deceleration in services. Traders may take note of a report that the Reserve
Bank of India (RBI) has come out with guidelines for banks to set up new
currency chests, which include minimum area of 1,500 square feet for strong
room. Besides, the new chests should have a processing capacity of 6.6 lakh
pieces of banknotes per day. For those situated in the hilly/ inaccessible
places, capacity of 2.1 lakh pieces of banknotes per day. Meanwhile, a report
stated that the new Central government will undertake a thorough review of the
public sector banks (PSBs) soon after taking office. As per the report, with
the announcement of elections, it has been decided to hold the review meeting
of banks only after a new government is in place. The review will study plans
for the recapitalisation of banks besides taking note of their NPA
(non-performing assets) recovery target as well as the next merger exercise.
There will be some buzz in the auto industry stocks with report that auto
industry has approached the government to cut Goods and Services Tax (GST) on
passenger vehicles and two-wheelers from 28% to 18% to compensate the sector,
which is expected to see price hike in range of 10-15% with the coming of new
emission and safety regulations. Besides, Society of Indian Automobile
Manufacturers' (SIAM) data showed that Indian automotive industry saw marginal
increase of 5% at 26,267,783 units in Financial year 2018-2019. The second half
of last fiscal witnessed subdued growth across all segments.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
11,604.50
|
11,532.30
|
11,693.50
|
BSE Sensex
|
38,700.53
|
38,467.24
|
38,987.53
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
262.52
|
260.05
|
256.17
|
266.02
|
Tata Motors
|
238.78
|
200.55
|
197.10
|
205.70
|
Indiabulls Housing Finance
|
219.16
|
859.35
|
836.12
|
899.57
|
SBI
|
173.94
|
312.80
|
309.52
|
317.67
|
NTPC
|
134.09
|
135.55
|
134.47
|
136.72
|
Sun Pharmaceutical Industries has launched INFUGEM in the US for intravenous use.
Tata Motors will fulfill the order to supply 255 electric buses to various state transport undertakings by July this year.
Kotak Mahindra Bank through its subsidiary Kotak Mahindra Prime has given Rs 500 crore to realty firm Gaurs for faster execution of Gaurs' two projects at Noida Extension, Uttar Pradesh.
M&M has sold 1,62,000 pick up range vehicles in domestic market during the fiscal ended March this year, as against 1,49,121 vehicles in FY-2018, logging a 9% growth.