Indian
equity markets commenced the week on a sluggish note as the frontline indices
showcased an unenthusiastic performance on Monday and settled with moderate
cuts of around ten basis points. Market participants remained on the sidelines
and refrained from any buying activity after the US
payrolls data released on Friday indicated strong underlying wage growth,
strengthening the case for more rate increases in 2017. The US Labor Department
said non-farm payroll employment climbed by 156,000 jobs in December, while
hourly pay jumped 2.9 percent from the year before, which was the biggest
monthly increase in seven years. For 2016 overall, job growth in the world's
biggest economy remained steady, although the pace was slower than in 2015. On
the domestic front, sentiments were undermined by the advance estimates of GDP
data for fiscal year 2017, indicated a slowdown in growth even though the
figures do not take into account the demonetisation impact. GDP growth is
estimated to slow down to 7.1% in the current fiscal, from 7.6% in 2015-16,
mainly due to slump in manufacturing, mining and construction sectors.
sentiments weakened further on the report that Foreign investors pulled out
more than $3 billion of the so-called 'hot money' from the Indian capital
markets in 2016, making it the worst period in last eight years in terms of
foreign investments. However, investors got some ease with Finance minister
Arun Jaitley's statement that the impact of demonetization on the economy would
be "transient" but in the medium and long run, the GDP would be "bigger and
cleaner" and it will also help lower interest rates. He also said that the
Goods and Services Tax (GST), which will be implemented this year, will provide
for better indirect tax administration. Some support also came with the report
that India has
emerged as the most optimistic country globally in terms of business optimism
as the country's businesses are high on expectations of increasing revenue,
employment, profitability. According to the report, there is an overall
increase in global optimism which augurs very well for India
in terms of attracting investments and providing markets for Indian products
and services globally. Finally, the BSE Sensex declined 32.68 points or 0.12%
to 26726.55, while the CNX Nifty was down by 7.75 points or 0.09% to 8,236.05.
The US
markets presented a mixed performance on Monday following the good gains in
previous session. While the tech heavy Nasdaq extended the gains, the Dow and
S&P ended mildly in red. A lack of major US
economic data kept some traders on the sidelines, while energy stocks showed a
notable move to the downside on the day amid a sharp drop in the price of crude
oil. Traders are now waiting for release of producer prices and retail sales
data along with financial giants Bank of America, JPMorgan Chase and Wells
Fargo's quarterly results later this week for further cues. The Nasdaq gained
10.76 points or 0.20 percent to 5,531.82, while Dow Jones Industrial Average declined
by 76.42 points or 0.40 percent to 19,887.38 and S&P 500 ended lower by 8.08
points or 0.35 percent to 2,268.90.
Crude
oil futures started the week on a tepid note and declined to three week low on
Monday, on indications of increased drilling activity in U.S.
and overlooking signs that OPEC members are adhering to planned output cuts. There
were also some worries in the market about production increases in Libya
and Nigeria,
which are both allowed to ramp up production as part of the OPEC deal. In the
week ahead, market participants will eye fresh weekly information on U.S.
stockpiles of crude and refined products on Tuesday and Wednesday to gauge the
strength of demand in the world's largest oil consumer. Benchmark crude oil
futures for February delivery was down by $2.03 or 3.8 percent to $51.96 on the
New York Mercantile Exchange. In London,
Brent crude for March delivery ended lower by $2.16 or 3.8 percent at $54.94 on
the ICE.
Indian rupee ended one-week low against US dollar on
Monday, tracking the losses in the local equity markets. Rupee sentiments were
pessimistic after the advance estimates of Gross Domestic Product (GDP) data
for fiscal year 2017, indicated a slowdown in growth even though the figures do
not take into account the demonetisation impact. GDP growth is estimated to
slow down to 7.1% in the current fiscal, from 7.6% in 2015-16, mainly due to
slump in manufacturing, mining and construction sectors. Besides, sustained
capital outflows and dollar strengthen against a basket of some currencies also
weighed on the local unit. On the global front, dollar pushed higher against a
basket of the other major currencies on Monday as the U.S. jobs report for December supported the case for rate
hikes. Finally, the rupee ended at 68.20, 24 paise weaker from its previous
close of 67.96 on Friday.
The
FIIs as per Monday's data were net sellers in equity and debt segments both. In
equity segment, the gross buying was of Rs 3511.02 crore against gross selling
of Rs 3829.52 crore, while in the debt segment, the gross purchase was of Rs
563.75 crore with gross sales of Rs 751.19 crore.
The US
markets made a mixed closing in last session with energy stocks declining amid
lack of any major economic news. The Asian markets have made a mixed start and
some of the indices are in red led by the Japanese market. The Indian markets
ended marginally in red after a lackluster performance during the day on mixed
global cues and weakness in rupee. Today the start is likely to see a cautious
trade on mixed global cues and few other brokerages projecting a sharply lower
growth numbers for the year. However, traders will get some support with
Finance Minister Arun Jaitley's statement dismissing the slowdown concerns,
saying that higher tax mop up indicates uptick in economic activity. He said
that demonetised notes had no role to play in the tax collections for December
as people were allowed to pay taxes in the spiked currency only in November and
the indirect and direct tax collections between April and December this year
increased by 25 percent and 12.01 percent respectively compared to the same
period last year. The banking stocks will be under pressure, as the global
credit rating agency Moody's and its Indian arm ICRA has said that asset
quality issues will continue to hurt prospects of Indian banks in the medium
term, despite continued deterioration of the asset quality having been arrested
by most of the lenders. On the other
hand there will be some buzz in the aviation stocks, as per the global airlines
OTP survey report domestic carriers Jet Airways and IndiGo have ranked seventh
and tenth, respectively, in on-time performance in Asia Pacific.
Support and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
8236.05
|
8221.53
|
8256.78
|
BSE Sensex
|
26726.55
|
26664.86
|
26824.56 |
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
SBI
|
83.29
|
247.05
|
245.92
|
248.27
|
ICICI Bank
|
71.59
|
258.7
|
256.52
|
260.37
|
Hindalco
|
61.43
|
158
|
156.37
|
160.92
|
Bank of Baroda
|
60.79
|
152.8
|
151.80
|
154.40
|
Infosys
|
52.73
|
970.35
|
964.58
|
976.53 |
- ITC
has commenced construction of its super premium five star hotel 'ITC Narmada' in Gujarat.
- Tata
Motors is aiming to be among the top three passenger vehicle makers in India
by 2019.
- Maruti
Suzuki India has
reported 0.40% fall in its production to 107,338 units in December 2016 as
compared to 107,773 units in December 2015.
- Tata
Steel has posted a 13% rise in sales in April-December 2016 to 7.7 mt up from
6.8 mt in the same period in 2015.
- Tata
Power Delhi Distribution, a joint venture of Tata Power and the Government of
Delhi, has commissioned a 66/11 kV AIS Grid Substation at Dheerpur, Delhi.