Euphoric Indian equities
showcased an impressive performance on Wednesday by conquering the crucial
9,400 (Nifty) and 30,200 (Sensex) levels, as shares of consumer goods and
agriculture-dependent companies rallied after the country's weather office
forecast a higher monsoon rainfall than previously expected. India looks likely
to receive above average monsoon rainfall as concern over the El Nino weather
condition has eased in the past few weeks, the chief of the India
Meteorological Department (IMD) said on Tuesday, raising prospects of higher
farm and economic growth. El Nino, a warming of ocean surface temperatures in
the eastern and central Pacific that typically occurs every few years and was linked
to crop damage, fires and flash floods, faded in 2016. Sentiments also got a
leg up after data showed that foreign funds, which were net sellers on the
Indian bourses for the past few sessions, made fresh purchases in yesterday's
trade. Foreign institutional investors bought shares worth Rs 333 crore in
Tuesday's session. Some support also came with the report that Prime Minister
Narendra Modi has reviewed progress of key infrastructure sectors including
petroleum and natural gas, power, renewable energy and housing. The Prime
Minister called for greater emphasis on ethanol blending, and evolution of
mechanisms so that farmers can benefit the most from this process. Investors
also took some encouragement with the private report that Indian business leaders
are the most confident among the world's 10 largest economies. The confidence
of Indian leaders rose 3.2 points to 66 in the first quarter of 2017, reversing
the decline seen in the fourth quarter of 2016, when confidence dipped in the
immediate aftermath of the government's decision to invalidate old high-value
currency notes. Finally, the BSE Sensex gained 314.92 points or 1.05% to
30248.17, while the CNX Nifty was up by 90.45 points or 0.97% to 9,407.30.
The US markets continued their
lackluster trade and made another mixed closing on Wednesday. The major
averages kept bouncing back and forth across the unchanged line through the
day, amid political uncertainty on the heels of President Donald Trump's abrupt
dismissal of FBI Director James Comey. His firing raised concerns about Trump's
ability to move forward on policy issues such as tax reform and deregulation.
Traders also seemed somewhat reluctant to make significant moves ahead of the
release of key reports on retail sales and producer and consumer prices in the
coming days. On the economy front the Labor Department reported that import
prices rose by more than expected in the month of April, with the increase
partly reflecting a rebound in prices for fuel imports. Import prices climbed
by 0.5 percent in April after a revised 0.1 percent uptick in March. The report
also said export prices rose by 0.2 percent in April after inching up by a
revised 0.1 percent in March. The Dow Jones Industrial Average was down by 32.67
points or 0.17 percent to 20,943.11, while the S&P 500 was up by 2.71 points
or 0.10 percent to 2,399.63 and the Nasdaq added 8.56 points or 0.1 percent to 6,129.14.
Crude oil futures bounced back on
Wednesday posting their biggest gain of the year, as investors cheered the
latest report from the Energy Information Administration (EIA), showing U.S.
crude inventories fell more than expected.EIA said that Crude inventories fell
5.2 million barrels in the week to May 5. Meanwhile, gasoline inventories
dropped by only 0.150 million, while distillate stockpiles fell by 1.6 million
barrels. Benchmark crude oil futures for June delivery ended higher by $1.45 or
3.2 percent to $ 47.33 on the New York Mercantile Exchange. In London, Brent crude
for June delivery surged by 3.7 percent to end at $50.54 on the ICE.
Indian money markets remained
closed on Wednesday, on account of Buddha Pournima.
The FIIs as per Tuesday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 3364.40 crore against gross
selling of Rs 3945.75 crore, while in the debt segment, the gross purchase was
of Rs 1203.77 crore with gross sales of Rs 163.73 crore.
The US markets continued their
consolidation mood and once again made a mixed closing with trade turning
cautious after US President Donald Trump's abrupt dismissal of FBI Director
James Comey. The Asian markets have made mostly a positive start, as a rebound
in oil boosted energy producers. Also, the corporate earnings and positive data
on the US economy have buoyed sentiment about global growth. The Chinese market
was though marginally in red, heading for a seventh decline in eight days. The
Indian markets hit a fresh lifetime high in the last session supported by
normal monsoon forecast with FMCG, consumer durables and agri related stocks
taking the lead. Today, the start is likely to be in green and the markets will
be extending the gains. Traders will be getting some support with Prime Minister
Narendra Modi setting up a task force under the chairmanship of the Vice
Chairman of NITI Aayog Dr Arvind Panagriya, with an aim to create policies on
employment based on credible data. The Prime Minister has directed that this
task be expedited so that policies on employment can be formulated with a
proper appreciation of impacts, based on credible data. Meanwhile, six months
after the announcement of demonetisation by Prime Minister Narendra Modi, the
RBI has declined to share details of the note ban process, saying it would be
detrimental to the country's economic interests. The central bank also said
that it is also likely to impede future economic or fiscal policies of
Government of India. There will be lots off earnings announcements to keep the
markets buzzing, the aviation stocks too will be in action as the crude prices
have bounced back, while the aviation ministry has said that airfares on the
government's subsidised regional flights will be revised every three months and
the subsidy provided, accordingly, will also be changed.
Support and Resistance: NSE (Nifty) and BSE
(Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
9407.30
|
9357.28
|
9436.03
|
BSE Sensex
|
30248.17
|
30066.54
|
30350.70
|
Nifty Top volumes
Stock
|
Volume
(in Lacs)
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
Bharti Airtel
|
244.11
|
372.75
|
346.03
|
389.93
|
ICICI Bank
|
136.86
|
298.65
|
296.45
|
301.75
|
Hindalco
|
94.60
|
187.10
|
185.52
|
188.62
|
Axis Bank
|
88.12
|
526.35
|
518.85
|
530.70
|
SBI
|
86.99
|
294.45
|
292.25
|
297.40
|
Bharti Airtel has entered into a strategic partnership with Ola to offer a range of exciting digital services to customers.
NTPC is all set to raise around $310 million through an offshore bond issuance on May 12.
HDFC Bank has raised debt worth Rs 8000 crore, through private placement by issuing additional Tier-I bonds through online bidding of securities on the National Stock Exchange.
Tech Mahindra's subsidiary - Mahindra Comviva has launched a chatbot based Caller Ring Back Tone solution to assist subscribers in finding and availing the right content and price points for various offerings.